In labor negotiations failure to reach a contract agreement


In labor negotiations, failure to reach a contract agreement frequently results in a labor strike or work slowdown. In each of the following situations, identify which side-labor or management-is better positioned to obtain favorable contract terms from the other.

a. Demand for the firm's products is booming, and the firm is earning record profits.

b. The labor union has over $20,000 per worker in its strike fund.

c. A recession in the region has led to increased unemployment.

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Microeconomics: In labor negotiations failure to reach a contract agreement
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