Labor & Management

Past Working Conditions U.S. primarily an agricultural society up until Industrial Revolution Businesses small and personal, artisanal Large factories changed the relationship between employers and workers Low wages, dangerous conditions, long work days Little to no contact with workers Workers had no power to improve their situation

Rise of Labor Unions Labor Unions are organizations of workers hoping to improve wages and working conditions As they grew larger, sought the right to bargain with employers Collective bargaining is where representatives from both the labor union and the employer come to an agreement This labor contract details the wage rates, hours, and conditions

Methods Used by Labor To force business owners to bargain, labor unions use strikes Members walk off the job if employer refuses to meet their demands; productions stops and company loses money Picketing strikers try to prevent the hiring of replacement workers Discourage others from “crossing the picket line”

Methods Used by Labor Instead of strikes, workers will stay on the job but work much more slowly Worker slowdowns, or job actions, cost the company money Employers would often hire strikebreakers to replace these striking workers, but new laws restrict the use of strikebreakers

Methods Used by Employers Created blacklists of workers active in the unions Sent these lists to other companies so employers would know and not hire them Some employers fought slowdowns by closing the factories and locking out the workers Lockouts prevented workers from earning any wages at all

Closed and Open Shops To raise money, labor unions charged members dues, or membership fees Helped unions feed members and their families during strikes or lockouts Labor unions sometimes tried to enroll every worker in a factory Closed shop factories were where workers could not be hired unless they first become members of the union Employers opposed the closed shop- didn’t want unions to have that much control over hiring Insisted on an open shop- everyone can be hired regardless if they’re in a union

The Union Shop Employers can hire any qualified worker, union or nonunion Worker must eventually join a union to keep their job

Right-to-Work Laws Many states have now passed right-to-work laws No one may be forced to join a union Union members and nonunion members can work in the same company

Labor Laws Percentage of union members in this country today is small Does not mean unions are weak Many major industries are still unionized Strikes or slowdowns could cause major problems Congress wants to protect the public from these preventable disasters Passes labor laws to prevent employers from using unfair practices and to make unions act fairly in their disputes

Labor Relations Today Attitudes between union leaders and employers has changed Both realize they can get what they want by cooperating and running a more efficient business Sharing profits with workers, allowing workers to choose their own schedule, give them a voice in how work is done

Collective Bargaining Today Most disputes settled peacefully through collective bargaining When strikes do happen, both sides can lose money, and it can affect other people as well During 1994 MLB strike, businesses around ballparks lost money Strikes aren’t settled until both sides agree to compromise, or give up some of their demands

Collective Bargaining Today If both sides are unable to come to an agreement, an expert may be called in Mediations are simply suggestions for a solution to the issues at hand With arbitration, the arbitrator’s decision is binding to both sides The goal of collective bargaining on either side is to increase productivity and profits