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ECONOMICS

ECONOMICS . Chapter 8 Employment, Labor, and Wages. Objectives. Examine labor as a factor of production and its impact on our economy. Trace the development and growth of labor unions. Examine the influence of labor unions on employment and wages.

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ECONOMICS

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  1. ECONOMICS Chapter 8 Employment, Labor, and Wages

  2. Objectives Examine labor as a factor of production and its impact on our economy. Trace the development and growth of labor unions. Examine the influence of labor unions on employment and wages. Discuss and analyze current employment trends and issues.

  3. Issues in the NewsRestaurant Fined Over Youth Program Alex Ray, owner of the Common Man Restaurants, has been fined by the government for a program that helped a dozen teenagers start and run their own businesses last summer. Ray paid a $2,000 fine after the Labor Department said the program violated child-labor laws. The teenagers, ages 13 to 15, worked at the Common Man Restaurant in Plymouth, New Hampshire, where they designed a business model, managed the business, scheduled fellow students to staff breakfast and made bank deposits. Ray said the project through a program called Communities for Alcohol- and Drug-Free Youth was a huge success, but the Labor Department sent a violation notice, because kids under 16 worked before 7 am.

  4. Labor How does this factor of production earn its income? Historical struggle between workers and employers has shaped today’s working environment.

  5. Labor Unions Early unions formed to negotiate terms for their members. Today, only 1 out of every 8 workers is a member of a labor union. Historical role in helping to create legislation that affects our pay and working conditions today.

  6. Types of Unions Trade/Craft Unions – association of skilled workers who perform the same kind of work (Electrician’s Union) Industrial Union – association of all workers in an industry, regardless of their job (ex. Automotive Union)

  7. Create of Timeline • Read pages 198 – 205 in Chapter 8. • Create a timeline of labor activities from Colonial Times to today. • Indicate significant events on your timeline. • At bottom of timeline, prepare a list of vocabulary and definitions that were mentioned in this section. • This assignment is due on Wednesday, March 23, 2011.

  8. Wage Determination Determined by wage rates for different categories of labor.

  9. Categories Of Labor Unskilled Labor – no special training or education – work primarily with their hands (farm hands) Semiskilled Labor – enough mechanical skills to operate machines with minimum amount of training (custodians) Skilled Labor – operate complex equipment and perform most of their tasks with little supervision (carpenters, computer technicians) Professional Labor – have the highest level of knowledge-based education and managerial skills (doctors, lawyers, engineers, teachers)

  10. Employment Issues Decline of union influence • Employers have made determined effort to keep unions out • New additions to labor force have little loyalty to organized labor • Victims of their own success – when wages high under unions, products became more expensive and businesses moved labor overseas Lower pay for women • Due to difference in skills and experience that women bring to market (stay at home moms) • Uneven distribution of men and women among occupations (ex. Construction and nursing) • Discrimination Minimum Wage • Lowest wage that can be paid by law to most workers – provides less than adequate standard of living • Living Wage - minimum hourly wage individual needs to satisfy basic wants and needs

  11. Fair Labor Standards Act To provide for the establishment of fair labor standards in employments in and affecting interstate commerce, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that this Act may be cited as the “Fair Labor Standards Act of 1938.”

  12. HISTORICAL MINIMUM WAGE RATES Source: US Department of Labor, 2010.

  13. Child Labor An employee must be at least 16 years old to work in most non-farm jobs and at least 18 to work in non-farm jobs declared hazardous by the Secretary of Labor. Youths 14 and 15 years old may work outside school hours in various non-manufacturing, non-mining, non-hazardous jobs under the following conditions: No more than • 3 hours on a school day or 18 hours in a school week; • 8 hours on a non-school day or 40 hours in a non-school week. Also, work may not begin before 7 a.m. or end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. Different rules apply in agricultural employment.

  14. Minimum Wage Debate http://clipsyndicate.com/video/playlist/8178/1615746?wpid=5435

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