The Rise and Fall of
Labor Unions
Chapter Eight
Macro -
Economics
 This is the study of
the whole economy
– The big picture.
 Macroeconomic
includes:
G.D.P., total money
supply, inflation/def
lation, taxes, import
s/exports, etc.
How many workers
in the U.S?
 There are about 150
million Americans in
the workforce.
 This does not include
members of the
military, prisoners, an
d people who have
quit looking for a job.
Early Union Development
 1. Unions were stunted
in their growth until the
1930’s.
 2. Most Americans were
anti - union.
 Why was this so?
 3. Americans were of
the “Pull yourself up by
your own boot straps”
attitude.
 There was HEAVY employer
resistance. Tactics included:
 1. Yellow Dog Contracts, Black
Lists, Union Busters, Lock Outs.
 2. Government leaders were
anti union.
 3. The Court system were anti
union also.
 4. American felt that unions
were of a “Foreign” influence.
The
“Formula”
Unions + Violence + Strikes + Socialists +
Immigrants =
Anarchists
Roots of the American Labor
Movement
 Pre-Revolutionary America. NO NOTES.
 Agricultural economy.
 Indentured Servants.
 Slaves.
 Post-Revolutionary America
 First labor unions of craftspeople in 1790s.
 Trade societies.
 Growth of American factory system in 1830s
 Did complete task to finish whole product-worked in one building.
 Mass influx of immigrants kept waged rock bottom.
 Growth of large, impersonal, national corporations provided the impetus to
unionize.
 Industrialization.
 History of Indurtial Revolution
What Did Early Unions Want?
 1. Collective Bargaining.
 2. Eight hour work day/Forty hour work week.
 3. No child labor.
 4. Worker’s Comp.
 5. Safe work place.
Growth of National
Unions-No Notes.
 1. National Labor Union (NLU) - 1866
 Membership for skilled and unskilled workers.
 2. National Colored Labor Union (NCLU)
 Refused membership by the NLU.
 3. Knights of Labor.
 4. American Federation of Labor (AFL) - created in 1888.
Still exists today.
Growth of National
Unions
 National Labor Union (NLU) - 1866
 Membership for skilled and unskilled workers.
 National Colored Labor Union (NCLU)
 Refused membership by the NLU.
 Knights of Labor.
 American Federation of Labor (AFL) - created in 188
The American Federation
of Labor: 1886
Samuel Gompers:
“MORE!”
Child Labor
A candle
would be
placed into
his hat to
provide light
while
working in
the mines!
Why is this
dangerous?
Coal Miners
Here is a SIX year old girl working in a cotton mill
“Galley Labor”
How is Big Business treating children according to the picture?
Daydreaming……. What is she thinking about?
Look carefully, what is missing?
The taller boy standing to the right oversees the breaker boys who
separate the coal from the stones during mining. The machine used is
moving quickly and they are not allowed to wear gloves! Why might this
be dangerous?
Why are the children STANDING on the machine?
Piece Work
T.W.S.F. 1
 Molly Maguires.
 Labor movement portrayed as violent and criminal.
 Railway Strike - 1877
 First general strike to sweep the U.S.
 First use of federal troops to suppress labor action.
 Haymarket Square Riot - 1886
 Demonstration in support of 8-hour day led to a series of
confrontations with Chicago police.
 Public became fearful of labor organizations.
Labor Strife-No Notes
Great Rail Road Strike-First
National Strike
 Homestead Strike - 1892
 Involved the Amalgamated Association of Iron and Steel
Workers and the Carnegie Steel Company
 Armed confrontation between strikers and armed
Pinkerton guards
 Pullman Strike - 1894
 Involved the Pullman Palace Car Company and the
American Railway Union
 Injunction issued using the Sherman Antitrust Act
Growth of National Unions
More Violence.
Unions - Periods of
Violence
Molly
Maguires
Railway
Labor
Strike
Haymarket
Square
Homestead
Strike
Pullman
Strike
1870 1875 1880 1885 1890 1895 1915
Year
1900
Growth of Unions
Haymarket Riot (1886)
Major Setback for Labor
McCormick Harvesting Machine Co.
Haymarket Riot HM1.
…
The Corporate
“Bully-Boys”: Pinkerton
Agents
The Pullman Strike of 1894
THE GREAT RAILROAD STRIKE OF 1877
The Pullman Strike of 1894
President Grover Cleveland
If it takes the entire army and navy to
deliver a postal card in Chicago, that card
will be delivered!
The Socialists
Eugene V. Debs
International Workers of the
World (“Wobblies”)
“Big Bill” Haywood of the
I.W.W.
