Employment, Labor, Wages

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Employment, Labor, Wages

• Chapter 8

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Goals Objectives

1. Development importance of labor unions.
2. Great Depression Post WWII labor laws.
3. Kinds of union arrangements.
4. Collective Bargaining Right-to-work laws.
5. 4 main categories of labor.
6. Wage determination. Causes Effects.
7. Equal Pay Act laws regulations.

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The Labor Movement

• Macroeconomics Employment, GDP, inflation,
  income distribution, monetary policy, fiscal
  supply-side policies.
• 1. GDP
• 2. inflation (federal reserve)
• 3. economic growth
• 4. distribution of income

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Civilian Labor Force

• 16 years or older working or looking for work
• Excludes
• Military, prisoners, mentally disabled,
  unemployment benefits, SSI benefits welfare.
• Unemployment Rate vs. Underemployed Rate

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Unemployment Rate
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Underemployment Rate
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Early Union Development

• 1778-1820s Farmers, small business,
  self-employed
• Trade or Craft Unions
• Early Unions comprised of skilled labor with
  good collective bargaining power.
• Trade or Craft Unions

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Early Unions

• Immigrants? Unskilled, cheap labor posed a
  threat to the existing wages.
• Anti-Immigrant feelings
• Competition and Wages?
• Competition and Supply?
• Chinese Exclusion Act Gentlemans Agreement,
  Anti-Irish, Anti-Black, Scabs

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Civil War to 1930s

• Attitudes toward unions changed
• 1. Why?
• A. higher prices
• B. shortage of workers
• C. greater demand for goods and services
• D. United Labor Force of newly arrived immigrants.

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Types of Unions

• 1. Craft unions (trade unions) skilled workers
  who perform the same task.
• AMA
• ABA
• NEA ?? Why not??
• Writers Guild

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Types of Unions

• 2. Industrial Unions organization of workers in
  the same union regardless of job performed.
• Goodyear Engineers, Operators, Line workers,
  fork lift operators, janitors all in the same
  union.

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Union Activities

• 1. Strike Can the federal government prevent
  you from striking or force you to work?
• 2. Picket Can the federal government prevent
  you from picketing?
• 3. Boycott Can the federal government prevent
  you from boycotting?

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Strikes, Boycotts Pickets
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Employer Resistance

• 1. Lockouts must have scabs must have access
  to a supply of labor at a cheap cost to the
  company
• 2. Company Unions Human Resources are company
  unions. File a complaint and what happens?
• 3. 1902-1914 Boycotts illegal
• Sherman Antitrust Act 1890 Anti-union/monopoly
• Clayton Antitrust Act 1914 Exempted unions

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Lockouts Labor Union Decline
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Labor Union Great DepressionPro-Union Laws

• 1. Norris LaGuardia Act of 1932 ended court
  involvement against unions in peaceable pickets
  and boycotts.
• 2. National Labor Relations Act 1935, right of
  unions to collectively bargain.
• 3. Fair Labor Standards Act 1938, interstate
  commerce an minimum wage requirements, overtime,
  time-and-a-half

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Labor since WWIIAnti-Union Laws

• 1. Taft-Hartley Act 1947, employers right to sue
  unions for breaking contract.
• 80 day cooling off period? What?
• 2. Right-to-work laws eliminated the requirement
  that forced workers to join the unions.

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Right-to-work States
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American Federation of Labor/ Committee for
Industrial Organization

• AFL/CIO
• AFL1886
• CIO 1935
• AFL/CIO 1955
• 2006 split apart Why? Teachers (NEA) union joined

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Labor Unions Bankruptcy
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Kinds of union arrangements

• 1. closed shop pg.200 hire only union members.
• 2. union shop employees must join union after
  being hired.
• 3. modified union shop no requirement to join,
  but can not quit union if joined
• 4. agency shops requires workers to pay union
  dues even if not a member

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Collective Bargaining

• Labor and Management compromise.
• grievance procedure issues arriving before
  contract renewal.
• 1. Mediation 3rd person into collective
  bargaining procedure. Court mandated in Alabama
  before filing a civil lawsuit.
• 2. Arbitration 3rd party decision maker which
  will be final decision. BBB?

