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Is collective bargaining a form of price fixing?

Asked by: hakkarin
  • It's no different from companies fixing their prices.

    When a group of businesses decide to fix their prices, that is not compete against each other, they violate many nation's laws and can end up in jail. When a group of workers do that by authorizing a labor union to bargain "collectively" with their employer over pay, they are fixing the price for their labor.

    Thus collective bargaining is a form of price fixing and should be banned.

  • It's two parties agreeing on a price.

    The labor group represents the employees who provide the demand of labor that the employer needs. The employer demands that labor so they offer a price. Feeling that they are more productive the labor group demands a higher wage or better benefits they feel are more suitable. Negotiation is not a form of price fixing.


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