Supply and Demand in the Labor force

Effects of Wage Increases A new restaurant opens in town, offering higher wages for cooks. Other restaurants must raise wages for cooks in order to compete for scarce labor. Restaurants increase the price of meals to cover their increased labor costs. When the price of meals increases, consumer demand decreases. As business decreases, restaurants’ demand for cooks decreases. Supply and Demand in the Labor Market Labor Demand The higher the wage rate, the smaller the quantity of labor demanded by firms and government. The higher the wage rate, the smaller the quantity of labor demanded by firms and government. Labor Supply As wages increase, the quantity of labor supplied also increases. As wages increase, the quantity of labor supplied also increases. Equilibrium Wage The wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market is called the equilibrium wage. The wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market is called the equilibrium wage.

Contingent employment is temporary or part-time employment. Temporary employees offer firms some of the following benefits: 1. Flexible work arrangements. 2. Temporary workers are often paid less and receive fewer benefits than their full-time counterparts. 3. Some employees prefer temporary arrangements.

The Changing Labor Force College Graduates at Work The learning effect is the theory that education increases productivity and results in higher wages. The learning effect is the theory that education increases productivity and results in higher wages. The screening effect theory suggests that the completion of college indicates to employers that a job applicant is intelligent and hard-working. The screening effect theory suggests that the completion of college indicates to employers that a job applicant is intelligent and hard-working. Women at Work Overall, the number of women in the work force has increased from about 38 percent of all women in 1960 to about 58 percent of all women in Overall, the number of women in the work force has increased from about 38 percent of all women in 1960 to about 58 percent of all women in 1995.

Wages and Skill Levels Wages vary according to workers’ skill levels and education. Jobs are often categorized into the following four groups : Wages vary according to workers’ skill levels and education. Jobs are often categorized into the following four groups : Unskilled Labor Unskilled labor requires no specialized skills, education, or training. Examples: waiters, messengers, janitors Semi-Skilled Labor Semi-skilled labor requires minimal specialized skills and education. Example: fork-lift operator Skilled Labor Skilled labor requires specialized skills and training. Examples: auto mechanics, plumbers Professional Labor Professional labor demands advanced skills and education. Examples: lawyers, doctors, teachers

The Role of Unions Most workers in Canada have the right to strike, except firefighters, police, some hospital workers, and others who perform essential services. Those employees normally have another recourse to settle disputes such as binding arbitration. In binding arbitration, an outside arbitrator hears the arguments of the parties involved and issues a decision that the parties must accept. Most workers in Canada have the right to strike, except firefighters, police, some hospital workers, and others who perform essential services. Those employees normally have another recourse to settle disputes such as binding arbitration. In binding arbitration, an outside arbitrator hears the arguments of the parties involved and issues a decision that the parties must accept.

Union Organization At the local level, workers in a particular workplace can join a local union. Before a union can represent a group of employees at a workplace, it must apply to the provincial labour board, a government agency, to be certified as the bargaining representative. At the local level, workers in a particular workplace can join a local union. Before a union can represent a group of employees at a workplace, it must apply to the provincial labour board, a government agency, to be certified as the bargaining representative. To determine whether the union should be certified, the labour board either counts union membership cards or holds a vote to determine if the union has the support of the majority of workers at the workplace. To determine whether the union should be certified, the labour board either counts union membership cards or holds a vote to determine if the union has the support of the majority of workers at the workplace. If a majority supports the union, the board determines the appropriate bargaining unit (the group of workers that is represented in a specific collective agreement) at the workplace and certifies the union. If a majority supports the union, the board determines the appropriate bargaining unit (the group of workers that is represented in a specific collective agreement) at the workplace and certifies the union.

Union Organization Once certified, a local union seeks to negotiate a collective agreement with the employer to determine the terms and conditions of employment. Once certified, a local union seeks to negotiate a collective agreement with the employer to determine the terms and conditions of employment. Workers in local unions elect local executives to supervise the work of the union. They also elect officials known as shop stewards to handle grievances that arise on the job. Workers in local unions elect local executives to supervise the work of the union. They also elect officials known as shop stewards to handle grievances that arise on the job. Before collective bargaining begins, workers elect a bargaining committee. The bargaining committee determines the workers’ demands and strategy in negotiations with the employer. Before collective bargaining begins, workers elect a bargaining committee. The bargaining committee determines the workers’ demands and strategy in negotiations with the employer.

Why do Employees Join Unions? Reasons for Joining Job dissatisfaction Job dissatisfaction Individual attitudes toward unions Individual attitudes toward unions Perceived union instrumentality Perceived union instrumentality Reasons for Not Joining Belief that union membership may harm chances for promotion Belief that union membership may harm chances for promotion Extra costs for union dues or strikes Extra costs for union dues or strikes Negative opinions toward unions Negative opinions toward unions Fair supervisory treatment/policies Fair supervisory treatment/policies

Unfair Labour Practices ManagementUnions Interfering in the formation of a union or contributing financially Interfering in the formation of a union or contributing financially Discriminating based on union membership or because employee exercises rights Discriminating based on union membership or because employee exercises rights Intimidating or coercing an employee to join/not join Intimidating or coercing an employee to join/not join Trying to bargain when the union is not the certified agent Trying to bargain when the union is not the certified agent Persuading employees during working hours, or at the workplace Persuading employees during working hours, or at the workplace Illegal strikes Illegal strikes Failing to represent employees fairly Failing to represent employees fairly

3 Phases of Collective Bargaining Phase 1 Preparationfornegotiations Phase 2 Face-to- face negotiations Phase 3 Approving the proposed agreement