A detailed contract between (a) a group of employees (a labor union) and (b) an employer. It covers wage
rates and conditions of employment.
A collective organization of employees who bargain as a unit with
employers.
The cost of employing an additional unit of a resource.
When the employer is small relative to the total market,
the marginal factor cost is simply the price of the resource. In
contrast, under monopsony, marginal factor cost will exceed the
price of the resource, since the monopsonist faces an
upward-sloping supply curve for the resource.
A market in which there is only one buyer. The monopsonist confronts the
market supply curve for the resource (or product) bought.
Laws that prohibit the union shop-the requirement that employees must
,join a union (after 30 days) as a condition of employment. Each
state has the option to adopt (or reject) right-to-work
legislation.
An action of unionized employees in which they (a) discontinue working
for the employer and (b) take steps to prevent other potential
workers from offering their services to the employer.
The requirement that all employees join the recognized union and pay dues
to it within a specified length of time (usually 30 days) after
their employment with the firm begins.
