1. Wages and Labor Disputes

2. Categories of Labor Unskilled Labor – No special skills required
Semiskilled Labor – Minimum amount of training
Skilled Labor – Requires a lot of education, knowledge, and training
Professional Labor – Highest level of knowledge-based education and managerial skills

3. Market Theory of Wage Determination
The supply and demand for a worker’s skills and services determine the wage
The higher the supply, the lower the wage
The higher the demand, the higher the wage

4. Market Theory of Wage Determination
Create 3 columns in your notebook and title them: Job, Labor Category, Factors Affecting Supply and Demand
Identify 10 jobs and fill in the rest of the columns with the given information

5. Theory of Negotiated Wages
Unions bargain for wages
The more powerful the union, the higher the wages
In this situation, seniority plays a larger role in wage determination

6. Signaling Theory
Certificates, Degrees, or other indicators “signal” superior knowledge to employers
The signals help employers know when to pay a higher wage
Many jobs may require that you have a degree, but do not specify what kind of degree

7. Resolving Labor Disputes
Collective Bargaining
Negotiations between Labor and Management
Unions are the voice for the Labor
Generally not an easy process

8. Resolving Labor Disputes
Mediation
Impartial third party brought in to help settle dispute
Problem is solved by the two sides, mediator keeps the peace

9. Resolving Labor Disputes
Arbitration
Impartial third party brought in to settle the dispute
Problem is solved by the arbitrator

10. Resolving Labor Disputes
Fact-Finding
Neutral third party looks at the situation, gathers information and recommends solution
Government Intervention
Injunction – court order not to act (No Strike)
Seizure – Temporary government take over
Presidential Intervention – President publically appeals to resolve differences