Answer to Question #213389 in Management for deepal

Question

Use the appropriate theory to explain SGA’s position and reasons why they don’t want unions

Answer 1

Use the appropriate theory to explain SGA’s position and reasons why they don’t want unions.

SGA's position and the reason they don't want unions can be explained using the theory of collective bargaining. The theory of collective bargaining entails a democratic way of negotiation (Skripak, 2016). The employer makes one-sided decisions concerning the labor force, including benefits and salary, without involving unions to avoid extra costs. SGA is a company that faced losses based on a reduction in its international sales, which were reduced by 50%. To ensure that the company survived and was not closed down completely, it had to lay off at least 1500 employees and lower pay scales and allowances under the Anderson family. It exercised collective bargaining, where the management wanted to avoid the costs involved in managing a unionized workforce that will ensure workers were paid an agreed wage regardless of its economic situation. In turn, it ensured that the few workers left would be happy and ununionized. By working with unions, the company would pay the remaining employees an amount that would result in closure. In turn, both workers and the company will experience a loss.

 

 

 

References

Skripak, S. J. (2016). Fundamentals of business. Virginia Tech.