management prerogative

  

Definition

Employer's or management's unqualified-authority to exercise its discretion in certain areas without discussions with or the agreement of a union. Also called management rights, they are not subject to negotiations and may be expressly stated as such in a collective bargaining agreement. They include the rights to (1) assign and direct workforce, (2) determine the method to discipline employees for just cause, (3) increase and reduce the workforce according to the demand for firm's outputs or availability of money, (4) decide what products are offered for sale, at what price, and by which method.

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