The American Labor Force CHAPTER 12 Southwest High School

Civilian Labor Force  CIVILIAN LABOR FORCE  Total number of people 16 years old or older who are employed or actively seeking work  Does NOT include:  Those not looking for work  RETIRED, FULL-TIME STUDENTS, STAY-AT-HOME PARENTS  Those not able to work  DISABLED, PEOPLE IN PRISON, PEOPLE IN MENTAL INSTITUTIONS

Current Unemployment in the US 10 LOWEST RATES10 HIGHEST STATES

Classification of US Workers  BLUE-COLLAR  Employed in crafts, manufacturing, & non- farm labor  WHITE-COLLAR  Employed In office, sales, or professional positions  SERVICE WORKERS  People who provide services directly to individuals

Skill Levels  UNSKILLED WORKERS  Jobs require no specialized training  SEMISKILLED WORKERS  Jobs require some training  Often uses modern technology  SKILLED WORKERS  Have learned a trade/craft though either education or experience  PROFESSIONALS  Highly educated with college degrees  Usually additional education/training

SUPPLY & DEMAND 3 Factors Affecting Our Wages  FACTOR #1: SKILL  Talent, Initiative, Education, Training  A TIGHT LABOR MARKET is created by:  High Demand  Scarce Supply  RESULTS IN:  Higher “Prices”…aka “Wages”

SUPPLY & DEMAND 3 Factors Affecting Our Wages  FACTOR #2: JOB TYPE  What is required of an employee in their job  Determines how much an employer is willing to pay  Determines how much an employee is willing to accept in pay  Dangerous & Unpleasant Jobs PAY MORE

SUPPLY & DEMAND 3 Factors Affecting Our Wages  FACTOR #: LOCATION  If finding qualified workers is scarce in an area  Employers will pay more to attract workers  Potential workers will require more from employers as an incentive to move  If finding qualified workers is not scarce  Employers will pay less because supply is plentiful  Potential workers will accept less in order to have a job that someone else might take if they don’t

Restrictions on Wages  If labor markets were perfectly competitive…  Wages would shift constantly based on the supply/demand ratio of that industry  2 FACTORS RESTRICT THIS  Wage Negotiations  Between management & employee labor unions  Minimum Wage Law  Set by the government

Development of Labor Unions  Working conditions in the 1800’s where NOT good!  What have we seen in the “Men who Built America”?  Steel Mill Conditions?

Development of Labor Unions  To better their working conditions workers began to form LABOR UNIONS  Association of workers organized to improve wages & working conditions for its members  Unionization was fought against  State legislatures banned unions  Courts upheld state laws  Businesses refused to hire union members  Employees that joined unions were fired

Organized Labor in the US  CRAFT UNION  Skilled workers in a specific trade or industry  American Federation of Labor (AFL)  First permanent organization of craft unions  Founded by Samuel Gompers  INDUSTRIAL UNION  All the workers in an industry regardless of job or skill level  Congress of Industrial Organizations (CIO)  First significant effort to unionize unskilled & semiskilled labor

AFL v. CIO  Late 1930s and Early 1940s  AFL and CIO had a rivalry  Both sides trying to gain more members  Both sides setting up unions in the other’s primary area of interest  1955  AFL-CIO merger

Union Organization  3 levels: Local, National, & Federation  LOCAL UNION  Members in a particular factory, company, or geographical area  Duties of a Local Union  Negotiating contracts  Ensuring contracts are kept  Amount of influence a local union has depends on the membership policy it has negotiated with management

Local Union Membership Types  CLOSED SHOP  Company where only union members can be hired  Outlawed by the Taft-Hartley Act (1947)  UNION SHOP  Requires new employees to join a union after a specific period of time (3 months)  Taft-Hartley Act allows states to ban these  AGENCY SHOP  Employees are not required to join the union, but must pay union dues

Restriction to Local Union Membership  RIGHT-TO-WORK LAWS  State laws forbidding unions from forcing workers to join and pay union dues  Employees who work in the railway or airline industries are not protected  Employees who work on a federal enclave may not be protected

Union Organization  NATIONAL UNIONS  Representing local unions nationwide  Help employees set up local unions, negotiate contracts, & provide lawyers and other staff members  In certain industries they negotiate for the entire industry (not just with one company)  When a majority of members accept a contract it goes into effect for all members

Union Organization  FEDERATION LEVEL  AFL-CIO  Made up of more than 50 national & international unions  Approximately 9 million members

Negotiations  COLLECTIVE BARGAINING  Process by which unions & employers negotiate the conditions of employment  Companies want to keep labor cost low  Low cost = low price to consumer  Helps stay competitive with other companies  Unions want increased wages & benefits  Increases employee morale  Increases livelihood of employees

Negotiations  Contract issues include  Working Hours  Fringe Benefits  COST-OF-LIVING ADJUSTMENTS (COLA)  Provision calling for a wage increase each year if the general level of prices rise

If Union and Management Can’t Reach an Agreement  MEDIATION  A neutral person tries to get both sides to reach an agreement during negotiations  NOT LEGALLY BINDING  ARBITRATION  Union & management submit the issues they cannot agree on to a third party for a final decision  Both Sides Agree In Advance To Accept The Arbitrator’s Decision As Final

Tactics Used by Workers / Unions  STRIKE  Deliberate work stoppage by workers Usually happens if the union & management cannot come to terms  PICKETING  Striking workers walk in front of a workplace with signs stating their disagreement with the company  Encourage non-union members not to go to work  Gain public support of their cause  Embarrass the company

Getting the Community Involved  BOYCOTT  Economic pressure exerted by unions urging the public not to purchase the goods/services produced by the company  May also encourage politicians to get involved & voice support for the union MAY PERMANENTLY LOSE CUSTOMERS TO THEIR COMPETITORS!!!

Tactics Used by Management  LOCKOUTS  Management prevents workers from returning to work until they agree to a new contract  NBA, NFL, MLB, NHL  INJUNCTIONS  Court order preventing an action  Used by management to limit picketing or prevent a strike  Taft-Hartley Act  Allows the President to delay/halt a strike…if it will endanger the nation’s safety/health

Accomplishments of “The Modern Union Era”  Union & Non-Union Workers have both gained:  Better wages & working conditions  Sense of security in the workplace  More order & fairness in the workplace  Made clear the rights & responsibilities of management and employees

Decline of Unions  Because of these accomplishments…  Non-union workers see little to gain from joining a union  Nature of the economy has changed  More White Collar Jobs than Blue Collar Jobs  Some believe…  Unions have lost touch with member needs  Increased wages have been passed on to consumers