dieter’s electronics collective bargaining management save money reduce some benefits to save...
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Dieter’s Electronics Collective Bargaining
Management• Save Money• Reduce some benefits to save costs• More Flexible work hours from employees
Workers• Wages• Benefits
– Medical– Sick leave– Vacation– Dental– Vision– Retirement
• Job Security • Work Hours
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Current pay and Benefits• Lowest wages range from $12 per hour to $85,000 for
corporate level non management positions.• Currently a PPO medical plan is offered to all employees
– (PPO is one of the best plans offered alternative is HMO)• No vision• No dental• 2 Weeks Vacation• 1 Week worth of Sick leave• All employees must work one weekend day at store locations.• The lower wage workers have the least job security and there
is frequent turn over.
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Macroeconomics Institutions
CH 8, 3 & 4
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CH 8, Section 3:
• Unskilled labor• people who work primarily with their hands.• Lack training and skills required for other
tasks.– Diggers– Pickers– Cleaners
• Low-wage earners
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Semi-skilled labor
• workers with enough mechanical or service abilities and skills to operate machines and handle basic operations
• Require a minimum amount of training– Floor polishers– Fast-food workers– Gardeners
• Pay is low, but better with skills achieved
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Skilled labor• workers able to operate complex equipment or services.• High investment of training/education• Experienced
– Carpenters– Typists– Tool and die makers– Computer technicians– Computer programmers– Chefs
• Wages low or high depending on job market, complexity and responsibility.
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Professional labor
• individuals with the highest level of knowledge-based education and managerial skills.– Doctors– Scientists– Lawyers– Corporate executives
• Normally earn highest incomes depending on size of business.
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Non-competing labor grades
• labor categories that do not directly compete with one another.
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Wage rate
• A standard amount of pay given for work performed
• Differ depending on nature of occupation– Skill/experience level– Often hourly
• Depends on supply and demand for job– Number of workers to job openings offered
• Based also on union contracts• Also based on “signaling theory”
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Traditional theory of wage determination
• the supply and demand for a worker’s skills and services determine the wage or salary.
Equilibrium wage rateThe wage rate that leaves neither a surplus or
shortage in the labor market.
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Theory of negotiated wages
• organized labor’s bargaining strength is a factor in determining wages.– Union strength may demand a wage higher than
market equilibrium.• Seniority• The length of time a person has been on the
job– Senior workers receive higher wages• Also higher job security
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Signaling theory
• employers are willing to pay more for people with– Certificates– Diplomas– Degrees– Other indicators of experience and superior ability
• These documents awarded by education/training/government institutions “signal” a worker’s special abilities and superiority to workers who do not have the documents.
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Labor mobility 4/22
• the ability and willingness of workers to relocate in markets where wages are higher.
• Depends on….– Relatives– Cost of living– Convenience– location
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Section 4
• Giveback• something union members give up to the
company when their contract is renegotiated:• Wages• Fringe benefit• Work rule
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Two-tier wage system
• a hiring method that keeps high wages/salaries for current workers,
• But has lower wages/salaries for newer workers.
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Glass ceiling
• an “invisible” barrier that prevents the advancement of some workers up the corporate ladder.
• Discriminatory and illegal if it can be proven.– Minority groups– women
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Jon Stewart Equal Pay
• How much do women earn for every $1 earned by a man?
• According to the projections when will women receive equal pay to men?
• When was the first Equal Pay law passed and by which president?
• What did the Lilly Ledbetter act do?• What could be created before women receive
pay equality? (3)
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Comparable worth
• the idea stating that people should receive equal pay for work that is different from, but just as demanding as, other types of work.
• Nurses = to road workers• Complicating factors include:• Hazards• Educational requirements• Degree of physical difficulty• May reduce gender discrimination, but is thought, by
some, to also be unfair…..
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Set-aside contract
• a guaranteed contract reserved for a targeted group.
• Government may require that a percentage of contracts go to – minority-owned businesses– Women
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Part-time workers
• those employees working less than 35 hours a week.
• One out of five jobs• Ratio is increasing as companies…..• Do not have to give benefits• Usually not unionized.
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Minimum wage
• the lowest wage can be legally paid to a worker
• 1939 = US, .25 cents/hour. • Federal Minimum wage – $7.25
• California Minimum wage– $9.00
• Seattle Minimum wage– $15.00
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Current dollars
• dollars that are not adjusted for inflation• 1937 $.10 current dollar was = to 8 2003
dollars.• Chart 8.10
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Real or constant dollars
• Dollars that are adjusted in a way that removes the distortion of inflation.
• Uses a• Base year• a year that serves as a comparison for all
other years
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Assessments: Checking for Understanding
• 1 Explain why wage rates differ among regions.
• Wage rates differ among regions due to – lack of labor mobility– Cost of living– Attractiveness of location
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Assessment
• 3 List the four categories of labor.• Unskilled labor• Semiskilled labor• Skilled labor• Professional labor
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Assessment
• 4 Explain the importance of noncompeting labor grades.
• Individuals with different levels of – Experience– Training– Education
• Do not compete against one another for jobs.
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Assessment
• 5 Describe three different approaches to wage determination.
• Traditional Theory of Wages• Theory of Negotiated Wages• Signaling Theory
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Assessments: Checking for Understanding
• 1 Write a definition of comparable worth in your own words.
• people should receive equal pay for work that is different from, but just as demanding as, other types of work.
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Assessment
• 3 List three reasons for the decline of unions.• Many employers kept unions out• Additions to labor force have little loyalty to
organized labor• Unions are victims own success
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Assessment
• 4 Describe three reasons for the income gap between men and women.
• Women tend to fill lower-paying positions• Discrimination prevents them from getting
promotions• Career interruptions for child-bearing affect
women’s seniority
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Assessment
• 5 Describe the current trends in part-time employment.
• It has been growing due to increasing hours in retail and the need to fill extra positions during peak periods.
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Assessment
• 6 Explain why it is necessary to consider inflation when examining the minimum wage.
• As prices tend to increase over time, purchasing power of fixed minimum wage decreases.
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Image, p. 206
• Questions• 1 How do the expenditures in the United States
compare with those in France?• the United States spends about 5% less than France.• 2 • No, clearly many nations in the sample are below
20%• Yes, on the average, the sample runs close to 20%
(average considering 6.3 billion (not shown) vs 700 million people)
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Image, p. 207
• How does this theory differ from the theory of negotiated wages?
• Traditional theory of wage determination:• Theory of negotiated wages
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Image, p. 208• What can you infer about the theory of negotiated
was from the figure?• That unionization does help determine wages and
can help make wages higher.• +is there a downside to this?• Junior workers do not get raises– May be laid off so company can save money
• New workers may not be hired.– May get hired but on different contract terms than older
workers• Usually with less benefits
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Image, p. 212
• How would you describe the trend of union membership during the 1980s and 1990s?
• Steadily decreasing: • also steadily decreasing
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Image, p. 213
• When did median female income first reach 70 percent of male median income?
• The late 1980s or 1990
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Image, p. 214• In what occupations do women make up between
60-80 percent of the workforce?• Sales• Retail and personal services• Teachers, except college and university• Health service workers• Private household service workers• Secretaries• Stenographers • typists
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Image, p. 217
• Because prices increased during that period the purchasing power of the minimum wage declined.
• + in what two years was the minimum wage, as a percent of the average manufacturing wage, the highest?
• 1950, 1968• Approximately what was the minimum wage
adjusted for inflation in those years? • 1950: About $4.95 (2003)• 1968: About $2.60 (2003)
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Quick Write
• What are some of the negative and positive effects of seniority in the workplace?