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Recessionary Bargaining Power

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The balance of power between labor and management seems to shift from one side the table to the other. When the economy is booming and unemployment rates are low, the balance of power toward labor. When the economy is in recession and unemployment rates are high, the balance of power shifts toward management. Owners want to see their company succeed by earning higher and higher profits, top level executives want to command higher and higher salaries, and shareholders seek ever-higher returns on their investments. Caught in the middle of the battle between labor and management is the HR manager who represents the concerns of labor to management and they convey the positions of management to labor. The purpose of this paper is to discuss how a recession affects a union’s ability to strike and win concessions from corporate management, describe what the organizational climate will be like once the strike is over and employees come back to work, and explain what HR actions are needed to improve workplace relations after a strike.
Recessionary Bargaining Power
Going on strike can be a risky endeavor even in the best of times when the economy is healthy and jobs are plenty. When the economy is strong and unemployment is low, workers have the luxury of picking and …show more content…

Some unions are recording record increases in wage and fringe packages as they nail down agreements. (para 1)
However, the tables turned during and after the 2008 economic collapse. Going on strike to extract wage and benefit concessions during a recession can and often does have devastating consequences, up to and including loss of jobs, reduced wages and benefit cuts. Making matters worse for union members is the fact that these cuts can occur in spite of the fact the owners, top executives and shareholders are earning record

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