Negotiations between Delco Manufacturing and the union representing its employees are at an impasse. The union is seeking a 3% wage increase. Deko's offer is 1% The employees have passed a vote authorizing job action. Suppose the union succeeds in winning the 3% increase after a two-month strike. For an employee 15 years from retirement, will there be any economic gain? Compare the current economic values of

(1) 10 years' end-of-month wages at the employer's offer (101% of last year's wages) vs.

(2) Wages including a 3% increase to the same time horizon but after a two-month strike. Assume money is worth 5.4% compounded monthly.