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Chapter Menu Chapter Introduction Section 1:Section 1:Americans at Work Section 2:Section 2:Organized Labor Section 3:Section 3:Collective Bargaining Visual Summary

Chapter Intro 1 The labor market, like other markets, is determined by supply and demand.

Chapter Intro 2 In this chapter, read to learn about the major categories of the labor force, the role of unions in today’s work force, and the factors that affect wages.

Chapter Preview-End

Section 1-Main Idea Section Preview In this section, you will learn how workers are categorized and how their wages are determined.

Section 1-Key Terms civilian labor force blue-collar workers white-collar workers service workers unskilled workers semiskilled workers skilled workers professionals minimum wage law Content Vocabulary

Section 1-Key Terms resource displace Academic Vocabulary

A.A B.B C.C D.D Section 1-Polling Question Do you know what kind of work you want to do as an adult? A.Yes B.Somewhat C.Not at all

Section 1 The Civilian Labor Force Workers can be categorized by the type of work they perform and by skill level.

Section 1 The Civilian Labor Force (cont.) Labor is an important part of the four factors of production. All individuals employed or actively seeking paid work over the age of 16 make up our civilian labor force.civilian labor force View: Employment Status of U.S. PopulationEmployment Status of U.S. Population

Section 1 The Civilian Labor Force (cont.) Workers in the U.S. are categorized by type of work they perform and the level of training or education their jobs require. Types of labor: –Blue-collar workersBlue-collar workers –White-collar workersWhite-collar workers –Service workersService workers

Section 1 Skill level: The Civilian Labor Force (cont.) –Unskilled workersUnskilled workers –Semiskilled workersSemiskilled workers –Skilled workersSkilled workers –ProfessionalsProfessionals

A.A B.B C.C D.D Section 1 A police officer falls under which skill level? A.Unskilled B.Semiskilled C.Skilled D.Professional

Section 1 Supply and Demand in the Labor Market In labor markets, wages are influenced by factors affecting supply and demand, such as variations in skill levels, job conditions, and work locations.

Section 1 Supply and Demand in the Labor Market (cont.) Suppliers are the workers who offer their services to employers. Demand comes from the employers who require workers.

Section 1 Supply and Demand in the Labor Market (cont.) Three major factors affect how supply and demand determine wages in the labor market: –Skill—this may come from talent, initiative, education and/or training, or experience. Demand for skill is high or scarce and therefore pays higher wages.

Section 1 Supply and Demand in the Labor Market (cont.) –Type of job—this affects the amount an employer is willing to pay and a potential employee is willing to accept. –Location—if workers are scarce in an area, companies pay high wages to attract workers to move there and vice versa. View: LocationLocation

Section 1 Supply and Demand in the Labor Market (cont.) Two factors restrict supply and demand in terms of their influence on wages: –The federal minimum wage lawminimum wage law –The process of wage negotiations between organized labor (unions) and management.

A.A B.B C.C D.D Section 1 Do you feel that most people who work make what they deserve? A.Definitely B.Sometimes C.Not at all

Section 1-End

Section 2-Main Idea Section Preview In this section, you will learn about the history of labor unions and how they are organized.

Section 2-Key Terms labor union strike craft union industrial union local union closed shop union shop agency shop right-to-work laws Content Vocabulary

Section 2-Objectives regulate significant Academic Vocabulary

A.A B.B C.C D.D Section 2-Polling Question Do you know much information about labor unions? A.Lots of information B.Some information C.No information

Section 2 Development of Labor Unions Labor unions developed to attempt to improve working conditions and wages for their members.

Unionism met with strong resistance. As a result, many workers had to strike which often resulted in violence.strike Section 2 Development of Labor Unions (cont.) American workers began to form labor unions in an attempt to gain some control over their wages and working conditions in the 1800s.labor unions View: Labor’s Early Struggle for RecognitionLabor’s Early Struggle for Recognition View: Labor-Management LegislationLabor-Management Legislation

Section 2 Organized labor in the United States has been split into two groups for much of history: Development of Labor Unions (cont.) –Craft unionsCraft unions The American Federation of Labor (AFL) is an example.

Section 2 –Industrial unionsIndustrial unions –The AFL and CIO merged in 1955, and are now the AFL-CIO. Development of Labor Unions (cont.) The Congress of Industrial Organizations (CIO) is an example.

Section 2 Do you feel that labor unions are necessary today? A.Yes B.Sometimes C.No A.A B.B C.C

Section 2 How Unions are Organized Labor unions can exist as local unions, as national or international unions, or as federations.

Section 2 How Unions are Organized (cont.) Organized labor operates at three levels: The local union deals with a company by negotiating a contract and making sure the terms of the contract are kept.local union Closed shop Union shop Agency shop –Different types of local unions:

Section 2 –Since 1947, many states have passed right-to-work laws that forbid union shops. right-to-work laws How Unions are Organized (cont.) The national or international union is the individual craft or industrial unions that represent locals nationwide. –National unions send in organizers to help employees set up local unions.

Section 2 –The International Brotherhood of Teamsters, the United Automobile Workers (UAW), and the United Steelworkers of America (USW) are three of the largest national unions. The federation—the AFL-CIO is the union at this level. How Unions are Organized (cont.) –The Change to Win Federation is proving to be competition for the AFL-CIO.

