Final answer:
The claim that the same party always wins in a distributive bargaining scenario is false. Distributive bargaining outcomes can favor either party involved in labor negotiations, and the result depends on many factors, including negotiation skills and the balance of power.
Step-by-step explanation:
When considering the statement that in a distributive bargaining approach used to negotiate labor contract terms, the same party always wins on every bargaining issue, the answer is false. Distributive bargaining is a negotiation strategy where each party tries to gather as much value as they can.
In this scenario, each issue is viewed as a separate negotiation, and the outcome could favor either party, depending on their negotiation skills and power dynamics.
As per the first rule of labor markets, a firm aims to maximize its profits by not paying more for a worker than the value of their marginal productivity to the firm.
But during labor negotiations, especially in situations like a bilateral monopoly, the balance of power between a union and a firm can lead to a variety of results for wages and employment levels. Therefore, it's not predetermined which party will consistently win in every aspect of labor contract talks.