Chapter 8 Section 1: The Labor
Chapter 8 Section 1: The Labor
I. Introduction
A. macroeconomics
1. The part of economics that deals with the economy as a whole
B. civilian labor force
1. Civilian men and women form 16 to 65 years old either working or actively looking for a job
II. Unions and the Labor Force
A. labor unions are important
1. They have played a significant role in American’s history, and they were responsible for much of the legislation that affects current pay levels and working conditions
2. Still have a substantial presence in a number of vital industries
3. Represent nearly 18.6 million workers
III. Civil War to the 1930s
A. During and after the Civil War, attitudes towards unions began to change
B. Types of Unions
1. Craft or Trade Unions
a. an association of skilled workers who perform the same kind of work
2. industrial union
a. an association of all workers in a given industry, regardless of the job each person performs
C. Union Activities
1. strike
a. refuse to work until certain demands were met
2. picket
a. parade in front of the employer’s business carrying signs about the dispute
3. boycott
a. a mass refusal to buy products from targeted employers or companies
D. Employers Resistance
1. lockout
a. a refusal to let the employees work until management demands were until management demands were not met
2. company unions
a. unions organized, supported, or run by employers
E. Attitude of the Courts
1. unfavorable attitude toward unions
V. Labor During the Great Depression
A. Unemployed and Wages
1. brought misery to millions
2. 1 in 4 was without a job
B. Pro-Union Legislation
1. federal legislation began to help labor during the depression
VI. Labor Since World War II
A. Antiunion Legislation
1. right-to-work law
a. state law making it illegal to require a worker to join a union
B. AFL-CIO
1. jurisdictional dispute
a. disagreement over which union should perform a certain job
Chapter 8 Section 2: Resolving Union and Management Differences
I. Kinds of Union Arrangement
A. Closed Shops
1. an arrangement in which the employer agrees to hire only union members
B. Union Shops
1. workers do not have to belong to the union to be hired, but they must join
one as soon after and remain a member for as long as they keep their jobs
C. Modified Union Shops
1. workers do not have to belong to a union to be hired and cannot be made to
join one to keep their jobs
2. if workers voluntarily join the union, however, they must remain members
for as long as they hold their jobs
D. Agency Shops
1. workers need to be union members to be hired to keep their Jobs
2. must pay dues to the union
3. non union workers are subject to the contract negotiated by the union
II. Collective Bargaining
A. a meeting between representatives of both groups
B. grievance procedure
1. a provision for resolving issues that may come up later
C. mediation
1. to process of bringing in a third person or persons to help settle a dispute
D. Arbitration
1. voluntary arbitration
a. both sides agree to place their differences before a third party whose
decision will be accepted as final and binding
2. compulsory arbitration
a. labor and management are forced to turn an unsettled dispute over to a
third party for binding decision
E. fact- finding
1. labor and management agree to have an independent third party investigate
the issues and recommended possible settlements
F. Injunction and Seizure
1. injunction
a. a court order not to act
2. seizure
a. a temporary takeover of operations
G. Presidential influence
1. as a last resort, the president of the US may enter a labor-management
dispute by publicity appealing to both parties to resolve their differences or
in areas of national urgency can enforce an 80 day cooling off period
2. can fire federal workers
Chapter 8 Section 3: Labor and Wages
I. Categories of Labor
A. unskilled labor
1. work mainly with their hands
B. semiskilled labor
1. workers with mechanical abilities
C. skilled labor
1. able to operate complex equipment
2. do tasks with little supervision
D. professional labor
1. higher-level skills
II. Non competing labor Grades
A. Cost of Educating and Training
B. lack of opportunity
C. lack of initiative
III. Wage determination
A. wage rate
1. a standard amount of pay given for work performed
B. Traditional Theory of Wages
1. traditional theory of wage determination
2. equilibrium wage rate
a. the wage rate that leaves neither a surplus nor a shortage in the labor
market
C. Theory of Negotiated Wages
1. explains wage rates in cases of organized labor and the collective by
bargaining process
2. seniority
a. the length of time a person has been on the job
IV. Regional Wage Differences
A. Labor Mobility
1. the ability and willingness of workers to relocate the markets where
wages are higher
B. Cost of Living
C. Location
Chapter 8 section 4: Employment Trends and Issues
I. Decline of Union Influence
A. Reasons for Decline
1. many employers made a determined effort to keep union out of their
businesses
2. new additions to the labor force traditionally had little loyalty to organized
labor
3. unions are the victims of their own success
B. Renegotiations Union Wages
1. giveback
a. a wage, fringe benefit, or work rule given up when labor contracts are
renegotiated
2. two –tier wage system
a. a keeps the high wage of current workers, but has much lower wage for
newly hired workers
II Lower pay for women
A. Gender and Occupation
1. men have tended to gravitate toward higher-paid occupations
2. women’s careers are also interrupted by child bearing
B. Discrimination
1. glass ceiling
a. an invisible barrier that hinders their advancement up the white male-
dominated corporate ladder
C. comparable worth
1. that people should receive equal pay for work that is different from, but
just as demanding as, other types of work
D. Set-Aside Contracts
1. a guaranteed contract reserved exclusively for a targeted group
III. The minimum Wage
A. Debate over the minimum wage
1. original intent was to prevent the out right exploitation of workers and to
provide some degree of equity and security to those who lacked the skills
needed to earn a decent income
2. opponents object because of economic freedom
B. Measured In current Dollars
1. dollars that are not adjusted for inflation
C. Adjusted For Inflation
1. real or constant dollars
a. dollars that adjusted in a way the removes the distortion inflations
causes
D. Compared to Manufacturing wages
1. minimum wage will raise again
2. link the minimum wage to inflation, so that the wage will raise when
