econ chapter eight: labor and labor unions
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The Rise and Fall of Labor Unions
Chapter EightMacro -
EconomicsThis is the study of
the whole economy – The big picture.
Macroeconomic includes: G.D.P., total money supply, inflation/deflation, taxes, imports/exports, etc.
How many workers in the
U.S?
There are about 150 million Americans in the workforce.
This does not include members of the military, prisoners, and people who have quit looking for a job.
Early Union Development1. Unions were
stunted in their growth until the 1930’s.
2. Most Americans were anti - union.
Why was this so?
3. Americans were of the “Pull yourself up by your own boot straps” attitude.
There was HEAVY employer resistance. Tactics included:
1. Yellow Dog Contracts, Black Lists, Union Busters, Lock Outs.
2. Government leaders were anti union.
3. The Court system were anti union also.
4. American felt that unions were of a “Foreign” influence.
The “Formul
a”
The “Formul
a”
Unions + Violence + Strikes + Socialists + Immigrants = Anarchists
Roots of the American Labor Movement
Pre-Revolutionary America. NO NOTES. Agricultural economy. Indentured Servants. Slaves.
Post-Revolutionary America First labor unions of craftspeople in 1790s.
Trade societies. Growth of American factory system in 1830s
Did complete task to finish whole product-worked in one building. Mass influx of immigrants kept waged rock bottom. Growth of large, impersonal, national corporations provided the impetus to
unionize.Industrialization.History of Indurtial Revolution
What Did Early Unions Want?
1. Collective Bargaining.
2. Eight hour work day/Forty hour work week.
3. No child labor.
4. Worker’s Comp.
5. Safe work place.
Growth of National Unions-No Notes.
1. National Labor Union (NLU) - 1866Membership for skilled and unskilled workers.
2. National Colored Labor Union (NCLU)Refused membership by the NLU.
3. Knights of Labor.
4. American Federation of Labor (AFL) - created in 1888. Still exists today.
Growth of National Unions
National Labor Union (NLU) - 1866Membership for skilled and unskilled workers.
National Colored Labor Union (NCLU)Refused membership by the NLU.
Knights of Labor.
American Federation of Labor (AFL) - created in 188
The American Federation
of Labor: 1886
The American Federation
of Labor: 1886
Samuel Gompers: “MORE!”
Child LaborChild Labor
A candle would be placed into his hat to provide light while working in the mines! Why is this dangerous?
Coal Miners
Here is a SIX year old girl working in a cotton mill
“Galley Labor”“Galley Labor”
How is Big Business treating children according to the picture?
Daydreaming……. What is she thinking about?
Look carefully, what is missing?
The taller boy standing to the right oversees the breaker boys who separate the coal from the stones during mining. The machine used is
moving quickly and they are not allowed to wear gloves! Why might this be dangerous?
Why are the children STANDING on the machine?
Piece Work
Molly Maguires.Labor movement portrayed as violent and criminal.
Railway Strike - 1877First general strike to sweep the U.S.First use of federal troops to suppress labor action.
Haymarket Square Riot - 1886Demonstration in support of 8-hour day led to a series of
confrontations with Chicago police.Public became fearful of labor organizations.
Labor Strife-No Notes
Great Rail Road Strike-First National Strike
Great Rail Road Strike-First National Strike
Homestead Strike - 1892Involved the Amalgamated Association of Iron and Steel
Workers and the Carnegie Steel CompanyArmed confrontation between strikers and armed
Pinkerton guards
Pullman Strike - 1894Involved the Pullman Palace Car Company and the
American Railway UnionInjunction issued using the Sherman Antitrust Act
Growth of National UnionsMore Violence.
Growth of National Unions - Periods of
Violence
MollyMaguires
RailwayLaborStrike
HaymarketSquare
HomesteadStrike
PullmanStrike
1870 1875
1880 1885 1890 1895 1915
Year
1900
Growth of Unions
Haymarket Riot (1886)
Major Setback for Labor
Haymarket Riot (1886)
Major Setback for Labor
McCormick Harvesting Machine Co.
The Corporate “Bully-Boys”:
PinkertonAgents
The Corporate “Bully-Boys”:
PinkertonAgents
The Pullman Strike of 1894
The Pullman Strike of 1894
THE GREAT RAILROAD STRIKE OF 1877
The Pullman Strike of 1894
The Pullman Strike of 1894
President Grover Cleveland
President Grover Cleveland
If it takes the entire army and navy to deliver a postal card in Chicago, that card
will be delivered!
