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Collective Bargaining Through Labor Contract

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Why might unionized older workers engaged in bargaining a labor contract not restrain their wage demands even though the demand for their labor is very elastic?

Answer in 200-300 words.

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The solution discusses why might unionized older workers engaged in bargaining a labor contract not restrain their wage demands even though the demand for their labor is very elastic.

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Unionized older workers may not restrain their wage demands as they are planning to retire sooner than other unionized workers. As with most unionized employees, they are likely to have a retirement plan in which contributions are made, based on their incomes. Therefore, the greater the income, the greater the contribution to the retirement plan. In addition, if the plan ...

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Beatrice Martino, MEd
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  • MEd, Jones International University
  • BSc, DeVry University
  • MPH, Walden University
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