Question

Labor and management at Leo Trucking cannot seem to agree upon a contract for the truck drivers. As each side contends that they are bargaining fairly, no agreement seems to be possible. The drivers are threatening to go on strike, and management knows that such a strike would prove to be costly. As both sides agree that they are competing over a fixed amount of resources, each side feels that what one side wins, the other loses. Based on this information, we can say that the two sides are engaged in ________.

Answer 1

Answer: Distributive bargaining

Explanation: The two sides (Labor and management) are engaged in distributive bargaining as both sides are of the opinion that any gain by the other is a loss. Distributive bargaining is defined as an adversarial competitive bargaining strategy in which one party gains only if the other party loses something and is employed during negotiation in the distribution of fixed resources between both the parties. This is usually because the goals of one party does not align or are against the goals of the other party resulting in a win-lose situation.