In the months of preceding the expiration date

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Reference no: EM1332579

Who Should Draft a Union Contract in Game Theory?

The UAW labor contract with General Dynamics expired in October 2001. In the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract. All contracts must be ratified by the union members. Some of the many issues on the table included job security, health benefits, and wages. If you were an executive in charge of human resource issues at General Dynamics, would you be better off

(a) letting the union bear the expense of crafting a document summarizing its desired compensation, or
(b) making the union a take-it-or-leave-it offer? Explain.

Reference no: EM1332579

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