In Chapters 11 and 12 we discussed issues of employment and compensation at the firm. It was implicitly assumed in this discussion that the firm could make employment and compensation decisions unilaterally, without any input from the workers. If the workforce at the firm is unionized, however, then there are many things that the firm cannot do without first negotiating with the union. And this is not simply a matter of courtesy. Agreements between firms and unions are legally binding contracts, so a firm acting unilaterally may be breaking the law.