Factors Influencing an Employer’s Bargaining Strength

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    Factors Influencing an Employer’s Bargaining Strength

    • An employer will be stronger:
    • The greater the financial reserves it has with which it can last out any dispute
    • The lower the proportion of its workers who are in a union or professional body
    • The greater the degree of substitution between capital and labour
    • The higher the rate of unemployment, since this will mean it can substitute existing workers with unemployed workers
    • The lower the support workers have from the public
    • The lower the disruption any industrial action would cause to the productive process
    • The more branches the firm has which employ non-union labour or labour in different unions, so that production can be moved in the case of a dispute
    • The more legislation favours employers

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