In a contract negotiation, union leaders initially demand a $2 per hour raise. Management does not want to give workers a raise at all. Eventually, both sides agree to a $1 per hour raise. This is an example of ________.

Question

Quizplus · Accepted Answer

The fact that both sides agreed to a $1 per hour raise after initial demands for $2 per hour (from the union) and no raise (from management) indicates that both sides made concessions and met somewhere in the middle. This is known as a compromise.

In a Contract Negotiation, Union Leaders Initially Demand a $2