An Employer Is Preparing to Negotiate the Renewal of a Collective

An employer is preparing to negotiate the renewal of a collective agreement. The employer anticipates that the union will be seeking a 3 percent wage increase and anticipates that the union will begin negotiations by asking for a 5 percent increase. The employer is willing to provide a 4 percent wage increase although it would prefer to keep the wage increase to 2.5 percent. The employer is planning on proposing a 2 percent wage increase at the start of negotiations. Which of the following is correct:

A) The employer's resistance point is 3 percent.
B) The employer's resistance point is 4 percent.
C) The employer's target point is 4 percent.
D) The employer's target point is 2 percent.
E) The employer's resistance point is 5 percent.