Plant-Level Concession Bargaining

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Abstract
The author investigates the reasons for the diversity in concession bargaining experience among plants in the meatpacking and tire industries. In 1981 negotiations, about one-third of the plants in each industry engaged in concession bargaining and the others did not. The author hypothesizes that this pattern resulted from interplant differences in the likelihood of layoffs or shutdowns, measured by factors such as plant age and size, relative wage level, and nature of product. Regression analysis of the data from union and employer sources supports the author's hypothesis.

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