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Chapter 4
The Role of the Environment
McGrawHill/Irwin
An Introduction to Collective Bargaining & Industrial Relations, 4e Copyright © 2008 The McGrawHill Companies, Inc. All rights reserved.
4 1 3 A Conceptual Framework to Analyze the Environment
• John Dunlop, the former U.S. Secretary of Labor, classified the industrial relations environment into three main influences:
1. The economic context
2. The technological context
3. The locus of power in larger society
4 1 4
Bargaining Power
• The ability of one party to achieve its goals in bargaining in the presence of opposition by another party to the process
• Union power is influenced by the ability to withdraw services through a strike
• Employer’s bargaining power is influenced by the ability to withstand a strike
• “Working to rule” may be attempted by the union
4 1 5 How Strike Leverage Influences Relative Bargaining Power
• “Strike leverage” is the relative degree to which workers and the employer are willing and able to sustain a strike
• To measure leverage, we need to know what costs a strike would impose on each party
• Also, what alternative income sources are available to each party to offset any income losses induced by the strike
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