Questions for Thought:
1. Explain how each one of the following contract provisions might affect
the elasticity
of
labor demand during the period of the labor contract:
(a)
Layoff and severance pay
(b)
Prevention of subcontracting
(c)
The limiting of plant shutdown or relocation
2. Under what elasticity of labor demand conditions could a union
restrict the supply of labor—that is, shift the supply curve
leftward—and thereby increase the collective wage income (wage bill) of
those workers still employed?