2min chapter

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Anna Stansbury on How to Boost Worker Bargaining Power

Odd Lots

CHAPTER

The Ultimate Indicator of Worker Power Is Sharing in the Profits of the Firm

Worker power is the ability of workers to share in the profits of the firm that they work at, above and beyond what would happen in some kind of market where their wages were just determined by the market. Being a member of a union that bargains over your compensation enables you to share, to some extent, more inyour firm's profits. A power can exist ita things like norms around pay bargaining and around fairness. It can be things like how managers are incentivei to divide up the pie that the company creates between shareholders and workers.

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