1. Ch. 22.2

2. 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

3. 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.

4. 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

5. 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

6. 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

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

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

9. 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

10. 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

12. 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

13. Negotiations
Collective Bargaining - Process where union leaders & employers discuss employment terms
Union and company representatives meet to discuss conditions of employment such as:
Wages
Work hours
Working conditions
Grievance procedures
Benefits
Work rules and responsibilities

14. Compromise is the issue
Negotiation – Labor & management meet to discuss contract issues. Can be done on their own or with the help of a 3rd party.
Mediation – A neutral 3rd party hears both sides
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.

15. When Collective Bargaining Fails
What the Worker/Union can do
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

16. What Business/Management can do
Lockout - in which the company blocks workers from entering the workplace until they accept their contract terms.
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 MLB season

17. In severe or extreme labor-management dispute, government may get involved.
Can seize operations of an industry until conflict is settled.
Ex 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

18. Strike
Picketing
Scabs/Strikebreakers
Violence

19. 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

20. Right to Work States – Why does it matter?

21. 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?

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

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

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

25. 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

26. 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

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

28. 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

29. 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

30. 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

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