If there is an economic recession, the bargaining power of the management might become superior to that of the labor union. This is because there can be lack of membership like the high percentage of membership which might have been present before the economic recession. There can be stable leadership in labor unions lost because of economic recession (Ellem et al., 2020). Employees can resign in large numbers because of considering other organizations to switch to during economic recession (Ellem et al., 2020).