1. Employment Trends & Issues Pgs. 211 – 218
Chapter 8.4
Employment Trends & Issues
Pgs. 211 – 218

2. Decline of Union Influence
Reasons for Decline
Companies have actively tried to block unions
New workers (youth & women) have no loyalty to unions
Too successful – higher wages = higher prices
Renegotiating Union Wages
Givebacks – return of money or benefits to company
Bankruptcy = allows companies to break contracts
Two-tier wages – new employees paid less

3. Lower Pay for Women Human Capital Differences Gender & Occupation
Women make 28% less than men
1/3rd of the gap is due to differences in HC
Women leave to raise families
Often have lower educations
Gender & Occupation
Roughly 1/3rd is due to different jobs
Men generally work in higher paying industries
Figure 8.9 pg. 214

4. Cont. Discrimination Legal Remedies
1/3rd of the gap has no explanation
“glass ceiling” – a barrier blocking women & minorities from a higher wage/job
Legal Remedies
Equal Pay act of 1963
Requires equal pay for equal jobs
In the same company
Civil Rights Act of 1964 Title VII
Prohibits discrimination based on gender
Established the EEOC

5. Cont. Comparable Worth Set-Aside Contracts
Pay should be equal for different but equally demanded/important work
How do you compare 2 different jobs?
What is comparable to a surgeon?
A teacher? A social worker?
Set-Aside Contracts
Guaranteed contract to a target group
Promote minority businesses
Can promote female entry in male fields
A question of reverse discrimination?

6. Part Time Workers PTW – person who works 35 hrs or less/wk
Reasons for growth
Economy needs people to work short flexible shifts
People aren’t always available to work 40 hrs
Cheaper for employers
Lower wages & fewer benefits
Critics of Part-Time Employment
Wages too low, hours too few to earn good living
Used to block people from full time

7. The Minimum Wage Minimum Wage – lowest legal wage
Debate over Minimum Wage
Intended to prevent exploitation of workers
Provide equity and security
Can discriminate against young people
Some places offer a “living wage” higher than MW
Measured in Current Dollars
Not adjusted for inflation
Has steadily increased

8. Cont. Adjusted for Inflation Compared to Manufacturing Wages
Real/constant dollars
It’s a question of “purchasing power”
At first is went up in “real” value
Has steadily declined since 1969
Compared to Manufacturing Wages
Has been as much as 50%
Today is closer to 35%
People earning minimum wage can only buy 1/3rd the stuff a manufacturing worker can buy