This paper introduces a two-stage union-oligopoly-council model of wage and employment determination wherein at the … first stage wage is negotiated through collective bargaining and at the second stage employment in each firm is co … of bargaining power and co-determination power. In particular, works councils always increase employment while their …

entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the … employment and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and … therefore the smaller the level of employment in the long run. Commitment on the part of the union leads to lower wages, and …

entire (infinite) sequence of wages. We conclude that the speed of adjustment of employment, that is higher in the … employment and wages only in the no-commitment case, i.e., the higher the relevance of adjustment costs the higher the wage and … therefore the smaller the level of employment in the long run. Commitment on the part of the union leads to lower wages, and …