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Labor Unions

Labor Unions. Ideals Underlying Unions. Getting greater return for those who actually produce goods and services Reduce the inequality of the distribution of economic opportunities in society. Membership in Unions. Falling since 1979 because

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Labor Unions

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  1. Labor Unions

  2. Ideals Underlying Unions • Getting greater return for those who actually produce goods and services • Reduce the inequality of the distribution of economic opportunities in society

  3. Membership in Unions • Falling since 1979 because • Declining employment in industries that are unionized • Technology has reduced need for labor • Foreign competition - lower wages abroad • Deregulation increases competition; new companies may hire new employees at rates below union scale • Philosophy of American people • Increasing diversity of workforce • Geographic shift from “steel belt” to “sun belt”

  4. What Do Unions Do? • Organize majority of employees in a work unit • Negotiate with employer on terms and conditions of contract • Joint administration of the contract with management

  5. Why Do Employees Join Unions? • Dissatisfied with supervision, co-workers, career future, amount of work required, working conditions, type of work, management-employee relationships • Believe that they cannot make changes themselves • Believe that the union will be able to make the needed changes

  6. Labor Law • Railway Labor Act (1926) • Rights of railway and air transportation employees to choose whether want to be represented by a union • Norris-LaGuardia Act (1932) • All private sector employees and unions • Forbids "yellow-dog" contracts • (Employee agrees to not join union and will not be fired) • Judges cannot enjoin lawful union activities unless danger to life or property

  7. Wagner Act (1936) • Employee's right to engage in union activities, organize and bargain • “Unfair labor practices” first defined • Required employer to collectively bargain with established union regarding terms of employment • Established the NLRB (National Labor Relations Board)

  8. Taft-Hartley Act (1947) • Balanced powers of labor and management • Unfair labor practices expanded • Employers cannot refuse to bargain with union over terms of employment • Can't discriminate based on union membership, but can negotiate contracts requiring union membership as condition of continued employment • Unions can't require employer to discriminate unless specified in contract • Both must bargain in good faith

  9. Taft-Hartley Act (1947) • Union represents all employees in group • Established Federal Mediation and Conciliation Service (FMCS) • Allows states to vote "right-to-work" laws • Forbids employers and unions from agreeing to union shop clauses

  10. Landrum-Griffin Act • In reaction to labor racketeering in late 50's • “Bill of rights” for union members • Requires employees to have equal rights in voting • Freedom of speech in union matters • Right to vote on dues increases • Right to sue their unions • Unions and management must not have financial dealings with each other

  11. Civil Service Reform Act (1961) • Collective bargaining in federal government • Forbidden to strike or make demands with consent of agency • Established Federal Labor Relations Authority (FLRA) to monitor

  12. PATCO • Professional Air Traffic Controllers Organization • Reagan ordered return to work within 48 hours or rights would be forfeited • “Permanent replacements” were hired

  13. Organizing Campaigns • Started either by employees or unions • Employees can solicit others to join union during nonworking time on company premises, but outsiders usually cannot • Authorization cards:30% of employee signatures requires the NLRB to call for a representation election • Determination of appropriate bargaining unit

  14. Campaigning • Union is much less likely to win when the employer campaign against union • Odds reduced from 15% to 1% • Management can use company time • “TIPS:” Management cannot • Threaten • Interrogate • Promise • Spy

  15. Wages and benefits are higher and turnover is lower in organized companies Pay more often based on seniority Wages in nonunion companies often affected by union wage rates Union employees Tend to be older and more experienced Have higher productivity Unionized companies less profitable Productivity offset by higher wages Effects on Organizations

  16. Effects on Individuals • Unions increase pay of younger and less well-educated workers • Unemployment is higher in areas where there is lots of unionization • Satisfaction not higher or lower for unionized

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