1. Ch. 22 Section 2 Labor Unions

2. Organized Labor Labor Unions are groups of workers who band together to have a better chance to obtain higher pay and better working conditions Labor Unions are groups of workers who band together to have a better chance to obtain higher pay and better working conditions Out of the 151 million in the civilian labor force, only 14% of American workers belong to a union. Out of the 151 million in the civilian labor force, only 14% of American workers belong to a union. That number has been falling since the 1980’s as we have transformed our economy from manufacturing to a service based economy. That number has been falling since the 1980’s as we have transformed our economy from manufacturing to a service based economy.

3. Organized Labor (cont.) There are two types of unions: There are two types of unions: 1. Trade unions – workers who perform the same skills 2. Industrial unions – bring workers together who belong to the same industry Organized labor has a three level hierarchy: Organized labor has a three level hierarchy: local unions local unions national unions national unions federations federations

4. Organized Labor (cont.) Local unions are made up of workers in a factory, company or geographic area. Local unions are made up of workers in a factory, company or geographic area. Usually identified with #s Usually identified with #s Negotiates a contract with a company and monitors the contract terms Negotiates a contract with a company and monitors the contract terms Represents the National unions agenda, while at the same time representing the desires of their constituents Represents the National unions agenda, while at the same time representing the desires of their constituents

5. Organized Labor (cont.) National unions are the individual craft or industrial unions that represent local unions nationwide National unions are the individual craft or industrial unions that represent local unions nationwide Help employees set up local unions and negotiate contracts Help employees set up local unions and negotiate contracts In certain industries, the national union negotiates the contracts for the entire industry In certain industries, the national union negotiates the contracts for the entire industry

6. Organized Labor (cont.) At the Federation level is the AFL-CIO At the Federation level is the AFL-CIO Represents 13 million workers nationwide Represents 13 million workers nationwide From 1955-2005, represented virtually all unionized workers in the U.S. From 1955-2005, represented virtually all unionized workers in the U.S.

7. Organized Labor (cont.) In the past, some labor unions supported closed shops, when a worker would have to first belong to a union to be hired by a company. In the past, some labor unions supported closed shops, when a worker would have to first belong to a union to be hired by a company. This was banned by the Taft-Hartley Act 1947 This was banned by the Taft-Hartley Act 1947 Stopped the practice of closed shops Stopped the practice of closed shops

8. Organized Labor (cont.) A common arrangement today is the union shop, which allows companies to hire anyone as long as they join the union shortly after they begin working A common arrangement today is the union shop, which allows companies to hire anyone as long as they join the union shortly after they begin working One part of the Taft-Hartley Act banned this practice as well. One part of the Taft-Hartley Act banned this practice as well. 22 states have passed right-to-work laws, which prevent mandatory union membership required by union shops 22 states have passed right-to-work laws, which prevent mandatory union membership required by union shops

9. Organized Labor (cont.) What we see in the South are modified union shops, in which workers do not have to join a union, but if they do join have to remain a member for the duration of their employment. What we see in the South are modified union shops, in which workers do not have to join a union, but if they do join have to remain a member for the duration of their employment. A majority of workers must vote in favor of a union before one can be formed. A majority of workers must vote in favor of a union before one can be formed. The National Labor Relations Board makes sure union votes are carried out honestly The National Labor Relations Board makes sure union votes are carried out honestly

10. Negotiations Once workers choose to be represented by a union, the union is responsible for carrying out collective bargaining. Once workers choose to be represented by a union, the union is responsible for carrying out collective bargaining. When union and company representatives meet to discuss conditions of employment such as: When union and company representatives meet to discuss conditions of employment such as: 1. Wages 2. Work hours 3. Working conditions 4. Grievance procedures 5. Benefits 6. Work rules and responsibilities

11. Negotiations (cont.) If the two sides cannot agree to the new terms of a contract they may try two different methods: Mediation or Arbitration If the two sides cannot agree to the new terms of a contract they may try two different methods: Mediation or Arbitration Mediation is when a third party tries to help both sides reach an agreement; no decision is made but lines of communication is kept open between the two parties Mediation is when a third party tries to help both sides reach an agreement; no decision is made but lines of communication is kept open between the two parties Arbitration is when a third party listens to both sides arguments and decides on a settlement; has the power of a judge and both sides agree to accept the arbitrators decision. Arbitration is when a third party listens to both sides arguments and decides on a settlement; has the power of a judge and both sides agree to accept the arbitrators decision.

12. Labor-Management Conflict Many contacts are settled at the negotiation table, but in some cases negotiations can break down. Many contacts are settled at the negotiation table, but in some cases negotiations can break down. To pressure management to accept their position, workers can call a strike, in which all workers in the union refuse to work. To pressure management to accept their position, workers can call a strike, in which all workers in the union refuse to work. Workers can picket the business, march in front of the factory doors, getting people’s attention to the situation Workers can picket the business, march in front of the factory doors, getting people’s attention to the situation Sometimes boycotting products or services can work to get managements attention. Sometimes boycotting products or services can work to get managements attention.

13. Labor-Management Conflict (cont.) Management can use lock-outs, in which the company blocks workers from entering the workplace until they accept their contract terms. Management can use lock-outs, in which the company blocks workers from entering the workplace until they accept their contract terms. Businesses hope the loss in income will convince workers to accept the companies position. Businesses hope the loss in income will convince workers to accept the companies position. Can ask the courts to issue an injunction, a legal order from the court preventing some activity (strike) Can ask the courts to issue an injunction, a legal order from the court preventing some activity (strike) Ex. 1995 MLB season

14. Labor-Management Conflict (cont.) In severe or extreme labor-management dispute, government may get involved. In severe or extreme labor-management dispute, government may get involved. Can seize operations of an industry until conflict is settled. Can seize operations of an industry until conflict is settled. Ex. 1946 U.S. seized the coal industry because of the countries need for this energy source. Operation of the mines continued, until labor and management came to an amicable agreement