Question

Barbara owns a manufacturing plant with four facilities(North, South, East and West) in the state of Indiana. The workers at the North plant have decided to join a union. The union negotiates with Barbara and receives average wages that are 5% higher than the workers at the South, East and West facilities. The wage differential is a likely example of

Answer 1

Union power

Step-by-step explanation:

Union members usually earn a higher salary than non-unionized employees carrying out the same tasks in similar companies due to union power. Basically unions exercise their power of representing workers through their ability to call on a strike. Also, unions negotiate wage increases on a yearly basis, while non-unionized workers must negotiate on their own.