Labor Unions and the Economy
Target: I can explain the different types of unions and how the
government interacts with unions.
Labor Unions
Organizations that attempt to improve the working conditions of their members through collective action
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
Types of Unions
Craft unions – consist of people that generally have the same skill (electrician)
Types of Unions
Craft unions – consist of people that generally have the same skill (electrician) Hence, they are often times called a
horizontal union
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
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
Types of Unions
Industrial Unions – workers that are employed in a particular industry (mine workers) both skilled and unskilled workers
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
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
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
Labor Legislation (Gov’t involvement)
In general, the government has shown great hostility towards unions
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)
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
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
Labor Legislation
The use of injunctions stopped with the Clayton Act (1914)
Labor Legislation
The use of injunctions stopped with the Clayton Act (1914) Could not use the Sherman Act against
unions
Labor Legislation
National Labor Relations Act (Wagner Act) 1935
Labor Legislation
National Labor Relations Act (Wagner Act) 1935 Guaranteed the right of workers to organize in
Unions and bargain collectively
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
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
Labor Legislation
Taft-Hartley Act
Labor Legislation
Taft-Hartley Act Illegal for federal employees to strike
Labor Legislation
Taft-Hartley Act Illegal for federal employees to strike It outlawed closed shops (forced to join a
union)
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
Labor Membership
Since 1960, union membership has steadily dropped with less than 12% of workers in a union today Compared to 1983: 20.3%