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Organized LaborChapter 9 Section 3

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In 1882 – Peter J. McGuire suggested that we celebrate a day for labor – now called “Labor Day”

1894 Congress officially declared the first Monday in September as Labor Day

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Worker who command the highest salaries are workers with specialized skills and who are in short supply.

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If a worker feels they are under paid, working too many hours, or working in unsafe conditions, he has an option - - quit his job and look for a better job.

Historically, American workers have joined together to bring their concerns to the attention of the company management.

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Today – 1 in 7 workers belong to a labor union.

Unions have played a big part in the development of our nation.

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The union movement took shape over the course of a century.

Labor unions arose largely in response to changes brought by the Industrial Revolution in the early 1800s.

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Workers used to work 12-16 hour days, 7 days-a-week, and got paid very little.

Machines were dangerous to run and caused many injuries to the workers and even death to people.

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In the 1790s the first unions came to be… shoemakers and carpenters began to form unions in order to protect their interests.

First Strike was at this time. Strike – an organized work stoppage intended to

force an employer to address the demands of the union.

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The Courts regarded unions as illegal. Employers fired those worker who would

strike or join an union and replace them with other workers.

Samuel Gompers first person to start the labor movement.

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Gompers founded the American Federation of Labor (AFL) in 1886.

Many union organizers were fired by the employers for causing threats to free enterprise and social order.

Worker sometimes signed “Yellow-dog” contracts – agreements not to join a union.

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1930s – Congress passed a number of pro-union laws.

Expanded workers’ rights. Unions now became a dominant force in many

industries. They controlled the day-to-day operations of

business from shipyards to garbage collections to steel production.

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As unions grew, some unions began to abuse their new power.

Some sought to preserve outdated and inefficient production methods in order to protect jobs.

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Companies that needed to improve efficiency to stay competitive found that unions could be an obstacle.

This caused the reputation of unions to suffer.

Unions also became linked to organized crime.

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Right-to-Work Laws – a measure that bans mandatory union membership.

This came about by the Taft-Hartley Act in 1947.

Most right-to-work states are in the South.

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By 2000, union membership dropped to 13.5% of the total labor force.

Reasons for this…– Unions have traditionally been for blue-collar

workers. Mainly people who worked in the manufacturing industries.

– Unions are the weakest in white-collar jobs.

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Certain manufacturing industries have traditionally employed a large number of union workers.

These industries have been hurt by foreign competition.

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The rising proportion of women in the labor force has affected union membership.

Women are least likely to join a union.

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Seeking to reduce their production costs, some industries have relocated from the Northeast and Midwest to the South.

South has been less friendly toward unions (in the past).

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Another theory is that the services won by unions are now provided by employers.

The need for unions has decreased

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A union gains the right to represent workers at a company when a majority of the workers in a particular work unit vote to accept the union.

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Collective Bargaining – the process in which union and company representatives meet to negotiate a new labor contract.

– Some goals include… Wages & Benefits Working Conditions Job Security

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When a contact is about to expire, the union goes in and starts to negotiate with management.

A union can ask the workers if they want to strike against the company.

A strike can hurt the company very much – if it is a lengthy one.

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A long strike can also be devastating to the workers, since they do not get paid while they are not working.

Most unions provide some financial aid to their members. (Maybe $13.00/day)

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Mediation – a settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides can accept.

This decision is non-binding – neither side is required to accept it.

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Arbitration – a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides.

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The collective bargaining process usually goes smoothly with very few strikes.