management of Canadian firms is limited by law in its ability to lobby against the union. In addition, although

it is illegal to discriminate and fire workers based on their union activity in the United States, the penalties are

slight, making this a not so costly way of deterring union activity. In short, forming unions is easier in

Canada—and in many other countries—than in the United States.

In summary, union membership in the United States is lower than in many other high-income countries, a

difference that may be due to different legal environments and cultural attitudes toward unions.

LINK IT UP

Visit this website (http://openstax.org/l/fastfoodwages) to read more about recent protests regarding minimum

wage for fast food employees.

14.4 Bilateral Monopoly

LEARNING OBJECTIVES

By the end of this section, you will be able to explain:

• How firms determine wages and employment when a specific labor market combines a union and a

monopsony
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