Does it drive inflation or react to inflation?
wages should alway outpace inflation.
If the value of the work outpaces inflation, they do.
It is not the "value" of work ...but what they can force low skilled workers to accept
A job contributes a certain amount of revenue to a company or it doesn't exist. Paying more for that job than the money it generates means the company loses money on it. That's basic economics, and if you force the company to pay too much and it can't raise prices enough to cover the added expense, it will terminate the job entirely.
Companies make profit off of every employee
When the wages of the bulk of their employees gets frozen for eight years, they make even more profit. During that eight year period: The price of supplies, taxes, real estate, advertising, insurance and even executive pay has risen and the companies have adjusted to the market
Yet, when the lowest paid worker in the company wants higher wages....the company claims they will go bankrupt