Final answer:
The claim that unions obtain better results through distributive bargaining instead of integrative bargaining (IBB) is not universally true, as negotiation strategies depend on context and goals. Figure 14.12 describes how a union raised wages above the equilibrium but resulted in an excess supply of labor, which highlights the potential downsides of distributive tactics. The correct answer to the claim is b. False.
Step-by-step explanation:
According to Yates' claim about union bargaining practices, if unions engage in distributive bargaining rather than integrative bargaining (IBB), they would reportedly obtain better results. However, considering the available information and literature on the subject, this statement may not necessarily be universally true, especially since the effectiveness of distributive bargaining versus IBB can vary depending on the context and the goals of the negotiation.
Distributive bargaining is often considered a zero-sum negotiation where one party's gain is another party's loss, whereas IBB, also known as 'win-win' bargaining, strives for solutions that benefit all parties. While distributive bargaining can lead to higher immediate gains in terms of wages—as mentioned in Figure 14.12 where the union uses its bargaining power to raise wages—the long-term relationship between employers and employees might be compromised, affecting collaborative problem-solving and potentially leading to excess supply of labor for union jobs. In contrast, IBB focuses on long-term mutual interests, fostering a healthier labor-management relationship.
Given this context, the correct option in answer to the statement about Yates' claim is b. False. Strategies that work best for unions in negotiations can vary widely based on factors such as the industry, the economic environment, and the historical relationship between the union and management.
Additional Context on Union Influence
Regarding the share of U.S. workers whose wages are determined by union bargaining, it is generally lower compared to most other high-income countries. This difference can be attributed to varying labor laws, cultural attitudes toward unions, and historical trends in labor movements.