Wages and Labor Disputes

Categories of Labor Unskilled Labor – No special skills required Semiskilled Labor – Minimum amount of training Skilled Labor – Requires a lot of education, knowledge, and training Professional Labor – Highest level of knowledge-based education and managerial skills

Market Theory of Wage Determination The supply and demand for a worker’s skills and services determine the wage The higher the supply, the lower the wage The higher the demand, the higher the wage

Market Theory of Wage Determination Create 3 columns in your notebook and title them: Job, Labor Category, Factors Affecting Supply and Demand Identify 10 jobs and fill in the rest of the columns with the given information

Theory of Negotiated Wages Unions bargain for wages The more powerful the union, the higher the wages In this situation, seniority plays a larger role in wage determination

Signaling Theory Certificates, Degrees, or other indicators “signal” superior knowledge to employers The signals help employers know when to pay a higher wage Many jobs may require that you have a degree, but do not specify what kind of degree

Resolving Labor Disputes Collective Bargaining Negotiations between Labor and Management Unions are the voice for the Labor Generally not an easy process

Resolving Labor Disputes Mediation Impartial third party brought in to help settle dispute Problem is solved by the two sides, mediator keeps the peace

Resolving Labor Disputes Arbitration Impartial third party brought in to settle the dispute Problem is solved by the arbitrator

Resolving Labor Disputes Fact-Finding Neutral third party looks at the situation, gathers information and recommends solution Government Intervention Injunction – court order not to act (No Strike) Seizure – Temporary government take over Presidential Intervention – President publically appeals to resolve differences