Today, by contrast, it appears that the dynamics have been reversed. The point of departure is the perceived inability of firms to pass forward increases in costs. That dictates an obsession by firms with containing costs.
That means bargaining aggressively to avoid increases in wage costs, intensive efforts to offset any wage increases with productivity gains, and the necessity of absorbing in profit margins increases in costs that cannot be offset. The absence of pricing leverage is generally attributed to a perception of increased competition.