Employment Trends & Issues Pgs. 211 – 218 Chapter 8.4 Employment Trends & Issues Pgs. 211 – 218

Decline of Union Influence Reasons for Decline Companies have actively tried to block unions New workers (youth & women) have no loyalty to unions Too successful – higher wages = higher prices Renegotiating Union Wages Givebacks – return of money or benefits to company Bankruptcy = allows companies to break contracts Two-tier wages – new employees paid less

Lower Pay for Women Human Capital Differences Gender & Occupation Women make 28% less than men 1/3rd of the gap is due to differences in HC Women leave to raise families Often have lower educations Gender & Occupation Roughly 1/3rd is due to different jobs Men generally work in higher paying industries Figure 8.9 pg. 214

Cont. Discrimination Legal Remedies 1/3rd of the gap has no explanation “glass ceiling” – a barrier blocking women & minorities from a higher wage/job Legal Remedies Equal Pay act of 1963 Requires equal pay for equal jobs In the same company Civil Rights Act of 1964 Title VII Prohibits discrimination based on gender Established the EEOC

Cont. Comparable Worth Set-Aside Contracts Pay should be equal for different but equally demanded/important work How do you compare 2 different jobs? What is comparable to a surgeon? A teacher? A social worker? Set-Aside Contracts Guaranteed contract to a target group Promote minority businesses Can promote female entry in male fields A question of reverse discrimination?

Part Time Workers PTW – person who works 35 hrs or less/wk Reasons for growth Economy needs people to work short flexible shifts People aren’t always available to work 40 hrs Cheaper for employers Lower wages & fewer benefits Critics of Part-Time Employment Wages too low, hours too few to earn good living Used to block people from full time

The Minimum Wage Minimum Wage – lowest legal wage Debate over Minimum Wage Intended to prevent exploitation of workers Provide equity and security Can discriminate against young people Some places offer a “living wage” higher than MW Measured in Current Dollars Not adjusted for inflation Has steadily increased

Cont. Adjusted for Inflation Compared to Manufacturing Wages Real/constant dollars It’s a question of “purchasing power” At first is went up in “real” value Has steadily declined since 1969 Compared to Manufacturing Wages Has been as much as 50% Today is closer to 35% People earning minimum wage can only buy 1/3rd the stuff a manufacturing worker can buy