Additional Case 15.3 Wear and Tear Is a Large Manufacturer with About 250

question 17

Multiple Choice

Additional Case 15.3
Wear and Tear is a large manufacturer with about 250 employees. At the moment, they are in new contract negotiations with their union. Cole, the firm's labor relations specialist, is heading the negotiations for management. Natalie is labor's representative.
Cole doesn't know if he likes working with Natalie. He was able to make her predecessor agree to his terms whenever they negotiated contracts. Natalie is tougher to deal with. She tends to emphasize what bad things can happen to Wear and Tear and to him if her point isn't granted.
Negotiations have been going on for several days. Cole tells Natalie that if they will accept wage concessions, the company will give employees stock to compensate for the loss in wages. Natalie declines the offer and is unwilling to negotiate further. She reminds him that the contract expires in two days and that the workers will strike if they don't have a new contract by that time.
-Refer to Additional Case 15.3.Which labor relations strategy is Natalie most likely using?

• A) A distributive bargaining strategy
• B) An integrative bargaining strategy
• C) A union acceptance strategy
• D) A bad faith bargaining strategy

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Definitions:

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of a set of data points around the mean.

Expected Return

The average of all possible returns from an investment, weighted by their respective probabilities.

Cyclical Stock

Stocks whose prices are affected by macroeconomic changes in the economy.

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.