Works Gain Temporary Upper Bargaining Hand.
American workers have enjoyed dramatically increased bargaining powers since the economy began opening backup after the easing of Covid restrictions. (Politico)
“The country’s rapid reopening has created a unique economic environment where the demand for workers is rising faster than the supply, giving greater clout to lower-wage employees whose help is needed as Americans flock back to restaurants and retail stores.
But without significant structural changes — including legislation aimed at increasing workers’ bargaining power — the labor market will return to normal in a matter of months, handing the balance of power back to employers where it has been trending for decades, economists and worker advocates say. The flurry of bonuses is likely to be short-lived, and wage hikes might not have lasting benefits for the next round of hires.”
American workers have seen their collective bargaining power all but eliminated since the heyday in the 1970s and the real wages of the American worker predictably fell as a result. A small reprieve has occurred since the American economy rocketed back from the depths of the pandemic recession. All of a sudden there are not enough workers for all the jobs that need to be done and need to be done now for businesses to reap the benefits of the economic surge. Businesses big and small are forced to pay large sums of money to recruit and retain and a finite pool workers who are job hopping at a record pace.