 Violence was justified to
overthrow capitalism.
I W W & the Internationale
The Hand That Will Rule the
World – Workers own the
means of production!
Great Depression and
Unions.
 1. GDP falls by fifty percent.
 2. Twenty-five percent unemployment.
 3. Serious DEFLATION. Wage-Price
spiral Downward.
 4. Wage-Rate Theory destroyed.
Pro Union Legislation
 1. LaGuardia Act
1932. Prevented
courts from rulings
against peaceful
strikes, picketing, or
boycotts.
 2 Nat’s Labor
Relations Act 1935 or
Wagner Act:
 3. Right of unions to
collective bargaining.
 4. Gov’t oversite of
union elections.
 5. Gov’t world police
unfair labor
practices.
 6. Magna Carta of
Labor.
Fair Labor Act 1938
 1. Federal
Minimum wage.
Wage-Rate Theory.
 2. Time and a half
for overtime.
 3. 40 hour work
week.
 4. 8 hour work day.
 5. Eliminates child
labor.
 Wagner Act
 W.A.S.C
Creation of National Labor
Policy (cont.)
Labor
Management
Relations Act
(Taft-Hartley
Amendments,
1947)
Recognized workers right not to
organize
• Closed shop made unlawful
Defined union unfair labor practices
•unions required to bargain in good faith
•unions can be sued for breach of
contract
•restraint or coercion of employees in
exercise of their rights
•discrimination against employee for not
engaging in union activities
Restrictions on strike activities
Right-to-work laws
Anti-Union Legislation 1947
Anti-Union Legislation
Reagan the Democrat.
Reagan the Republican PATCO.
QuickTime™ and a
decompressor
are needed to see this picture.
Kinds of Union Shops.
 Closed shops.(Taft-Hartly Outlawed)
 Union shops. Raley’s.
 Modified shops.
 Agency shops. O.U.H.S.D.
Kinds of Union Shops.
 1. Closed
shops.(Taft-Hartly
Outlawed)
 2. Union shops.
Raley’s.
 3. Modified shops.
 4. Agency shops.
O.U.H.S.D.
Collective Bargaining.
 1. A group represents the union to
management.
 2. A contract is created that both parties
agree and sign.
What if the Contract is
Broken?
 1. Grievance. Informal/Formal.
 2. Mediation.
 3. Arbitration. Binding and non binding.
 4. Fact-Finding.
 5. Injunction and seizure.
 6. Presidential intervention. (PATCO.)
Categories of Labor.
 1. Unskilled.
 2. Semi skilled
 3. Skilled
 4. Professional Labor.
Wage Determination
 Traditional Theory-Supply
and demand.
 Negotiated wage theory-
unions.
 Signaling theory- Higher
education.
 Regional wage differences.
 Ethnic or gender(Glass
Ceiling).
Wage Determination
 1. Traditional
Theory-Supply and
demand.
 2. Negotiated wage
theory-unions.
 3. Signaling theory-
Higher education.
 4. Regional wage
differences.
 5. Ethnic or
gender(Glass
Ceiling.)
Earnings Gap
(What women of various races earn, compared
with a dollar earned by a white male)
0.00 0.20 0.40 0.60 0.80
Asian-American
White
African-American
Native-American
Hispanic
Source: Business Week, June 7, 2004
Decline of Unions.
 1. Reasons:
 2. Employers like Wal-Mart have fought unions
vigorously.
 3. More women and teenagers in work force and are
not as interested in unions.
 4. Globalization/Outsourcing of labor.
 5. Poor countries have few environmental laws, no
workers comp., Social Security , or Medicare taxes….
Pro and Anti Union
Arguments.
Target
Starbucks.
Wal-Mart Hit Man
Wal-Mart. High Cost of Low Wages.
Nike
Wal-Mart-=Sweat Shops.
Minimum Wage.
 1. Why does the U.S. have a minimum
wage? Wage-Rate Theory discredited
during the Great Depression.
 2. Does the minimum wage keep up with
inflation? No.
 3. Does raising the minimum wage hurt
business? No. IMO!
Minimum Wage Stats.
 1. 2.2% of total W.F. earn M.W.
 2. Only 1.4% over 25.
 3. 51% are between 16-24. Reagan “Training
Wage.”
 4. 21% between 25-34.
 5. Only 1.2% college education.
 6. 59% no college.
 Anti Minimum Argument.
 Cut Min. Wage.
Pro min. Wage
Constant Dollars Verses
Current Dollars.
 Inflation, every year, decreases the
buying power of the dollar. 1-3 percent
inflation is normal.
Econ Chapter Eight: Labor and Labor Unions.
