1. CHAPTER 8: EMPLOYMENT, LABOR, AND WAGES CHRISTIAN “DESTROYER OF WORLDS” PEREZ, ELAINE “LEFT LANE” MATTSON, FELIX “THE BEAST IN HEAT” RODRIGUEZ, NORMAN “IRON PATRIOT” WHEATON III, AMY “THE LADY” DE LA CRUZ

2. SECTION 1: THE LABOR MOVEMENT “THE BEGINNING OF THE END” Macroeconomics is a branch of economics that deals with the economy as a whole, including employment, gross domestic product, inflation, economic growth, and the distribution of income. By mid-2001, less than half (140 million) of the population belonged to a civilian labor force. Civilian class excludes members of armed forces, prison population, and other institutionalized persons. Unions play an important role because 1) they help in promoting legislation that affects pay levels and working conditions today. 2) Unions are a force in the economy, with membership of nearly 16.3 million people.

4. TYPES OF UNIONS & ACTIVITIES Independent Unions- unions that do not belong to the AFL-CIO ( The American Federation of Labor) Unions try their best to help negotiate with employers for better pay, hours, and working conditions. Works could strike or refuse to work until demands are met. Sometimes workers will picket, or parade in front of the employers business carrying signs about the dispute Lastly, they will try boycotting, which is a mass refusal to buy products from targeted employers or companies Industrial Union- an association of all workers in the same industry, regardless of the job each worker performs Development of basic mass-production industries such as steel and textiles established a way to organize this kind of union. Craft union/trade union- an association of skilled workers who perform the same kind of work. For example: printers unions, electricians union, machinists union, carpenters union, plumbers union.

5. EMPLOYER RESISTANCE Employers created a company union, organized, supported, or run by employers-to head off efforts by others to organize workers. Business would sometimes hire all new workers when there was a threat of a strike Employers had there own way of resisting workers demands, sometimes calling lockouts where they refused to let employees work until management demands were met. Violence was a major problem during these resistances; troops were called in to keep peace.

6. ANTIUNION LEGISLATION The more hate for unions grew and led to the Labor Management Relations Acts, Taft-Hartley Act, of 1947. Puts limits on what unions can do in labor-management disputes Gives employers the right to sue unions for breaking contracts, prohibits unions from making union membership a condition for hiring. Two provisions: 80 day cooling off period that federal courts could use to delay a strike in the case of a national emergency Section 14b, an antiunion provision, which allowed individual states to pass right-to-work laws, state law making it illegal to force workers to join a union as a condition of employment, even though a union may already exist at the company.

7. SECTION 2: RESOLVING UNION AND MANAGEMENT DIFFERENCES “THE DUEL KICKS OFF” Injunction: it’s a court order but there are no actions done the union can not strike Seizure: the government can negotiate with the union Kinds of union arrangements Closed shop: it’s the most restrictive it only hires union members and helps determine who gets hired. Union shop: workers don’t have to belong to a union to be hired but must join one after getting the job and remain one as long as they work there

8. KINDS OF UNION ARRANGEMENTS (CONT.) Modified union shops: workers don’t belong to a union and cant be forced to join one to keep their jobs Agency shop: workers don’t have to join a union but they do have to pay the union dues to help pay collective bargaining costs

9. COLLECTIVE BARGAINING Grievance procedure: they contract someone to help them with problems that can pop up in the future Mediation: bring in a third person to settle a dispute. main goal is to find a solution both people with accept Arbitration: both people but differences aside in front of the third person but the third person says the final say Fact-facing: third party makes recommendations on how to solve the problem with the information he gets from both union and management

10. SECTION 3: LABOR AND WAGES “GRAND QUEST FOR THE TREASURE CHEST” Wages differ for a variety of reasons, including skills, type of job, and location Noncompeting labor grades Unskilled labor/workers Semiskilled labor/workers Skilled labor/workers Professional labor/workers

11. WAGE DETERMINATION Wage rate – a standard amount of pay given for work performed. Wage rate is determined by: Traditional tools of supply and demand The influence of unions in the bargaining process “Signaling theory”

12. SECTION 4: EMPLOYMENT TRENDS AND ISSUES “ THE END OF THE BEGINNING” Decline of union influence Reasons for decline include: Many employers made efforts to keep unions out The addition of more people such as women and teens. Unions raise wages, union made products prices raise. People cheap, want cheaper stuff, go to nonunion producers for cheaper stuff. Unions sad, lay off people.

13. LOWER PAY FOR WOMEN Female income has been only a fraction of male income over 40 years a 28% gap It was reported that 1/3 of this gap was from differences in skill and experience that women have, which are that women have lower education than their male counterparts Slightly less then 1/3 of that is due to an uneven distribution of men and women in the different occupations Also women tend to drop out of the labor force to raise families

14. LOWER PAY FOR WOMEN (CONT.) The report also found that more than a 1/3 of this gap can be counted from discrimination in which they have difficulty getting raises and/or promotions which is like reaching a glass ceiling

15. VOCABULARY Glass ceiling- an invisible barrier that obstructs their advancement up the corporate ladder. Comparable worth- the principle stating that people should receive equal pay for work that is different from, but just as demanding as, other types of work. Set-aside contract- a guaranteed contract reserved exclusively for a targeted group