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Learning Objective

Learning Objective Today I will be able to explain how labor unions began and increase wages by writing a small summary about a union . Agenda: Learning Objective Lecture: Ch. 9.3 Labor Unions Labor Union Research Exit Slip. Title Notes: CH. 9.3 Labor Unions. Labor union

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Learning Objective

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  1. Learning Objective • Today I will be able to explain how labor unions began and increase wages by writing a small summary about a union. • Agenda: • Learning Objective • Lecture: Ch. 9.3 Labor Unions • Labor Union Research • Exit Slip

  2. Title Notes: CH. 9.3 Labor Unions • Labor union • Workers join together to improve their pay & working conditions • Craft Union • Workers with a specific skill • First labor union • AFL (American Federation of Labor) 1886

  3. Clayton Act of 1914 • Exempt labor unions from antitrust laws • Unions could join together • Congress of Industrial Organizations (CIO), 1935, the national organization • for mass-production workers • Like for autoworkers or steelworkers • Taft-Harley Act, 1947 • Congress approved right-to-work • Right-to-work law • No need to pay union wage to work at a union company.

  4. 22 states passed the right-to-work law • South, Plains, & Mountain states. • Collective bargaining • Process in which wages/benefits/working conditions are negotiated. • A representative of the union does the bargaining. • If an agreement is reached, the employer signs a labor contract. • If rejected the union can strike or continue negotiations.

  5. Mediator • Impartial observer that listens to both sides & suggests a solution • Mediator has no power to force a settlement. • Binding arbitration • Neutral 3rd party & makes a ruling where both sides must accept • When there is harm • Some disputes skip mediation & arbitration steps & directly begin a strike.

  6. Strike • Attempt to stop production & force employer to accept the union’s conditions • By picketing & encouraging others to picket • Risks: • No income • Loss of job

  7. 2 ways unions increase wage: • 1. Reduce supply of labor • Occurs with craft unions • Restrict union membership • Higher initiation fees • Restrictions are also done through education & examinations. • Long & difficult training. • Special skills require special training • Therefore, losing workers with special skills is costly to the employer

  8. 2. Increase demand for union labor • Increases wage & employment • Increase demand for union made products • Encourage union made products ONLY • Restrict supply of non-union made products • Ex. United Auto Workers support restrictions on imported cars- fewer imported cars means greater demand for US made cars. • Increase productivity of union labor • Encouraging union laborers to be productive, not quit, or goof off so that the demand for union labor increases

  9. Featherbedding attempt to ensure ONLY union labor is hired. • Studies shows unions pay higher than average workers • The more competition, the less labor unions can increase wage. • 1955, 1/3 of workers were unions • 1970, about 300 strikes a yr. • 1995, about 30 strikes a yr. • Union members more reluctant to strike today: • Employers willing to hire others (union or non-union)

  10. Exit Slip • In your opinion, what is the most useful strategy a union may use to force their employer increase wage or benefits. Explain why you think so?.

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