Models of simultaneous bargaining games are used to analyze the wage o
utcomes associated with various systems of industrial relations, inclu
ding bargaining by craft enterprise, industry or the whale economy. Un
ion structure is a key determinant with highest wage pressure occurrin
g when unions are organized along craft lines at industry level Abando
nment of centralized bargaining and the splintering of both union and
employer organizations into craft and industry units may well lead bot
h to higher aggregate wage pressure and to greater wage inequality.