The check-out clerks at a large grocery store are in negotiations with management. The last remaining issue to settle is the hourly wage. In their earlier meetings, the clerks' bargaining committee has decided that although they are demanding $9.50 an hour, they will settle for nothing less than $8.75. Management's bargaining committee has decided that their highest offer will be $8.50. Union's figure of $8.75 is its _____.
A) initial demand point
B) target point
C) resistance point
D) strike point
E) settlement point

Question

Quizplus · Accepted Answer

The union's figure of $8.75 is its resistance point, which is the lowest offer they are willing to accept before considering taking other actions such as a strike. This is different from their initial demand point, which was $9.50, and their target point, which may have been somewhere in between the two. The settlement point refers to the final agreement reached between the two parties, which has not yet been determined in this situation.

The Check-Out Clerks at a Large Grocery Store Are in Negotiations