Concessionary Bargaining

Concessionary bargaining is a negotiation process where one party, often a labor union, agrees to give up certain benefits or make sacrifices—like wage cuts or reduced work hours—in order to help the other party, typically the employer, avoid financial hardship or layoffs. This approach is usually used during tough economic times when companies are struggling and need to cut costs. The goal is to reach an agreement that, while not ideal for workers, is aimed at preserving jobs and ensuring the long-term viability of the company.