prices increase
Chapter 9 Section 1: The Labor
I. Introduction
A. macroeconomics
1. The part of economics that deals with the economy as a whole
B. civilian labor force
1. Civilian men and women form 16 to 65 years old either working or actively looking for a job
II. Unions and the Labor Force
A. labor unions are important
1. They have played a significant role in American’s history, and they were responsible for much of the legislation that affects current pay levels and working conditions
2. Still have a substantial presence in a number of vital industries
3. Represent nearly 18.6 million workers
III. Civil War to the 1930s
A. During and after the Civil War, attitudes towards unions began to change
B. Types of Unions
1. Craft or Trade Unions
a. an association of skilled workers who perform the same kind of work
2. industrial union
a. an association of all workers in a given industry, regardless of the job each person performs
C. Union Activities
1. strike
a. refuse to work until certain demands were met
2. picket
a. parade in front of the employer’s business carrying signs about the dispute
3. boycott
a. a mass refusal to buy products from targeted employers or companies
D. Employers Resistance
1. lockout
a. a refusal to let the employees work until management demands were until management demands were not met
2. company unions
a. unions organized, supported, or run by employers
E. Attitude of the Courts
1. unfavorable attitude toward unions
V. Labor During the Great Depression
A. Unemployed and Wages
1. brought misery to millions
2. 1 in 4 was without a job
B. Pro-Union Legislation
1. federal legislation began to help labor during the depression
VI. Labor Since World War II
A. Antiunion Legislation
1. right-to-work law
a. state law making it illegal to require a worker to join a union
B. AFL-CIO
1. jurisdictional dispute
a. disagreement over which union should perform a certain job
Chapter 9 Section 2: Resolving Union and Management Differences
I. Kinds of Union Arrangement
A. Closed Shops
1. an arrangement in which the employer agrees to hire only union members
B. Union Shops
1. workers do not have to belong to the union to be hired, but they must join
one as soon after and remain a member for as long as they keep their jobs
C. Modified Union Shops
1. workers do not have to belong to a union to be hired and cannot be made to
join one to keep their jobs
2. if workers voluntarily join the union, however, they must remain members
for as long as they hold their jobs
D. Agency Shops
1. workers need to be union members to be hired to keep their Jobs
2. must pay dues to the union
3. non union workers are subject to the contract negotiated by the union
II. Collective Bargaining
A. a meeting between representatives of both groups
B. grievance procedure
1. a provision for resolving issues that may come up later
C. mediation
1. to process of bringing in a third person or persons to help settle a dispute
D. Arbitration
1. voluntary arbitration
a. both sides agree to place their differences before a third party whose
decision will be accepted as final and binding
2. compulsory arbitration
a. labor and management are forced to turn an unsettled dispute over to a
third party for binding decision
E. fact- finding
1. labor and management agree to have an independent third party investigate
the issues and recommended possible settlements
F. Injunction and Seizure
1. injunction
a. a court order not to act
2. seizure
a. a temporary takeover of operations
G. Presidential influence
1. as a last resort, the president of the US may enter a labor-management
dispute by publicity appealing to both parties to resolve their differences
2. can dire federal workers
Chapter 9 Section 3: Labor and Wages
I. Categories of Labor
A. unskilled labor
1. work mainly with their hands
B. semiskilled labor
1. workers with mechanical abilities
C. skilled labor
1. able to operate complex equipment
2. do tasks with little supervision
D. professional labor
1. higher-level skills
II. Non competing labor Grades
A. Cost of Educating and Training
B. lack of opportunity
C. lack of initiative
III. Wage determination
A. wage rate
1. a standard amount of pay given for work performed
B. Traditional Theory of Wages
1. traditional theory of wage determination
2. equilibrium wage rate
a. the wage rate that leaves neither a surplus nor a shortage in the labor
market
C. Theory of Negotiated Wages
1. explains wage rates in cases of organized labor and the collective by
bargaining process
2. seniority
a. the length of time a person has been on the job
IV. Regional Wage Differences
A. Labor Mobility
1. the ability and willingness of workers to relocate the markets where
wages are higher
B. Cost of Living
C. Location
Chapter 9 section 4: Employment Trends and Issues
I. Decline of Union Influence
A. Reasons for Decline
1. many employers made a determined effort to keep union out of their
businesses
2. new additions to the labor force traditionally had little loyalty to organized
labor
3. unions are the victims of their own success
B. Renegotiations Union Wages
1. giveback
a. a wage, fringe benefit, or work rule given up when labor contracts are
renegotiated
2. two –tier wage system
a. a keeps the high wage of current workers, but has much lower wage for
newly hired workers
II Lower pay for women
A. Gender and Occupation
1. men have tended to gravitate toward higher-paid occupations
2. women’s careers are also interrupted by child bearing
B. Discrimination
1. glass ceiling
a. an invisible barrier that hinders their advancement up the white male-
dominated corporate ladder
C. comparable worth
1. that people should receive equal pay for work that is different from, but
just as demanding as, other types of work
D. Set-Aside Contracts
1. a guaranteed contract reserved exclusively for a targeted group
III. The minimum Wage
A. Debate over the minimum wage
1. original intent was to prevent the out right exploitation of workers and to
provide some degree of equity and security to those who lacked the skills
needed to earn a decent income
2. opponents object because of economic freedom
B. Measured In current Dollars
1. dollars that are not adjusted for inflation
C. Adjusted For Inflation
1. real or constant dollars
a. dollars that adjusted in a way the removes the distortion inflations
causes
D. Compared to Manufacturing wages
1. minimum wage will raise again
2. link the minimum wage to inflation, so that the wage will raise when
prices increase
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