Labor Unions
Organized Labor
Labor Unions –
How many American workers belong to a union?
Why has the number of Union members been falling since the 1980’s?
The First Unions
Why did the 1st Labor Unions develop?
Who were the Knights of Labor?
Organized all laborers __________________________________
1886 peak of membership at 700,000
Ended in 1900
American Federation of Labor (AFL)
Who was not allowed into the AFL?
Samuel Gompers – head of AFL
What did the AFL fight for?
By 1900 membership reached 500,000
There are 2 types of unions
Trade Unions –
Industrial Unions Organized labor has a 3 level hierarchy
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Local Unions –
Usually identified with numbers
Negotiates a contract with a company and monitors the contract terms.
Represents the _______________ unions agenda, while at the same time representing the ___________ of their
constituents.
National Unions
At the Federation level is the ________________________
Represents 13 million workers nationwide
From 195-2005, represented virtually all unionized workers in the U.S.
Union Membership Policies
Closed Shop –
Union Shop –
Modified Union Shop Agency Shop –
Open Shop –
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Organized labor
In the past, some labor unions supported closed shops, when a worker would have to first belong to a union to be
hired by the company.
What stopped the practice of closed shops?
Which type of union membership is common today?
What are right-to-work laws?
Where are modified union shops common?
A majority of workers must vote in favor of a union before one can be formed.
What does the National Labor Relations Board do?
Collective Bargaining
What is collective bargaining?
Who is responsible for carrying out collective bargaining?
Union and company representatives meet to discuss conditions of employment, such as –
3 steps
Negotiation
Mediation
Arbitration
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When Collective Bargaining Fails
What can workers/Unions do?
Strikes –
Picketing –
Boycott –
Scab What can Business/management do?
Lockout –
Blacklist Why would businesses have a lockout?
What other option do businesses have?
In severe or extreme labor – management disputes, government many get involved
The government can Ex. 1946 U.S. seized the coal industry because of the countries need for this energy source. Operation of the
mines continues, until labor and management came to an amicable agreement
Unions Today
Right to work states Movement of Human Capital
Rust Belt –
Sun Belt Why did factories and businesses move from the rust belt to the sun belt?
White collar vs. Blue collar jobs
White collar jobs Blue collar jobs –
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Money, Banking, Credit & Consumer Rights
Money
Replaced the barter system in traditional economies
Functions
Medium of Exchange –
Store of Value –
Medium/Measure of Value –
Standard of Deferred Payment Banking
What does banking bring together in the market?
Savers = Deposits
Borrowers = loans
Banks are a business and have a _____________________________
How do banks make money?
Types of Deposit Accounts
Checking Account
Allows customers to write checks, use debit cards or withdraw money from an ATM ( Automated Teller
Machine)
Money transactions are quick and efficient
Money does not stay in the account for long
Depositor usually receives little or no interest.
Checking/Debit cards
Transfer funds _______________________
Tied ________________ to checking accounts
What 2 sets of numbers are listed on the bottom of every check?
Savings Account
Banks interest to customers based on how much money is deposited.
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Money remains ___________________ for longer periods of time
Certificate of Deposit (CDs)
Customers ___________ a certain amount to the bank for a certain amount of ______.
______________ rates of interest than savings
Customers can’t withdraw their money without a penalty.
Types of Banks
Commercial Banks –
Savings & Loan Associations –
Credit Unions –
FDIC
Federal Deposit Insurance Corporation
What does it do?
Most banks are FDIC insured
Loans
What is a loan?
What are loans used for?
Banks make interest on the interest paid for a loan
In order to make loans, banks have to have money.
How do banks get more money?
How else can banks get more money?
Principle
Interest
Interst rate
Types of Loans
Fixed –
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Variable -
Charge Accounts
What are charge accounts typically used for?
Credit limit –
Types of Charge Accounts
1. Installment Account
Ex – car loan or mortgage
2. Regular account
Ex. Furniture stores usually do this. Pay by 2010, certain amount each month, but with no interest.
3. Revolving Account
Ex – credit cards
Credit Cards
Finance Charges - Cost of credit (interest) expressed in dollars
APR (Annual Percentage Rate) –
Applying for Credit
Fill out application, Credit Bureau does a credit check, Creditor may ask for references
What do credit checks show?
What types of debts?
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Credit Rating
Rate of risk – Excellent, Good, Average or Poor
Ratings have a number associated with them
3 Credit Bureaus What do credit scores show lenders?
Unsecured loans –
Secured loans Government Regulations
Equal Credit Opportunity Act –
Usury Laws –
In North Carolina, it is 8%. If you lend a neighbor $100, you can only receive $8 in interest.
Bankruptcy
States can become bankrupt too
Consumer Rights
Consumer –
Types of income
Disposable Income –
Money to pay for house, car, utilities
Discretionary Income –
What do you do with discretionary income?
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Consumerism –
Congressional laws – Pure Food and Drug Act in 1906
Private groups -Better Business Bureau (BBB)
Consumer Bill of Rights
Consumers have the ...
Right to
Right to
Right to
Right to
Right to
Consumer Responsibilities
Smart Buying Strategies
Get info on products
Watch out for advertising
Comparison shoppingWhen product fails
Report it
Check the warranty
Keep a copy of the receipt
Be calm
Make Fair complaints
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