Question

Do you agree the employer usually has the upper hand when it comes to establishing the employment relationship? Why might the employee have maximum power over the employer?

Answer 1

Sometimes   the   employer   has   the   upper   hand,   but   this   must   be considered in   light of   employee actions as well.   The   employer has control   over   the creation   of   the   job,   the   specifications   of   the   job,   and   the   location   of   the   job.

The employer also controls access to the job, retention, and   termination of the job. The employee has maximum power over the employer when there is short supply of the skill the employee possesses, and the company has a critical need for this same skill. The employer is then in the position of having to offer the job to the prospective employee, probably at a relatively high compensation rate. This short supply can also be created artificially, and en masse when workers go out on strike. This action has the potential of stopping production completely and bringing the company to the brink of bankruptcy, at which point the company may be forced to agree to the employee (i.e., union) terms of employment. On the other hand, the employee can control his or her work effort on the job,   can seek to   change   employment   practices internally,   or   can   leave the company whenever he or she wants.