Not-So-Brief Response
• (Answer to both sides) Should government stay out of
businesses’ affairs or not? Explain.
• Yes. Without government interference businesses will be free
to innovate and w/o taxes, businesses will have more revenue
to reinvest and hire.
• EC: What kind of economics is this known as since the 1980s.
• “Trickle-down economics” (supply side)
• No. Business malpractice is dangerous to competition,
consumers, labor, and the environment. The only force strong
enough to prevent abusive malpractice is government.
Unit III: Macroeconomics
Institutions
pp. 190-328
Employment, Labor, Wages
2
Chapter 8
Section 1 p. 192 Terms:
• Macroeconomics
• 193 study of the entire economy
– Employment/labor
– Gross domestic product
– Inflation
– Economic growth
– Distribution of income
3
Civilian labor force
• 193 men and women
– 16 years old or more
– Working
– Actively seeking work
• Does not include:
– Military
– Prisoners
– Institutionalized people
4
Craft/trade union
• 195 an association of skilled workers
• Perform the same type of work
• Ex:
– Cigar Makers’ Union
– Printers’ Union
– Electricians’ Union
– Machinists’ Union
– Carpenters’ Union
– Plumbers’ Union
5
Industrial Union
• 195 all workers in the same industry
• Regardless of type of work/skills in that
industry
• Ex:
– Steel
– Textile
– Auto
6
Strike
• 195 workers refuse to work because their bosses will not
agree to demands:
– Better pay
– Better hours
– Better working conditions
• Picket
• 195 striking workers and supporters parade in front of their
company,
– protesting company’s unfairness.
• Boycott
• 195 workers and supporters refuse to buy products from a
targeted company
• Lost business will hurt the company.
7
Lockout
• 195 company will fight a union by refusing to
let employees work
• Until management’s demands are met
• Ex:
– the National Basketball Association in the 1998–
99 season
– the National Hockey League in the 1994–95 and
2004–05 seasons.
– The NBA lockout (2011)
8
Company union
• 195 organized by a business to stop outside
union from influencing workers
– Will give many of the same benefits only if
workers join the company union
– Hardest pressure on new workers.
– “They were outlawed in the United States by the
1935 National Labor Relations Act §8(a)(2), due to
their use as agents for interference with
independent unions.”
9
Right-to-work law
• 197 state legislation making it illegal to force
workers to join a union as a condition of
employment.
10
Independent union
• 199 Unions that do not belong to the AFL-CIO
(America’s largest union)
• Ex:
– Brotherhood of Locomotive Engineers
– United Brotherhood of Welders, Cutters, and
Helpers of America
– National Brotherhood of Packinghouse Workers
11
Section 2 p. 200 Terms:
• Closed shop
• 200 a union arrangement in which an
employer is contractually required to hire
union employees only.
– Few exist today, since most businesses are under
interstate laws.
12
Union shop
• 201 employment situation
• Workers do not have to belong to a union to
be hired
• Must join soon after and remain a member for
as long as they keep their job.
• Almost half of states have laws to restrict or
stop this.
13
Modified union shop
• 201 Union arrangement in which workers do
not have to belong to a union to be hired.
• Cannot be made to join one to keep their jobs.
• If they do join, the are required to stay
members until they leave their job.
14
Agency shop
• 201 union arrangement in which a worker is not
required to join a union to get or keep a job.
• The employee pays union dues to help pay for
collective bargaining fees.
• Also subject to union contract terms with company.
– United Teachers of Los Angeles
• Does not receive full benefits of union members.
15
Grievance procedure
• 202 a provision for resolving issues that may
come up between employee and
management.
• First step in solving disagreements.
16
mediation
• 202 a neutral third-party person or group is
consulted or at collective bargaining sessions
to help settle a dispute between employees
and management.
• Must be unbiased
– Must be trusted when they make their
recommendations
• Decisions are not binding to either side
17
arbitration
• 202 employees and management agree to a
neutral third party to listen.
• Recommendation is binding.
18
Fact-finding
• 202 a neutral third party collect(s) facts about
a dispute and present nonbinding
recommendations
• Good for clearing up information
– Withheld by either side
– Lied about or distorted by either side.
19
injunction
• 203 a court order not to act.
• Issued against a union
– Not to strike
• Issued against a company
– Not to lock out workers
• 1995 Baseball strike/lock-out
20
seizure
• 203 a temporary government takeover of
operations.
• Allows government to negotiate with workers.
– 1946, US takes control of bituminous coal industry
• Operated mines
• Worked out solutions with workers
• Returned ownership to private companies when
matters solved.
21
Hwk Assessments, Class Work,
to Know
22
Assessments: Checking for Understanding
CH 8, S1
• 1
• To promote legislation and decisions that
– Allow higher pay
– Better hours
– Better/safer working conditions
– Job security
23
CH 8, S1
• 3
• They continue to influence legislation
affecting pay levels and working conditions.
24
CH 8, S1
• 4
• 1778, printers in New York demand higher pay.
• Civil War causes high prices and more workers want
protection…..
• Trade and industrial unions begin from the Civil War
to the early 1900s
• Clayton Anti-trust Act 1914 protects unions.
• Unions become very strong during and after the
Depression begins in the 1930s.
• National Labor Relations Act, 1935
• Fair Labor Standards Act, 1938
25
CH 8, S1
•
•
•
•
5
Common problems united workers
Union organizers renewed efforts
Federal legislation increased the power of
unions
26
CH 8, S1
• 6
• Taft-Hartley Act, 1947, puts restrictions on
Unions
• The Labor-Management Reporting and
Disclosure Act, 1959, protects individuals
from unions.
27
Assessments: Checking for Understanding
CH 8, S2
• 1
• To discuss the demands of labor and
management and reach a compromise
28
CH 8, S2
•
•
•
•
•
3
Closed shop
Union shop
Modified union shop
Agency shop
29
CH 8, S2
•
•
•
•
•
•
•
4
Mediation
Arbitration
Fact-finding
Injunction
Seizure
Presidential intervention
– 1981, Ronald Reagan fired all striking air traffic controllers
(federal employees not allowed to strike).
– 1997, Bill Clinton orders an end to American Airlines pilots’
strike citing 1926 Railway Labor Relations Act.
30
Images, p. 194
• Question
• About six to one
31
Images, p. 195
•
•
•
•
•
Question
Agricultural wage and salary workers
What Union is available for these workers?
United Farm Workers
Why do you think it is not as effective?
– Many Ag workers are migratory
– Many Ag jobs are seasonal/temporary
– Many Ag workers are undocumented
32
Image, p. 196
• Question
• 196 strikes, pickets, boycotts
33
Image, p. 197
• Question
• 197
• Trade:
– An association of skilled workers who perform the
same kind of work
• Industrial:
– An association of all workers in a given industry
• Regardless of the job each person performs
34
Image, p. 198
• Question
• The National Labor Relations Act
• Aka: “The Wagner Act”
35
Image, p. 203
• Collective bargaining
36
Brief Response
• How have labor unions and later government
reforms improved the working conditions for
most employees? (3)
37