Ina recent negotiation between labour and management of a major corporation, management argued that the company’s low earnings made it imprudent to grant the requested wage increase. The labour union disagreed and argued that the company had ample resources to meet the wage demands of the union. What do you think might have been the basis of the union’s argument? Do you think that it’s adequate to base the ability of a company to grant a wage increase only on net income? Explain.