Chapter 22.2
Labors Unions
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.

continued
Organized labor has three levels: local
national/international and the federation.
 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.

continued

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.
continued
At the federation level is the AFL-CIO. It
represents 13 million workers
nationwide.
 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 banned most
closed shops.

continued

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 TaftHartley Act allows state gov’ts to ban
union shops. 21 states have passed
right-to-work laws, which prevent
unions for forcing workers to join.
continued
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.

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.
continued

If the two sides cannot agree on terms,
they might try mediation, in which a 3rd
party tries to help them reach an
agreement. In some cases, they choose
arbitration. A 3rd party listens to both
sides and decides on a settlement. Both
parties agree in advance to accept the
arbitrator’s decision.
continued

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.
continued

Management can stage a lockout, in
which the company blocks workers from
entering. Management hopes lost
wages will pressure workers to accept its
terms.