Labor relation in a host country often reflect its laws, culture, social structure, and economic condition. For example, membership in U.S. labor unions has been steadily declining in recent years and today constitutes less than 15 percent of the country’s total workforce. Labor relation in the United States are heavily regulated by various laws, and both the actions of management toward labor and the actions of labor toward management are heavily restricted. Further , the formal labor agreement negotiated between a firm and a union is a binding contract enforceable in a court of law. Because of the heavy regulation, most negotiations are relatively formal and mechanical, with both parties relying on the letter of law