LABOR UNIONS

The Labor Movement (Origins) Colonial America - Civil War: Trade & Craft Unions developed as workers strived for better conditions. Overall public sentiment was anti-union. Leaders viewed as troublemakers.

Knights of Labor est Demanded end of child and convict labor. Equal pay for women and the hiring of African-Americans Wanted cooperative ownerships of coal mines

Changes in Attitudes toward Labor The Great Depression saw the public change their mind towards unions. They were now perceived as positive and necessary to protect the American Worker

Pro-Union Legislation Norris-LaGuardia Act – prohibited courts from ending peaceful union demonstrations NLRA – established the right to collective bargaining Fair Labor Standards Act – established minimum wage, overtime pay, prohibited child labor under 16 and safer conditions for those under 18

Anti-Union Attitude Returns World War II sees attitude change again towards Organized Labor Taft-Hartley (1947) limits union activity Right-to-Work laws

AFL-CIO Union History over the 20 th century was dominated by the AFL- CIO American Federation of Labor merges with Congress of Industrial Organizations (1955) 11 million members (2010)

Union Arrangements Closed Shops – employer hires only union members (Made illegal by Taft/ Hartley 1947) Union Shops – Must join union upon hiring and remain an member throughout Modified Union Shop – Not forced to join, but those who do, must remain members Agency Shop – Must pay union dues although not forced to actually join.

Collective Bargaining Representatives from both the Union and Management come together to discuss grievances (problems) and look for ways to compromise so that normal operations can resume.

Methods of Bargaining Mediation – Neutral party makes recommendations and suggest compromise. Arbitration – Negotiations also managed by 3 rd party, in this case however, all decisions of the arbitrator or final. Fact-Finding – Neutral 3 rd party again collects facts relevant to the grievance and reports to both sides with recommendations

Additional Methods of Bargaining Injunction or Seizure – Attorneys on behalf of either side can ask a court to force management and or the union to resume operations. Presidential Intervention – If a situation requires, Presidents may also force action as well. (Reagan & Clinton both)

Categories of Labor Unskilled Labor – Lowest wage earners, limited or no formal training Semiskilled - Workers w/ enough training to operate machinery Skilled – Workers able to operate complex equipment Professional – Highest level of education and managerial ability

Wage Determination Determined by three different factors Supply & Demand in the Market Collective Bargaining Process “Signaling” Theory Traditional Theory of Wage Determination Equilibrium Wage Rate – Supply = Demand

Other Factors of Wages Theory of Negotiated Wages – Labor unions collectively bargain for wages Signaling Theory – Employers look for certain signals such as licenses or certificates to determine wages

Regional Wage Differences Wages will differ depending on what part of the country a worker lives. Labor mobility, cost of living, and attractiveness of location all impact the difference.

Decline of Unions Unions have in some ways been victims of their own success. The high wages they have helped achieve have caused the companies they work for to be much less profitable. The Automobile Industry

Labor Unions in Politics Organized Labor typically supports and endorses Democratic Party candidates is no different as Republican controlled state legislatures battle unions over budget cuts.

Notable Labor Union Figures James Hoffa President of the Teamsters Disappeared in 1975 Was making loans to the mob from Teamster pension fund

Hoffa’s Grave?