Ch. 22
Section 2
Labor 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
Out of the 151 million in the civilian labor force, only
14% of American workers belong to a union.
That number has been falling since the 1980’s as we
have transformed our economy from manufacturing to a
service based economy.
Organized Labor (cont.)
There are two types of unions:
Trade unions – workers who perform the same skills
Industrial unions – bring workers together who
belong to the same industry

1.
2.
Organized labor has a three level hierarchy:




local unions
national unions
federations
Organized Labor (cont.)




Local unions are made up of workers in a factory,
company or geographic area.
Usually identified with #s
Negotiates a contract with a company and monitors the
contract terms
Represents the National unions agenda, while at the
same time representing the desires of their constituents
Organized Labor (cont.)



National unions are the individual craft or
industrial unions that represent local unions
nationwide
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

Represents 13 million workers nationwide

From 1955-2005, represented virtually all
unionized workers in the U.S.
Organized Labor (cont.)

In the past, some labor unions supported
closed shops, when a worker would have to
first belong to a union to be hired by a company.

This was banned by the Taft-Hartley Act 1947

Stopped the practice of closed shops
Organized Labor (cont.)



A common arrangement today is the union shop, which
allows companies to hire anyone as long as they join the
union shortly after they begin working
One part of the Taft-Hartley Act banned this practice as
well.
22 states have passed right-to-work laws, which
prevent mandatory union membership required by union
shops
Organized Labor (cont.)



What we see in the South are modified union shops,
in which workers do not have to join a union, but if they
do join have to remain a member for the duration of
their employment.
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


1.
2.
3.
4.
5.
6.
Once workers choose to be represented by a union, the union is
responsible for carrying out collective bargaining.
When union and company representatives meet to discuss
conditions of employment such as:
Wages
Work hours
Working conditions
Grievance procedures
Benefits
Work rules and responsibilities
Negotiations (cont.)



If the two sides cannot agree to the new terms of a
contract they may try two different methods:
Mediation or Arbitration
Mediation is when a third party tries to help both sides
reach an agreement; no decision is made but lines of
communication is kept open between the two parties
Arbitration is when a third party listens to both sides
arguments and decides on a settlement; has the power
of a judge and both sides agree to accept the arbitrators
decision.
Labor-Management Conflict


Many contacts are settled at the negotiation table, but in
some cases negotiations can break down.
To pressure management to accept their position,
workers can call a strike, in which all workers in the
union refuse to work.

Workers can picket the business, march in front of the
factory doors, getting people’s attention to the situation

Sometimes boycotting products or services can work to
get managements attention.
Labor-Management Conflict (cont.)



Management can use lock-outs, in which the company
blocks workers from entering the workplace until they
accept their contract terms.
Businesses hope the loss in income will convince workers
to accept the companies position.
Can ask the courts to issue an injunction, a legal order
from the court preventing some activity (strike)
Ex. 1995 MLB season
Labor-Management Conflict (cont.)


In severe or extreme labor-management dispute,
government may get involved.
Can seize operations of an industry until conflict is
settled.
Ex. 1946 U.S. seized the coal industry because of
the countries need for this energy source. Operation of
the mines continued, until labor and management came
to an amicable agreement