Econ Chapter Eight: Labor and Labor Unions.

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Econ Chapter Eight: Labor and Labor Unions.

  1. 1. The Rise and Fall of Labor Unions
  2. 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.
  3. 3. 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.
  4. 4. The “Formula” Unions + Violence + Strikes + Socialists + Immigrants = Anarchists
  5. 5. 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
  6. 6. 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.
  7. 7. 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.
  8. 8. 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
  9. 9. The American Federation of Labor: 1886 Samuel Gompers: “MORE!”
  10. 10. Child Labor
  11. 11. A candle would be placed into his hat to provide light while working in the mines! Why is this dangerous?
  12. 12. Coal Miners
  13. 13. Here is a SIX year old girl working in a cotton mill
  14. 14. “Galley Labor”
  15. 15. How is Big Business treating children according to the picture?
  16. 16. Daydreaming……. What is she thinking about?
  17. 17. Look carefully, what is missing?
  18. 18. 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?
  19. 19. Why are the children STANDING on the machine?
  20. 20. Piece Work
  21. 21. T.W.S.F. 1
  22. 22.  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
  23. 23. Great Rail Road Strike-First National Strike
  24. 24.  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.
  25. 25. 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
  26. 26. Haymarket Riot (1886) Major Setback for Labor McCormick Harvesting Machine Co.
  27. 27. Haymarket Riot HM1. …
  28. 28. The Corporate “Bully-Boys”: Pinkerton Agents
  29. 29. The Pullman Strike of 1894
  30. 30. THE GREAT RAILROAD STRIKE OF 1877
  31. 31. The Pullman Strike of 1894
  32. 32. President Grover Cleveland If it takes the entire army and navy to deliver a postal card in Chicago, that card will be delivered!
  33. 33. The Socialists Eugene V. Debs
  34. 34. International Workers of the World (“Wobblies”)
  35. 35. “Big Bill” Haywood of the I.W.W.  Violence was justified to overthrow capitalism.
  36. 36. I W W & the Internationale
  37. 37. The Hand That Will Rule the World – Workers own the means of production!
  38. 38. 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.
  39. 39. 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.
  40. 40. 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
  41. 41. 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
  42. 42. Anti-Union Legislation 1947
  43. 43. Anti-Union Legislation Reagan the Democrat. Reagan the Republican PATCO. QuickTime™ and a decompressor are needed to see this picture.
  44. 44. Kinds of Union Shops.  Closed shops.(Taft-Hartly Outlawed)  Union shops. Raley’s.  Modified shops.  Agency shops. O.U.H.S.D.
  45. 45. 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.
  46. 46. Collective Bargaining.  1. A group represents the union to management.  2. A contract is created that both parties agree and sign.
  47. 47. 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.)
  48. 48. Categories of Labor.  1. Unskilled.  2. Semi skilled  3. Skilled  4. Professional Labor.
  49. 49. Wage Determination  Traditional Theory-Supply and demand.  Negotiated wage theory- unions.  Signaling theory- Higher education.  Regional wage differences.  Ethnic or gender(Glass Ceiling).
  50. 50. 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.)
  51. 51. 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
  52. 52. 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….
  53. 53. Pro and Anti Union Arguments. Target Starbucks. Wal-Mart Hit Man Wal-Mart. High Cost of Low Wages. Nike Wal-Mart-=Sweat Shops.
  54. 54. 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!
  55. 55. 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.
  56. 56. Pro min. Wage
  57. 57. Constant Dollars Verses Current Dollars.  Inflation, every year, decreases the buying power of the dollar. 1-3 percent inflation is normal.

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