Problem
Resource Substitutes The Apex Pot company manufactures high-quality kitchen pans. Currently it employs 500 workers, who produce stainless steel pans one at a time on individual machines. It takes a worker six minutes to produce each item. The workers are paid $12 per hour for their labor. Apex managers have found that they can purchase machines that will produce products with equal quality automatically. One machine costs $200,000 but can produce one pan per minute. So far, management has chosen not to purchase any of the machines. The workers' contract is due to expire next month. Their union has asked to have the wage rate increased to $14 per hour. Apex management has stated that the firm cannot afford to pay them any more than they currently receive. What factors should each side consider during collective bargaining?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.