Asked by Amaiya Augusta on Sep 24, 2024
Verified
The firm would have a better bargaining position in the negotiations if
A) It can hire the non union "scabs" at a better wage
B) The union has younger workers who cannot afford to be off work
C) The union has a strike fund to pay workers during work stoppage actions
D) Only A&B
Bargaining Position
The relative power or leverage that a person or entity holds in negotiation settings, affecting their ability to secure favorable terms.
Nonunion Scabs
Workers who are not members of a labor union and are employed to work during a strike, typically regarded negatively by union members.
Strike Fund
A reserve of money set aside by labor unions to support workers during a strike action, helping cover lost wages and other expenses.
- Recognize the role of external options in shaping bargaining leverage.
- Acknowledge the impact of negotiation strategies on the improvement of bargaining outcomes.
Verified Answer
KP
Kendall Pogue5 days ago
Final Answer :
D
Explanation :
The firm's bargaining position improves if it can hire non-union workers at better wages, indicating less dependence on union workers (A), and if the union has younger workers who cannot afford to be off work, indicating potential pressure within the union to avoid prolonged strikes (B). A strike fund (C) would actually strengthen the union's position, not the firm's.
Learning Objectives
- Recognize the role of external options in shaping bargaining leverage.
- Acknowledge the impact of negotiation strategies on the improvement of bargaining outcomes.