What is the tactic being used by union members to increase leverage against the apparel manufacturer?
Final answer: Picketing by union members outside stores selling a manufacturer's products in order to exert pressure on the manufacturer is known as a secondary boycott.
Explanation
In the scenario described, the contract talks between an apparel manufacturer and its union have hit a standstill. As a result, union members have resorted to picketing outside retail stores that carry the manufacturer’s apparel. This strategy is known as a secondary boycott.
What is a Secondary Boycott?
A secondary boycott occurs when union members picket or protest outside businesses that carry products of a company they are in dispute with. The goal of a secondary boycott is to put pressure on the targeted company by involving a third party, such as the retail stores selling the manufacturer's products.
How Does a Secondary Boycott Work?
By picketing outside these retail stores, union members aim to dissuade customers from purchasing the manufacturer's products. This reduced consumer demand can lead to economic consequences for the manufacturer, prompting them to address the union's demands. These demands may include negotiating favorable contract terms, advocating for better working conditions, higher wages, or other benefits for the union members.
Impact of Secondary Boycott
A successful secondary boycott can significantly impact the targeted company, forcing them to reevaluate their position in the contract dispute. The economic pressure created by a drop in sales can compel the manufacturer to engage in negotiations with the union to resolve the existing conflict.
Legal Considerations
It is essential to note that secondary boycotts are heavily regulated under labor laws. While unions have the right to engage in picketing and protests, there are legal limitations on the tactics they can employ. It is crucial for unions to adhere to these regulations to avoid legal repercussions.
In summary, the use of a secondary boycott by union members picketing outside retail stores carrying the manufacturer's products is a strategic move to exert pressure on the apparel manufacturer. By leveraging consumer influence and economic impact, unions aim to compel the manufacturer to address their demands and reach a resolution in the ongoing contract dispute.