Question
TheTruck Drivers' Dispute Case Study Anon-EUEuropeancountryhasrecentlybeenparalyzedbythedirectactionoftruckdriverswhoareangryatapackageofregulationsthatthegovernmentisconsideringintroducing.Discussionbetweenthegovernmentandrepresentativesofthetruckdriversisnowtakingplaceatasecretlocationtotrytoresolvethedispute.Threeissuesneedtoberesolved: themaximumnumberofhoursthedriverscanlegallydriveperday, whetherornotthegovernmentwillintroduceaspecialfueltaxand whetherornotchargeswillbemadeagainsttendriverswhohavebeenarrestedduringthedispute. Thepossiblenumberofdrivinghoursthatcouldbeagreedaregivenbelow,togetherwiththechiefgovernmentnegotiator'sroughassessmentofthevalueswhicheachsidewouldplaceoneachoutcome(100=bestoutcome,0=worstoutcome). Max.No.ofdrivinghours Drivers' value Governmentvalue 11 100 0 10 60 80 9 40 90 8 0
TheTruck Drivers' Dispute
Case Study
Anon-EUEuropeancountryhasrecentlybeenparalyzedbythedirectactionoftruckdriverswhoareangryatapackageofregulationsthatthegovernmentisconsideringintroducing.Discussionbetweenthegovernmentandrepresentativesofthetruckdriversisnowtakingplaceatasecretlocationtotrytoresolvethedispute.Threeissuesneedtoberesolved:
- themaximumnumberofhoursthedriverscanlegallydriveperday,
- whetherornotthegovernmentwillintroduceaspecialfueltaxand
- whetherornotchargeswillbemadeagainsttendriverswhohavebeenarrestedduringthedispute.
Thepossiblenumberofdrivinghoursthatcouldbeagreedaregivenbelow,togetherwiththechiefgovernmentnegotiator'sroughassessmentofthevalueswhicheachsidewouldplaceoneachoutcome(100=bestoutcome,0=worstoutcome).
Max.No.ofdrivinghours Drivers' value Governmentvalue
11 | 100 | 0 |
10 | 60 | 80 |
9 | 40 | 90 |
8 | 0 | 100 |
Forthefueltaxissue,onlytwolevelsarepossible-eitherthetaxwillbeimposedornot.However,forthearresteddriversthreeoutcomesarepossiblei)seriouschargesii)minorchargesandiii)chargesdropped.Estimatesofthevaluesthatthenegotiatingpartiesputontheseoutcomesaresetoutbelow.
Level ofcharges Drivers' value Governmentvalue
Serious | 0 | 100 |
Minor | 80 | 90 |
Nocharges | 100 | 0 |
Thegovernment'snegotiatorhasalsoestimatedweightstoreflecttherelativeimportancethatthepartiesattachtoswingsfromtheworsttobestpositiononeachissue.Forthedriversavoidingreducingthemaximumnumberofdrivinghoursfrom11to8isthoughttobethemostimportantswing.Avoidingtheintroductionofthefueltaxisthoughttobeonly10%asimportantasthis,whilethereductionofthelevelofchargesagainstthearrestedworkersfromserioustonochargesis50%asimportant.
Forthegovernmentintroducingthefueltaxisthemostimportantswing. Reducingthemaximumnumberofdrivinghoursfrom11to8is60%asimportantasthis,whileavoidingreducingthelevelofchargesagainstthedriversfromserioustonochargesisonly40%asimportant.
Thefollowingtentativedealhasbeenreached:
- Reducethemaximumnumberofdrivinghoursto9
- Imposethefueltax
- Makenochargesagainstthearresteddrivers.
Question
Applydecisionanalysistothetruckdrivers'negotiationproblemandadvisetheparticipantsontheirdecisionproblem.Clearlystateanyassumptionsyouhavemade.
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