Yes, we know increased profits always go to the worker. Particularly when the business needs to rely on exploiting them to make those increased profits.
Let me try your logic here...
Employees benefit from no paid annual leave! How you ask? The employer is able to offer better service to customers, and make more money, and the employee can negotiate a higher salary from the more profitable business.
Am I doing this right? Workers give up more rights but in theory they can negotiate higher pay because the business is more profitable?
Start with a theoretical employee who offers no value and gets paid zero. Dial up their usefulness and consider what happens. The greater the value an employee offers, the stronger their negotiation power in pay discussions. It's not more complicated than that.
Start with a theoretical employee who offers excellent usefulness and is paid accordingly. Dial down the legal protections and security and consider what happens. The weaker the security of the employee, the stronger the negotiating power of the employer in pay discussions. It's not more complicated than that.
this comment is a good example of why modern economics is seen as out of touch. you start with a theoretical model then try and apply it to the world vs starting with the lived expenses of workers and building off of that
Let me try your logic here...
Employees benefit from no paid annual leave! How you ask? The employer is able to offer better service to customers, and make more money, and the employee can negotiate a higher salary from the more profitable business.
Am I doing this right? Workers give up more rights but in theory they can negotiate higher pay because the business is more profitable?