Chapter 8:Chapter 8:Employment, Labor, and Employment, Labor, and

WagesWages

Chapter 8:Chapter 8:Employment, Labor, and Employment, Labor, and

WagesWages

8-1: The Labor Movement

• Early Union Development– First attempt to organize labor in America

was in 1778, by printers in New York City– Small fraction of workers belonged to unions– Comprised of skilled workers and possessed

strong bargaining power– In early 1800’s, large scale immigration

provided a supply of cheap, unskilled labor– Public opinion against the unions and labor

organizers were viewed as troublemakers

• Civil War to the 1930s– Manufacturing expanded– Hourly workers made up about ¼ of working

population– Working conditions were difficult and often

dangerous– Attitudes toward labor unions began to ease

– Two main types of unions:•Trade or craft union – association of skilled

workers who perform the same kind of work

• Industrial union – association of all workers in the same industry, regardless of the job

Union Activities

• Unions negotiated for higher wages, better hours, job security and better working conditions

• Strike - refuse to work until demands were met• Picket – demonstrate or march before a place of

business to protest a company’s actions• Boycott – mass refusal to buy products from

targeted employers or companies

Employer Resistance• Lockout – management refusal to let employees

work• Hire all new workers• Set up company unions, organized, supported or

run by employers• Ludlow Massacre 1914

– Labor Since the 1930s– Most of the significant labor laws in effect today

were passed in the 1930s, 1940s, and 1950s,

– Great Depression (1929 – 1939) video– Stock market crash October, 1929– High unemployment– Average hourly wage dropped from 55 cents to

5 cents– Pro-union legislation

– The Wagner Act of 1935 established the right of unions to collective bargaining and created the National Labor Relations Board (NLRB) to police unfair labor practices

– The Fair Labor Standards Act of 1938 set the first minimum wage, established overtime pay, and prohibited oppressive child labor

- Unions grew strong until the end of WWII, when public opinion changed again.- Right to Work Law – state law making it illegal to

require a worker to join a union as a condition of employment

- Organized Labor Today- Closed Shop - arrangement under which workers

must join a union before they are hired, which allows the union to determine who is hired

- Taft-Hartley Act of 1947 made the closed shop illegal for all companies engaged in interstate commerce

- Union Shop – workers do not have to belong to the union to be hired, but must join afterward

- Modified Union Shop – workers have the option to join a union after being hired

- Agency Shop – workers do not have to join a union to get a job; however, they must pay union dues to help pay for collective bargaining costs

8-2: Wages and Labor Disputes

Wage Determination – different occupations and levels of training are rewarded with different wages

1. Unskilled labor – workers not trained to operate specialized machines and equipment2. Semiskilled labor – workers who operate machines that require a minimum amount of training3. Skilled labor – workers who are trained to operate complex equipment and require little supervision4. Professional labor – workers with a high level of training, education and management skills

Resolving Labor Disputes-Collective bargaining – process of negotiation between union and management representatives over pay, benefits, and job-related matters-Mediation – process if resolving a dispute by bringing in a neutral third party-Arbitration – agreement to place a dispute before a third party for a binding settlement-Fact-finding – agreement to have a neutral third party collect facts about a dispute and present nonbinding recommendations-Injunction – court order issued to prevent a company or union from taking action during a labor protest-Seizure – temporary government takeover of a company to keep it running during a labor-management dispute-Presidential intervention

8-3: Employment Trends and Issues

• Decline of Union Influence• Lower Pay for Women• Minimum Wage