The Influence of Market Competition on Bargaining Behavior: A Critical Analysis

 bargaining behavior, market competition, collective bargaining, unionization, globalization, labor market, antitrust laws, National Labor Relations Act, wage decisions, employment decisions, trade unions.

How does the degree of competition within the product market influence the bargaining behavior of the parties?

It is argued that if the quality of the arrangements is to be controlled from the perspective of regard for competition law, this regulation should apply to social order judges and courts and in no way to competition (administrative) authorities. Distinguishing between collective bargaining and the collective agreements that control working practices reach places that go beyond them is important. As far as the labor market is concerned, accepting the right of collective trade in itself means repealing antitrust laws. What is acknowledged is the right of the workforce to social contract, to discuss their terms of working together (the price of their labor), to change the laws on commodity price creation. It is important to note that, among other reasons, the original suppression by the labor movement was based on a charge of plotting the price of things to improve. In the other hand, however, collective agreements cannot be claimed to immunize their care by controlling problems other than trade relations and preventing antitrust authorities' restrictions (Biswas & McHardy, 2007). The exception of collective bargaining with respect to antitrust laws shall be applied to the hiring of workers and shall leave the labor market beyond these rules (business hours, price formation, market closure). As such activities can be subject to regulation by competitive authority, they cannot avoid such control as they are included in collective bargaining (Coff, 1999).

What effect does unionization have on the wage and employment decisions of employers?

In industry and on markets where syndicates are strongly present, unions have a favorable effect on pay for non-union employees. Secondly, when the non-union market is important, the syndical impact on the average pay is just as much a result of unions' effects on non-union employees as it does on union workers.

What influences do laws and regulations have on collective bargaining?

In the United States, The National Labor Relations Act (NLRA) is the primary statute regulating collective bargaining (NLRA). It was unconstitutional for any employer to refuse an employee's trade union rights under the National Labor Relations Act 1935. Until the 1950s it was much controversial to syndicalism government jobs within a public sector union. The executive order granted government workers the freedom to trade unions in 1962 by President John F. Kennedy. The Wagner Act is also known. It expressly gives employers the freedom to trade and form unions jointly.

How does the globalization of certain markets affect employers and unions?

In effect, the interdependence among markets, ease of capital mobility, reduced transport costs, international workers' mobilization, massification of technologies, and various change in the patterns of life of nations has led the Union to face the globalization of its problems and to propose solutions adapted to each one (Ronaldo Munck, 2008). The globalization, in particular through spreading technology, explicitly leads to growing labor market convergence and to closer income differences between jobs in the advanced and developed economies. It also leads to domestic growth. It also contributes to increased disparity in domestic wealth. Trade unions in many developed countries, especially in Asia, welcome opportunities for new employment, higher productivity and greater incomes created by globalization. 

References

Biswas, T., & McHardy, J. (2007). On the incentives to increase input efficiency under monopoly trade unions. Journal of Economic Behavior & Organization, 62(4), 657–669. https://doi.org/10.1016/j.jebo.2005.02.004

Coff, R. W. (1999). When Competitive Advantage Doesn’t Lead to Performance: The Resource-Based View and Stakeholder Bargaining Power. Organization Science, 10(2), 119–133. https://doi.org/10.1287/orsc.10.2.119

Ronaldo Munck. (2008). Globalisation and trade unions: towards a multi-level strategy? Work Organisation, Labour & Globalisation, 2(1), 11. https://doi.org/10.13169/workorgalaboglob.2.1.0011