>companies are incentivized to bargain for as much profit and as little employee compensation as possible Not necessarily, especially when employees are in hig

>companies are incentivized to bargain for as much profit and as little employee compensation as possible Not necessarily, especially when employees are in high demand. Netflix has done quite well by paying employees well above average in order to effectively have their pick of the talent. Paying employees poorly can increase training costs, recruiting costs, cause negative customer perception, etc.