Question

Under the bargaining power model, when is the union's bargaining power increased? It costs _____ for management to ____ than _____with the _____.

Answer 1

The union's bargaining power is increased when it is more costly for management to replace union workers than to negotiate with the union.

Step-by-step explanation:

In the bargaining power model, the union's bargaining power is increased when it costs management more to replace union workers than to negotiate with the union. This occurs when union workers are highly skilled or have specialized knowledge that is difficult to replace. Additionally, if the union represents a large percentage of the workforce or has strong public support, their bargaining power will also increase.

For example, if a union represents a majority of the workers in a company and goes on strike, it would be costly for management to hire and train replacement workers. In this case, the union's bargaining power would be high because management would prefer to negotiate with the union rather than incur the costs of finding and training new workers.