What factors impact how much a worker will make?
Differences in training, education, age, and experience Differences in abilities Differences in risk Geographic differences Job discrimination Union membership
1. Do Now2. Review3. Finish and present Businesses4. Minimum Wage5. Labor Unions Notes6. Taking Sides (Labor Unions)
Students will be able to explain the historical necessity of labor unions and the role that unions play today. Students will be able to identify different types of worker based upon their human capital.
What are the advantages and disadvantages of minimum wage? Do you think raising the minimum wage would hurt or help our economy? Explain
Wagner Act 1935- Federal law that protects the rights of employees to unionize. Taft-Harley Act 1947- authorized states to introduce “right- to- work” laws. 23 states have right- to- work laws.
Collective bargaining- process by which union representatives negotiate with an employer about wages, employee benefits, and working conditions. Binding arbitration- when labor negotiations break down and the public interest is involved, a neutral 3rd party is brought in to impose a settlement that both sides must accept.
Major source of union power= threat of strike Attempt to force firm to accept union’s position. Threat of strike can encourage agreement. Some industries are more susceptible to strikes.
REDUCE THE SUPPLY OF INCREASE THE DEMANDLABOR FOR UNION LABOR Restrict membership (high Increase for union made initiation fees, long products apprenticeships, difficult Restrict supply of products qualification exams, that compete with union restrictive licensing…) made products Force all employers to hire Increase productivity of only union workers. (difficult Union labor especially in right-to –work states.)
Union workers earn on average 15% more than non-union workers Unions have great impact on wages in government, transportation, and construction.
Improvements in work conditions Some states allow workers to enjoy union benefits and wages without being members Changes in the economy- US produces more services than goods. Competition from nonunion firms Strikes are fewer and less effective- only about 20 strikes a year and many end in companies hiring permanent replacements