In: Operations Management
Can there ever be equal bargaining power between unions and management? why or why not? include unions bargaining power and managements bargaining power
Yes, there can situations when the bargaining power of the
unions and management be equal. Lets first discuss the bargaining
terms clearly to reach the further discussion. The bargaining power
of the parties (union and management) can be described as the power
to influence or exert pressure on the decision of the other party.
For instance, if the management changes the compensation rules, the
workers union can call a strike and exert pressure on management to
raise the wages. In a similar way.
Now, as asked in the question, I would say yes there can be
circumstances when the bargaining power of both the parties is
equally influential and strong. The reason being is the there are
some factors that made the argument or bargaining power better. If
the employees or workers are holding a strike to force the
management to raise the salary, it can be done on the basis of
increasing the profitability of the company, skills of the workers,
and capabilities of the workforce. Such forces make the bargaining
power of the union strong. Now take another look, if the management
does not agree to the demand of the workers, there can a reason
like the company has plenty of workers to work and professionals
who are loyal to the company. this way, the bargaining power of the
management is strong.
Hence, there are equally strong forces are fighting against es=ach
other, the bargaining powers can be highly equal.