The article explores how bargaining between a company and a union for wages and jobs can be affected by the threat of new competitors entering the market. If the new entrant doesn't know the workers' minimum wage requirement, they may end up hiring too many workers. Depending on whether the new entrant can see the wage agreements, different types of inefficiencies can occur. In some cases, the high-wage workers may be over-employed, while in others, it could be the low-wage workers. However, if the new entrant can see the wages, there may not always be an inefficient outcome.