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

question 67

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.Cole's negotiating strategy with Natalie's predecessor was most likely based on:

• A) distributive bargaining.
• B) bad faith negotiations.
• C) integrative bargaining.
• D) bargaining power.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.