The expense the company saves by letting the union workers draft a new document with their compensation demands is insignificant, which can be saved if they are not implemented. The second option is taken: take it or leave it.However,the union knows that the company can make arbitrary new workers' compensation decisions.Therefore, the new document may contain realistic requests about job security, health benefits, andwages that the employer and human resources executives can consider.
Suppose Human Resources executives decide to implement a take-it-or-leave-it offer. In that case, it can cause workers who do not consider this offer adequate to resign, affecting the company's production, reducing marginal income and increasing costs marginally.Likewise, this strategy can affect the image and reputation of the company, making it seem very little tolerant and little open to the workers' opinions and points of view.Therefore, Human Resources executives must accept the first option of letting the union incur the expense of preparing a document with their desired compensation as it will represent a lower cost to the company.
They are better off offering a take-it-or-leave-it offer because you need to provide the union with enough advantages to make them better off than the option of rejecting the contract. The cost of creating the document is little.Labor satisfaction and hence worker productivity will suffer if labour expectations are not fulfilled. Many layoffs would entail significant replacement and instruction expenditures for the organization to employ new staff.A make-it-or-leave-it offer will ruin the firm's public image since the corporation will appear arrogant in front of the general public if it lays off such a small number of employees.High job protection, health, and salary benefits for workers would eventually lead to higher commodity prices in the near run since the corporation would need to generate enough income to pay the workers. This price increase will ultimately affect employees, and their actual earnings (W/P) will be equal.
In this instance, workers may be unaware that their real earnings have not changed and will be content with improved perks and pay. However, the firm will quickly recognize its higher costs and instantly raise its rates, putting the company in the same position as before.
