1. Ch. 22 Section 2
Labor Unions

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. The First Unions Development 1800s Poor working conditions
Workers fired for no reason
Workers blacklisted
Knights of Labor
1st major union founded in 1869
Organized all laborers - men, women, African- Americans
Terrence V. Powderly
1886 peak of membership at 700,000
Ended in 1900

5. American Federation of Labor (AFL) Organized in 1886
Denied unskilled workers, women, African Americans & immigrants
Samuel Gompers
Fought for higher wages, shorter hours & benefits for disabled
By membership reached 500,000
Samuel Gompers

6. Organized Labor (cont.)
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

7. 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

8. 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

9. 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.

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

11. Union Membership Policies
Closed Shop – Companies hire only union members
Union Shop – Workers must join the union after a specified time
Agency Shop – Not required to join a union, but must pay dues
Open Shop – Companies may hire workers regardless of membership
Modified Union Shop – Workers given an option to join a union after hiring

12. 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

13. 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

14. 26 states have passed right-to-work laws, which prevent mandatory union membership required by union shops

15. Organized Labor
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

16. Collective Bargaining
Process where union leaders & employers discuss employment terms
Once workers choose to be represented by a union, the union is responsible for carrying out collective bargaining.
Union and company representatives meet to discuss conditions of employment such as:
Wages
Work hours
Working conditions
Grievance procedures
Benefits
Work rules and
responsibilities

17. Compromise is the issue
3 steps
Negotiation – Labor & management meet to discuss contract issues
Mediation – A neutral 3rd party hears both sides
Federal Mediation & Conciliation Service provides a mediator
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.

18. 1. These are groups of workers who band together to have a better chance at higher wages, and better working conditions. 2. This practice was stopped with the passing of the Taft- Hartley act of This does not require workers to join a union, but workers must still pay dues. 4. This type of union is made up of workers in a specific factory, company or geographic area. 5. This type of union has workers who perform the same skills 6. This was the 1st major union that organized all laborers in Makes sure union votes are carried out honestly 8. A neutral 3rd party that helps management and laborers reach an agreement 9. A neutral 3rd party that listens to both sides and decides on a settlement for them.

19. When Collective Bargaining Fails
Worker/Union
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

20. Labor-Management Conflict (cont.)
Business/Management
Lockout - in which the company blocks workers from entering the workplace until they accept their contract terms.
Blacklist – A list of people who are denied employment
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

21. Labor-Management Conflict (cont.)
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

22. Strike
Picketing
Scabs/Strikebreakers
Violence

23. 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

24. Unions Today Right to Work States
Prevents unions from forcing workers to join
Movement of Human Capital
Rust belt – the North
Sun belt – the South
Factories & businesses moved from the rustbelt to the sunbelt
Weather was better
Cheaper labor
No existing unions
White collar vs. Blue collar jobs
White Collar = upper management
Lot of news on white collar crime in big business. Example: Enron, Merrill Lynch
Blue Collar = working class, usually doing manual labor

25. Blue Collar Workers
White collar workers

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

27. Unit 2 part 2 – Do you know…..? Consumer price index Reserve
Hooverville
Expansion
Glass-Steagall Banking Act
Real GDP
Boom
Inflation
Federal Securities Act
Contraction
Monetary policy
Recession
Franklin D. Roosevelt
Fiscal policy
Peak
Unemployment rate
Trough
Herbert Hoover
Loose money
The New Deal
Discount rate
Tight money
Interest rate
Types of unemployment
Federal Deposit Insurance Corporation
Black Tuesday

28. Do you know their meanings?
Scarcity Export Tariff Comparative advantage Exchange rate Balance of trade Free trade
Trade barriers Mandatory spending Fiscal year Appropriations bill Intergovernmental Revenue Property tax Automatic stabilizer Surplus Revenue Social security Debt Quota
Entitlement program Excise tax
Income tax th amendment
Progressive tax Balanced budget

29. 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?

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

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

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

33. 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

34. 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

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

36. 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

37. 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

38. 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

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