Emma is the labour union negotiator. Today, she is meeting with management to discuss the new five-year contract, including wages and benefits. This example of labour-management negotiations over wages exemplifies ________.

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Distributive bargaining is when parties negotiate over a fixed-pie of resources, such as wages, and try to claim as much of the pie for themselves as possible. Both Emma (representing labour) and management will likely try to claim as much of the available wage budget as possible for their respective sides, so this exemplifies distributive bargaining. Integrative bargaining, on the other hand, aims to expand the pie by creating value for both sides, and typically seeks win-win outcomes. Arbitration involves a neutral third party making a binding decision. Mediation and conciliation involve third parties facilitating negotiations between the parties, but the difference between these two methods is often in the level of intervention by the third party.

Emma Is the Labour Union Negotiator