Workers Local 54, the union that represents your Level 1 employees, has approached you about negotiating a contract for the next year. They are demanding a quarterly wage increase for Level 1 workers of $600 per employee. The union justifies the increase by claiming improved productivity since the last contract was negotiated, and that it will allow wages to keep pace withinflation. The negotiator warns that employees are ready to strike if their demands are not met.You must decide if a change in wages is appropriate, and if so, how much. Any increase in wagesyou select here must be matched by a Level 1 quarterly wage increase in your Wages decision.Promising, but not actually delivering on a wage increase will have serious consequences. Please justify your answer. Hint:The organization already has a limited budget so a $600 increase will be too much.

1) A $100 decrease.

2) No change in pay.

3) A $200 increase.

4) A $400 increase.

5) A $600 increase.

6) An $800 increase