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Transcript of Chapter 9.3
Organized Labor The Labor Movement Workers in the 1800's Unions Take Hold Men, women, and children as young as 5 operated dangerous machines Samuel also founded the American Federation of Labor (AFL) Employer Resistance Employers viewed strikes as threats to free enterprise and social order. Congressional Protections Congress passed a number of pro-union measures as the nation struggled through the Great Depression of the 1930's. Decline of the Labor Movement "Right to Work" Laws Loss of Traditional Strongholds By 2002, union membership had dropped to just 13.2% of the labor force.
Relocation of industries from the Northeast to the Midwest and South have hurt unions as there is less union activity in those areas. Theory 1: Changes in Economy Theory 2: New Services It also provides unemployment insurance and Social Security. Labor And Management Collective Bargaining Strikes and Settlements If a union member is discharged for reasons that the union believes to be in violation of the contract, the union may file a grievance, or formal complaint. Job Security - One of the union's primary goals is to secure its' members jobs by spelling out the conditions a worker can be fired. Example Goals Discussed If mediation fails, talks may go into arbitration - A settlement technique in which a neutral third party reviews the case and imposes a decision that is legally binding for both sides. Mr. Coltabaugh Economics Pd. 3
By: Shane Eckenrode 4/26/10 Vocabulary Words Arbitration - A settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides. Labor unions arose largely in response to changes brought by the Industrial Revolution Workers worked 12-16 hour days, 7 days a week, for meager wages Skilled workers such as shoemakers and carpenters began to form unions in order to protect their interests. The tool of unions was the strike - An organized work stoppage intended to force an employer to address union demands. The man who truly started the United States labor movement was Samuel Gompers, a young cigarmaker in New York City, focusing on three workplace reforms that included higher wages, shorter hours, and safer work environments. Some companies even hired private militias to deal with union workers. Companies also used court orders called injunctions to order striking employees back to work. Workers were also forced to sign a "yellow-dog" contract which promised that workers would not join a union. Companies identified and fired union organizers that participated in strikes. Unions controlled the day-to-day operations of businesses and amassed billions of dollars in union dues to cover the costs of activities. Union members peaked in the 1940's at about 35% of the nation's non-farm workforce. The expansion of workers' rights in the 1930's contributed to a new rise in union strength. Congress passed the Taft-Hartley Act in 1947 which allowed states to pass right-to-work laws - A measure that bans mandatory union membership. Most right-to-work states are in the South, which has a lower unionism than other regions. Unionism in the United States is far more limited than in many other countries. Unions are mainly made up of blue-collar workers, those who work in industrial jobs, which have been steadily declining. Unions are weak in white-collar workers, which is someone in a professional or clerical job and usually earns a salary. Manufacturing industries employed a large number of union workers, and these jobs have been hurt by foreign competition. The rising proportion of women in the labor force has affected union membership as women are less likely to join unions. Organizations now provide many of the services that had been won in the past through union activity. Government has passed laws setting workplace safety standards and a shorter work week. More corporations now offer benefits such as medical insurance and pension plans as well. Collective Bargaining is the process in which union members and company representatives meet periodically to negotiate a new labor contract. Union contracts generally last two to five years and cover hundreds of issues. Wages and Benefits - The union negotiates on behalf of all members for wage rates, overtime rates, planned raises, and benefits. Working Conditions - Safety, comfort, worker responsibilities, and many other workplace issues are negotiated and written into the contract as well. If a negotiation on a contract cannot come to an agreement and a deadlock occurs, tensions may escalate. The union may ask its members to vote on whether to strike. A strike is a union's ultimate weapon, and a lengthy one can cripple a company. Some firms can continue to function by using managers to perform key tasks or by hiring nonunion "strikebreakers". A long strike can be devastating to workers as well, since they are not getting paid while they are not working. Many unions provide some financial aid to their members during lengthy strikes, but the payments are generally much less than members would have earned while working. Sometimes a third party is called in to settle a dispute to avoid economic losses for both workers and management in a strike. The two sides may agree to mediation - A settlement technique in which a neutral mediator meets with each side in order to try and find a solution that both sides will accept. Strike - An organized work stoppage intended to force an employer to address union demands. Right-To-Work Law - A measure that bans mandatory union membership. Blue-Collar Worker - Someone who works in an industrial job, often in manufacturing, and who receives wages. White-Collar Worker - Someone in a professional or clerical job who usually earns a salary. Collective Bargaining - The process in which union and company representatives meet to negotiate a new labor contract. Mediation - A settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept.