13A Wage Determination Appendix McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Union Membership 15.3 million workers in million in AFL-CIO 6 million in Change to Win Remaining in other independent unions LO7 13-2

Union Membership Unionization rate highest among: Government Telecommunication Transportation Construction Manufacturing Lowest among: Finance Agriculture Retail Trade LO7 13-3

Union Membership Distribution of union membership 13% men versus 11% women 14% African-American versus 12% white 11% Asians 10% Hispanics LO7 13-4

Union Membership LO7 13-5

Decline of Unionism 22 million workers in million workers in 2009 Structural changes in economy Increased management opposition to unions Substitution of machinery for workers Improved wages, fringe benefits, and working conditions LO7 13-6

Collective Bargaining Union status Closed shop Union shop Agency shop Open shop LO7 13-7

Collective Bargaining Managerial prerogatives Wages and hours Seniority and job protection Grievance procedures LO7 13-8

The Bargaining Process Begins 60 days before contract expires Possibility of strike Compromise National Labor Relations Board LO7 13-9

Economic Effects of Unions Featherbedding and work rules Output losses from strikes Efficiency losses from labor misallocation Offsetting factors LO

WnWn Wage Rate Sector 1: Union Employment Wage Rate Sector 2: Nonunion Employment N1N1 00 D u =MRP B A C N2N2 WuWu WnWn D E WsWs D n =MRP N1N1 N3N3 Economics Effects of Unions LO