Microeconomics 19th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 3

Suppose that you are president of a newly established local union about to bargain with an employer for the first time. List the basic areas you want covered in the work agreement. Why might you begin with a larger wage demand than you actually are willing to accept? What is the logic of a union threatening an employer with a strike during the collective bargaining process? Of an employer threatening the union with a lockout? What is the role of the deadline in encouraging agreement in collective bargaining?