LABOR UNIONS

The Labor Movement (Origins)

Colonial America - Civil War: Trade & Craft Unions developed as workers strived for better conditions. Overall public sentiment was anti-union. Leaders viewed as troublemakers.

Knights of Labor est. 1869

Demanded end of child and convict labor.

Equal pay for women and the hiring of African-Americans

Wanted cooperative ownerships of coal mines

Changes in Attitudes toward Labor

The Great Depression saw the public change their mind towards unions. They were now perceived as positive and necessary to protect the American Worker

Pro-Union Legislation

Norris-LaGuardia Act – prohibited courts from ending peaceful union demonstrations

NLRA – established the right to collective bargaining

Fair Labor Standards Act – established minimum wage, overtime pay, prohibited child labor under 16 and safer conditions for those under 18

Anti-Union Attitude Returns

World War II sees attitude change again towards Organized Labor

Taft-Hartley (1947) limits union activity

Right-to-Work laws

AFL-CIO Union History over the

20th century was dominated by the AFL-CIO

American Federation of Labor merges with Congress of Industrial Organizations (1955)

11 million members (2010)

Union Arrangements Closed Shops – employer hires only

union members (Made illegal by Taft/ Hartley 1947)

Union Shops – Must join union upon hiring and remain an member throughout

Modified Union Shop – Not forced to join, but those who do, must remain members

Agency Shop – Must pay union dues although not forced to actually join.

Collective Bargaining Representatives from both the Union and

Management come together to discuss grievances (problems) and look for ways to compromise so that normal operations can resume.

Methods of Bargaining Mediation – Neutral party makes

recommendations and suggest compromise. Arbitration – Negotiations also managed by 3rd

party, in this case however, all decisions of the arbitrator or final.

Fact-Finding – Neutral 3rd party again collects facts relevant to the grievance and reports to both sides with recommendations

Additional Methods of Bargaining

Injunction or Seizure – Attorneys on behalf of either side can ask a court to force management and or the union to resume operations.

Presidential Intervention – If a situation requires, Presidents may also force action as well. (Reagan & Clinton both)

Categories of Labor

Unskilled Labor – Lowest wage earners, limited or no formal training

Semiskilled - Workers w/ enough training to operate machinery

Skilled – Workers able to operate complex equipment

Professional – Highest level of education and managerial ability

Wage Determination

Determined by three different factors Supply & Demand in the Market Collective Bargaining Process “Signaling” Theory Traditional Theory of Wage Determination Equilibrium Wage Rate – Supply =

Demand

Other Factors of Wages Theory of Negotiated Wages – Labor

unions collectively bargain for wages

Signaling Theory – Employers look for certain signals such as licenses or certificates to determine wages

Regional Wage Differences

Wages will differ depending on what part of the country a worker lives. Labor mobility, cost of living, and attractiveness of location all impact the difference.

Decline of Unions

Unions have in some ways been victims of their own success. The high wages they have helped achieve have caused the companies they work for to be much less profitable.

The Automobile Industry

Labor Unions in Politics

Organized Labor typically supports and endorses Democratic Party candidates. 2011 is no different as Republican controlled state legislatures battle unions over budget cuts.

Notable Labor Union Figures

James Hoffa President of the

Teamsters Disappeared in 1975 Was making loans to

the mob from Teamster pension fund

Hoffa’s Grave?