Chapter 12: The American Labor Force

Section 1: Americans at work

List: Think of everyone at school today, list them in order of highest skill level to lowest skill level. Is there another way to categorize the people at school today based on what their roles are?

Remember: America is successful because of the civilian labor force: people 16 years or older who are employed, actively seeking work. Military personnel and people not looking for a paying job are not counted

Remember: We categorize workers by the type of work they do and their skills White collar workers: office workers, sales people, engineers Blue collar workers: work at a craft, manufacturing job, or non farm labor Service workers: cooks, health care aides, service providers Unskilled workers: no specialized training Semiskilled workers: some specialized training usually in technology Skilled worker: vocational school, apprentice Professional: college degrees or additional education/training

Remember The labor market is affected by supply and demand Workers offer their services as supply Demand is created when employers need workers 3 factors affect how supply and demand determine the “price of labor” (WAGES) Skill Type of job location

Remember: 2 factors limit supply and demand setting of wages: Wage negotiations of labor unions Minimum wage law

Section 2: Organized Labor

Write: What conditions must be met in order to get you to work for someone?

Remember: Labor unions are associations of workers organized to improve wages and working conditions In the 1800’s, there were no health benefits, health insurance, sick leave, and paid vacations Many workers stopped working or went on strike to get their employers to meet demands for better conditions

Remember 2 types of labor unions Craft union: made up of skilled workers in a specific trade or industry Industrial union: made up of workers in an industry regardless of skill American Federation of Labor (AFL) (craft union) and the Congress of Industrial Organizations (CIO) industrial union-combined in 1950’s to form the AFL-CIO

Remember: Organized labor operates at the local level, national level, and federation Local union: workers work in a particular factory, company, or geographic area, they are represented nationally and usually belong to a federation Relationships between workers and employers are governed by a contract which may require: That you be a union member (closed shop) That you eventually join a union (union shop) That you pay union dues even if you do not join (agency shop) Right to work: you do not have to join union or pay dues to work

Section 3: Collective Bargaining

Think: Suppose that students at your school wanted to change a school policy. How likely would this change be achieved by a few students? One student going to the principal alone? A petition signed by the student body?

Remember: Most unions avoid strikes by using collective bargaining as employers and workers reach an agreement through contracts Wages Benefits: insurance, vacations, retirement Work hours and overtime pay Working conditions (safety) Job security Grievance procedures

Remember: COLA stands for cost of living adjustment and is included in most contracts

Remember: If negotiations break down, both sides may agree to mediation: neutral person listens to each side and makes suggestion If mediation doesn’t work, both sides may agree to arbitration: neutral person makes final decision

Remember: If negotiations break down, both workers and employers have tactics to use against each other: Workers: strike, picketing, boycotts Employers: lock out, strikebreakers, injunction

Remember: Supporters of labor unions claim that unions have improved wages, working conditions, job security, order and fairness to workplace Opponents claim better wages have resulted in higher prices and decreased productivity The number of union members is declining because working conditions are good and the number of blue collar jobs is declining