Types of Unions. Craft or Trade Unions. Industrial Unions. Workers who perform the same kind of work. All workers in the same industry

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2 The Labor Movement In 2003 there were approximately 291 million people in the United States. Slightly less than half or about 146 million belong to the civilian labor force. Excludes armed forces and prisoners. Approximately 85% of the workforce is not connected to a labor union.

3 Organized Labor The beginnings of the labor movement began at the end of the Civil War. At this point labor began to move from the farm to the cities. The American Federation of Labor began in 1886 as a craft union. The Committee for Industrial Organization began in 1935 as a industrial union. Both merged in 1955 and became the AFL-CIO.

4 Types of Unions Craft or Trade Unions Workers who perform the same kind of work. Pilots or Mechanics or Flight Attendants or Baggage handlers Industrial Unions All workers in the same industry Auto assemblers or painters or sweepers or plant maintenance people

5 Union Activities When agreements cannot be reached between management and labor, labor unions have the following choices. 1. Strike refusal to work until certain demands are met 2. Picket parade in front of the employers business carrying signs about the dispute 3. Boycott a mass refusal to buy products from a targeted employer

6 Employer Activities When labor and management cannot reach a settlement the company can call for a lockout. A lockout is simply refusing to let the employees work until management demands are met.

7 Labor During the Great Depression During the Great Depression unemployment reached over 25% of the workforce. Wages fell dramatically, some 90%. The average manufacturing job paid 55 cents per hour in 1929 by 1933 the wage was 5 cents per hour. The Norris-LaGuardia Act of 1932 The National Labor Relations Act (Wagner Act) of 1935 Fair Labor Standards Act of 1938 resulted in stronger laws that would enabled workers to organize and unions to form.

8 Labor after World War II Many Americans viewed labor favorably during the 1930s, but public opinion shifted after World War II when many felt that Communists had infiltrated the unions. The Labor Management Act (Taft-Hartley Act ) of 1947 limited what unions could do in labor disputes. In cases of a national emergency courts could enforce a cooling-off period (delay a strike). Another provision of Taft-Hartley allowed States to pass right-to work laws which banned mandatory union membership.

9 Unions and the Law Right-to-Work-States is a state law making it illegal to force workers to join in a union as a condition of employment. 22 states are right-to-work states Union-States are states where state laws support labor union formation.

10 Section II Resolving Union and Management Differences Types of Union Arrangements Closed Shop A situation where the employer agrees to hire only union members. (Illegal in interstate commerce - Taft Hartley Act 1947) Union Shops A situation where the worker can be hired first but they must join the union.

11 Types of Union Arrangements (continued) Modified Union Shop An agreement where workers are not required to belong to the union to keep their jobs Agency Shops Does not require the worker to join the union but must pay union dues to help pay for collective bargaining. Nonunion workers must also abide by the union contract.

12 Collective Bargaining Collective Bargaining are negotiations between representatives of labor and management covering wages, benefits and other work related issues. Compromise is the key to successful outcomes. Grievance Procedures are steps that are taken to resolve future (unknown) issues that are not covered in the agreement.

13 Resolving Differences Fact-Finding - Third parties gather information and offer recommendations which are non-binding. Mediation The process of bringing in a neutral third person to help (negotiate) a settlement. Arbitration The process where both parties will accept the third party s decision. The agreement is final (binding) on both labor and management. Note! Usually arbitration is avoided because the parties lose control of the negotiations.

14 Injunctions An injunction is issued by a court-of-law. It is a court order, instructing the party to cease its actions. If management asks for help, it may instruct the union to stop a strike. If the union asks for help, it may instruct the company from locking out the workers. Under extreme circumstances may resort to seizure a temporary takeover of operations

15 Categories of Labor Section III Labor & Wages Unskilled work primarily with their hands Semiskilled operate machines with minimum training Skilled operate complex equipment and perform tasks with little supervision Professional highest level of knowledge-based education and managerial skills

16 Determining Wages Wage rate the prevailing wage paid to workers for a task. The Traditional Theory of Wages states that wages are determined by supply and demand. Equilibrium Wage is a wage rate that leaves no surplus or shortage of labor.

17 Determining Wages (continued) Theory of Negotiated Wages states that organized labor s bargaining powers determines wages. Seniority is important for unions in determining higher wages based on experience. Signaling Theory states that employers will pay more for degrees & certificates since they signal superior knowledge.

18 Regional Wage Differences Geographical Wage Differences many jobs will pay more or less when cost-of-living differences are figured in. Labor Mobility is the ability and willingness to relocate to markets where wages are higher.

19 Section IV Employment Trends Union membership has declined from 35.5% of the non-agricultural workforce in 1945 to 13% in The Gender Gap is the difference between women and men s wages for the same job, has narrowed to 76% recently. Glass Ceiling the inability for women to achieve top management positions. Part-time workers (working less than 35 hours) have increased to 25%of the workforce in recent years.

20 Legal Remedies & Comparable Worth Two federal laws are designed to fight wage and salary discrimination Equal Pay Act of 1963, which prohibits salary discrimination for jobs that require equivalent skills and responsibilities Title VII of the Civil Rights Act of 1964, prohibits discrimination in all areas of employment on the basis of gender, race, color, religion and national origin (15 or more workers). EEOC Equal Employment Opportunity Commission (Civil Rights Act of 1964) investigates charges of discrimination. Comparable Worth is the principle that equal pay for equal work.

21 Minimum Wage The minimum wage is the lowest wage that can be paid by law to most* workers was first set in 1935 at $.25per hour. *Some groups are exempt from the minimum wage law some examples are agricultural workers and restaurant employees which are compensated by tips. Adjusted for inflation, minimum wage peaked in 1968 and has steadily declined since then.