The centerpiece of almost every negotiation is the issue of wages. The topic has become complex and is typically the catalyst for a strike. Of course, the topic of wages is multidimensional. It's not just the salary that union member are making that impacts the profitability of the organization or the cost of products and services on the market. There are other costs that go into making up the total reward paid to any employee, including the union worker. It is this bigger picture of labor costs that concerns management during negotiations. Although the union is focusing on what it can get in terms of total income to the union member, management is looking at the impact of these cost on the total business picture.

A: Compare the methods available for the adjustment of wages during the effective period of the labor agreement. Make this comparison in light of the organization in which you currently work or recently worked.

B: From a management perspective, defend what you would judge to be the most desirable arrangement for your organization. Be sure to include other factors around the wage issue that might impact your decision.