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Good morning & happy #MonopolyMonday!
This week, we'll be doing something a little different & talking about monopsonies.
Specifically, we'll be talking about three recent *positive* developments for workers against corporate power.
This week, we'll be doing something a little different & talking about monopsonies.
Specifically, we'll be talking about three recent *positive* developments for workers against corporate power.
2/ First of all, what is the difference between a monopoly & a monopsony?
A monopoly is a dominant company selling something.
A monopsony is a dominant company *buying* something. In this case, monopsonies are dominant companies buying workersâ labor.
A monopoly is a dominant company selling something.
A monopsony is a dominant company *buying* something. In this case, monopsonies are dominant companies buying workersâ labor.
3/ A group of @ufc fighters recently got their class action suit certified by a Las Vegas judge.
The fighters, repped by @CramerEcramer, @HalSinger, among others, argued that @ufc monopsonized the market & prevented them from working for other promoters. https://www.nytimes.com/2020/12/10/sports/ufc-lawsuit.html
The fighters, repped by @CramerEcramer, @HalSinger, among others, argued that @ufc monopsonized the market & prevented them from working for other promoters. https://www.nytimes.com/2020/12/10/sports/ufc-lawsuit.html
4/ Though athletes in other major sports like baseball & football get ~50% of the leagueâs revenue, @ufc fighters get less than 20%.
Like those working for other monopsonies (cough cough @amazon), they are being underpaid because their employer has too much power.
Like those working for other monopsonies (cough cough @amazon), they are being underpaid because their employer has too much power.
5/ As @josheidelson reported, @ufc got big by buying up major competitors.
They now control 70% of all MMA fighters & use exclusive contracts w/ them to prevent them from getting a better deal w/ other promoters. https://www.bloomberg.com/news/features/2020-05-08/as-ufc-pushes-may-mma-event-fighters-say-deals-are-getting-worse
They now control 70% of all MMA fighters & use exclusive contracts w/ them to prevent them from getting a better deal w/ other promoters. https://www.bloomberg.com/news/features/2020-05-08/as-ufc-pushes-may-mma-event-fighters-say-deals-are-getting-worse
6/ @ufc has used its power over fighters to pressure fighters to fight while injured and to take a cut of fightersâ sponsorships.
And if the fighters win their case, they could get up to $5 billion in damages.
And if the fighters win their case, they could get up to $5 billion in damages.
7/ A good ruling could also bring change for other workers & make more monopsony suits possible in industries with powerful buyers like health care, ag, & transportation!
8/ Next up on the good news docket 
â On Friday, @SenatorBaldwin introduced the EMPOWERS Act, which would give workers more power over how their retirement money is used to invest in and govern corporations.
https://www.baldwin.senate.gov/imo/media/doc/EMPOWERS%20Act%20One-Pager.pdf
â On Friday, @SenatorBaldwin introduced the EMPOWERS Act, which would give workers more power over how their retirement money is used to invest in and govern corporations. https://www.baldwin.senate.gov/imo/media/doc/EMPOWERS%20Act%20One-Pager.pdf
9/ Currently, most workersâ retirement savings go to the Big Three asset managers â @blackrock @Vanguard_Group & @StateStreet â and give them extraordinary power over most U.S. companies.
The EMPOWERS Act would give decision-making power back to workers. https://www.economicliberties.us/our-work/new-money-trust/
The EMPOWERS Act would give decision-making power back to workers. https://www.economicliberties.us/our-work/new-money-trust/
10/ For more on the Big Three asset managers, check out our previous #MonopolyMonday 
https://twitter.com/econliberties/status/1333444922519719941
https://twitter.com/econliberties/status/1333444922519719941
11/ Lastly, @JusticeATR brought a wage-fixing case, indicting the owner of a therapy staffing clinic for illegally colluding w/ others to keep down the wages of the physical therapists & PT assistants.
It's a good case & the DOJ should bring more like it! https://www.justice.gov/opa/pr/former-owner-health-care-staffing-company-indicted-wage-fixing
It's a good case & the DOJ should bring more like it! https://www.justice.gov/opa/pr/former-owner-health-care-staffing-company-indicted-wage-fixing
12/ When the @FTC took this case on, they âresolvedâ it by telling the clinic's owner and his co-conspirators to stop colluding & not do it again.
@chopraftc called the outcome a âweak, no-consequences settlement.â Which⊠it was.
https://www.ftc.gov/system/files/documents/public_statements/1552484/171_0134_your_therapy_source_dissentingstatementchopra.pdf
@chopraftc called the outcome a âweak, no-consequences settlement.â Which⊠it was.
https://www.ftc.gov/system/files/documents/public_statements/1552484/171_0134_your_therapy_source_dissentingstatementchopra.pdf
13/ @chopraftc argued that the @FTC could have required the owners to admit to the facts of the case & their guilt, alert workers who had been cheated, and forbid them from working in the therapy staffing industry again.
The @FTC did none of these things.
https://www.ftc.gov/system/files/documents/public_statements/1552484/171_0134_your_therapy_source_dissentingstatementchopra.pdf
The @FTC did none of these things.
https://www.ftc.gov/system/files/documents/public_statements/1552484/171_0134_your_therapy_source_dissentingstatementchopra.pdf
14/ A year later, this is still a problem.
Itâs a lesson for enforcers: Take on more monopsony power cases ESPECIALLY in straightforward situations like wage-fixing or no-poach agreements between employers.
Itâs a lesson for enforcers: Take on more monopsony power cases ESPECIALLY in straightforward situations like wage-fixing or no-poach agreements between employers.
15/15 Antitrust law & fighting monopoly power can protect workers and further economic justice.
To learn more, join us and @PplsAction tomorrow, Dec. 15 at 2pm ET for our âBreak âEm Up! Redistributing Economic Power for the Peopleâ event! https://www.economicliberties.us/event/break-em-up-redistributing-economic-power-to-the-people/
To learn more, join us and @PplsAction tomorrow, Dec. 15 at 2pm ET for our âBreak âEm Up! Redistributing Economic Power for the Peopleâ event! https://www.economicliberties.us/event/break-em-up-redistributing-economic-power-to-the-people/