Econ Chapter Eight: Labor and Labor Unions.
Econ Chapter Eight: Labor and Labor Unions.

Econ Chapter Eight: Labor and Labor Unions.

  • 1.
    The Rise andFall of Labor Unions
  • 2.
    Chapter Eight Macro - Economics This is the study of the whole economy – The big picture.  Macroeconomic includes: G.D.P., total money supply, inflation/def lation, taxes, import s/exports, etc. How many workers in the U.S?  There are about 150 million Americans in the workforce.  This does not include members of the military, prisoners, an d people who have quit looking for a job.
  • 4.
    Early Union Development 1. Unions were stunted in their growth until the 1930’s.  2. Most Americans were anti - union.  Why was this so?  3. Americans were of the “Pull yourself up by your own boot straps” attitude.  There was HEAVY employer resistance. Tactics included:  1. Yellow Dog Contracts, Black Lists, Union Busters, Lock Outs.  2. Government leaders were anti union.  3. The Court system were anti union also.  4. American felt that unions were of a “Foreign” influence.
  • 5.
    The “Formula” Unions + Violence+ Strikes + Socialists + Immigrants = Anarchists
  • 7.
    Roots of theAmerican Labor Movement  Pre-Revolutionary America. NO NOTES.  Agricultural economy.  Indentured Servants.  Slaves.  Post-Revolutionary America  First labor unions of craftspeople in 1790s.  Trade societies.  Growth of American factory system in 1830s  Did complete task to finish whole product-worked in one building.  Mass influx of immigrants kept waged rock bottom.  Growth of large, impersonal, national corporations provided the impetus to unionize.  Industrialization.  History of Indurtial Revolution
  • 8.
    What Did EarlyUnions Want?  1. Collective Bargaining.  2. Eight hour work day/Forty hour work week.  3. No child labor.  4. Worker’s Comp.  5. Safe work place.
  • 9.
    Growth of National Unions-NoNotes.  1. National Labor Union (NLU) - 1866  Membership for skilled and unskilled workers.  2. National Colored Labor Union (NCLU)  Refused membership by the NLU.  3. Knights of Labor.  4. American Federation of Labor (AFL) - created in 1888. Still exists today.
  • 10.
    Growth of National Unions National Labor Union (NLU) - 1866  Membership for skilled and unskilled workers.  National Colored Labor Union (NCLU)  Refused membership by the NLU.  Knights of Labor.  American Federation of Labor (AFL) - created in 188
  • 11.
    The American Federation ofLabor: 1886 Samuel Gompers: “MORE!”
  • 12.
  • 13.
    A candle would be placedinto his hat to provide light while working in the mines! Why is this dangerous?
  • 14.
  • 15.
    Here is aSIX year old girl working in a cotton mill
  • 16.
  • 17.
    How is BigBusiness treating children according to the picture?
  • 18.
    Daydreaming……. What isshe thinking about?
  • 19.
  • 20.
    The taller boystanding to the right oversees the breaker boys who separate the coal from the stones during mining. The machine used is moving quickly and they are not allowed to wear gloves! Why might this be dangerous?
  • 21.
    Why are thechildren STANDING on the machine?
  • 23.
  • 26.
  • 27.
     Molly Maguires. Labor movement portrayed as violent and criminal.  Railway Strike - 1877  First general strike to sweep the U.S.  First use of federal troops to suppress labor action.  Haymarket Square Riot - 1886  Demonstration in support of 8-hour day led to a series of confrontations with Chicago police.  Public became fearful of labor organizations. Labor Strife-No Notes
  • 28.
    Great Rail RoadStrike-First National Strike
  • 29.
     Homestead Strike- 1892  Involved the Amalgamated Association of Iron and Steel Workers and the Carnegie Steel Company  Armed confrontation between strikers and armed Pinkerton guards  Pullman Strike - 1894  Involved the Pullman Palace Car Company and the American Railway Union  Injunction issued using the Sherman Antitrust Act Growth of National Unions More Violence.
  • 30.
    Unions - Periodsof Violence Molly Maguires Railway Labor Strike Haymarket Square Homestead Strike Pullman Strike 1870 1875 1880 1885 1890 1895 1915 Year 1900 Growth of Unions
  • 31.
    Haymarket Riot (1886) MajorSetback for Labor McCormick Harvesting Machine Co.
  • 32.
  • 33.
  • 34.
  • 35.
    THE GREAT RAILROADSTRIKE OF 1877
  • 36.
  • 37.
    President Grover Cleveland Ifit takes the entire army and navy to deliver a postal card in Chicago, that card will be delivered!
  • 38.
  • 39.
