Too few employers are bad for workers. This concentration gives companies considerable wage-setting power, enabling employers to impose terms and conditions:
Imagine a man looking for a job but there are only four viable employers for his profile. He will have a hard time negotiating good pay because his alternatives—and thereby his bargaining power—are limited. Now imagine that his sister, by contrast, has 50 employers from which to choose. As she has more leverage with her prospective employer, she will most likely be paid a higher wage.
In a new analytical opinion piece for Social Europe, UNI Europa Regional Secretary Oliver Roethig and UNI Europa Director of Policy and Research Stan de Spiegelaare argue that collective bargaining is the solution. Read the whole op-ed here.