1. Employment, Labor, & Wages Chapter 8
Econ Bennett

2. History of Labor Unions
Today, roughly 1 out of every 8 Americans is a member of a labor union
Unions are historically important b/c they helped establish many of our current labor laws & working conditions requirements

3. Types of Unions Trade, or Craft, Unions: Industrial Union:
Labor union whose members perform the same kind of work
Ex. Cigar Makers’ Union
Industrial Union:
Labor union whose members perform different kinds of work in the same industry
Ex. Auto Makers’ Union

4. Union Activities
Sometimes negotiations don’t go well, so unions are forced to take more extreme measures:
Strike:
Refuse to work until certain demands are met
Picket:
March in front of the employer’s business carrying signs about the dispute
Boycott:
Mass refusal to buy products from employers/companies

5. Employer Response(s)
When the negotiations don’t go well employers have the option to take their own measures against unions/workers:
Lockout:
Refusal to let employees work until they agree to management’s demands
They can also hire new workers, essentially replacing the striking workers

6. Union Related Legislation
Before the 1930’s unions were viewed unfavorably by businesses & the courts
Ludlow massacre (pg )
Men, women, & children die in labor dispute with John D. Rockefeller & his company guards
Sherman Antitrust Act (1890) was used to keep unions in line
The first sign of pro-union views came with the Clayton Antitrust Act (1914) protected unions from prosecution under the Sherman Antitrust Act

7. Union Related Legislation
The Great Depression forced pro-organized labor change (congressionally / legally)
Norris-LaGuardia Act of 1932:
Prevented courts from issuing rulings against unions engaged in peaceful strikes, picketing, or boycotts. Which then forced companies to negotiate directly with unions during labor disputes (instead of going through the courts)
National Labor Relations Act (aka Wagner Act of 1935):
Established the right of unions to collective bargaining
Fair Labor Standards Act of 1938:
Set the first minimum wage & defined the 40 hour work with (along with 1.5 overtime pay)
Also prohibited oppressive child labor

8. Types of Unions Today Closed Shop: Union Shop: Modified Union Shop:
Workers must join the union before being hired
Union Shop:
Workers must join a union after being hired
Modified Union Shop:
Workers have the option to join a union after being hired
Agency Shop:
Doesn’t require workers to join a union, but they must pay union dues

9. Wage Determination Wage Rate:
(Most jobs) have a standard amount of pay given for work performed
McDonald’s might pay min. wage where as Surgeons might start at $150,000

10. Categories for Wage Determination
Unskilled Labor:
Untrained workers
Semiskilled Labor:
Minimally trained workers
Skilled Labor:
Workers complete complex tasks with little supervision
Professional Labor:
Workers have a high level of training, education, & managerial skills

11. Market Theory of Wage Determination pg. 209

12. Additional Key Terms you need to know: (page 211-212)
Collective Bargaining
Mediation
Arbitration / Binding Arbitration
Injunction
Seizure (not the medical definition)