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Market share of their product with company

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A local window company, Company A, has been in business for 40 years. Throughout the years, the company has been a significant employer for the community, and has been a favorable employer for wages and benefits. Recruitment and retention of employees has not been a problem for this company. The products from this company are known for their quality. The pricing for the products are a bit higher, but pricing has worked since the products are good quality and there has not been much for competition. Due to the higher pricing of product, the company has been able to afford better wages and benefits for the employees.  This company does not have union representation. A second window company, Company B, has come into the area. This company is a branch of a larger corporation. Company B does produce a larger quantity of windows and doors, so the pricing is lower. The quality, however, is not quite as good as company A.  Company B does provide favorable wages and benefits, and also provides other perks, such as bonuses and gym memberships. Company B is a company that will relocate if it does not see profits at a certain level. Company B is represented by a union.

A group of newer employees to company A has heard of some of the perks that company B provides and feels now that their compensation with company A is not as favorable. They are also aware that company B employees are represented by a union. This group of employees has decided they would like union representation, so are planning to contact a union representative on information about starting a union campaign. Employees with company A have mixed feelings about this. The president of company A is concerned about a union coming in, as there is fear that the company will not be able to afford the outcomes of this. Also, Company A is also concerned about their market share of their product with Company B having lower pricing. This may impact the company's ability for providing compensation.

Please discuss your thoughts on what you feel the stand of the employer and the employees should be. What are potential outcomes if a union does come in, and what are some potential outcomes if a union does not come in?

Reference no: EM131913221

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