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1 12-1 L ECTURE LAUNCHER In 1950 the percentage on Nonfarm jobs in service-producing businesses was 59%, in 1970 it was 67%. By the year 2005 it is projected that this figure will rise to 82%. Who comprises the civilian labor force? How is it changing? What are the various skill levels? PAGES I. The Civilian Labor Force A. The civilian labor force is the total number of people 16 years or older who are employed or seeking work. B. People not included in the civilian labor force: mental or physically disabled people, prisoners, people in the armed forces, and those not looking for a paying job. Why do you think certain working people are not included in the civilian labor force? (By definition, the term civilian means a non-military or non-government officer. This would automatically exclude military people and federal and state officers. Others, such as full-time students and homemakers, may be working, but do not bring in an income, and therefore are not considered part of the civilian labor force.) PAGES II. Categories of Workers A. According to the type of work they do: blue collar (craft workers, manufacturers, and nonfarm laborers), white collar (office workers, salespeople, highly trained workers), and service workers B. According to skill level: unskilled (no specialized training), semiskilled (some training), skilled (learned trade or craft), and professionals (college degrees and training) Many professions do not fall neatly into a category. For example, a teacher could be considered both a white collar professional and a service worker. Consider the professions that your family members or friends hold. Discuss the different categories they fall into. (Answers may vary. Students should be able to see how the categories are not necessarily mutually exclusive.) turn Daily Lecture Notes 76

2 12-1 PAGES III. Supply and Demand in the Labor Market A. Factors that affect wages: skill, type of job, and location. B. The lack of information about other employers or employees, minimum wage laws, and wage negotiations between unions and the management can lead to restrictions on wages. How does lack of information about wages for similar services in other companies affect wages as a whole? (If a person doesn t know what other companies might pay, he/she might be willing to work for less then he/she can get somewhere else. Or the person might demand more money than he/she could get elsewhere and get lucky and receive it. A manager might try to underpay his/her workers, or a manager might pay a rate that far exceeds the going rate in the industry.) end Daily Lecture Notes 77

3 12-2 L ECTURE LAUNCHER The first known labor strikes occurred in Journeymen tailors went on strike in New York City to protest a cut in their wages. What are labor unions? What does their existence say about the power of the individual worker? PAGES I. Development of Labor Unions A. In the 1800s working conditions were terrible and unions were often illegal. B. Strikes often resulted in violence between workers and the police. C. The first permanent union, The American Federation of Labor (AFL) was made up of craft unions and led by Samuel Gompers. D. In 1938, the Congress of Industrial Organizations (CIO) was created, and the automobile and steel industries were the first to be organized. E. AFL and CIO joined forces in 1955 because they felt greater gains could be made if the craft and industrial unions worked together. The labor movement s main goal was to protect workers and help them earn fair wages. What do you suppose are the main goals of labor unions today? (Answers may vary. Students may suggest that unions still try to get workers fair wages. Others may feel that unions are not as needed today as they used to be.) PAGES II. How Unions Are Organized A. Local unions have members in a distinct location (one factory, company, or geographical area) B. Local union membership and management relationships differ from one shop to another. C. Closed shops allow the company to hire only union workers; these were outlawed in D. Union shops require employees to join the union after a specific period of time. E. Agency shops require employees to pay union dues whether or not they join the union. turn Daily Lecture Notes 78

4 12-2 F. National unions represent the local unions nationwide; those that include members from Canada and Mexico are known as international unions. G. National unions send in organizers to help set up local unions and negotiate contracts, sometimes for whole industries. H. At the federation level of unions is the AFL-CIO, which is made up for national and international unions. Do you think union shops are fair? Why or why not? (Possible responses: Yes, because the workers gain the benefits from the union therefore they should have to pay dues and join the union. No, because a person should be free to join the union or not join the union. In fact, this is really not that different from illegal closed shops.) end Daily Lecture Notes 79

5 12-3 L ECTURE LAUNCHER Federal employees cannot strike. Any kind of strike or halting of work by federal employees was outlawed by the Labor-Management Relations (Taft-Hartley) Act of The government, therefore, has the right to intervene and cease all strikes that occur, as President Reagan did to the air-traffic controller strike in Besides striking what are some of the other ways for laborers to express dissatisfaction. What is collective bargaining? Why are companies sometimes reluctant to raise wages? What is required for labor and management to resolve their differences? PAGE 329 I. Negotiations A. Labor and management meet to discuss contract issues B. Mediation takes place when labor and management cannot agree or become hostile; instead they find a neutral person to try to help them reach an agreement. C. Arbitration takes place when mediation fails; labor and management then ask a third party to make a decision, agreeing to unconditionally accept that decision. Why do you think arbitration is a last resort for management and labor? (Because both sides must agree to do what the arbitrator says before the decisions are even made. Either side might be very disappointed by the contract in fact, they may find they were better off agreeing before the arbitration.) PAGES II. Strikes and Management A. Picketing is when workers carry signs in front of the place of business until their needs are satisfactorily met in the contract. B. Lockouts are when management prevents workers from returning to work until a new contract is signed. C. Strikebreakers or scabs are people who fill in for striking workers D. Injunctions are court orders that limit picketing or prevent a strike from continuing or occurring at all. turn Daily Lecture Notes 80

6 12-3 What are some reasons that someone might have for becoming a strikebreaker? (The person might desperately need a job. Or the person might need a job and disagree with the reasons the workers are striking.) PAGES III. Decline of Unions A. As working conditions have improved over the years, nonunion workers see little benefit to belonging to a union. B. More jobs are available in white collar and service sectors; blue-collar jobs are decreasing. C. Critics of the labor movement claim unions are so large they are not in touch with members needs, and increased wages given to union workers are passed on to consumers in price increases. D. Employers claim union rules decrease productivity, unions make it hard to use new technology that would replace workers, and corruption among labor leaders has damaged union reputation. Respond to the different critics of unions as if you were a union worker. (Answers may vary, but students should back up their arguments with information they have learned about the importance of labor unions in the workplace.) end Daily Lecture Notes 81

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