Labor & Wages Ch. 9

Labor Unions: a BRIEF history pgs. 245-246 1778 – 1st attempt to unionize: N.Y. Printers organize for higher wages Shoemakers, carpenters, tailors follow suit Industrial Revolution – Two Types of Unions Emerge Craft Union (trade union) – skilled workers who perform the same kind of work. Industrial Union – all workers in an industry, regardless of the job each performs.

Union Strategies P. 246 Strike – workers refuse to work until demands are met. Picketing – striking workers parade in front of the employer’s business carrying signs about the dispute. Boycott – mass refusal to buy products from a targeted company or companies. Intended to hurt the business’ reputation and profits.

Employer Responses P. 246 Lockout – refusal to let workers work until they agreed to management demands. Company Unions – Companies organized and allowed workers to run the union. An attempt to head off outside unions.

Resolving Disputes: Pgs. – 256-257 Collective Bargaining – Negotiations between labor and management for higher wages, better conditions, vacation, etc. Grievance Procedure – a provision for how to solve future disputes. Mediation – a neutral 3rd party helps settle the dispute. NON-BINDING. Arbitration – a neutral 3rd party helps settle the dispute. BINDING. Injunction – a court order not to act. Can force workers not to strike. Can force employers not to lockout workers. Seizure – temporary gov’t takeover of operations while the gov’t negotiates with the union. GM used bankruptcy court to allow a government seizure. Their goal was to have the federal government bust their unions out of the company.

Resolving Disputes Cont’d Presidential Intervention – the president appeals to both sides to settle the dispute. Used rarely except for public safety, national security, or if the strike will harm the economy of the nation. 1981 – Air Traffic Controllers walked of the job. Reagan: go back to work or be fired (federal workers). 1997 – Airline Pilots strike during peak weekend. Clinton stepped in to end the strike. On August 3, 1981 nearly 13,000 of the 17,500 members of the Professional Air Traffic Controllers Organization (PATCO) walked off the job, hoping to disrupt the nation's transportation system to the extent that the federal government would accede to its demands for higher wages, a shorter work week, and better retirement benefits.  At a press conference in the White House Rose Garden that same day, President Reagan responded with a stern ultimatum: The strikers were to return to work within 48 hours or face termination.  As federal employees the controllers were violating the no-strike clause of their employment contracts.  In 1955 Congress had made such strikes a crime punishable by a fine or one year of incarceration -- a law upheld by the Supreme Court in 1971.  Nevertheless, 22 unauthorized strikes had occurred in recent years -- by postal workers, Government Printing Office and Library of Congress employees, and by air traffic controllers who staged "sick-outs" in 1969 and 1970.

Why would the president NOT want to get involved? What does a president risk in political support? How can this affect future legislation?

Union Arrangements P. 250

Non-competing categories of Labor: pgs. 252-253 Unskilled Labor – people who do jobs that do not require specialized education or training. Ex: store clerk Semiskilled Labor – requires mechanical training on how to operate heavy machinery. Ex: Forklift drivers Skilled Labor – requires specialized training and/or education. Ex: carpenters, electricians, computer programmers Professional Labor – Individuals with the highest level of knowledge and managerial skills. Ex: doctors, lawyers, etc. This slide begins lesson 2

Wage Determination:

Wage differences by Gender/ Education Many of these are true for other groups as well. Wage differences by Gender/ Education This slide begins lesson 3

Fighting wage/salary discrimination: P. 263 Equal Pay Act of 1963 – Prohibits wage/salary discrimination for jobs that require the same skill or responsibilities. Applies to men and women who have the same job at the same establishment. Set-aside contract – A guaranteed contract reserved for a targeted group. Civil Rights Act of 1964 – Prohibits discrimination in all areas of employment based on gender, race, color, religion, or national origin. Applies to all employers with 15 or more employees. Equal Employment Opportunity Commission (EEOC).

Civil Rights act of 1964 Civil rights activism has helped generate equality for all Americans. What are some of these benefits? What are some major contributions that would not have been developed? However, there are some downsides to the civil rights movement that are controversial. What are some of these downsides?

Minimum Wage: pgs. 263 - 265 Minimum Wage – Lowest wage that can be paid by law Used to prevent exploitation of workers 1939 – Fair Labor Standards Act: $0.25/hour 2009 – raised up to $7.25

As you can see, in most places cities, the cost of living exceeds the minimum wage. This is leading to more and more minimum wage earners demanding higher wages.

Raise Minimum Wage? McDonald’s and the minimum wage debate.