Economics 8


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Economics 8

  1. 1. Chapter 8: Employment, Labor, and Wages
  2. 2. 8-1: The Labor Movement <ul><li>Early Union Development </li></ul><ul><ul><li>First attempt to organize labor in America was in 1778, by printers in New York City </li></ul></ul><ul><ul><li>Small fraction of workers belonged to unions </li></ul></ul><ul><ul><li>Comprised of skilled workers and possessed strong bargaining power </li></ul></ul><ul><ul><li>In early 1800’s, large scale immigration provided a supply of cheap, unskilled labor </li></ul></ul><ul><ul><li>Public opinion against the unions and labor organizers were viewed as troublemakers </li></ul></ul>
  3. 3. <ul><li>Civil War to the 1930s </li></ul><ul><ul><li>Manufacturing expanded </li></ul></ul><ul><ul><li>Hourly workers made up about ¼ of working population </li></ul></ul><ul><ul><li>Working conditions were difficult and often dangerous </li></ul></ul><ul><ul><li>Attitudes toward labor unions began to ease </li></ul></ul><ul><ul><li>Two main types of unions: </li></ul></ul><ul><ul><ul><li>Trade or craft union – association of skilled workers who perform the same kind of work </li></ul></ul></ul><ul><ul><ul><li>Industrial union – association of all workers in the same industry, regardless of the job </li></ul></ul></ul>
  4. 4. <ul><ul><li>Union Activities </li></ul></ul><ul><ul><ul><li>Unions negotiated for higher wages, better hours, job security and better working conditions </li></ul></ul></ul><ul><ul><ul><li>Strike - refuse to work until demands were met </li></ul></ul></ul><ul><ul><ul><li>Picket – demonstrate or march before a place of business to protest a company’s actions </li></ul></ul></ul><ul><ul><ul><li>Boycott – mass refusal to buy products from targeted employers or companies </li></ul></ul></ul><ul><ul><li>Employer Resistance </li></ul></ul><ul><ul><ul><li>Lockout – management refusal to let employees work </li></ul></ul></ul><ul><ul><ul><li>Hire all new workers </li></ul></ul></ul><ul><ul><ul><li>Set up company unions , organized, supported or run by employers </li></ul></ul></ul><ul><ul><ul><li>Ludlow Massacre 1914 </li></ul></ul></ul>
  5. 5. <ul><li>Labor Since the 1930s </li></ul><ul><ul><li>Most of the significant labor laws in effect today were passed in the 1930s, 1940s, and 1950s, </li></ul></ul><ul><ul><li>Great Depression (1929 – 1939) video </li></ul></ul><ul><ul><ul><li>Stock market crash October, 1929 </li></ul></ul></ul><ul><ul><ul><li>High unemployment </li></ul></ul></ul><ul><ul><ul><li>Average hourly wage dropped from 55 cents to 5 cents </li></ul></ul></ul><ul><ul><li>Pro-union legislation </li></ul></ul><ul><ul><ul><li>The Wagner Act of 1935 established the right of unions to collective bargaining and created the National Labor Relations Board (NLRB) to police unfair labor practices </li></ul></ul></ul><ul><ul><ul><li>The Fair Labor Standards Act of 1938 set the first minimum wage, established overtime pay, and prohibited oppressive child labor </li></ul></ul></ul>
  6. 6. <ul><ul><li>Unions grew strong until the end of WWII, when public opinion changed again. </li></ul></ul><ul><ul><ul><li>Right to Work Law – state law making it illegal to require a worker to join a union as a condition of employment </li></ul></ul></ul>
  7. 7. <ul><li>Organized Labor Today </li></ul><ul><ul><li>Closed Shop - arrangement under which workers must join a union before they are hired, which allows the union to determine who is hired </li></ul></ul><ul><ul><li>Taft-Hartley Act of 1947 made the closed shop illegal for all companies engaged in interstate commerce </li></ul></ul><ul><ul><li>Union Shop – workers do not have to belong to the union to be hired, but must join afterward </li></ul></ul><ul><ul><li>Modified Union Shop – workers have the option to join a union after being hired </li></ul></ul><ul><ul><li>Agency Shop – workers do not have to join a union to get a job; however, they must pay union dues to help pay for collective bargaining costs </li></ul></ul>
  8. 9. 8-2: Wages and Labor Disputes <ul><li>Wage Determination – different occupations and levels of training are rewarded with different wages </li></ul><ul><li>1. Unskilled labor – workers not trained to operate specialized machines and equipment </li></ul><ul><li>2. Semiskilled labor – workers who operate machines that require a minimum amount of training </li></ul><ul><li>3. Skilled labor – workers who are trained to operate complex equipment and require little supervision </li></ul><ul><li>4. Professional labor – workers with a high level of training, education and management skills </li></ul>
  9. 11. <ul><li>Resolving Labor Disputes </li></ul><ul><ul><li>Collective bargaining – process of negotiation between union and management representatives over pay, benefits, and job-related matters </li></ul></ul><ul><ul><li>Mediation – process if resolving a dispute by bringing in a neutral third party </li></ul></ul><ul><ul><li>Arbitration – agreement to place a dispute before a third party for a binding settlement </li></ul></ul><ul><ul><li>Fact-finding – agreement to have a neutral third party collect facts about a dispute and present nonbinding recommendations </li></ul></ul><ul><ul><li>Injunction – court order issued to prevent a company or union from taking action during a labor protest </li></ul></ul><ul><ul><li>Seizure – temporary government takeover of a company to keep it running during a labor-management dispute </li></ul></ul><ul><ul><li>Presidential intervention </li></ul></ul>
  10. 12. 8-3: Employment Trends and Issues <ul><li>Decline of Union Influence </li></ul><ul><li>Lower Pay for Women </li></ul><ul><li>Minimum Wage </li></ul>