Financial tools influence labor negotiations from "summary" of Labor in the Age of Finance by Sanford M. Jacoby
Labor negotiations are not just about wages and working conditions. They are also influenced by financial tools that can tip the balance of power in favor of either management or labor. These tools, such as debt, equity, and derivatives, can impact the outcome of negotiations by affecting the financial health and stability of a company. For example, if a company is heavily indebted, it may be more inclined to push for concessions from its workers in order to meet its debt obligations. On the other hand, if a company's stock price is soaring due to speculation in the derivatives market, workers may have more leverage to demand higher wages or better benefits. Moreover, financial tools can also shape the broader context in which labor negotiations take place. For instance, a company that is under pressure from shareholde...Similar Posts
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