We analyze the bargaining problem of an incumbent firm and a union when the wage contract becomes generally binding. Our main application relates to competition among operators of mail delivery networks. We describe the Deutsche Post case which highlights the raising rivals' costs incentive and...

Postal workers and the rise of collective bargaining -- Rising expectations and brewing conflict -- The strike begins -- The strike ends -- Aftershocks and postal reorganization -- The U.S. Postal Service and the postal unions in the 1970s -- Almost striking again, arbitration, and automation,...