A union and a mining company are negotiating over wages and conditions. The mining company would like to run the mine over a longer period of the day. This would require 10 miners to work at night. The company argues that the increased productivity would result in $100 000 additional yearly profits for the firm. The miners, however, believe that being able to work during the day rather than at night is worth about $8000 a year to each. This is the value of being able to spend more time with their families.

a What will happen in negotiations over night work? Can the company convince the union to accept this?

b How would your answer change if the relative value of day work was $12 000 for each miner?