Despite growing interest in the firm bargaining process, little research focuses on the structure of bargaining within multi‐establishment firms. We question whether running negotiations at the workplace level and/or firm level is a strategic choice for employers. We hypothesize that the level chosen depends on the geography of the firm. Employers face a trade‐off: workplace bargaining is more efficient because it meets local conditions; yet higher level negotiations increase coordination costs for workers and weakens their bargaining power, which can benefit the employer. Using a French representative survey, we find a significant relation between the level of bargaining within a firm and the number, spatial distribution and heterogeneity of its establishments, suggesting that the structure of multi‐establishment firms can inform the level at which collective bargaining takes place.
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Askenazy et al. (2024) studied this question.
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