Chapter 8Chapter 8
Employment, Labor, andEmployment, Labor, and
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.
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.
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.
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.
Resolving Union and ManagementResolving Union and Management
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
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
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).
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
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.
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
C. Sometimes people lack the initiativeC. Sometimes people lack the initiative
they need to get ahead.they need to get ahead.
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.
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
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.
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.
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.
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.
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.