Cooperative bargaining

While companies are hit by recession, they cannot offer the types of wages and benefits demanded by employees. At the similar time they cannot survive without the latter's support. Both of the parties realise the significance of surviving in such hard times and are ready to negotiate the terms of employment in a flexible way. Labour might accept a cut in wages in return for job safety and higher wages while things improve. Management agrees to modernise & bring in new technology and invest in marketing attempt in a phased manner.

Box: The Substance of Bargaining