Chapter 19
Section 2
Organized Labor
 Labor Unions- groups of
workers who band together to
have a better chance to obtain
higher pay and better working
conditions.
 Trade/Craft Union- Organization
of workers who do the same job
 Industrial UnionsOrganization of people who
work in the same industry
Union Arrangements Continued
 Closed Shop- A worker had to
first join a union in order to be
hired by a company
 Taft-Hartley Act 1947
Stated closed shops couldn’t be
used in companies that ship
their goods to other states.
 Union Shops- Allows companies
to hire anyone as long as they
join the union shortly after they
begin working.
- Right-to-work laws; workers
can’t be forced to join a union
Union Arrangements Continued
 Modified Union Shop
Don’t have to join union. If you
do, you must stay in the union for
the remainder of your
employment
Negotiations
 Collective Bargaining- Officials
from the union and the Company
meet to discuss the workers’ new
contract (wages and benefits,
health care,….)
 Mediation- A third party who
tries to help them reach a
compromise agreement.
Negotiations Continued
 Arbitration- A third party listens
to both sides, and then decides
how to settle the disagreement.
Labor-Management Conflict
 Unions and management use
different techniques, or methods to
pressure the other side to accept
their positions.
Labor Tools
 Strike- All workers in the union
refuse to work
Picketing- striking workers walk
with signs that express their
grievances
 Boycott- Refuse to buy the
business’s products.
Management Tools
 Injunction- A legal court order
of a court preventing some activity
(limit picketing/prevent a strike
from continuing or occurring)
 Seizure- A temporary takeover
operations.
 Lockout- Employers lock
workers out
of the business
Other Unions
 Public Employees Union- Whose
members work for the local, state
or federal government.
Collective
bargaining
Chapter 19 Section 3
• Social Responsibility- benefit society as well
as themselves
– Donate money through foundations
– Corporations give away about 14 billion each
year (goods and services)
– Small companies can give money to support the
area (little league, scholarships etc.)