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Chapter 8Chapter 8
Employment, Labor, andEmployment, Labor, and
WagesWages
The Labor MovementThe Labor Movement
 Early Union DevelopmentEarly Union Development
A. The nation’s first unions ware co...
E. Employers resisted unions throughE. Employers resisted unions through
lockouts, firings, and even setting uplockouts, f...
 Labor During the Great DepressionLabor During the Great Depression
A.A. Unemployment and cut wages marked theUnemploymen...
 Labor Since World War IILabor Since World War II
A.A. After World War II, new laws began to limitAfter World War II, new...
Resolving Union and ManagementResolving Union and Management
DifferencesDifferences
Kinds of Union AgreementsKinds of Unio...
 Collective BargainingCollective Bargaining
A.A. When labor and management agree to mediation, a neutralWhen labor and ma...
Labor and WagesLabor and Wages
 Categories of LaborCategories of Labor
A.A. Unskilled laborers make some of the lowestUns...
 Noncompeting Labor GradesNoncompeting Labor Grades
A. People must have the ability, theA. People must have the ability, ...
 Wage DeterminationWage Determination
A.A. The traditional theory of wage determinationThe traditional theory of wage det...
 Regional Wage DifferencesRegional Wage Differences
A.A. Wages can vary when demand for certainWages can vary when demand...
Employment Trends and IssuesEmployment Trends and Issues
 Decline of Union InfluenceDecline of Union Influence
A.A. Union...
 Lower Pay for WomenLower Pay for Women
A.A. Women, on the whole, have less experience and education toWomen, on the whol...
 Part-Time WorkersPart-Time Workers
A. Part-time workers cost employers lessA. Part-time workers cost employers less
in b...
 The Minimum WageThe Minimum Wage
A.A. Opponents claim the minimum wage doesOpponents claim the minimum wage does
not pro...
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  1. 1. Chapter 8Chapter 8 Employment, Labor, andEmployment, Labor, and WagesWages
  2. 2. The Labor MovementThe Labor Movement  Early Union DevelopmentEarly Union Development A. The nation’s first unions ware comprised ofA. The nation’s first unions ware comprised of skilled workers.skilled workers. B. After the Civil war, as industry expanded, theB. After the Civil war, as industry expanded, the labor force became more unified.labor force became more unified. C. Two types of unions developed-the tradeC. Two types of unions developed-the trade union and the industrial union.union and the industrial union. D. Unions used strikes, pickets, and boycotts toD. Unions used strikes, pickets, and boycotts to help members get better pay, better hours, andhelp members get better pay, better hours, and job security.job security.
  3. 3. E. Employers resisted unions throughE. Employers resisted unions through lockouts, firings, and even setting uplockouts, firings, and even setting up company unions.company unions. F. Historically, the courts have viewedF. Historically, the courts have viewed unions with hostility.unions with hostility.
  4. 4.  Labor During the Great DepressionLabor During the Great Depression A.A. Unemployment and cut wages marked theUnemployment and cut wages marked the decade of the Great Depression anddecade of the Great Depression and encouraged unions to organize workers.encouraged unions to organize workers. B.B. The government began to pass lawsThe government began to pass laws protecting unions.protecting unions.
  5. 5.  Labor Since World War IILabor Since World War II A.A. After World War II, new laws began to limitAfter World War II, new laws began to limit union activity.union activity. B.B. The AFL-CIO was created when twoThe AFL-CIO was created when two powerful unions joined forces.powerful unions joined forces. C.C. Independent unions are those that do notIndependent unions are those that do not belong to the AFL-CIO.belong to the AFL-CIO.
  6. 6. Resolving Union and ManagementResolving Union and Management DifferencesDifferences Kinds of Union AgreementsKinds of Union Agreements A.A. In a closed shop, the employer agrees toIn a closed shop, the employer agrees to hire only union members.hire only union members. B.B. In a union shop, most workers belong to aIn a union shop, most workers belong to a union.union. C.C. In a modified union shop, workers cannot beIn a modified union shop, workers cannot be made to join the union.made to join the union. D.D. In an agency shop, workers must pay unionIn an agency shop, workers must pay union dues, whether or not they are uniondues, whether or not they are union members.members.
  7. 7.  Collective BargainingCollective Bargaining A.A. When labor and management agree to mediation, a neutralWhen labor and management agree to mediation, a neutral person helps settle the dispute.person helps settle the dispute. B.B. With arbitration, labor and management agree to abide by aWith arbitration, labor and management agree to abide by a third party decision.third party decision. C.C. Disputes also can be resolved through fact-finding, in which aDisputes also can be resolved through fact-finding, in which a neutral third party presents non-binding recommendation.neutral third party presents non-binding recommendation. D.D. The government also can get involved in labor disputes byThe government also can get involved in labor disputes by issuing injunctions or resorting to seizures.issuing injunctions or resorting to seizures. E.E. The President can intervene by publicly appealing to bothThe President can intervene by publicly appealing to both parties to resole their differences, by firing federal workersparties to resole their differences, by firing federal workers who have broken their oath not to strike (1981 air trafficwho have broken their oath not to strike (1981 air traffic controllers), and in some cases by using emergency powerscontrollers), and in some cases by using emergency powers (1997 American Airline pilots).(1997 American Airline pilots).
