It’s useful to begin by noting how constrained collective bargaining has become in the private sector (and to a significant degree in the public sector as well). The threat of losing union jobs – with alternative jobs, even if found, bringing lower wages, inferior benefits, troubling shift schedules and even worse working conditions – has come to dominate union strategy.
In this context, corporations have ‘weaponized’ their control over investment. Decisions on investment and collective bargaining were once relatively distinct. Today, however, the auto majors routinely delay key investment announcements until bargaining. This serves a double purpose: a sword hanging over workers’ heads to restrain their demands or force concessions and, after a tentative settlement has been arrived at, job announcements that aid the union leadership and bargaining committees in selling the agreement as an ‘unprecedented’ victory.