In a multinational company, the collective bargaining process was going on. The union puts up its demands to the management. But the management also had some issues to place before the unions. They said that they would consider the demands of the union only if the union is ready to make some compromise.

The MNC was catering to the markets of the USA and Europe. At the same time, they had 50% dependence on the domestic market. But due to Global Financial Crisis, the rest 50% of export orders were affected. From 50%, it has gone down to 10%, a reduction of 40%. This is a grave situation indeed. The company may not survive only with the domestic market.

So, the management made a request to the Union that they are ready to listen to the demands of the Union, only when they fulfill either of the following conditions:

• Reduce manpower by 20%
• Reduce wages to meet the slack in demand

Question 1 - What are the specific interests of management and labour in this situation? IDENTIFY ONE (1) for each.

Question 2, 3- What options will you suggests for both to address their individual interests? IDENTIFY at least ONE (1) option for each. EXPLAIN

Question 4, 5- What standards will you apply to evaluate the options? IDENTIFY at least ONE (1) standard for each. EXPLAIN