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Why do employers have a natural advantage in bargaining with employees?

a. Greater bargaining power due to resources
b. Legal advantages
c. Employee scarcity
d. Collective bargaining rights

1 Answer

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Final answer:

Employers have a natural advantage in bargaining with employees due to greater bargaining power, legal advantages, employee scarcity, and the absence of collective bargaining rights.

Step-by-step explanation:

Employers have a natural advantage in bargaining with employees due to several factors:

  1. Greater bargaining power due to resources: Employers often have more resources, such as financial capital and access to information, which gives them a stronger position in negotiations.
  2. Legal advantages: There are certain laws that give employers more power, such as the ability to set terms and conditions of employment.
  3. Employee scarcity: In situations where job opportunities are limited, employers have a greater advantage as they can choose from a pool of candidates.
  4. Collective bargaining rights: Without a labor union representing employees, employers can negotiate individually with each employee, giving them more control over the terms of the agreement.
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