Economics class: Kellogg’s cereal strike is latest sign of pushback from US snack makers
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Click to read the article below and then answer the questions:
Define tight labour market.
‘As millions of American workers have delayed returning to work amid the Delta surge, those in the workforce have found new leverage to negotiate with their employers over pay and conditions.’ Explain how a tight labour market shifts the balance of power from the employer to the employee
Monopsony employers seek to force wages down to the level of transfer earnings whilst organised labour unions such as the American labour movement seek to enhance wages. Use a labour market diagram to analyse the effect of a monopsony employer on wages and the level of employment
Gavin Clarke, Emmanuel College