ABSTRACT
The analysis of the previous chapter was concerned with the union's objectives in respect of the wage rate and employment of its membership. In order to analyse wage determination in the presence of trade unions, it is necessary also to consider the employer's equilibrium levels of wages and employment, and since these will, as we shall see, typically differ from those of the union, it is necessary to consider the union-employer negotiating or collective-bargaining process, which occurs in order to determine the wage that the union will actually receive.
