The HR director at Clearwater Electronics is responsible for all negotiations with the company’s union. Like other companies in the industry, most of the employee base at Clearwater is unionized. A meeting has been scheduled to negotiate a proposed wage increase for nonexempt employees at Clearwater, and the HR director anticipates the negotiation will be difficult. Why do wage disputes cause conflict? Conflict arises because people do not understand what the other side is going through. Conflict arises because the employer does not understand what it means to be in the trenches where true value is added to the company. Conflict arises because increased wages cost the company, and wage decreases cost the employee. Conflict arises because the employees do not understand the employer’s need to reduce costs to maintain a profitable company.

Within the ever-changing field of labor relations, pay negotiations represent a crucial point of…

Answered: The HR director at Clearwater…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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The HR director at Clearwater Electronics is responsible for all negotiations with the company’s union. Like other companies in the industry, most of the employee base at Clearwater is unionized. A meeting has been scheduled to negotiate a proposed wage increase for nonexempt employees at Clearwater, and the HR director anticipates the negotiation will be difficult. Why do wage disputes cause conflict?

Conflict arises because people do not understand what the other side is going through.
Conflict arises because the employer does not understand what it means to be in the trenches where true value is added to the company.
Conflict arises because increased wages cost the company, and wage decreases cost the employee.
Conflict arises because the employees do not understand the employer’s need to reduce costs to maintain a profitable company.

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