Lamps Plus
Lamps Plus manufactures lamps for residential homes. The president of the company, Laura Cole, is convinced that she must get concessions from workers if Lamps Plus is to compete effectively with increasing foreign competition. In particular, Cole is displeased with the cost of employees' benefits. She doesn’t mind conceding a competitive wage increase (maximum 3%), but she wants the total package to cost 3% less. The current costs are as follows.