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What are the areas that you can explore to find an answer

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Reference no: EM132709094

Case Study: We give below a situation which many companies often face in today's competitive scenario. In a company X, union had given a proposal to the management for a 20 % hike in the wages. The collective bargaining process was still going on.

The Industrial relations manager was clever, so he called for an immediate meeting with the union. He tried to put the sate of affairs in front of the union and asked them to find a solution. This is what he presented to the union:

• The input prices (cost of raw material, electricity, water etc) have gone up by 10 %

• Due to competition, the company has to reduce the product price by 10%

• At the same time the share holders are also expecting 5 % more returns from the existing 15 %

The IR manager puts forward the above circumstances in front of the union and asked them to give a solution.

Tasks for the participants:

Question 1: How to develop a strategy to respond this situation?

Question 2: What are the areas that you can explore to find an answer?

Reference no: EM132709094

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