Labor and Management at DJ Trucking Cannot Agree Upon a Contract

question 8

Multiple Choice

Labor and management at DJ Trucking cannot agree upon a contract for the truck drivers. The drivers are threatening to strike, and management knows that such a strike would be very costly. Each side contends that they are bargaining fairly, but no agreement seems to be possible.
-Both sides agree that they are competing over a fixed amount of resources. Each side feels that what one side wins, the other loses. The two sides are engaged in ________.

• A) integrative bargaining
• B) distributive bargaining
• C) mediation
• D) BATNA
• E) arbitration

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Definitions:

Direct Labor

The wages and benefits paid to workers who are directly involved in the production of goods.

Raw Materials

The basic materials that are used in the production process of goods, which will be transformed into finished products.

Finished Goods

Items that have finished the production cycle and are available for purchase by consumers.

Forecast

The process of making predictions about future events or trends based on historical data and analysis.