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Splash Screen
Chapter Menu
Chapter Introduction
Section 1: Americans at Work
Section 2: Organized Labor
Section 3: Collective Bargaining
Visual Summary
Chapter Intro 1
The labor market, like other markets, is determined by supply and demand.
Chapter Intro 2
In this chapter, read to learn about the major categories of the labor force, the role of unions in today’s work force, and the factors that affect wages.
Section 1-Main Idea
Section Preview
In this section, you will learn how workers are categorized and how their wages are determined.
A. A
B. B
C. C
D. D
Section 1-Polling Question
A B C
0% 0%0%0%
Do you know what kind of work you want to do as an adult?
A. Yes
B. Somewhat
C. Not at all
Section 1
The Civilian Labor Force
Workers can be categorized by the type of work they perform and by skill level.
Section 1
The Civilian Labor Force (cont.)
• Labor is an important part of the four factors of production.
• All individuals employed or actively seeking paid work over the age of 16 make up our civilian labor force.
View: Employment Status of U.S. Population
Section 1
The Civilian Labor Force (cont.)
• Workers in the U.S. are categorized by type of work they perform and the level of training or education their jobs require.
• Types of labor:
– Blue-collar workers
– White-collar workers
– Service workers
Section 1
• Skill level:
The Civilian Labor Force (cont.)
– Unskilled workers
– Semiskilled workers
– Skilled workers
– Professionals
Section 1
Supply and Demand in the Labor Market
In labor markets, wages are influenced by factors affecting supply and demand, such as variations in skill levels, job conditions, and work locations.
Section 1
Supply and Demand in the Labor Market (cont.)
• Suppliers are the workers who offer their services to employers.
• Demand comes from the employers who require workers.
Section 1
Supply and Demand in the Labor Market (cont.)
• Three major factors affect how supply and demand determine wages in the labor market:
– Skill—this may come from talent, initiative, education and/or training, or experience.
• Demand for skill is high or scarce and therefore pays higher wages.
Section 1
Supply and Demand in the Labor Market (cont.)
– Type of job—this affects the amount an employer is willing to pay and a potential employee is willing to accept.
– Location—if workers are scarce in an area, companies pay high wages to attract workers to move there and vice versa.
View: Location
Section 1
Supply and Demand in the Labor Market (cont.)
• Two factors restrict supply and demand in terms of their influence on wages:
– The federal minimum wage law
– The process of wage negotiations between organized labor (unions) and management.
A. A
B. B
C. C
D. D
Section 1
A B C
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Do you feel that most people who work make what they deserve?
A. Definitely
B. Sometimes
C. Not at all
Section 2-Main Idea
Section Preview
In this section, you will learn about the history of labor unions and how they are organized.
Section 2-Key Terms
• labor union
• strike
• craft union
• industrial union
• local union
• closed shop
• union shop
• agency shop
• right-to-work laws
Content Vocabulary
A. A
B. B
C. C
D. D
Section 2-Polling Question
A B C
0% 0%0%0%
Do you know much information about labor unions?
A. Lots of information
B. Some information
C. No information
Section 2
Development of Labor Unions
Labor unions developed to attempt to improve working conditions and wages for their members.
• Unionism met with strong resistance.
• As a result, many workers had to strike which often resulted in violence.
Section 2
Development of Labor Unions (cont.)
• American workers began to form labor unions in an attempt to gain some control over their wages and working conditions in the 1800s.
View: Labor’s Early Struggle for Recognition
View: Labor-Management Legislation
Section 2
• Organized labor in the United States has been split into two groups for much of history:
Development of Labor Unions (cont.)
– Craft unions
• The American Federation of Labor (AFL) is an example.
Section 2
– Industrial unions
– The AFL and CIO merged in 1955, and are now the AFL-CIO.
Development of Labor Unions (cont.)
• The Congress of Industrial Organizations (CIO) is an example.
Section 2
Do you feel that labor unions are necessary today?
A. Yes
B. Sometimes
C. No A. A
B. B
C. C0% 0%0%
Section 2
How Unions are Organized
Labor unions can exist as local unions, as national or international unions, or as federations.
Section 2
How Unions are Organized (cont.)
• Organized labor operates at three levels:
• The local union deals with a company by negotiating a contract and making sure the terms of the contract are kept.
• Closed shop
• Union shop
• Agency shop
– Different types of local unions:
Section 2
– Since 1947, many states have passed right-to-work laws that forbid union shops.
How Unions are Organized (cont.)
• The national or international union is the individual craft or industrial unions that represent locals nationwide.
– National unions send in organizers to help employees set up local unions.
Section 2
– The International Brotherhood of Teamsters, the United Automobile Workers (UAW), and the United Steelworkers of America (USW) are three of the largest national unions.
• The federation—the AFL-CIO is the union at this level.
How Unions are Organized (cont.)
– The Change to Win Federation is proving to be competition for the AFL-CIO.
A. A
B. B
C. C
D. D
Section 2
A B C
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Do you feel that right-to-work laws are necessary?
A. Definitely
B. Sometimes
C. Never
Section 3-Main Idea
Section Preview
In this section, you will learn how unions and employers determine the conditions of employment, and about the role of unions today.
