Marx's analysis of alienated labor shows that workers 'possess' formal capabilities (to quit, to negotiate) that are practically indistinguishable from unfreedom due to structural coercion.

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Formal capabilities(as the theoretical freedoms workers supposedly have): Rights or abilities that officially exist on paper, like the legal right to quit your job or ask for a raise. The term 'formal' means they're technically real, but they might not work well in practice.
Marx(as referenced for theoretical analysis of economic systems): Karl Marx was a 19th-century philosopher and economist who argued that capitalism creates conflict between business owners (who own machines and factories) and workers (who do the labor).
alienated labor(Marx's 1844 Manuscripts account of labor under capitalist conditions): Labor that is external to the worker's essential being — in which the worker does not affirm the self, does not feel content, does not freely develop physical and mental energy, and which serves only as a means to satisfy needs external to the labor activity itself.
structural coercion(used by some public reason theorists to expand the scope of what counts as coercion requiring public justification)

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