What is the definition of collective bargaining? A) ongoing salary negotiations between an employee and a factory owner B) an agreement among a group of factory owners to raise worker wages C) a written set of guidelines about legal and illegal workplace conditions D) labor union and employer negotiations about wages and other issues
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Step 1: Collective bargaining is the process of negotiation between a labor union and an employer to determine wages, working conditions, and other issues related to employment. Show more…
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Though unions can negotiate pay increases for their members, their actions can have unintended consequences for workers. Identify all such possible ones from the list below. It is possible that there is more than one correct answer. (a) Firms could possibly respond to unions demands for higher wages by hiring fewer workers. (b) Firms could possibly respond to unions demands for higher wages by substituting capital for labor. (c) Unions always drive down firms profits. (d) Higher rates of union membership always diminish aggregate levels of economic output.
Andrew D.
How does the presence of a labor union change negotiations between employers and workers?
Consider an economy with two labor markets$-$one for manufacturing workers and one for service workers. Suppose initially that neither is unionized. a. If manufacturing workers formed a union, what impact would you predict on the wages and employment in manufacturing? b. How would these changes in the manufacturing labor market affect the supply of labor in the market for service workers? What would happen to the equilibrium wage and employment in this labor market?
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