A.A B.B C.C D.D Section 2 Do you feel that right-to-work laws are necessary? A.Definitely B.Sometimes C.Never

Section 2-End

Section 3-Main Idea Section Preview In this section, you will learn how unions and employers determine the conditions of employment, and about the role of unions today.

Section 3-Key Terms collective bargaining cost-of-living adjustment (COLA)cost-of-living adjustment (COLA) mediation arbitration picketing boycott lockout injunction Content Vocabulary

Section 3-Objectives neutral resolve Academic Vocabulary

A.A B.B C.C D.D Section 3-Polling Question Are you aware of the negotiating that must take place between unions and companies? A.Yes B.Somewhat C.No

Section 3 Negotiations Union contracts are negotiated to determine a wide range of contract issues.

Section 3 Negotiations (cont.) Important labor issues need to be agreed upon by management and workers. Collective bargaining is a process by which this may be accomplished.Collective bargaining Management and workers negotiate issues such as working hours, fringe benefits, and a cost-of-living adjustment (COLA).cost-of-living adjustment (COLA)

Section 3 If negotiations do not go smoothly, mediation might be necessary. mediation –The Federal Mediation and Conciliation Service (FMCS) provides a mediator free of charge upon request of either side. Negotiations (cont.) If mediation fails, then arbitration might be necessary.arbitration

A.A B.B C.C D.D Section 3 Both sides agree in advance to accept the arbitrator’s decision, although one or both sides may not be happy with the outcome. A.True B.False

Section 3 Strikes and Management If labor negotiations break down, unions may resort to strikes or boycotts, and management may resort to lockouts or injunctions.

Section 3 Strikes and Management (cont.) When negotiations between management and workers fail, a strike results. Picketing by workers and boycotts may be seen when strikes result.Picketingboycotts View: StrikesStrikes

Section 3 Management deals with strikers using the following methods: –LockoutsLockouts –InjunctionsInjunctions Strikes and Management (cont.)

A.A B.B C.C D.D Section 3 When can the president delay or halt a strike up to 80 days? A.If it will endanger the nation’s safety or health. B.If “scabs” refuse to step in. C.If mediation and arbitration fail. D.If a boycott fails.

Section 3 Decline of Unions Union membership has declined steadily over the past several decades.

Section 3 Decline of Unions (cont.) Working conditions have improved dramatically over the years, so many nonunion workers often see little gain from joining a union. In addition, blue-collar jobs are decreasing due to automation. View: Declining Union MembershipDeclining Union Membership

Section 3 Critics of labor unions claim: –Unions are out of touch with their members’ needs because they are so large and bureaucratic. –Unions increase wages which are passed on to consumers in the form of higher prices. Decline of Unions (cont.)

Section 3 In addition, employers argue that union rules decrease productivity. Corruption among some labor leaders has damaged the reputation of labor unions. Decline of Unions (cont.)

A.A B.B C.C D.D Section 3 Do you think that in today’s work world there are other alternatives to unions? A.Many alternatives B.Some alternatives C.No alternatives

Section 3-End

VS 1 In labor markets, a variety of factors that affect supply and demand for jobs ultimately determine wages for those jobs.

VS 2 Labor unions formed in the United States to try to improve working conditions and wages for their members.

VS 3 Because working conditions in general have improved so much since the mid-1950s, many nonunion workers see little to gain by joining a union, and union membership has declined.

VS-End

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Vocab1 civilian labor force: total number of people 16 years old or older who are either employed or actively seeking work

Vocab2 blue-collar workers: category of workers employed in crafts, manufacturing, and nonfarm labor

Vocab3 white-collar workers: category of workers employed in offices, sales, or professional positions

Vocab4 service workers: people who provide services directly to individuals

Vocab5 unskilled workers: people whose jobs require no specialized training

Vocab6 semiskilled workers: people whose jobs require some training, often using modern technology

Vocab7 skilled workers: people who have learned a trade or craft either through a vocational school or as an apprentice to an experienced worker

Vocab8 professionals: highly educated individuals with college degrees and usually additional education or training

Vocab9 minimum wage law: federal law that sets the lowest legal hourly wage rate that may be paid to certain types of workers

Vocab10 labor union: association of workers organized to improve wages and working conditions for its members

Vocab11 strike: deliberate work stoppage by workers to force an employer to give in to their demands

Vocab12 craft union: union made up of skilled workers in a specific trade or industry

Vocab13 industrial union: union made up of all the workers in an industry regardless of job or skill level

Vocab14 local union: members of a union in a particular factory, company, or geographic area

Vocab15 closed shop: company in which only union members could be hired

Vocab16 union shop: company that requires new employees to join a union after a specific period of time

Vocab17 agency shop: company in which employees are not required to join the union, but must pay union dues

Vocab18 right-to-work laws: state laws forbidding unions from forcing workers to join and pay union dues

Vocab19 collective bargaining: process by which unions and employers negotiate the conditions of employment

Vocab20 cost-of-living adjustment (COLA): provision calling for a wage increase each year if the general level of prices rises

Vocab21 mediation: a neutral person tries to get both sides to reach an agreement during negotiations

Vocab22 arbitration: union and management submit the issues they cannot agree on to a third party for a final decision

Vocab23 picketing: action of strikers who walk in front of a workplace carrying signs that state their disagreement with the company

Vocab24 boycott: economic pressure exerted by unions urging the public not to purchase the goods or services produced by a company

Vocab25 lockout: situation that occurs when management prevents workers from returning to work until they agree to a new contract

Vocab26 injunction: court order preventing some activity

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