A. A
B. B
C. C
D. D
Section 3-Polling Question
A B C
0% 0%0%0%
Are you aware of the negotiating that must take place between unions and companies?
A. Yes
B. Somewhat
C. No
Section 3
Negotiations
Union contracts are negotiated to determine a wide range of contract issues.
Section 3
Negotiations (cont.)
• Important labor issues need to be agreed upon by management and workers.
• Collective bargaining is a process by which this may be accomplished.
• Management and workers negotiate issues such as working hours, fringe benefits, and a cost-of-living adjustment (COLA).
Section 3
• If negotiations do not go smoothly, mediation might be necessary.
– The Federal Mediation and Conciliation Service (FMCS) provides a mediator free of charge upon request of either side.
Negotiations (cont.)
• If mediation fails, then arbitration might be necessary.
A. A
B. B
C. C
D. D
Section 3
A B
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Both sides agree in advance to accept the arbitrator’s decision, although one or both sides may not be happy with the outcome.
A. True
B. False
Section 3
Strikes and Management
If labor negotiations break down, unions may resort to strikes or boycotts, and management may resort to lockouts or injunctions.
Section 3
Strikes and Management (cont.)
• When negotiations between management and workers fail, a strike results.
• Picketing by workers and boycotts may be seen when strikes result.
View: Strikes
Section 3
• Management deals with strikers using the following methods:
– Lockouts
– Injunctions
Strikes and Management (cont.)
A. A
B. B
C. C
D. D
Section 3
A B C D
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When can the president delay or halt a strike up to 80 days?
A. If it will endanger the nation’s safety or health.
B. If “scabs” refuse to step in.
C. If mediation and arbitration fail.
D. If a boycott fails.
Section 3
Decline of Unions
Union membership has declined steadily over the past several decades.
Section 3
Decline of Unions (cont.)
• Working conditions have improved dramatically over the years, so many nonunion workers often see little gain from joining a union.
• In addition, blue-collar jobs are decreasing due to automation.
View: Declining Union Membership
Section 3
• Critics of labor unions claim:
– Unions are out of touch with their members’ needs because they are so large and bureaucratic.
– Unions increase wages which are passed on to consumers in the form of higher prices.
Decline of Unions (cont.)
Section 3
• In addition, employers argue that union rules decrease productivity.
• Corruption among some labor leaders has damaged the reputation of labor unions.
Decline of Unions (cont.)
A. A
B. B
C. C
D. D
Section 3
A B C
0% 0%0%0%
Do you think that in today’s work world there are other alternatives to unions?
A. Many alternatives
B. Some alternatives
C. No alternatives
VS 1
In labor markets, a variety of factors that affect supply and demand for jobs ultimately determine wages for those jobs.
VS 2
Labor unions formed in the United States to try to improve working conditions and wages for their members.
VS 3
Because working conditions in general have improved so much since the mid-1950s, many nonunion workers see little to gain by joining a union, and union membership has declined.
Figure 1
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Figure 6
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Vocab1
civilian labor force: total number of people 16 years old or older who are either employed or actively seeking work
Vocab2
blue-collar workers: category of workers employed in crafts, manufacturing, and nonfarm labor
Vocab3
white-collar workers: category of workers employed in offices, sales, or professional positions
Vocab4
service workers: people who provide services directly to individuals
Vocab5
unskilled workers: people whose jobs require no specialized training
Vocab6
semiskilled workers: people whose jobs require some training, often using modern technology
Vocab7
skilled workers: people who have learned a trade or craft either through a vocational school or as an apprentice to an experienced worker
Vocab8
professionals: highly educated individuals with college degrees and usually additional education or training
Vocab9
minimum wage law: federal law that sets the lowest legal hourly wage rate that may be paid to certain types of workers
Vocab10
labor union: association of workers organized to improve wages and working conditions for its members
Vocab11
strike: deliberate work stoppage by workers to force an employer to give in to their demands
Vocab12
craft union: union made up of skilled workers in a specific trade or industry
Vocab13
industrial union: union made up of all the workers in an industry regardless of job or skill level
Vocab14
local union: members of a union in a particular factory, company, or geographic area
Vocab15
closed shop: company in which only union members could be hired
Vocab16
union shop: company that requires new employees to join a union after a specific period of time
Vocab17
agency shop: company in which employees are not required to join the union, but must pay union dues
Vocab18
right-to-work laws: state laws forbidding unions from forcing workers to join and pay union dues
Vocab19
collective bargaining: process by which unions and employers negotiate the conditions of employment
Vocab20
cost-of-living adjustment (COLA): provision calling for a wage increase each year if the general level of prices rises
Vocab21
mediation: a neutral person tries to get both sides to reach an agreement during negotiations
Vocab22
arbitration: union and management submit the issues they cannot agree on to a third party for a final decision
Vocab23
picketing: action of strikers who walk in front of a workplace carrying signs that state their disagreement with the company
Vocab24
boycott: economic pressure exerted by unions urging the public not to purchase the goods or services produced by a company
Vocab25
lockout: situation that occurs when management prevents workers from returning to work until they agree to a new contract
Vocab26
injunction: court order preventing some activity
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