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Suppose the workers at your wholly owned subsidiary go on strike. This could not have come at a worse time for your division. You are set to launch your product and assuredly gain the first-mover advantage into this foreign country. Your CEO chose the location of this wholly owned subsidiary partially because originally the workers were unorganized and just grateful to find basic employment at subsistent wages. These workers have since been contacted by an international union, which is bargaining on their behalf. The union is demanding health benefits and a 10% salary increase. Your CEO is against this idea, even though you realize that these demands are not outrageous for the relatively skilled work that is being done by these employees.
What would be your position in relation to the demands of the workers?
How would you negotiate with the workers, if at all?
What would be your approach with the CEO of your corporation?
What would you tell him?
How would you involve, or not involve, him in the negotiating process?
Identify the two theories you selected and explain why you think these theories will be most helpful in the given scenario.
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