SMH: Lack of competition between employers contributes to weaker wages
A lack of competition among employers for workers has contributed to a reduction in bargaining power for higher wages, leading economists have found.
A decrease in union density is among factors likely to lower the bargaining power of workers, pushing their wages into the lower end of the wages range.
A worker who has to negotiate individually with an employer may have less expertise and resources to invest in negotiation and the absence of a union may lower the likelihood of strike action if workers object to an employer’s wage offer.
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