This document examines foreign direct investment (FDI) when multinationals and labour unions bargain over labour contracts and lobby the self-interested government for taxation and labour market regulation. It is shown that FDI is best protected from expropriation in unionized economies with right-to-manage bargaining, not bargaining over wages and employment. When the labour market is nonunion...

We construct a political equilibrium in which employers and labour unions bargain over labour contracts, wage-earners and profit-earners lobby the government for taxation and labour market regulation, and labour market legislation must be accepted by the majority of voters. We show that the voters rule out profit sharing, because otherwise the government would capture all the gain. Furthermore,...

Editorial V The ILO Declaration and the supervisory mechanisms Core labour standards: A level playing field for all countries, Relevance of fundamental principles and rights and the dynamics of international labour standards, by Jean-Claude Javillier 4 Fundamental rights at work: A greater role for trade unions, Trade union rights at the dawn of the millennium: An overview, by Janek Kuczkiewicz...

Implicit in many discussions of labour market policy is the assumption that, in the absence of interventions, the operation of the labour market is well-approximated by the perfectly competitive model. The merits or demerits of particular policies is then seen as a trade-off between efficiency and equality. This paper analyses the impact of a variety of policies – the minimum wage, trade unions...

This paper analyses the scope for collusive behaviour within the context of an international duopoly supergame in which both firms and monopoly labour unions interact strategically. We find that the presence of unions, implying an endogenisation of production costs, dramatically alters the incentives for inter-firm collusion. There are, however, strong incentives for the unions to collude, rais...

Globalisation and labour relations in Australian airlines industry: A case study of pilot experience Peter Schulte and Ying Zhu The University of Melbourne The 1989 pilots’ dispute fundamentally altered the nature of pilot labour relations in Australia. The once powerful pilot union was convincingly defeated by airline management with the assistance of the Government. Since the dispute ended in...

a r t i c l e i n f o The present study considers a unionised (nonlinear) duopoly with two different labour market institutions, i.e. efficient bargaining (EB) and right to manage (RTM), to analyse product market stability under quantity competition with trade unions. We show that when the preference of unions towards wages is small, (i) the parametric stability region under RTM is higher than ...