Case One

Wage inequalities skills exist in the unskilled maintenance and unskilled and semiskilled clerical labor markets. These wage inequalities are correlated with the product market of the firm, the presence or absence of a union, and the geographical location of the firm in the Pacific Islands labor market. Second, the above wage inequalities are substantially reduced as labor markets tightens. There has been a reemergence of cost-push elements from the industries that have market power and have strong unions

Discuss the validity of such statement.