Agreed. Per sector is much better. The companies in that sector still can compete on a level playing field. In the US the company with the worst labor practices has an advantage.
I would assume it has to do with the low rate of unionization. A high rate of organization among employers and employees really disincentives 'rogue' behavior. These online discussions naturally tends to focus on things like salaries and conflicts, but often these organization also have other roles in industry, education and even politics. At least I often find this preferable to just having a few politicians or a few large companies trying to decide what to do.
Re:Alphabet's Median Pay Nears $200k
by dredmorbius on Monday April 30, 2018 @10:25AM
(#16958763)
In practice, labour contracts with one firm within an industry, for major unions & firms, often set the industry payscale
This was long the practice in the US auto industry.
Discussed in this story:
https://www.freep.com/story/money/business/2015/09/08/uaw-pr...
Then I learned that US has completely different union system from Europe.
You guys have so called enterprise-level bargaining with union shops and agency shops where workers must be part of an union or pay the fee for an union. Then union negotiates pay in enterprise-level. I can see how this is extremely harmful and entrepreneurs must fight tooth and nail against unionizing.
Most of the world has so called sector level bargaining. Unionized workers negotiate for all workers in an entire industry. Union representing electricians negotiates with federation representing companies that hire electricians. After they reach a deal that covers enough unionized workers the deal is extended to the whole industry. You essentially negotiate minimum wage per sector plus benefits.