Ch. 22 Section 2 Labor Unions

Strikes Labor Unions Injunction Trade Unions Mediation For each of the following terms – write the definition from the textbook, and write a statement describing the term. Strikes Injunction Mediation Arbitration boycott Labor Unions Trade Unions Industrial Unions Right to work law Closed shop Union shop

Organized Labor Labor Unions are groups of workers who band together to have a better chance to obtain higher pay, benefits and better working conditions Out of the 151 million in the civilian labor force, only 14% of American workers belong to a union. That number has been falling since the 1980’s as we have transformed our economy from manufacturing to a service based economy.

The First Unions Development 1800s Poor working conditions Workers fired for no reason Workers blacklisted Knights of Labor 1st major union founded in 1869 Organized all laborers - men, women, African- Americans Terrence V. Powderly 1886 peak of membership at 700,000 Ended in 1900

American Federation of Labor (AFL) Organized in 1886 Denied unskilled workers, women, African Americans & immigrants Samuel Gompers Fought for higher wages, shorter hours & benefits for disabled By 1900 membership reached 500,000 Samuel Gompers

Organized Labor (cont.) There are two types of unions: Trade unions – workers who perform the same skills Industrial unions – bring workers together who belong to the same industry Organized labor has a three level hierarchy: local unions national unions federations

Organized Labor (cont.) Local unions are made up of workers in a factory, company or geographic area. Usually identified with #s Negotiates a contract with a company and monitors the contract terms Represents the National unions agenda, while at the same time representing the desires of their constituents

Organized Labor (cont.) National unions are the individual craft or industrial unions that represent local unions nationwide Help employees set up local unions and negotiate contracts In certain industries, the national union negotiates the contracts for the entire industry

Organized Labor (cont.) At the Federation level is the AFL-CIO Represents 13 million workers nationwide From 1955-2005, represented virtually all unionized workers in the U.S.

Union Guessing Game Amer. Federation of Federal Employees Teachers United American Nurses American Postal Workers Union Airline Pilots Assoc.

Union Membership Policies Closed Shop – Companies hire only union members Union Shop – Workers must join the union after a specified time Agency Shop – Not required to join a union, but must pay dues Open Shop – Companies may hire workers regardless of membership Modified Union Shop – Workers given an option to join a union after hiring

Organized Labor In the past, some labor unions supported closed shops, when a worker would have to first belong to a union to be hired by a company. This was banned by the Taft-Hartley Act 1947 Stopped the practice of closed shops

Organized Labor A common arrangement today is the union shop, which allows companies to hire anyone as long as they join the union shortly after they begin working

26 states have passed right-to-work laws, which prevent mandatory union membership required by union shops

Organized Labor What we see in the South are modified union shops, in which workers do not have to join a union, but if they do join have to remain a member for the duration of their employment. A majority of workers must vote in favor of a union before one can be formed. The National Labor Relations Board makes sure union votes are carried out honestly

Collective Bargaining Process where union leaders & employers discuss employment terms Once workers choose to be represented by a union, the union is responsible for carrying out collective bargaining. Union and company representatives meet to discuss conditions of employment such as: Wages Work hours Working conditions Grievance procedures Benefits Work rules and responsibilities

Compromise is the issue 3 steps Negotiation – Labor & management meet to discuss contract issues Mediation – A neutral 3rd party hears both sides Federal Mediation & Conciliation Service provides a mediator Arbitration – 3rd party makes a final decision for a compromise. Has the power of a judge and both sides agree to accept the arbitrators decision.

1. These are groups of workers who band together to have a better chance at higher wages, and better working conditions. 2. This practice was stopped with the passing of the Taft- Hartley act of 1947 3. This does not require workers to join a union, but workers must still pay dues. 4. This type of union is made up of workers in a specific factory, company or geographic area. 5. This type of union has workers who perform the same skills 6. This was the 1st major union that organized all laborers in 1869 7. Makes sure union votes are carried out honestly 8. A neutral 3rd party that helps management and laborers reach an agreement 9. A neutral 3rd party that listens to both sides and decides on a settlement for them.

