Question

In: Operations Management

Can there ever be equal bargaining power between unions and management? why or why not? include...

Can there ever be equal bargaining power between unions and management? why or why not? include unions bargaining power and managements bargaining power

Solutions

Expert Solution

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.


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