Economic Notes Chapter 8
Microeconomics – Study of the parts of the economy Types of unions: Craft or Trade Unions – organization of workers who have the same skills Ex. Plumbers union, teachers, electricians Industrial Union – Organization of workers in the same industry Ex. U.A.W. (United Auto Workers), Iron workers
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Tools used by unions Collective Bargaining – the right of a union to choose representatives to negotiate on the memberships behalf Strike – refusal to work Boycott – refusal to buy a company’s products Picketing – workers carrying signs which protest a company’s actions Union Labels – labeling products so people buy union goods and support unions Political Action Committees – groups to act in favor of unions, lobbyists Work To Rule – work to the letter of the contract
Illegal options: Wild Cat Strike – workers go on strike even though the union voted not to strike Slow Down – work slower or sabotage the job (it is illegal to not do a job you are paid for) Blacklist – list union activists and refuse to give them jobs
Tools of Management: Injunctions – government order for strikers to return to work Lockouts – management prevents workers from working, therefore not earning money. This puts economic pressure on them Strikebreakers – Hire other workers to replace striking workers Relocation – move a business to a new location where the workers are less organized and willing to work for lower wages
Government Actions Mediation – method for settling a labor dispute, in which a 3rd party listens to both sides and suggests a solution to the situation (it is not binding, just a suggestion) Arbitration – method for settling a labor dispute, in which a 3rd party listens to both sides and makes a decision to solve the situation (binding, both parties must comply)
Real wages – adjusted for inflation Money Wages – nominal value