I am kind of stuck on this question, I need some ideas or suggestions, thanks.

Garbage collectors (belongs to a union) in a town wants higher pay (eg 17%),but the mayor know that there is no way that taxpayers will accept a settlement near that.
What are some of the problem faced by both sides in such a labour dispute?

This is time for serious negotiations. Will the union and the taxpayers settle for 15%? 10%? 8%?

The only way the mayor can know is to sit down and talk with both his constituents and the labor leaders. What alternatives do both sides have?

It asks for the problems faced by both sides, it is as in they city will not have people collecting garbage, and the collectors won't have their paychecks? What else? other suggestions?

I have never understood why government employees handle garbage. This should be contracted to private enterprise. It seems to me this is the time to put out for bid garbage collection, and sell the cities' owned trucks and facilities.

Both sides here have constituents who have mutually exclusive interests, and a lot of time and energy will be spend on trying to reconcile them, only to have them reoccur in three years. Why would anyone organize a city that way? Some things are better left to private enterprise.

Which side have a better bargaining position?

In a labor dispute like the one described, there are several problems faced by both sides, the garbage collectors (union) and the mayor. Let's explore the challenges faced by each side:

1. Garbage Collectors (Union):
a. Demand for higher pay: The garbage collectors' main problem is that they want higher pay (e.g., 17%) which the taxpayers may not be willing to accept. This demand can pose a challenge when negotiating with the mayor.
b. Balancing public opinion: The garbage collectors need to consider the public's perception of their demand. If they push for significantly higher pay, they risk public backlash and negative media attention that may weaken their position.
c. Maintaining solidarity within the union: It can be challenging for the garbage collectors to keep everyone in the union united in their goal of higher pay. Some members may be more willing to compromise or settle for a lower increase, leading to internal conflicts.

2. Mayor:
a. Fiscal responsibility: The mayor's primary concern is to responsibly manage the budget and ensure taxpayers' money is used efficiently. Agreeing to a settlement near the demanded 17% increase might strain the town's finances or result in other public services being affected.
b. Balancing competing demands: The mayor needs to consider other essential services and public employees who may also demand higher pay or better working conditions. Balancing these competing demands is a challenging task.
c. Public perception: The mayor needs to take into account public opinion regarding the labor dispute. If the mayor denies a reasonable pay increase or portrays the garbage collectors in a negative light, it may lead to backlash from the community.

To resolve these challenges and reach a mutually acceptable agreement, both parties should consider negotiation, compromise, and finding common ground. They should focus on effective communication, exploring alternative solutions (e.g., bonuses, improved benefits), and seeking ways to address each other's concerns while keeping the best interest of the community in mind.