You are representing your employee union in contract negotiations with management. One week prior to contract...

 

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You are representing your employee union in contract negotiations with management. One week prior to contract discussions, management released financial statements showing zero growth in earnings. This is far below the 10% growth predicted earlier. In your review of the financial statements, you find the company increased its "allowance for uncollectible accounts" from 1.5% to 4.5% of accounts receivable, Apart from this change, earnings would show a 9% growth. Does this information affect your negotiations? You are representing your employee union in contract negotiations with management. One week prior to contract discussions, management released financial statements showing zero growth in earnings. This is far below the 10% growth predicted earlier. In your review of the financial statements, you find the company increased its "allowance for uncollectible accounts" from 1.5% to 4.5% of accounts receivable, Apart from this change, earnings would show a 9% growth. Does this information affect your negotiations?

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Answer Facts of the case Management released financial statements showing zero percent growth in the ... View the full answer