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Arbitration 13th Amendment
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Collective Bargaining

• 3. Fact-Finding neutral 3rd party finds facts
  outside of management and laborexample. DHR
  department of human resources
• 4. Injunction-Seizure court order not to act
  (forced labor). 1995 baseball, 1982 airline
  pilots, Seizure govt takeover of operations
  (AYP in public schools)

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Presidential Intervention

• 1981 Air traffic controllers (FAA) R.Reagan
• 1997 Air line pilots B.Clinton, 1926 federal law
  Railway Labor Relations Act
• Professional Baseball Ordered baseball players
  back to work Why?
• Interstate Commerce-jurisdiction
• Interstate Costs to a baseball strike Municipal,
  State, and Federal losses due to a strike?

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Categories of Labor

• 1. unskilled labor ditch diggers, fruit pickers,
  custodians equal low wages
• 2. semiskilled labor machine operators, electric
  dishwashers, floor polishers, lawnmowers.
• 3. skilled labor carpenters, typists, computers,
  chefs, programmers
• 4. professional labor high level of education,
  managerial skills, doctors, scientists, lawyers,
  dentists.

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Wage Determination

• 1. Traditional Theory of Wages
• Supply and Demand for a workers skills and
  services determine wages
• How can government protect the traditional theory
  of wages? Supply of labor
• Equilibrium wage rate no shortage, no surplus of
  workers.how has illegal immigration effected
  this theory?

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Market Wage Rate vs. Minimum Wage Requirement
Prices
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Wage Determination

• 2. Theory of Negotiated Wages
• organized labors collective bargaining
  strength, strong unions,
• Seniority how it affects wages and productivity?
• Signaling theory merit, certificates, specific
  skills bring higher wages

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Minimum Wage Requirements Unemployment/Underempl
oyment Rates
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Regional Wage Differences

• Labor Mobility moving to higher paying jobs.
• Location, Location, Location
• North Dakota oil fields and wage rates
• Federal Entitlements Labor immobility

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Decline of Union Influence

• 1. Keep unions out of business. Wal-Mart
• 2. Profit sharing plans (401ks)
• 3. Management teams
• 4. Women and Teens who are less loyal to unions.
• 5. Unions are victims of their own success.
• Inflationless productionfewer jobsfewer union
  membersoutsourcing.

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Renegotiating Union Wages

• 1. Givebacks Wages, fringe benefits, or rules
  given up by union to employers.
• UAW the big 3
• 2. two-tier wage system high wages for older
  workers lower wages for new workers.

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Lower Pay for Women

• 1. Human Capital Differences skills, experience,
  less education.
• Traditionalism vs. Feminism
• 2. Gender and Occupation uneven distribution of
  professionals
• 3. Discrimination glass ceiling

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Equal Pay Act 1963

• Jobs requiring equivalent skills and
  responsibilities must be uniform in public
  sector.
• 1. Civil Rights Act 1964 prohibits
  discrimination.EEOC the government can sue
  without a complaint from anyone? The 10 quota
  rule (Affirmative Action).

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Comparable Worth

• Highway workers vs. Nurses (Illinois)
• Federal Contracts (Public) 10.10 minimum wage
  requirement
• Worth/Value decided by the State.

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Set-Aside Contracts

• Guaranteed government contract for a targeted
  minority group.
• Affirmative Action White males excluded.

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Price-Wage Spiral

• 1939 .25 hour
• 1986 3.15 hour
• 1997 5.15 hour
• 2009 7.25 hour
• 2014 7.25 hour
• Price-Wage Spiral As wages increase so do
  prices.

• 1939 .05 milk gallon
• 1986 .96 milk gallon
• 1997 2.67 milk gal.
• 2009 3.58 milk gal.
• 2014 4.29 milk gal.
• What will happen to the price of a gallon of
  milk with an increase in the minimum wage?