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Labor Unions and the Economy Target: I can explain the different types of unions and how the government interacts with unions.
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Labor Unions Organizations that attempt to improve the working conditions of their members through collective action
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Labor Unions Organizations that attempt to improve the working conditions of their members through collective action It is beneficial to join a union b/c it allows workers to bargain as a whole and not as an individual
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Types of Unions Craft unions – consist of people that generally have the same skill (electrician)
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Types of Unions Craft unions – consist of people that generally have the same skill (electrician) Hence, they are often times called a horizontal union
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Types of Unions Craft unions – consist of people that generally have the same skill (electrician) Hence, they are often times called a horizontal union Example – American Federation of Labor (AFL) est. in 1886
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Types of Unions Craft unions – consist of people that generally have the same skill (electrician) Hence, they are often times called a horizontal union Example – American Federation of Labor (AFL) est. in 1886 They can be effective b/c these are skilled workers who cannot be easily replaced
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Types of Unions Industrial Unions – workers that are employed in a particular industry (mine workers) both skilled and unskilled workers
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Types of Unions Industrial Unions – workers that are employed in a particular industry (mine workers) both skilled and unskilled workers Hence, they are often times called vertical unions
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Types of Unions Industrial Unions – workers that are employed in a particular industry (mine workers) both skilled and unskilled workers Hence, they are often times called vertical unions Generally, these unions have been unsuccessful b/c they are representing unskilled labor who can be easily replaced
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Types of Unions Congress of Industrial Organization (CIO) was formed in 1935 and battled for membership with AFL, in 1955 they became the AFL-CIO
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Labor Legislation (Gov’t involvement) In general, the government has shown great hostility towards unions
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Labor Legislation In general, the government has shown great hostility towards unions Using the Sherman Antitrust Act, which made actions to restrain trade illegal, many state governments made it illegal to strike (impedes trade)
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Labor Legislation In general, the government has shown great hostility towards unions Using the Sherman Antitrust Act, which made actions to restrain trade illegal, many state governments made it illegal to strike (impedes trade) Management of business could ask for an injunction
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Labor Legislation In general, the government has shown great hostility towards unions Using the Sherman Antitrust Act, which made actions to restrain trade illegal, many state governments made it illegal to strike (impedes trade) Management of business could ask for an injunction Injunction – government order that forces workers to work
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Labor Legislation The use of injunctions stopped with the Clayton Act (1914)
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Labor Legislation The use of injunctions stopped with the Clayton Act (1914) Could not use the Sherman Act against unions
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Labor Legislation National Labor Relations Act (Wagner Act) 1935
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Labor Legislation National Labor Relations Act (Wagner Act) 1935 Guaranteed the right of workers to organize in Unions and bargain collectively
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Labor Legislation National Labor Relations Act (Wagner Act) 1935 Guaranteed the right of workers to organize in Unions and bargain collectively However, following WWII, there were a series of strikes that hurt the economy
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Labor Legislation National Labor Relations Act (Wagner Act) 1935 Guaranteed the right of workers to organize in Unions and bargain collectively However, following WWII, there were a series of strikes that hurt the economy Thus, Congress over-rode Truman’s veto and passed the Taft-Hartley Act
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Labor Legislation Taft-Hartley Act
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Labor Legislation Taft-Hartley Act Illegal for federal employees to strike
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Labor Legislation Taft-Hartley Act Illegal for federal employees to strike It outlawed closed shops (forced to join a union)
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Labor Legislation Taft-Hartley Act Illegal for federal employees to strike It outlawed closed shops (forced to join a union) Gave the president the power to seek injunctions against any strike that threatened national interest
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Labor Membership Since 1960, union membership has steadily dropped with less than 12% of workers in a union today Compared to 1983: 20.3%
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Take Econ Quick Quiz 7 www.theBigL.org
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