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During an economic recession, both management and unions face significant shifts in their bargaining power, albeit in different ways as:Management's Bargaining Power:During a recession, companies often face declining revenues, reduced profits, and increased pressure to cut costs. This can weaken management's bargaining power in several ways:Reduced Profitability,Increased Pressure for Cost Reduction,Limited Investment Capacity,

Example:Consider a manufacturing company facing a recessionary period due to a decline in consumer spending. In negotiations with the union representing its workers, management may propose wage freezes or even layoffs to align with reduced demand and maintain the company's viability. The weakened financial position of the company could limit management's ability to resist union demands for job security or enhanced benefits.

Union's Bargaining Power:While economic recessions can weaken bargaining power, they can also provide opportunities for unions to leverage certain factors:Increased Job Insecurity, Public Perception, Need for Workforce Stability

Example:In a recession, a transportation company experiencing financial strain due to reduced demand might propose layoffs and reduced benefits to its unionized workforce. The union, aware of the company's need for skilled labor and the potential backlash from public opinion if mass layoffs occur, could push back strongly, demanding alternative cost-saving measures or enhanced severance packages for affected employees.