Chapter 12.3, Problem 1R

To determine

To explain the importance of the terms, Collective bargaining, Cost-of-living adjustment (COLA), Mediation, Arbitration, Picketing, Boycott, Lockout & Injunction.

Explanation of Solution

The significance of the terms above can be explained as:

Collective bargaining: It is important as it allows employees to work together and negotiate with employers as a unit which can get them more opportunity & leverage of the bargaining power.

Cost-of-living adjustment (COLA): It is of major significance as it provides the social security benefits with such a purchasing power so that it is not eroded by inflation in the economy.

Mediation: It is of major importance because before going for claims in the court, it is better to solve the dispute involving a mediator and coming to a settlement than having lines of court cases.

Arbitration: It is considered the most effective and efficient way as it is quick and less expensive in solving disputes by their own.

Picketing: It is important because it isn’t any kind of forceful act of persuading anyone to stop working, but a peaceful way to make the employers understand and come to a decision.

Boycott: To bring a positive change in the policies or the rules, it is a very beneficial aspect with which the amount of economic damage can bring about a change in the economic and industrial condition by boycotting several goods & services.

Lockout: It is of great importance as it helps in giving an end to the labor disputes through giving a stoppage to their employment by the management of the industry.

Injunction: It helps to restrain several unfair practices in a peaceful way which can help in taking a decision with no offensive acts which is needed for a good working environment.

Economics Concept Introduction

Introduction:

Collective bargaining: It is the process in which the unions try to negotiate with the employers regarding the conditions of their employment, their benefits, health safety, etc so that their work and family life could have a proper balance.

Cost-of-living adjustment (COLA): It came in 1975, so as to increase the social security benefits during the phase of inflation in the economy. Consumer price index has been used to measure the inflation for the wage earners and workers.

Mediation: It is a way to resolve the issues through appointing a third party as a mediator so that an agreement can be made by the way of communicating and coming to a settlement.

Arbitration: It is also the process of solving the disputes among the parties in both the public and private sector.

Picketing: It is an act of persuading the workers or the employees to not work with the employer and create a pressure on the mind of the employer.

Boycott: It is an act to stop using or buying the products of a particular firm or company or even a country.

Lockout: It is the process of denial of providing employment to the workers during the dispute in the company by the management.

Injunction: These are the peaceful protests by the officials so as to stop the workers from doing certain acts.