. R} E] Ct Search this document A Page 1 of1 v 100% v &I C I( \\I ' Get Free PLAGIARISM (TURNITIN) report with all writing assignments Visit www.ehomeworksolution.com or email us on ehomeworksolutiongqgmail.com or - Whatsagp now for instant quote on 1(516) (531)4614 Question 2 [14 marks) The negotiation of wages between workers and owners i s subject t 0 many I aws (f ormal i nstituti ons). According t o Secti on 23: Labour Relations in the Constitution of South Africa, every worker has the right to join a trade union. The specific SA labour laws regarding trade unions are (https://mywage.co.za/decent-work/legal-advice/) : - Every worker has the right to form and join a trade union and to participate in the union's activities Every worker has the right to strike Every employer has the right to form and join an employers' organisation and to participate in the activities of the organisation Every trade union, employers' organisation and employer has the right to engage in collective bargaining - Everyone has the right to fair labour practices You are the owner of a manufacturing firm producing vehicles where wages are negotiated between owners and unions under the Motor Industry Bargaining Council (https://www.mibco.org.za/). Members of the counci include vehicle manufacturing plants and unions representing the workers and together they negotiate the terms of employment, including wages and work hours, that are then applied to all vehicle companies. a) Adapt the farming- model developed in class to this example, and analyse the equilibrium wage and work hour outcomes before the establishment of the bargaining council. (Ensure you cover assumptions) [6 marks] b) Use the model to analyse and explain the impact of the establishment of the Bargaining Council on the negotiated wage and work hour outcomes. [4 marks) c) The government is currently considering the implementation of unemployment wage benefits that take the form of a payment to workers that lose their jobs. How will this affect the equilibrium outcomes given in (a)? (4 marks] [Note that there are no prices in the farming model. Assume wages are measured in vehicle equivalents e.g., you are paid in vehicles)