The Labor Market

Wages A wage is the price of labor. Wages in the workforce are determined by the laws of supply and demand

The doctor’s salary vs. the fast-food worker’s wage. Doctors make more money because the supply of them is lower and the demand for them is higher. Why is the supply of doctors lower?

The labor force Labor Force: all non-military people who are either employed or unemployed Unemployed: those looking for a job, but don’t have one.

Types of workers Blue Collar: workers in industrial jobs Examples? White Collar: professional or clerical jobs Examples?

Unfair treatment of laborers Glass Ceiling: an invisible barrier that keeps women and minorities from advancing in a business dominated by white men The industrial revolution and increased work in manufacturing created the need for organized worker unions.

Labor Unions In response to the unfair practices Samuel Gompers started the first union. In 1886 he founded the American Federation League. He wanted higher wages, shorter hours, and safer working conditions. About 13% of Americans are in Unions today.

Collective bargaining The process by which union and company representatives meet to negotiate and form a new labor contract

If collective bargaining fails then labor and management may use: Mediation - A neutral third party that makes suggestions Arbitration - A neutral third party that makes legally binding decisions

Labor may resort to a strike using the following: - Picketing - signs, banners, chants - Primary and Secondary Boycotts - Coordinated Campaigns

Management may: Initiate a lockout (opposite of strike, firm stops work) Hire replacement workers Get an injunction (court order to do or stop doing something ex. strike)

Taft Hartley Act of 1947 The right to work act that allowed states to make laws that ban mandatory union membership

Exit Question What do you think of unions and their value?