Labor Unions
Unit 7, Day 3
Opener: 9/14/15
1. Sole proprietors have ____, meaning they are
financially responsible for all problems related to
their businesses.
a.
financial capital c.
Stock
b.
unlimited liabilityd.
limited liability
2. What document identifies how much money
each partner will contribute and what roles they
will play in the business?
a.
articles of partnership c.
charter
b.
merger agreement
d.
articles of
incorporation
Opener: 9/14/15
1. Sole proprietors have ____, meaning they are
financially responsible for all problems related to
their businesses.
a.
financial capital c.
stock
b. unlimited liability d.
limited liability
2. What document identifies how much money
each partner will contribute and what roles they
will play in the business?
a.
articles of partnership c.
charter
b.
merger agreement
d.
articles of
incorporation
Organized Labor
– Labor unions are groups of workers who band together
to have a better chance to obtain higher pay and better
working conditions.
• Workers who perform the same skills join a craft or
trade union.
• Industrial unions bring together workers who belong to
the same industry.
• Organized labor has three levels: local, national or
international, and the federation.
Organized Labor (cont.)
• A local union is made up of workers in a
factory, company, or geographic area.
• It negotiates a contract with a company and
monitors the contract’s terms.
Organized Labor (cont.)
• National unions are the individual craft
or industrial unions that represent local unions
nationwide.
• Those with members in Canada or Mexico are
international unions.
• National unions help employees set up local unions
and negotiate contracts.
• In certain industries, the national union negotiates the
contracts for the entire industry.
Organized Labor (cont.)
• At the federation level is the AFL-CIO.
• It represents 13 million workers
nationwide.
TYPES OF UNIONS
• In the past some unions supported the closed
shop.
• A worker would have to belong to the union to
be hired.
• The Taft-Hartley Act of 1947 passed under
President Truman banned most closed shops.
Organized Labor (cont.)
• When the government passed
the Taft Hartley Act in 1947,
closed shops became illegal for
any company that makes goods
that are sold in states other than
the state in which the company is
located.
• Since most businesses make
goods for interstate sales, there
are few closed shops today.
Organized Labor (cont.)
• The union shop is more common.
• Companies can hire nonunion workers, but the workers
must join the union once they begin work.
• One part of the Taft-Hartley Act allows state
governments to ban union shops.
• Twenty-two states have passed
right-to-work laws, which prevent unions from forcing
workers to join.
Organized Labor (cont.)
• Workers in a modified union shop do not have to
join the union.
• If they choose to join, they must stay in the union
as long as they work for that employer.
• A majority of workers must vote in favor of a
union before one can be formed.
• The National Labor Relations Board makes sure
union votes are carried out honestly.
Why Do We Have Unions?
• Historically, there are many, many reasons…
• Consider this… a hundred years ago you would
be expected to work at least 10 hours days, 6
days a week for pennies an hour… sound like
fun?
http://www.youtube.com/watch?v=XD6oefZPDZk&feature=related
Negotiations
• Under collective bargaining, union and
company representatives meet to discuss the
terms of the workers’ new contract when the
old one nears its end.
• Negotiations focus on wages, benefits, work
hours, and work rules.
Negotiations (cont.)
• If the two sides cannot agree on
terms, they might try mediation,
in which a third party tries to help
them reach an agreement.
• In some cases, they choose
arbitration.
• A third party listens to both sides
and decides on a settlement.
• Both parties agree in advance to
accept the arbitrator’s decision.
Negotiations (cont.)
• To pressure management to accept their position,
workers can call a strike, in which all workers in the
union refuse to work.
• Strikers often picket the business,
marching in front of company buildings while holding signs.
• If striking doesn’t work, unions can encourage people to
boycott, or refuse to buy, the company’s products.
Negotiations (cont.)
• Management can stage a lockout, in which the
company blocks workers
from entering.
• Management hopes lost wages will pressure
workers to accept its terms.
Exit Slip
• http://sports.espn.go.com/espn/otl/index
After watching the video clip using complete
sentences explain weather you think Kain Culter
is correct in his efforts.