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Consider a non-strategic game between a firm and its union. The value to the firm of getting the workers back to work is $5 million.

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Consider a non-strategic game between a firm and its union. The value to the firm of getting the workers back to work is $5 million. The union's (worker's) agreement value to get back to work is $5 million. The firm can hire nonunion workers, "scabs", so their disagreement value is 1 million and the union members can find temporary employment elsewhere, making the unions disagreement value $2 million. The union would have a better bargaining position in the negotiations if: O The firm could hire individual workers at a lower wage O The union had high skilled workers that could not find other jobs O The union had a strike fund to pay workers their full salary during work lock-outs and strikes O The firm could easily replace workers with machinery

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