The American Labor Force Chapter 12

Americans at Work Chapter 12, Section 1

The Civilian Labor Force  Civilian labor force : total number of employees aged 16 and above who are either employed or actively seeking work  This is 65% of the U.S. population  This number excludes people in the armed forces, people who are retired, full time students, homemakers, the disabled and any who choose not to work.

The Civilian Labor Force  White-collar workers : category of workers employed in offices, sales or professional positions  This is the largest sector of the labor force.  Blue-collar workers : category of workers employed in crafts, manufacturing and nonfarm labor  Service workers : people who provide services directly to individuals  Includes cooks, beauticians, health-care aids  This is the fastest growing sector.

Jobs Categorized by Skill Level  Unskilled workers : people whose jobs require no specialized training (assembly line worker, custodian, waitress)  Semi-skilled workers : people whose jobs require some training, often using modern technology (nurse’s aid)  Skilled workers : people who have learned a trade or craft through a vocational school or as an apprentice to an experienced worker (electrician, plumber, police officer)  Professionals : highly educated individuals with college degrees and usually additional education or training (teacher, accountant, engineer, doctor)

Supply and Demand in Labor Market

Factors that Affect Wages  Skill : the more skill a worker has, the higher wage he can earn  Skill comes from education, training, experience, initiative or talent  Type of Job : people with dangerous or unpleasant jobs earn more  Location : are workers in a particular field relatively scarce or abundant?  If workers in a field are scarce, they can earn more.

Restrictions on Wages  There are two major factors that prevent wages from being determined by supply and demand. 1. Minimum wage law : federal law sets the lowest legal hourly wage that can be paid to certain types of workers  This can lead to unemployment among low-skilled and low income workers. 2. Labor Unions : negotiated wages restricts the influence of supply and demand in the labor market

Organized Labor Chapter 12, Section 2

Development of Labor Unions  Labor unions developed in the 1900s to attempt to improve working conditions and wages for their members.  In the 1800s, working conditions were poor and labor unions were illegal.  There was no paid time off or fringe benefits.  Jobs were dangerous.  You could be fired for trying to start a union.  In the 1930s, Congress passed laws legalizing unions.  Strike : deliberate work stoppage by workers to force employers to give in to their demands

Labor Unions  Labor Unions : an association of workers organized to improve wages and working conditions for its members  Craft Union : union made up of skilled workers in a specific trade or industry.  Examples: Carpenters, electricians, plumbers, printers  The first federation of craft unions was the AFL (American Federation of Labor)  Industrial Union : union made up of all workers in an industry regardless of job or skill level  Examples: UAW (United Auto Workers), SEIU (Service Employees International Union)  The first federation of industrial unions is the CIO (Congress of Industrial Organizations)  The AFL and CIO joined into a single organization in 1955 called the AFL-CIO.

Labor-Management Legislation  Norris-LaGuardia Act (1932) : Limits power of the courts to stop picketing, makes it illegal to force workers to pledge not to join a union.  Wagner Act (1935) : guarantees labor’s right to organize and bargain collectively. Sets up the NLRB (National Labor Relations Board)  Taft-Hartley Act (1947) : outlaws certain strike tactics, permits states to pass laws making union shops illegal. Allows the U.S. President to delay a strike if it will threaten the nation’s health and safety.  Landrum-Griffin Act (1959) : Increases government control over unions and guarantees union members certain rights such as freedom of speech in union activities and control over union dues.

How Unions Are Organized  Local Union : members of a union in a particular factory, company or geographic area  The union deals with the company to negotiate the contract.  National Union : craft or industrial union that represents workers nationwide  Sends representatives to local unions to help workers organize and negotiate contracts (Examples: UAW, International Brotherhood of Teamsters, United Steel Workers)  Federation : massive unions composed of workers in multiple industries (Example: AFL-CIO, SEIU)

Local Unions  Closed shop : the company can only hire union members  Taft-Hartley Act outlawed these.  Union shop : a new employee must join the union within a specified amount of time (usually three months)  Agency shop : employees are not required to join the union but must pay union dues  Right-to-work laws : allows an employee to work without joining the union.  These workers still receive the wages and benefits negotiated by the union.  Diminished the power of the unions.

Collective Bargaining Chapter 12, Section 3

Negotiations  Collective bargaining : the process by which unions and employers negotiate conditions of employment  COLA (Cost of Living Adjustment) : a wage increase each year if the general level of prices increases  Mediation : a neutral person tries to get both sides to reach agreement during negotiations.  This occurs if the union and employer cannot come to agreement or if negotiations break down.  A private mediator can be used or FMCS (Federal Mediation and Conciliation Service, a federal agency)  Arbitration : union and management submit the issues they cannot agree on to a third party for a final decision  One or both sides may not be happy with the decision, but they must abide by it. It is final.

Union Actions  Actions unions can take if negotiations are breaking down:  Strike : deliberate work stoppage by workers to force employers to give into their demands  Picketing : workers walk in front of a workplace carrying signs that state their disagreement with the company  Purpose: prevent other workers from getting to their job  Purpose: embarrass the company  Boycott : economic pressure exerted by the union urging the public not to purchase the goods or services produced by a company

Management Actions  Actions management can take if negotiations are breaking down and they are faced with a strike:  Lockout : management prevents workers from returning to work until they agree to a new contract  Hire scabs : people willing to cross picket lines and work for the company at the company’s terms  Seek an injunction : court order preventing some activity  The president of the U.S. can obtain an injunction to delay or halt a strike if it endangers the nation’s safety or health.

Decline of Unions  Union membership has declined over the past several decades.  Better working conditions for all has reduced the need for unions.  The number of blue-collar jobs (union jobs) has been decreasing due to automation.  Unions have grown so large and bureaucratic that they are out of touch with workers.  Higher wages of union workers are passed to consumers as higher prices.  Union rules decrease productivity.  Unions have focused on political lobbying more than the needs of workers.