This paper uses a unique panel of data at the level of the bargaining group to examine aspects of `right-to-manage' models of wage determination. Empirical measures of ¯rms' and unions' bargaining power are identi¯ed and found to be important in°uences on wage setting. The role of union characteristics in wage determination is examined; results con¯rm their importance and illuminate previous survey ¯ndings. Features of the local labour market are shown to a®ect bargained wages over and above the in°uence of aggregate factors