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During a recession, both management and unions may face changes in bargaining strength. During a recession, companies may see a fall in sales and earnings,
During a recession, both management and unions may face changes in bargaining strength. During a recession, companies may see a fall in sales and earnings, resulting in tighter budgets and fewer financial resources. This limitation reduces management's bargaining leverage since they may be unwilling or unable to match union requests for higher pay or better benefits. Recessions can draw attention to issues such as economic inequality and worker rights, resulting in public and political support for unions and their demands. This kind of support can boost union bargaining power by giving them more negotiating influence and improving the likelihood of a positive outcome. During the COVID-19 epidemic, frontline workers in industries such as healthcare, retail, and transportation saw greater demand for their services, but they also faced higher health risks and unstable employment. Labor unions representing these workers used public and political support to negotiate for hazard pay, personal protective equipment, and other benefits for their members, showing unions' stronger negotiating strength during times of crisis or recession
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