Ch. 22Ch. 22Section 2Section 2

Labor UnionsLabor Unions

Organized LaborOrganized Labor

Labor Unions Labor Unions are groups of workers who band are groups of workers who band together to have a better chance to obtain higher together to have a better chance to obtain higher pay and better working conditionspay and better working conditions

Out of the 151 million in the civilian labor force, Out of the 151 million in the civilian labor force, only 14% of American workers belong to a union.only 14% of American workers belong to a union.

That number has been falling since the 1980’s as That number has been falling since the 1980’s as we have transformed our economy from we have transformed our economy from manufacturing to a service based economy.manufacturing to a service based economy.

Organized Labor (cont.)Organized Labor (cont.)

There are two types of unions:There are two types of unions:

1.1. Trade unionsTrade unions – workers who perform the same – workers who perform the same skillsskills

2.2. Industrial unionsIndustrial unions – bring workers together – bring workers together who belong to the same industrywho belong to the same industry

Organized labor has a three level hierarchy:Organized labor has a three level hierarchy: local unionslocal unions national unionsnational unions federationsfederations

Organized Labor (cont.)Organized Labor (cont.)

Local unions are made up of workers in a factory, Local unions are made up of workers in a factory, company or geographic area.company or geographic area.

Usually identified with #sUsually identified with #s

Negotiates a contract with a company and Negotiates a contract with a company and monitors the contract termsmonitors the contract terms

Represents the National unions agenda, while at Represents the National unions agenda, while at the same time representing the desires of their the same time representing the desires of their constituentsconstituents

Organized Labor (cont.)Organized Labor (cont.)

National unions are the individual craft or National unions are the individual craft or industrial unions that represent local industrial unions that represent local unions nationwideunions nationwide

Help employees set up local unions and Help employees set up local unions and negotiate contractsnegotiate contracts

In certain industries, the national union In certain industries, the national union negotiates the contracts for the entire negotiates the contracts for the entire industryindustry

Organized Labor (cont.)Organized Labor (cont.)

At the Federation level is the AFL-CIOAt the Federation level is the AFL-CIO

Represents 13 million workers Represents 13 million workers nationwidenationwide

From 1955-2005, represented virtually From 1955-2005, represented virtually all unionized workers in the U.S. all unionized workers in the U.S.

Organized Labor (cont.)Organized Labor (cont.)

In the past, some labor unions supported In the past, some labor unions supported closed shops, closed shops, when a worker would have when a worker would have to first belong to a union to be hired by a to first belong to a union to be hired by a company.company.

This was banned by the Taft-Hartley Act This was banned by the Taft-Hartley Act 19471947

Stopped the practice of closed shopsStopped the practice of closed shops

Organized Labor (cont.)Organized Labor (cont.)

A common arrangement today is the A common arrangement today is the union shop, union shop, which allows companies to hire anyone as long as which allows companies to hire anyone as long as they join the union shortly after they begin workingthey join the union shortly after they begin working

One part of the Taft-Hartley Act banned this One part of the Taft-Hartley Act banned this practice as well.practice as well.

22 states have passed 22 states have passed right-to-work lawsright-to-work laws, which , which prevent mandatory union membership required by prevent mandatory union membership required by union shopsunion shops

Organized Labor (cont.)Organized Labor (cont.)

What we see in the South are What we see in the South are modified union modified union shops, shops, in which workers do not have to join a in which workers do not have to join a union, but if they do join have to remain a union, but if they do join have to remain a member for the duration of their employment.member for the duration of their employment.

A majority of workers must vote in favor of a A majority of workers must vote in favor of a union before one can be formed. union before one can be formed.

The National Labor Relations Board makes sure The National Labor Relations Board makes sure union votes are carried out honestlyunion votes are carried out honestly

NegotiationsNegotiations

Once workers choose to be represented by a union, the Once workers choose to be represented by a union, the union is responsible for carrying out union is responsible for carrying out collective collective bargaining.bargaining.

When union and company representatives meet to When union and company representatives meet to discuss conditions of employment such as:discuss conditions of employment such as:

1.1. WagesWages2.2. Work hoursWork hours3.3. Working conditionsWorking conditions4.4. Grievance proceduresGrievance procedures5.5. BenefitsBenefits6.6. Work rules and responsibilitiesWork rules and responsibilities

Negotiations (cont.)Negotiations (cont.)

If the two sides cannot agree to the new terms of If the two sides cannot agree to the new terms of a contract they may try two different methods: a contract they may try two different methods: Mediation Mediation or or ArbitrationArbitration

Mediation Mediation is when a third party tries to help is when a third party tries to help both sides reach an agreement; no decision is both sides reach an agreement; no decision is made but lines of communication is kept open made but lines of communication is kept open between the two parties between the two parties

Arbitration Arbitration is when a third party listens to both is when a third party listens to both sides arguments and decides on a settlement; sides arguments and decides on a settlement; has the power of a judge and both sides agree to has the power of a judge and both sides agree to accept the arbitrators decision.accept the arbitrators decision.

Labor-Management ConflictLabor-Management Conflict

Many contacts are settled at the negotiation table, Many contacts are settled at the negotiation table, but in some cases negotiations can break down.but in some cases negotiations can break down.

To pressure management to accept their position, To pressure management to accept their position, workers can call a workers can call a strikestrike, in which all workers in the , in which all workers in the union refuse to work.union refuse to work.

Workers can picket the business, march in front of Workers can picket the business, march in front of the factory doors, getting people’s attention to the the factory doors, getting people’s attention to the situationsituation

Sometimes boycotting products or services can work Sometimes boycotting products or services can work to get managements attention.to get managements attention.

Labor-Management Conflict Labor-Management Conflict (cont.)(cont.)

Management can use Management can use lock-outs, lock-outs, in which the in which the company blocks workers from entering the workplace company blocks workers from entering the workplace until they accept their contract terms. until they accept their contract terms.

Businesses hope the loss in income will convince Businesses hope the loss in income will convince workers to accept the companies position.workers to accept the companies position.

Can ask the courts to issue an Can ask the courts to issue an injunctioninjunction, a legal , a legal order from the court preventing some activity (strike)order from the court preventing some activity (strike)

Ex. 1995 MLB seasonEx. 1995 MLB season

Labor-Management Conflict Labor-Management Conflict (cont.)(cont.)

In severe or extreme labor-management dispute, In severe or extreme labor-management dispute, government may get involved.government may get involved.

Can seize operations of an industry until conflict Can seize operations of an industry until conflict is settled.is settled.

Ex. Ex. 1946 U.S. seized the coal industry1946 U.S. seized the coal industry because of the countries need for this energy because of the countries need for this energy source. Operation of the mines continued, until source. Operation of the mines continued, until labor and management came to an amicable labor and management came to an amicable agreementagreement