Concession Bargaining And the National Economy

Cover Concession Bargaining And the National Economy
Concession Bargaining And the National Economy
Peter Cappelli
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The trend in imports from 1972 to 1978 is a function of factors that are reasonably similar today; the data are likely to reflect accurately current -6- conditions, making it a better predictor than changes in union coverage. The trend in coverage from 1972 to 1979 may not accurately reflect current developments because the forces that influence coverage vary greatly over time. It is an uncommon but not unknown event for unions to be confronted with a demand curve that has shifted and the possi...bility of substantial unemployment. Under these circumstances, unions may be willing to accept a reduction in labor costs — grant a rollback or concession — in order to save jobs. Juris and Henle cite examples from earlier concessions where this was apparently the case. These studies suggest that unions can adjust to a one-shot change in labor demand in a relatively straight-forward fashion that does not change the basic bargaining relationship. One can argue that there was nothing fundamentally new or different about these cases; true, there was some break in the trend of settlements, but there were few new topics in negotiations or new elements in the settlements.

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