Answer Happy

Question 3
Read the following scenarios and then
answer the question that follows:
Scenario 1:
A small organisation, with 300 employees, is experiencing
financial difficulties. They can only afford to pay a 4% salary
increase. However, the union demands a 10% increase across the
board. They refuse to accept anything less. The union embarks on a
strike. The strike lasts three months. During the strike the
organisation does not produce any outputs – resulting in
bankruptcy.
Scenario 2:
A large organisation, with 5000 employees, makes a large profit
annually. Despite this, they retrenched 500 workers the previous
year with the excuse that they are restructuring. Still top
management received an incentive bonus. During wage negotiations
the company offers the workers an increase of 5%. The union demands
a 10% increase. The union follows the correct procedures and goes
on strike. The employer follows the rule of no work, no pay for the
duration of the strike. After the strike has gone on for two
months, management agrees to give the employees the 10% raise.