1 / 25

Labor, wages, and organized labor

Chapter 9 Sections 2 &3. Labor, wages, and organized labor. Productivity: value of output Chef is paid $15 hr, but able to generate $20 hr in revenue. Will his productivity be desired by other restaurants?. Supply and Demand for Labor. What will happen to the wages of chefs?.

base
Download Presentation

Labor, wages, and organized labor

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 9 Sections 2 &3 Labor, wages, and organized labor

  2. Productivity: value of output Chef is paid $15 hr, but able to generate $20 hr in revenue. Will his productivity be desired by other restaurants? Supply and Demand for Labor

  3. What will happen to the wages of chefs? Supply and Demand for Labor

  4. Supply and demand for labor follow the laws for supply and demand. If pay were high enough for chefs more people would be willing to invest in their human capital to earn that pay. Supply and Demand for Labor

  5. This point exists when there is neither an excess supply of workers, nor excess demand for workers in the labor market. Equilibrium Wage

  6. Unskilled Labor: no special skills, hourly wage • Semi-Skilled Labor: minimal skills, hourly wage • Skilled Labor: skills without supervision, hourly wage • Professional Labor: advanced skills and education, receives salary. • Examples of each Wages and Skill Levels

  7. This occurs when people with the same job, same skills and education, same job performance, and same seniority receive unequal pay. Wage Discrimination

  8. The Equal Pay Act 1963: required equal pay for men and women at same workplace. • Title VII of Civil Rights Act of 1964: prohibits job discrimination on the basis of race, sex, color, religion, or nationality. Laws against wage discrimination

  9. The civil rights act also created the Equal Employment Opportunity Commission (EEOC) Laws against wage discrimination

  10. “Women’s Work” Human Capital Women’s Career Paths Common Excuses for wage discrimination

  11. Minimum Wage Laws • Safety Laws • Employers Respond to Wage Levels • Outsourcing, machines for people • Unions Other Factors Affecting Wages

  12. Less popular today, peaked during heavy industry. • Average union salary is higher • $5 an hour more, equals $200 a week. Unions

  13. Unions press employers to raise wages Wages up, labor demanded goes down, therefore union jobs decrease More workers then forced to seek nonunion jobs Increase in nonunion labor supply forces those wages to go down Unions depress Wages for nonunion

  14. Also guilty of featherbedding, the practice of negotiating contracts that keep unnecessary workers on the company’s payroll. Unions

  15. Section 3 Organized Labor

  16. Unions begin to pop up in response to working conditions brought on by the industrial revolution. 1869 the Knights of Labor are founded. History of the Labor Movement

  17. 1886 Samuel Gompers founds the American Federation of Labor (AFL) History of the Labor Movement

  18. Some companies forced employees to sign yellow-dog contracts, promising they would not join unions. Congress passes many pro-union policies during the great depression to help with recovery. History of the Labor Movement

  19. 1940s unions hit their peak with about 35% of workforce as members. History of the Labor Movement

  20. Reputation of unions suffer because of links to organized crime and featherbedding. Inefficient Decline of the Labor Movement

  21. These were laws that banned mandatory membership in the unions. • Passed by Congress in 1947 as the Taft-Hartley Act. • By 2000 union membership down to 13.5% Right to Work Laws

  22. Decline of blue-collar manufacturing jobs. Foreign competition. Increase of females in workforce. Relocation, and reduction of production costs. Loss of traditional strongholds

  23. Collective Bargaining: the process in which union and company representatives meet to negotiate a new labor contract • Wages and benefits • Working conditions • Job security Labor and Management

  24. A strike is the unions ultimate weapon Strikes and Settlements

  25. Mediation: A settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept. • Arbitration: A settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides. Strikes and Settlements

More Related