Bargaining Structure and Wage Outcomes in the British Coal Industry

The arguments below use case study and time series data to investigate the relationship between bargaining structure and wage settlements in the British coal industry. Consideration of the different bargaining structures in this industry suggests that bargaining power and wage outcomes are very sensitive to market conditions when the negotiating structure is decentralized; when negotiations are centralized in industry-wide bargaining, power and wage outcomes are quite insensitive to market conditions. These conclusions may help in understanding recent events in this industry and perhaps can be generalized to other cases where bargaining structures are undergoing change.