The corporation negotiates with management from a position of equality. Both parties are permitted to make or reject offers as they see fit. If GM offers too little, Wagoner is free to take a higher paying job elsewhere. If GM can find someone cheaper, they are free to reject Wagoner. GM is also not permitted to collude with other employers to reduce prices.

The corporation does not negotiate with a union from a position of equality. They are not permitted to reject union offers and procure labor at lower rates from the competition. They are also not permitted to fire and replace union workers who fail to do their jobs. Labor sellers are legally permitted to collude with each other to raise their prices, and they are given a government granted monopoly on the practice. Competition is illegal.