Both industry A and industry B are extensively organized by conscientious and ho

Question

Both industry A and industry B are extensively organized by conscientious and honestly run labor unions. Still, since 1972. the wages within industry A have risen at about three times the rate of those in industry B. How might you account for the difference in the wage situation between these two industries? "Even though the actual wage rate that will be negotiated in a particular negotiation is not determinable, it is certain that the set of arguments that union and management representatives will use to support their respective positions will not change front negotiation to negotiation." To what extent, if any, do you agree with this statement?

Explanation / Answer

1) The difference in the wage situation between two industries can be attributed for various reasons and some of them include :

2) This statement is true because Union represents the interest of workers and management representatives top most priority is the firms interest . Therefore any set of arguments between union and management is in regards to the labor management relationship . The union represents labor issues such as minimum wages , working hours , benefits , allowances etc . The management issues largely comprise of firms profitability , productivity etc. The respective position of unions and management will not change . The unions are always firm about demand for minimum wages , working hours etc . On the other hand management is also firm about the productivity of employees which has a direct impact on the firms profits . The management sticks to its stand and so does the union .

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