Evaluate the following two scenarios and identify the possible sources of information that would be used by a union in asserting its demands to two different bargaining units (employers).

1. Firm 1 reported record high earnings, but also told its union representatives that it could not afford even a small increase in wages.

2. Firm 2 reported huge decreases in its earnings and,at the same time,was considering accepting its union’s proposed 15% average increase in wages.