Economics Chapter 12

The American Labor Force

Section 1: Americans at work

• The Civilian labor Force– Those 16 or older, working or looking for work– Blue-collar workers- craft and manufacturing– White-collar workers- Largest sector, office, sales,

professional.– Service-workers- cooks, barbers, health care aides

Jobs Categorized by Skill Level

• Unskilled workers- No special training needed, server and custodial work

• Semiskilled workers- Some training, nurses aide

• Skilled worker- Learned a trade or craft, police and electricians.

• Professionals- College degrees, Me• Some jobs crossover the lines.

Supply and Demand in the Labor Market

• Three factors– Skill- highly skilled = higher salary– Type of job- dangerous jobs = higher pay– Location- Low population = higher pay

• Restrictions on wages- Perfect competition would mean changing wage rates– Minimum Wage– Organized Labor

Section 2: Organized Labor

• Development of Labor Unions– Late 1800s to improve conditions and pay– Initial legislation against them.– Business refused to hire union workers.– Strikes- deliberate work stoppages, violence more

often then not.– Mid-1930s things change.

The American Labor Movement

• Craft union- skilled workers in a specific trade. American Federation of Labor (AFL)

• Industrial union- In an industry regardless of job or skill. Congress of Industrial Organizations (CIO) first significant one.

• AFL-CIO formed in 1955.

Labor-Management Legislation

• Norris-LaGuardia Act, 1932- yellow dog contracts illegal, courts limited

• Wagner Act, 1935- Collective bargaining, National Labor Relations Board

• Taft-Hartley Act, 1947- Union shops could be ruled illegal.

• Landrum-Griffin Act, 1959- Union members rights.

How Unions are Organized

• Local Union• Closed shop• Union shop• Agency shop• Right to work laws forbid union shops• National Unions- USW• Federation Level- AFL-CIO

Collective Bargaining

• Between Unions and management• Pay, hours, benefits etc.• Cost-of-living adjustment• Mediation- neutral party comes in.• Federal Mediation and Conciliation Service-

Free mediator on request• Arbitration- have to abide by decision

Strikes and Management

• Strikes have declined immensely since the 70s.

• Other union tactics– Picketing– Boycott

• Management tactic– Lockout– Scabs- people brought in to break a strike

Decline of Unions

• Collective bargaining brought fairness to the workplace.

• Conditions good, no room for improvement.• Unions out of touch with members