The labor contract governing compensation and working conditions for plant workers is up for renewal. The union that represents employees at your firm has made a number of demands and threatened a strike if the demands are not met. The demands are listed below. Select each demand you are willing to meet. If you do not agree with any of the demands, then make no selection. Watch Video 1. Wage increase. Choosing this option will increase labor costs for your firm by 5% above any increases for inflation. In addition to considering the demands of the union, you need to consider the impact this will have on your gross margin and competitive pressures in the market. 2. Job protection. The union wants assurances that the firm will not lay off plant employees in a downturn or replace employees with non-union workers. Agreeing to this means that you would be limited in how much you could reduce production in domestic plants. If production remains high, there will be no cost to the firm, while employees may be more productive without the worry of being laid off. 3. Better training. Workers think management should be putting more effort into training plant employees