Long-run costs and economies of scale — practice question

How does economic analysis explain the level of wage rates in a perfectly competitive labour market?

Here are two press statements. ‘A government announced that it would limit the top level of pay for senior executives in private industries by imposing a maximum wage.’ ‘The trade union for transport workers decided to call a strike unless its members were awarded a higher rate of pay.’ Source: The Telegraph Business, March and October 2012 Discuss how the economic analysis of wage determination would be changed by the announcement of the government and the decision of the trade union.