Chapter 4 - The role of the environment. The main contents of the chapter consist of the following: A conceptual framework to analyze the environment, bargaining power, the economic context, the legal and public policy context, the demographic context, the social context, the technological context, recent environmental pressures on collective bargaining. | Chapter 4 The Role of the Environment McGraw Hill Irwin An Introduction to Collective Bargaining amp Industrial Relations 4e Copyright 2008 The McGraw Hill Companies Inc. All rights reserved. 1 3 4 3 A Conceptual Framework to Analyze the Environment John Dunlop the former . 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 1 4 4 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 1 5 4 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 1 6 4 6 The Economic Context Microeconomic Influences on Bargaining Power Management s Strike Leverage The more an employer is willing and able to sustain a strike the more likely the work force will be to settle a strike before attaining all the union s goals Determinants of management s strike leverage are 1 Essentiality of striking workers on production 2 Availability of inventories for sales 3 Effects on profits 1 7 4 7 The Union s Strike Leverage Determined by the ability and willingness of the work force to stay on strike The longer workers are willing and able to stay on strike the greater the bargaining power of the union and the likelihood of a favorable outcome for the union Alternative sources of income strike benefits and solidarity influence strike duration 1 8 4 8 The Wage .
