1. Labor and The Global Market
MT 4

2. Labor, Unions, and Wages
MT 4.1
MT 4.2

3. The Labor Movement What is the civilian labor force?
Anyone over 16 and is currently employed or looking for work
Why do unions exist and what do they do?
Protect workers rights and working environments
Promote legislation affecting pay and working conditions
Over 16 million members across the country

5. Types of Unions Craft/trade Industrial
Skilled workers who perform the same task
Industrial
All workers in the same industry regardless of job performed

8. Labor legislation Sherman Anti-trust Act Clayton Anti-trust Act
Keep labor in line
Clayton Anti-trust Act
Exempts labor unions from Prosecution in Sherman
Wagner Act
Right to collective bargain
Fair Labor Standards Act
Federal Minimum Wage, time and half for overtime
Taft Hartley Act
Right to work laws (choice) in some states

9. Labor/Union Tools Strike Pickett Boycott
Refusal to work until demands are met
Pickett
Parading in front of and around place of business carrying signs about dispute
Boycott
Refusal to buy a products from certain employers or businesses

11. Company Tools Lockouts Company Unions
Refusal to let the employees in to work
Company Unions
Organized by company owners to keep the employees from making their own.

12. Settling Disputes Collective Bargaining Mediation Arbitration
Reps from both sides meet and compromise to get a best case scenario for both sides
Mediation
A neutral third person comes in to settle a dispute
Arbitration
Both sides bring case before a third person whose decision is final
Injunction
A court order not to act: such as a union about to strike, or a company about to attempt a lockout.

13. Labor and Wages Types of Labor Unskilled Semi-skilled Skilled
Lack the training to do tasks from the other categories (Lowest Pay)
Semi-skilled
Minimum amount of training and skills to run machinery, etc…(Decent Pay)
Skilled
Operate complex machines, higher degree of training, and investment (Good Pay)
Professional
Highest level of knowledge and training as well as investment in education. (Highest Pay)

14. Wages Wage Rate: Theory of Wage Determination Equilibrium Wage Rate
The standard amount of pay given for work performed
May be different even in the same occupation
Theory of Wage Determination
The S & D for a workers skills and services determine the wage
Equilibrium Wage Rate
Rate that leaves neither a surplus or shortage in the labor market.

15. Labor Mobility
Ability of workers to move relocate to markets that offer higher wages
A number of factors dictate mobility:
Family, friends, costs of living, etc…

16. The Global Market
MT 4.3

17. Economic Performance Gross Domestic Product:
$ amount of all final goods and services produced within a country’s borders
National Economic Accounting:
Keeps track of production, consumption, saving, and investment. (Overall performance)

18. Computing GDP
Multiply all products produced in a 12 month period by their price.
GDP estimates are done quarterly
Could take months to a year to see how the economy is actually doing due to so much data

19. GDP Products What is not included? Intermediate products
Products used to make something already counted in the GDP
Second-hand sales
Sale of used goods
Non-market transactions
Transactions that do not take place in the market (Things that people do for themselves for no pay)
Underground economy
Illegal and unreported activity.

20. GDP vs GNP Value of all goods produced within the borders of the US
GDP+what is received from outside-what we pay out to foreign countries+ GNP
Income of all Americans whether products produced in US or somewhere else.
GNP is always smaller

21. Economic Growth Short run-5 to 7 years = real GDP
Adjusted to account for inflation
Real GDP per capita = long run
GDP produced on a per person basis

22. International Trade Key: Specialization
Regions differ based on what they produce due to advantages in their area
Absolute advantage:
Country can make a product more efficiently than another
Comparative advantage:
Can produce relatively more efficiently than another, or at a lower cost