Empirical investigations suggests that the real wage is surprisingly flat over the business cycle. This paper analyzes a repeated game between a union and a firm which can contribute to explaining the flat wage. The parties cannot enter binding contracts, and revenue is fluctuating. The paper focuses on the best subgame-perfect equilibrium among those sharing the expected surplus in given fixed shares--e.g., equal shares. It is shown that (for moderate discount factors) this equilibrium has a more countercyclical wage than what would be the case if the parties shared the surplus in each period in the same shares.