Labor and management at Leo Trucking cannot seem to agree upon a contract for the truck drivers. As each side contends that they are bargaining fairly, no agreement seems to be possible. The drivers are threatening to go on strike, and management knows that such a strike would prove to be costly.
-As both sides agree that they are competing over a fixed amount of resources, each side feels that what one side wins, the other loses. Based on this information, we can say that the two sides are engaged in ________.
A) conciliation
B) distributive bargaining
C) mediation
D) integrative bargaining
E) arbitration

Question

Quizplus · Accepted Answer

The essence of distributive bargaining is negotiating over who gets what share of a fixed pie. When the pie is fixed, or parties believe it is, they tend to engage in distributive bargaining. Probably the most widely cited example of distributive bargaining is labor management negotiations over wages.

Labor and Management at Leo Trucking Cannot Seem to Agree