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collec paper - First National Bank Case Chelsea Brown When...

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First National Bank Case Chelsea Brown When it comes to the bargaining power that labor and management hold in first contract negotiations, there is both total and relative power involved. Total power refers to the total profits available to both management and labor. Relative power is the ability of either management or labor to gain a larger share of a given amount of profit, which creates conflicting interests. There are certain factors that influence total power of labor and management including competition facing the employer and the state of the economy. In terms of the state of the economy a firm with higher profits meaning greater total power happens when the economy is strong and demand grows. For relative power strike leverage depends on availability of jobs because the higher the unemployment rate the less likely striking workers will find substitute employment. Strike leverage deals with costs a strike imposes and alternative income sources. There are economic factors that influence bargaining power in terms of total power such as with greater profits there is more market power and with relative power through the elasticity of demand. There is a power struggle with the bank, Auto Company, and competition from smaller banks. Lake city depends mainly on the auto company. Meanwhile First National is the largest and greatest in the community with assets twice the size of the nest largest bank in the area. The auto company, unionized by the IMU has increasingly taken away young workers from the bank. The auto company has also instituted a SAI guaranteeing take home pay, making the bank no longer the only place with job security. First bank is the only bank with a profit sharing plan that has a pension plan better or equal to other banks but not at good as the auto company. Since the auto company does have a lot greater benefits than First National, the IMU union has a lot to fight against the bank
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since employees see what it has done for autoworkers. The employees wanted the IMU to help the health care plan and even though the company did put into action a
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collec paper - First National Bank Case Chelsea Brown When...

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