Final answer:
Government intervention can indeed alter the relative bargaining power of unions and management in labor disputes, by influencing labor negotiations, creating or changing regulations, and shaping the strategic options available to both parties.
Step-by-step explanation:
Possible government intervention in a labor dispute is indeed a factor that could alter a union's or management's perception of their relative bargaining power. When the government enacts policies affecting labor markets, they influence the dynamics of labor negotiations and the strategies of both unions and employers. Governmental involvement might include assistance in job searches, reassessing labor laws, or even directly intervening in labor disputes, which can shift the balance of power between labor and management. Unions and employers have to consider various factors, including government policies, when assessing their bargaining positions.
Historically, the perception of government roles has impacted labor relations and economic policies. For example, government regulations like the Sherman Anti-Trust Act and workplace safety rules have shaped business practices and labor negotiations over time. The creation of antitrust laws and regulatory agencies can influence corporate strategy by either promoting stability and better relations between labor and management or by weakening the bargaining positions of either side, depending on the nature of the intervention.
Moreover, the history of labor unions in the United States shows that unions have played a significant role in ensuring higher wages and better working conditions for their members. As the supply side of the labor market, unions, depending on their market power, can significantly influence management decisions. However, a drop in union membership due to globalization, industry shifts, and changing legislation reflects evolving power dynamics in the labor market.
Therefore, it is true that government intervention in a labor dispute could alter the perception of bargaining power between unions and management.