Is a strong labour organisation able to achieve a general rise in workers' wages, and in what way does such an increase affect prices and employment?The problem though old, is still unsolved.When put in this way the question is so general in nature that no unambiguous answer can be expected.The analysis, which will be entirely theoretical, will be carried out with the aid of a comparatively simple model, in which the assumptions are practically the same as those found in the traditional theory. The model is static and the analysis therefore comparative static.