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LABOR UNIONS

LABOR UNIONS. The Labor Movement (Origins). Colonial America - Civil War: Trade & Craft Unions developed as workers strived for better conditions. Overall public sentiment was anti-union. Leaders viewed as troublemakers. Demanded end of child and convict labor.

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LABOR UNIONS

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  1. LABOR UNIONS

  2. The Labor Movement (Origins) • Colonial America - Civil War: Trade & Craft Unions developed as workers strived for better conditions. Overall public sentiment was anti-union. Leaders viewed as troublemakers.

  3. Demanded end of child and convict labor. Equal pay for women and the hiring of African-Americans Wanted cooperative ownerships of coal mines Knights of Labor est. 1869

  4. The Great Depression saw the public change their mind towards unions. They were now perceived as positive and necessary to protect the American Worker Changes in Attitudes toward Labor

  5. Pro-Union Legislation • Norris-LaGuardia Act – prohibited courts from ending peaceful union demonstrations • NLRA – established the right to collective bargaining • Fair Labor Standards Act – established minimum wage, overtime pay, prohibited child labor under 16 and safer conditions for those under 18

  6. World War II sees attitude change again towards Organized Labor Taft-Hartley (1947) limits union activity Right-to-Work laws Anti-Union Attitude Returns

  7. Union History over the 20th century was dominated by the AFL-CIO American Federation of Labor merges with Congress of Industrial Organizations (1955) 11 million members (2010) AFL-CIO

  8. Union Arrangements • Closed Shops – employer hires only union members (Made illegal by Taft/ Hartley 1947) • Union Shops – Must join union upon hiring and remain an member throughout • Modified Union Shop – Not forced to join, but those who do, must remain members • Agency Shop – Must pay union dues although not forced to actually join.

  9. Collective Bargaining • Representatives from both the Union and Management come together to discuss grievances (problems) and look for ways to compromise so that normal operations can resume.

  10. Methods of Bargaining • Mediation – Neutral party makes recommendations and suggest compromise. • Arbitration – Negotiations also managed by 3rd party, in this case however, all decisions of the arbitrator or final. • Fact-Finding – Neutral 3rd party again collects facts relevant to the grievance and reports to both sides with recommendations

  11. Additional Methods of Bargaining • Injunction or Seizure – Attorneys on behalf of either side can ask a court to force management and or the union to resume operations. • Presidential Intervention – If a situation requires, Presidents may also force action as well. (Reagan & Clinton both)

  12. Categories of Labor • Unskilled Labor – Lowest wage earners, limited or no formal training • Semiskilled - Workers w/ enough training to operate machinery • Skilled – Workers able to operate complex equipment • Professional – Highest level of education and managerial ability

  13. Wage Determination • Determined by three different factors • Supply & Demand in the Market • Collective Bargaining Process • “Signaling” Theory • Traditional Theory of Wage Determination • Equilibrium Wage Rate – Supply = Demand

  14. Other Factors of Wages • Theory of Negotiated Wages – Labor unions collectively bargain for wages • Signaling Theory – Employers look for certain signals such as licenses or certificates to determine wages

  15. Regional Wage Differences • Wages will differ depending on what part of the country a worker lives. Labor mobility, cost of living, and attractiveness of location all impact the difference.

  16. Decline of Unions • Unions have in some ways been victims of their own success. The high wages they have helped achieve have caused the companies they work for to be much less profitable. • The Automobile Industry

  17. Labor Unions in Politics • Organized Labor typically supports and endorses Democratic Party candidates. 2011 is no different as Republican controlled state legislatures battle unions over budget cuts.

  18. James Hoffa President of the Teamsters Disappeared in 1975 Was making loans to the mob from Teamster pension fund Notable Labor Union Figures

  19. Hoffa’s Grave?

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