When Collective Bargaining Fails Worker/Union Strikes – workers refuse to work Picketing – used to discourage other workers from working Boycott – Refuse to purchase goods or services from the company Scab – Worker willing to work on company terms

Labor-Management Conflict (cont.) Business/Management Lockout - in which the company blocks workers from entering the workplace until they accept their contract terms. Blacklist – A list of people who are denied employment Businesses hope the loss in income will convince workers to accept the companies position. Can ask the courts to issue an injunction, a legal order from the court preventing some activity (strike) Ex. 1995 MLB season

Labor-Management Conflict (cont.) In severe or extreme labor-management dispute, government may get involved. Can seize operations of an industry until conflict is settled. Ex. 1946 U.S. seized the coal industry because of the countries need for this energy source. Operation of the mines continued, until labor and management came to an amicable agreement

Strike Picketing Scabs/Strikebreakers Violence

Major Events in Union History 1869 – Knights of Labor founded 1882 – First Labor Day parade 1886 – AFL founded 1892 – Homestead Strike 1911 – Triangle Shirtwaist factory fire 1912 – Bread and Roses strike; Dept. Labor founded 1914 – Ludlow Massacre 1920 – Women get right to vote in US 1946 – Largest strike wave in US history 1947 – Taft-Hartley Act 1955 – AFL and CIO merge 1970 – Occupational Safety and Health Act passed (OSHA) 1981 – President Reagan breaks air traffic controllers strike 2013 – Union membership hits 97 year low (14.3 million union members, 11.3% of population) "When we eat meat it seems like a holiday, especially for the children". The mortality rate for children was 50% by age six; 36 out of every 100 men and women who worked in the mill died before they reached 25

Unions Today Right to Work States Prevents unions from forcing workers to join Movement of Human Capital Rust belt – the North Sun belt – the South Factories & businesses moved from the rustbelt to the sunbelt Weather was better Cheaper labor No existing unions White collar vs. Blue collar jobs White Collar = upper management Lot of news on white collar crime in big business. Example: Enron, Merrill Lynch Blue Collar = working class, usually doing manual labor

Blue Collar Workers White collar workers

Right to Work States – Why does it matter?

Unit 2 part 2 – Do you know…..? Consumer price index Reserve Hooverville Expansion Glass-Steagall Banking Act Real GDP Boom Inflation Federal Securities Act Contraction Monetary policy Recession Franklin D. Roosevelt Fiscal policy Peak Unemployment rate Trough Herbert Hoover Loose money The New Deal Discount rate Tight money Interest rate Types of unemployment Federal Deposit Insurance Corporation Black Tuesday

Do you know their meanings? Scarcity Export Tariff Comparative advantage Exchange rate Balance of trade Free trade Trade barriers Mandatory spending Fiscal year Appropriations bill Intergovernmental Revenue Property tax Automatic stabilizer Surplus Revenue Social security Debt Quota Entitlement program Excise tax Income tax 14th amendment Progressive tax Balanced budget

Warm - up 1. What is a revenue? 2. List and explain 3 major types of U.S. taxes. 3. How did the Stamp Act of 1765 and the Tea Act of 1773 lead to the American Revolution? 4. What was granted by the 16th amendment? 5. What are intergovernmental revenues?

If an item has competing brands it is defined as: Complimentary Mr. Freeze Inelastic Elastic

Many African countries have: Traditional Economies Command Economies Market Economies Laser Taser Watches

What happens when the real GDP goes up? The economy expands Unemployment rises Prices are inflated The economy suffers a recession

The Glass-Steagall Banking Act established which federal institution? The Federal Deposit Insurance Corporation The Bank of the District of Columbia The Federal Reserve The 2nd Bank of the US

The forklifts that are used to load semis would be classified under which of the following 4 “factors of production”? Natural resources Labor Capital entrepreneurs

Which form of tax revenue accounts for the highest percentage of federal income? Estate taxes Excise tax Income tax Payroll tax

What conclusion can be reached in why the Federal Reserve Board would lower interest rates? The economy is booming and spending needs to decrease The FED is encouraging the national government to borrow money from private banks The FED is attempting to loosen the money supply to encourage more borrowing by individuals Businesses are experiencing record losses in sales

Which of the following is essential to the success of a free enterprise system? Minimal government interference Minimal legal ground rules Minimal private ownership Minimal competition between businesses

Why would a person put money into a Certificate of Deposit (CD) instead of a regular savings account? Money is more easily accessible with CD’s Savings accounts do not accumulate interest A person receives greater tax benefits with CD’s CD’s accumulate higher interest compared to savings accounts

What are the type of jobs that usually occur in manufacturing sectors called? Rust Belt Sun Belt White Collar Blue Collar