    International Workers ofthe World (“Wobblies”)
  • 40.
    “Big Bill” Haywoodof the I.W.W.  Violence was justified to overthrow capitalism.
  • 41.
    I W W& the Internationale
  • 42.
    The Hand ThatWill Rule the World – Workers own the means of production!
  • 43.
    Great Depression and Unions. 1. GDP falls by fifty percent.  2. Twenty-five percent unemployment.  3. Serious DEFLATION. Wage-Price spiral Downward.  4. Wage-Rate Theory destroyed.
  • 44.
    Pro Union Legislation 1. LaGuardia Act 1932. Prevented courts from rulings against peaceful strikes, picketing, or boycotts.  2 Nat’s Labor Relations Act 1935 or Wagner Act:  3. Right of unions to collective bargaining.  4. Gov’t oversite of union elections.  5. Gov’t world police unfair labor practices.  6. Magna Carta of Labor.
  • 45.
    Fair Labor Act1938  1. Federal Minimum wage. Wage-Rate Theory.  2. Time and a half for overtime.  3. 40 hour work week.  4. 8 hour work day.  5. Eliminates child labor.  Wagner Act  W.A.S.C
  • 46.
    Creation of NationalLabor Policy (cont.) Labor Management Relations Act (Taft-Hartley Amendments, 1947) Recognized workers right not to organize • Closed shop made unlawful Defined union unfair labor practices •unions required to bargain in good faith •unions can be sued for breach of contract •restraint or coercion of employees in exercise of their rights •discrimination against employee for not engaging in union activities Restrictions on strike activities Right-to-work laws
  • 49.
  • 50.
    Anti-Union Legislation Reagan theDemocrat. Reagan the Republican PATCO. QuickTime™ and a decompressor are needed to see this picture.
  • 51.
    Kinds of UnionShops.  Closed shops.(Taft-Hartly Outlawed)  Union shops. Raley’s.  Modified shops.  Agency shops. O.U.H.S.D.
  • 52.
    Kinds of UnionShops.  1. Closed shops.(Taft-Hartly Outlawed)  2. Union shops. Raley’s.  3. Modified shops.  4. Agency shops. O.U.H.S.D.
  • 53.
    Collective Bargaining.  1.A group represents the union to management.  2. A contract is created that both parties agree and sign.
  • 54.
    What if theContract is Broken?  1. Grievance. Informal/Formal.  2. Mediation.  3. Arbitration. Binding and non binding.  4. Fact-Finding.  5. Injunction and seizure.  6. Presidential intervention. (PATCO.)
  • 55.
    Categories of Labor. 1. Unskilled.  2. Semi skilled  3. Skilled  4. Professional Labor.
  • 57.
    Wage Determination  TraditionalTheory-Supply and demand.  Negotiated wage theory- unions.  Signaling theory- Higher education.  Regional wage differences.  Ethnic or gender(Glass Ceiling).
  • 58.
    Wage Determination  1.Traditional Theory-Supply and demand.  2. Negotiated wage theory-unions.  3. Signaling theory- Higher education.  4. Regional wage differences.  5. Ethnic or gender(Glass Ceiling.)
  • 59.
    Earnings Gap (What womenof various races earn, compared with a dollar earned by a white male) 0.00 0.20 0.40 0.60 0.80 Asian-American White African-American Native-American Hispanic Source: Business Week, June 7, 2004
  • 61.
    Decline of Unions. 1. Reasons:  2. Employers like Wal-Mart have fought unions vigorously.  3. More women and teenagers in work force and are not as interested in unions.  4. Globalization/Outsourcing of labor.  5. Poor countries have few environmental laws, no workers comp., Social Security , or Medicare taxes….
  • 62.
    Pro and AntiUnion Arguments. Target Starbucks. Wal-Mart Hit Man Wal-Mart. High Cost of Low Wages. Nike Wal-Mart-=Sweat Shops.
  • 69.
    Minimum Wage.  1.Why does the U.S. have a minimum wage? Wage-Rate Theory discredited during the Great Depression.  2. Does the minimum wage keep up with inflation? No.  3. Does raising the minimum wage hurt business? No. IMO!
  • 70.
    Minimum Wage Stats. 1. 2.2% of total W.F. earn M.W.  2. Only 1.4% over 25.  3. 51% are between 16-24. Reagan “Training Wage.”  4. 21% between 25-34.  5. Only 1.2% college education.  6. 59% no college.  Anti Minimum Argument.  Cut Min. Wage.
  • 71.
  • 78.
    Constant Dollars Verses CurrentDollars.  Inflation, every year, decreases the buying power of the dollar. 1-3 percent inflation is normal.