When industrial unions negotiate with an entire industry, wage gains come at the cost of

Question

Quizplus · Accepted Answer

Industrial unions bargaining for a whole industry may negotiate for higher wages, which can lead to increased labor costs for employers. As a result, employers may choose to reduce total employment as a way to offset these increased costs. This is because employers have a limited budget for labor costs, and if wages go up, they may need to lay off workers to stay within their budget.

When Industrial Unions Negotiate with an Entire Industry, Wage Gains