The SocialistsThe Socialists
Eugene V. Debs
International Workers of the World (“Wobblies”)
International Workers of the World (“Wobblies”)
“Big Bill” Haywood of theI.W.W.
“Big Bill” Haywood of theI.W.W.
Violence was justified to overthrow capitalism.
I W W & the InternationaleI W W & the
Internationale
The Hand That Will Rule the World – Workers own the
means of production!
The Hand That Will Rule the World – Workers own the
means of production!
Great Depression and Unions.1. GDP falls by fifty percent.
2. Twenty-five percent unemployment.
3. Serious DEFLATION. Wage-Price spiral Downward.
4. Wage-Rate Theory destroyed.
Pro Union Legislation1. LaGuardia Act 1932.
Prevented courts from rulings against peaceful strikes, picketing, or boycotts.
2 Nat’s Labor Relations Act 1935 or Wagner Act:
3. Right of unions to collective bargaining.
4. Gov’t oversite of union elections.
5. Gov’t world police unfair labor practices.
6. Magna Carta of Labor.
Fair Labor Act 1938
1. Federal Minimum wage. Wage-Rate Theory.
2. Time and a half for overtime.
3. 40 hour work week.
4. 8 hour work day.
5. Eliminates child labor.
Wagner Act
W.A.S.C
Creation of National Labor Policy (cont.)
Labor ManagementRelations Act(Taft-HartleyAmendments,
1947)
Recognized workers right not to organize• Closed shop made unlawful
Defined union unfair labor practices•unions required to bargain in good faith•unions can be sued for breach of contract•restraint or coercion of employees in exercise of their rights•discrimination against employee for not engaging in union activities
Restrictions on strike activities
Right-to-work laws
Anti-Union Legislation 1947
Anti-Union Legislation Reagan the Democrat.
Reagan the Republican PATCO.
QuickTime™ and a decompressor
are needed to see this picture.
Kinds of Union Shops.Closed shops.(Taft-Hartly Outlawed)
Union shops. Raley’s.
Modified shops.
Agency shops. O.U.H.S.D.
Kinds of Union Shops.1. Closed shops.
(Taft-Hartly Outlawed)
2. Union shops. Raley’s.
3. Modified shops.
4. Agency shops. O.U.H.S.D.
Collective Bargaining.1. A group represents the union to
management.
2. A contract is created that both parties agree and sign.
What if the Contract is Broken?
1. Grievance. Informal/Formal.
2. Mediation.
3. Arbitration. Binding and non binding.
4. Fact-Finding.
5. Injunction and seizure.
6. Presidential intervention. (PATCO.)
Categories of Labor.1. Unskilled.
2. Semi skilled
3. Skilled
4. Professional Labor.
Wage Determination Traditional Theory-Supply
and demand.
Negotiated wage theory-unions.
Signaling theory- Higher education.
Regional wage differences.
Ethnic or gender(Glass Ceiling).
Wage Determination1. Traditional
Theory-Supply and demand.
2. Negotiated wage theory-unions.
3. Signaling theory- Higher education.
4. Regional wage differences.
5. Ethnic or gender(Glass Ceiling.)
Earnings Gap(What women of various races earn, compared
with a dollar earned by a white male)
Source: Business Week, June 7, 2004
Decline of Unions.1. Reasons:
2. Employers like Wal-Mart have fought unions vigorously.
3. More women and teenagers in work force and are not as interested in unions.
4. Globalization/Outsourcing of labor.
5. Poor countries have few environmental laws, no workers comp., Social Security , or Medicare taxes….
Pro and Anti Union Arguments.
Target
Starbucks.
Wal-Mart Hit Man
Wal-Mart. High Cost of Low Wages.
Nike
Wal-Mart-=Sweat Shops.
Minimum Wage.1. Why does the U.S. have a minimum
wage? Wage-Rate Theory discredited during the Great Depression.
2. Does the minimum wage keep up with inflation? No.
3. Does raising the minimum wage hurt business? No. IMO!
Minimum Wage Stats.1. 2.2% of total W.F. earn M.W.
2. Only 1.4% over 25.
3. 51% are between 16-24. Reagan “Training Wage.”
4. 21% between 25-34.
5. Only 1.2% college education.
6. 59% no college.
Anti Minimum Argument.
Cut Min. Wage.
Constant Dollars Verses Current Dollars.
Inflation, every year, decreases the buying power of the dollar. 1-3 percent inflation is normal.
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