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Paragraph 7

This paragraph was originally meant to cover only operations involving existing plant and equipment. Nevertheless future investments such as replacement of equipment or the introduction of new technology, may be crucial to the survival of the enterprises in the medium and long term and thus may be of interest in this context.11

A distinction should be made between information given to employees on the likely consequences for the future of the firm as a going concern for the eventual outcome of such negotiations which is legitimately provided by management, and threats which would be an unfair use of management's negotiating power. ``Unfair'' is the key notion in this context. It is appropriate for management to inform employee representatives if certain demands have, in their view, serious implications for the economic viability of the enterprise. Management should, nevertheless, be prepared to support this claim with appropriate information12. 3


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