Collective bargaining, power resources and distributional outcomes. The case of the Wage Councils in Uruguay
Abstract
This article analyses the relationship between the power constructed by the Uruguayan working class and its impact on economic inequality, based on the power resources theory, interviews and statistical analysis. How have the power resources of the working class been shaped? what is the relationship between this setup and inequality? The findings show how the unitary and solidarity-based character of sectoral unions strengthens associational power. The Wage Councils have been the result of recognised struggles in the country's institutions, which allow for inclusive wage bargaining. Effective societal power is observed, which has resulted in a strong programmatic alliance between the Frente Amplio and the PIT-CNT. It is concluded that the Wage Councils have had a positive impact on income distribution and that they coincide with the phase of deepening institutional power in favour of workers.
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