American companies are suppressing wages for many workers
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American companies are suppressing wages for many workers
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Re: American companies are suppressing wages for many workers
#2All of the major unions have been broken, with the public sector unions coming up next re: the Janus case.
Even though there was always a limited number of union workers, their collective bargaining set the standard. That’s not really a factor these days.
Re: American companies are suppressing wages for many workers
#3And why wouldn't they? It's time to bring back mechanisms, legal or otherwise, to prevent this from happening again. Usually the collective workforce of a company has significant leverage over a company, but with the advent of globalization, the "gig economy", and technological unemployment in some ways this leverage is harder to capitalize on, or even worse, nonexistent.
I don't know if there's any empirical proof for this, but like competition between companies, I think "competition" or tension between employees and employers for a given organization is also good for capitalism.
Re: American companies are suppressing wages for many workers
#4There was similar wage suppression (or should I say, wage theft scheme) in Silicon Valley until very recently. That's why the wages skyrocketed. If the scheme could be broken up in one industry, it can happen again in others.
Re: American companies are suppressing wages for many workers
#5Post-contractual non-compete without any compensation. It’s starting to be a thing even in EU. 5-10 years ago I could sign an employment contract blindfolded, now it’s a freaking minefield where in couple of years I can end up without a job, unemployable, and owning multiple monthly salaries to the employer. We have too many bored lawyers.
Re: American companies are suppressing wages for many workers
#6Inflation is the ultimate wage suppression.
Re: American companies are suppressing wages for many workers
#7One thing I wonder- to what extent has the digitization of the job search process contributed to reduced wages? I can imagine several mechanisms that would cause this to reduce wage growth:
1. Widely available data on wages tends to introduce a lagging effect on wage inflation, because workers tend to look at data that is a least a couple of years old (imagine what pool of data is currently being used on glassdoor.com to create the salary estimate of that junior developer job you just looked at)
2. Recruiters have large amounts of data on current wages, and can negotiate from a greater position of power.
3. Recruiters have a larger pool of candidates to draw from and force to compete against eachother.
Re: American companies are suppressing wages for many workers
#8In addition it seems to me that labor is not a free market, simply because there is no choice to not offer your labor, since you'd starve. In large parts of the world anyway, and globalization has brought them into the 'free' market.
Re: American companies are suppressing wages for many workers
#9a flagrant monopsonistic tactic that brought down the wrath of the Justice Department.
Wrath? It was barely a slap on the wrist or a mild scolding.
Re: American companies are suppressing wages for many workers
#10The claim that sandwich-making is monopsonic seems dubious.
Statista has the largest employer at 12.7% market share and "Other" at 55%: https://www.statista.com/statistics/307965/market-share-of-f...
Research Gate has similar figures, though I believe this one is international: https://www.researchgate.net/figure/Market-Share-of-major-pl...