Labor

1
Chapter 9 Labor
2
Section 1 Labor Market Trends
3
A. Tracking the Labor Force each month Bureau
of Labor Statistics Labor Force all nonmilitary
people who are employed or unemployed 1.
Employment 16 yrs. Old a. worked 1 yr. A week
for pay b. 15 hrs. a week in a family
business c. held a job but were ill, vacation,
bad weather or labor dispute
4
2. Unemployment a. temporarily without a job b.
have not looked for job in 4 weeks Outside the
labor force full-time students parents who are
stay-at-home discouraged workers sought work
but gave up looking not in the statistics
5
3. Bureau of Labor Statistics Answers two
questions a.How many people are in the labor
force? b. How many are employed unemployed in
a specific period. Studies historical trends EX
unemployment rate in 2000 was 4.0 lowest
since 1960
6
B. Occupational Trends sifts in the job
market 1. Changing Economy in 1776 most people
were farmers 20th century industrial jobs by
1990 1/2 workers involved in computer jobs.
7
2. Fewer Goods, more services information
management the reason EX banking, insurance,
health care, consulting, desktop publishers 3.
Effects of International Competition less-skilled
jobs moving overseas unskilled in US lose
jobs more education needed demand for skilled
labor rising
8
C. Changing Labor Force 50s white men, high
school ed., same job until 65. Today 4 or 5
different jobs, retire at 62 1. College
Education human capital education, training,
experience education expensive, so small
supply EDUCATION INCREASES PRODUCTIVITY
9
Learning effect college educated earn
more the more education, the more you
earn Screening Effect college ed.
Indicates person is intelligent
hard-working 2. Women at Work 58 of work force
are women Reasons1. Women are getting more
education 2. Fewer jobs require physical strength
10
3. Temporary workersmore and more called
contingent employment most common in
white-collar contracted earn as much Why? Are
they being hired? 1. Allow co. to mark
adjustments compared to demand. Ex peak
seasons 2. Easier to fire no severance pay, few
legal rights 3. Few or no benefits
11
4. Some workers prefer Ex hours 5. Some prefer
the freedom to move D. Trends Wages 1.
Earnings up and down a. have slightly lower
average incomes b. people now paid in
benefits health insurance, retirement
plans, stock options, bonuses
12
Intangible benefits flex time, working at
home earnings of college grad UP without college
DOWNWhy decreases in average wage? 1. Greater
competition with foreign companies 2.
Deregulation of industries competition has cut
employment
13
2. Costs of benefits make up 28 of pay large
cost for employer Social Security also
risen cut into profits
14
Section 2 Labor wages
15
Supply demand determine you pay Professional
job pay high supply low A. Supply Demand 1.
Labor Demand paid according to value of what
they produce. Productivity value of output
16
2. Labor Supply higher wage the higher
supply LAW OF SUPPLY Remember? if the wage for
a chef was high then there would be a larger
supply 3.Equilibrium Wage wage rate that
produces neither an surplus or excess of labor
17
B. Wages skilled labor 1. Unskilled no skill
or training Ex dishwasher, janitors 2.
Semi-skilled minimal skill Ex operators of
equipment 3. Skilled specialized
education need little supervision, earn hourly
rate Ex plumbers, firemen, carpenters 4.
Professional advanced ed. Ex teachers,
bankers, doctors,
18
Some are regulated to keep supply low wages
high EX doctors have high demand for their
services of workers determined by danger of
job emotional stress location weather these
pay higher
19
C. Wage Discrimination govt steps in here in
competition people with the same job, same skill
education, job preference and seniority receive
unequal payAssumptions/ against women 1. Men
need the money more 2. Women should stay
home 3. Womens income second
20
1. Laws against wage discrimination Equal Pay
Act 1963 same work, same pay Title VII Civil
Rights Act of 64 prohibited job discrimination on
the basis of sex, age, color, religion, or
nationality small business exempt EEOC to
enforce these
21
2. Pay levels for women Myths Gaps because of a.
womens work b. human capital less education
c. career paths no interested in
advancement glass ceilings still
exist unofficial barriers keeping women from
higher positions
22
3. Pay for minorities caused by productivity
whites have access to more ed. job
experience
23
D. Other factors affecting wages 1. Minimum
wage 1938 First labor Standards Act pay
overtime for 40 hrs. Co. pay more than
equilibrium some states have higher pay
scales For helps the poor worker Against let
are hired/ individual pay more
24
2. Safety Laws labor paid more co. spends more
on safety, passes cost on to consumer 3. Employer
Response to wage levels substitute machines for
people EX ATMs move to other countries
25
4. Unions labor union org. of workers that
tries to improve working conditions, wages and
benefits for its members. Members tend to have
higher wages
26
Tend to depress others wages by 1. Unions press
for more wages 2. Quantity of labor goes
down 3. Union jobs are cut/ non-union hired 4
. Increase in non union labor Ex
Prestolite featherbedding contracts to keep
unnecessary workers
27
Section 3 Organized Labor
28

• Labor Day 1882 Knight of Labor
• in New York
• Labor Movement
• 1. Workers in the 1800s
• unions rise because of factory jobs
• 16 hr. days/ 7 days a week
• low wages/ poor conditions

29
2. Unions take hold tool of the union
strike originally unions illegal workers were
fired and replaced Father of unions Samuel
Gompers founder of the AFL (American Federation
of Labor) cigar makers union
30
3. Employer resistance identified and fired
union organizers yellow-dog contracts
agreement not to join a union courts used
injunctions forced workers to end strikes 4.
Congressional protections 1940s unions a
dominate force controlled day to day
operations amassed billions of dollars
31

• C. Decline of the Labor Movement
• unions abused their power
• Ex featherbedding
• links to organized crime
• Largest union even today Teamsters

32

• Right to Work Laws
• Taft-Hartley right-to-work laws
• Passed by States/most in the South
• ban mandatory union membership
• Reason for decline of unions
• 2000 13.5 belong to unions
• 2. Loss of Traditional Strongholds
• A. strongest with blue collar workers
• these jobs have declined

33
Unions weakest with white collar these jobs
rising B. Certain union industries have been
hurt by foreign competition EX auto,
steel many workers laid off C. Women entering
work force few in blue collar jobs D. Companies
relocating to non-union states
34
Other causes for decline 1. No union loyalty 2.
Business doing job of unions 3. Cost of joining
unions 4. Govt looking out for workers D. Labor
Management unions need majority of workers to
form a union Union Vote then company required
to let union in.
35

• Collective Bargaining
• Union and company meet periodically
• to negotiate a new contract
• Contracts usually 2 to 5 years
• Bargaining Points
• Wages benefits
• Working conditions
• Job security

36
2 Strikes Settlements members vote to
strike Strike ultimate weapon can cripple a
company Some hire strike breakers or
scabs Mediation neutral mediator meets with
each side to try to find a solution Non-binding Ar
bitration third party comes to a binding
solution.
37
Essays 1. Explain the reasons why unions are
losing membership in the US. 2. List and explain
the different categories of labor, with
examples 3. List and explain the reasons why
temporary workers are becoming more used. 4.
Explain the historical reasons women have been
paid less than men