  8. 8. Labor and WagesLabor and Wages  Categories of LaborCategories of Labor A.A. Unskilled laborers make some of the lowestUnskilled laborers make some of the lowest wages.wages. B.B. Semiskilled workers do jobs that require aSemiskilled workers do jobs that require a minimum amount of training.minimum amount of training. C.C. Skilled workers hold jobs that requireSkilled workers hold jobs that require experience and training.experience and training. D.D. Professional workers do jobs that require aProfessional workers do jobs that require a high level of knowledge-based educationhigh level of knowledge-based education and managerial skills.and managerial skills.
  9. 9.  Noncompeting Labor GradesNoncompeting Labor Grades A. People must have the ability, theA. People must have the ability, the initiative, and the money to obtaininitiative, and the money to obtain additional education and training.additional education and training. B. Sometimes people are faced with a lackB. Sometimes people are faced with a lack of opportunity for additional training andof opportunity for additional training and education.education. C. Sometimes people lack the initiativeC. Sometimes people lack the initiative they need to get ahead.they need to get ahead.
  10. 10.  Wage DeterminationWage Determination A.A. The traditional theory of wage determinationThe traditional theory of wage determination says that supply and demand together willsays that supply and demand together will determine the equilibrium wage rate.determine the equilibrium wage rate. B.B. The theory of negotiated wages usesThe theory of negotiated wages uses organized labor’s bargaining strength to helporganized labor’s bargaining strength to help explain wage differentials.explain wage differentials. C.C. According to the signaling theory, employersAccording to the signaling theory, employers are willing to pay more for those people withare willing to pay more for those people with certain indicators of superior ability.certain indicators of superior ability.
  11. 11.  Regional Wage DifferencesRegional Wage Differences A.A. Wages can vary when demand for certainWages can vary when demand for certain skilled positions exceeds supply.skilled positions exceeds supply. B.B. Employers tend to offer higher wages inEmployers tend to offer higher wages in areas where the cost of living is higher thanareas where the cost of living is higher than normal.normal. C.C. People sometimes are willing to acceptPeople sometimes are willing to accept lower wages if the location of the job islower wages if the location of the job is attractive to them.attractive to them.
  12. 12. Employment Trends and IssuesEmployment Trends and Issues  Decline of Union InfluenceDecline of Union Influence A.A. Union membership has declined because ofUnion membership has declined because of unfriendly businesses, new workers withunfriendly businesses, new workers with little loyalty to organized labor, and cutbackslittle loyalty to organized labor, and cutbacks in production by unionized companies.in production by unionized companies. B.B. Businesses are using givebacks, bankruptcyBusinesses are using givebacks, bankruptcy claims, and two-tier wage systems to lowerclaims, and two-tier wage systems to lower union-negotiated wages.union-negotiated wages.
  13. 13.  Lower Pay for WomenLower Pay for Women A.A. Women, on the whole, have less experience and education toWomen, on the whole, have less experience and education to bring to the working world then their male counterparts.bring to the working world then their male counterparts. B.B. Some higher paying jobs have a larger percentage of maleSome higher paying jobs have a larger percentage of male workers, while some lower paying jobs have a largerworkers, while some lower paying jobs have a larger percentage of female workers.percentage of female workers. C.C. The glass ceiling is an example of the discrimination womenThe glass ceiling is an example of the discrimination women face in the workplace.face in the workplace. D.D. The Equal Pay Act and the Civil Rights Act both work toThe Equal Pay Act and the Civil Rights Act both work to prevent wage and salary discrimination.prevent wage and salary discrimination. E.E. Some states hope to close the gender income gap by definingSome states hope to close the gender income gap by defining jobs of comparable worth (equal pay for equal work).jobs of comparable worth (equal pay for equal work). F.F. Set-aside contracts are contacts that will be made only with aSet-aside contracts are contacts that will be made only with a specific group.specific group.
  14. 14.  Part-Time WorkersPart-Time Workers A. Part-time workers cost employers lessA. Part-time workers cost employers less in benefits.in benefits. B. Critics say part-time employment’s lowB. Critics say part-time employment’s low wages and lack of benefits make it difficultwages and lack of benefits make it difficult for workers to earn a decent living.for workers to earn a decent living.
  15. 15.  The Minimum WageThe Minimum Wage A.A. Opponents claim the minimum wage doesOpponents claim the minimum wage does not promote economic freedom.not promote economic freedom. B.B. In current dollars, the minimum wageIn current dollars, the minimum wage appears to have risen over time.appears to have risen over time. C.C. Measurements in real dollars take inflationMeasurements in real dollars take inflation into account.into account. D.D. The ratio of minimum wage to manufacturingThe ratio of minimum wage to manufacturing wage has been steadily decreasing for thewage has been steadily decreasing for the past 30 years.past 30 years.
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