Distributive Bargaining. Distributive bargaining takes place when the parties are in conflict over the issue, and the outcome represents a gain for one party and a loss for the other. Each party tries to negotiate for the best possible outcome. The process is outlined in Exhibit 15.4. On any particular issue, union and management negotiators each have three identifiable positions . the Union has an initial demand point, which is generally more than it expects to get; a target point ,which is its realistic assessment of what it may be able to get ; and a resistance point, or the lowest acceptable level for the issue. Management has three similar points; an initial offer point , which is usually lower than the expected settlement ; a target point, at which it would like to reach agreement ; and a resistance point,or its upper acceptable limit.if,as shown in Exhibit15.4 management’s resistance point is greater than the union’s, a positive settlement range exists. If, however, management’s resistance point is below the union’s, a negative settlement range, or bargaining impasse, exists, and there is no common ground for negotiation. For example, on the issue of wages, the union’ may have a resistance point of $8.40 an hour, a target of $8.60, and an initial demand point of $8.75. Management may offer $8.20 ,have a target of $8.45 and a resistance point of $8. 55. The positive settlement range is between$8.40 and $8. 55, and this is where the settlement will likely be. However only the initial wage demand and offer are made public at the beginning of negotiations