Skip to main content

Labour Contract Agreement

If labor’s demand is within the company’s Starting Position and Negotiation Ceiling, negotiations lead to an agreement. Company 2’s negotiators have instructions to issue a Starting Position of $23.00 and a Negotiation Ceiling is $25.30. Company 2’s negotiation range brackets labor’s demand. They will agree at $23.50, halfway between the $23.00 Starting Position and labor’s demand of $24.00 (figure below).

Company 2 Agreement: Company 2’s Starting Position ($23.00) and Negotiation Ceiling ($25.30) bracket Labor’s demand of $24.00. Negotiators settle at a wage of $23.50, halfway between $23.00 and $24.00– there is no strike.

< Previous Page    Next Page >