Section Fiveirrespective of the quality of its labor relations. For example, if
a firm bargains as part of a multi-employer bargaining
association, such as in the trucking industry, all firms in the
association may be struck if negotiations reach an impasse. In
addition, in some instances, the decision to take a strike
instead of settling on unfavorable terms with the union may be
an investment in the future credibility of management
negotiators and may be consistent with high-quality labor
relations. Thus, a company that has “taken a strike” may gain
some advantage in the future because when it says no to a
union demand, the union may be convinced that the firm’s
response is credible and may not pursue the issue.
Furthermore, although unionization levels are at historically low
levels in the private sector in the United States, several recent
strikes, such as those at United Parcel Service (UPS), American
Airlines, General Motors, Boeing, and Lockheed-Martin, have
captured the attention of management observers.