Question: Nutco is a cashew - processing firm that operates in the developing country of Ecotopia. After procuring raw cashews from farms around the country, Nutco

Nutco is a cashew-processing firm that operates in the developing country of Ecotopia. After procuring raw cashews from farms around the country, Nutco processes them using a labor-intensive method. The workers at Nutco recently demanded a 20 percent increase in their overtime wage rate. All members of Nutco's labor union, which was a substantial proportion of the company's labor force, went on an unannounced strike when the management only agreed to a 5 percent hike. During negotiations that followed, the management informed the union leader that this was a take-it-or-leave-it offer. The union leader was not convinced and declared that the workers would not come back to work unless their demands were fully met. Kurt Whitman, Nutco's human resources manager, however thinks that the strike will end soon because of the company's strong stand.

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