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Chapter 8 - The American Labor Force
Section 2: Wages and Labor Disputes
Different occupations and levels of training are rewarded with different wages. Economists divide labor into four non-competing labor grades based on a worker's education, training, and skills. These categories include unskilled labor, semiskilled labor, skilled labor, and professional labor. In addition, there are many negotiation methods: collective bargaining, mediation, arbitration, fact-finding, injunction, and seizure. Finally, the president may intervene in a labor-management dispute.
Content Vocabulary
wage rate
unskilled labor
semiskilled labor
skilled labor
professional labor
market theory of wage determination
equilibrium wage rate
theory of negotiated wages
seniority
signaling theory
4th to enjoy
collective bargaining, p. 211
In-class assignment: with a partner, answer the questions.
Teacher Collective Bargaining - Caroline Hoxby, Ph.D. - Show-Me Institute, 3:18
Cf. http://ant.umn.edu/vav.php?pid=62159901195420'
View the embedded player with Teacher Collective Bargaining
http://www.showmeinstitute.org/ - Caroline Hoxby, Ph.D., the Scott and Donya Bommer Professor of Economics at Stanford University, spoke with the Show-Me Institute on May 5, 2009, about the effects of collective bargaining on attracting and retaining quality teachers in United States public schools. Hoxby is also a senior fellow of the Hoover Institution, the director of the Economics of Education Program at the National Bureau of Economic Research, and Senior Fellow of the Stanford Institute for Economic Policy Research.
1. Are union teachers better than non-union teachers?
2. Does collective bargaining encourage or harm learning? Why?
3. Do unions protect weak teachers? Why?
grievance procedure
mediation
arbitration
binding arbitration
fact-finding
injunction
seizure
Academic Vocabulary
Chapter 8, Section 2 - Reading Strategy
In-class assignment: with a partner, fill in the graphic organizer.
Complete the graphic organizer that describes the different ways labor disputes are resolved.
Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec2_1.pdf
Issues in the News
NHL Shakes Off Lockout, Long Layoff
Wage Determination
Noncompeting Categories of Labor
In-class assignment: with a partner, answer the following.
What does the market theory explain?
What does Panel A show?
What does Panel B show?
What does Panel A illustrate?
What does Panel B illustrate?
Figure 8.5 Market Theory of Wage Determination, p. 209
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p209.swf
Market Theory of Wage Determination
Did You Know?
Theory of Negotiated Wages
Signaling Theory
Reading Check
Explaining
What is the difference between the market theory of wage determination and the theory of negotiated wages?
Resolving Labor Disputes
Collective Bargaining
Mediation
Arbitration
Fact-finding
Injunction and Seizure
Presidential Intervention
Both Reagan and Clinton (once in less than 30 minutes) intervened in labor disputes.
Ronald Reagan-Remarks on the Air Traffic Controllers Strike (August 3, 1981), 3:12
Cf. http://ant.umn.edu/vav.php?pid=62168246537355
View the embedded player with the air traffic controller content.
1. Did the air traffic controllers make more money than other government employees? How much more?
2. Why were they compensated the way they were?
3. Did the controllers accept the agreement?
4. Did Reagan call for a strike as a member himself of a union?
5. Can public unions shut down the operations of the government and harm others?
Reading Check
Summarizing
In what ways can labor and management resolve disputes?
Chapter 8, Section 2 - Review
In-class assignment: with a partner, fill in the graphic organizer.
Describe the four approaches to wage determination.
Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec2_2.pdf
Case Study Harley-Davidson
Harley-Davidson economics, 6:11
Section 3: Employment Trends and Issues
There are several trends and issues in today's economy. The first is the continuing decline of union membership and influence since the end of World War II. The second is the income gap between men and women, and policies such as set-aside contracts, which are designed to remedy it. The last is the issue of the minimum wage, which is measured in current dollars, inflation-adjusted dollars, and as a percent of the average manufacturing wage.
Section Preview
Content Vocabulary
giveback
two-tier wage system
glass ceiling
set-aside contract
minimum wage
current dollars
constant dollars
real dollars
base year
Chapter 8, Section 3 - Reading Strategy
In-class assignment: with a partner, fill in the graphic organizer.
Explain why women face an income gap.
Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec3_1.pdf
Issues in the News
Foreign Exchange at Minimum Wage
Decline of Union Influence
Lower Pay for Women
The Minimum Wage
Business Week News clip
Twilight of the UAW
p>
Chapter 8, Section 3 - Review
In-class assignment: with a partner, fill in the graphic organizer.
List three ways firms renegotiate union contracts.
Cf. http://glencoe.com/sites/common_assets/socialstudies/igo_08/epp/ch_08/EPP_ch08_sec3_2.pdf
Off shoring American Jobs to India
Test Prep resources
Chapter 8 Crossword Puzzle
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_08/ch08/index.html
Vocabulary Flashcard
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15443
Self-check Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter8/self-check_quizzes.html
References
Ch. 6 Prep
Chapter 6: Prices and Decision Making
Multiple Choice Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter6/self-check_quizzes.html
ePuzzle Concentration
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_05/chapter06/index.html
Academic, Glossary, People/Places/Events
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15429
Chapter 7 Resources
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter7/
Preview
Unit 3: Economic Institutions and Issues
Chapters 8-11
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/
Deadline for Action: Labor Unions & Corporate Influence on the U.S. Congress (1/3) (1946), 10:08
John Llewellyn Lewis (1880--1969) was the autocratic president of the United Mine Workers of America (UMW) from 1920 to 1960, and the driving force behind the founding of the Congress of Industrial Organizations (CIO). Using UMW organizers the new CIO established the United Steel Workers of America (USWA) and organized millions of other industrial workers in the 1930s. A powerful speaker and strategist, Lewis did not hesitate to shut down coal production—the nation's main energy and heating source—to achieve his goals.
Lewis threw his support behind Franklin D. Roosevelt (FDR) at the outset of the New Deal. After the passage of the Wagner Act in 1935, Lewis traded on the tremendous appeal that Roosevelt had with workers in those days, sending organizers into the coal fields to tell workers that "The President wants you to join the Union." His UMW was one of FDR's main financial supporters in 1936, contributing over $500,000.
Lewis expanded his base by organizing the so-called "captive mines," those held by the steel producers such as U.S. Steel. That required in turn organizing the steel industry, which had defeated union organizing drives in 1892 and 1919 and which had resisted all organizing efforts since then fiercely. The task of organizing steelworkers, on the other hand, put Lewis at odds with the AFL, which looked down on both industrial workers and the industrial unions that represented all workers in a particular industry, rather than just those in a particular skilled trade or craft.
Lewis was the first president of the Committee of Industrial Organizations. Lewis, in fact, was the CIO: his UMWA provided the great bulk of the financial resources that the CIO poured into organizing drives by the United Automobile Workers (UAW), the USWA, the Textile Workers Union and other newly formed or struggling unions. Lewis hired back many of the people he had exiled from the UMWA in the 1920s to lead the CIO and placed his protégé Philip Murray at the head of the Steel Workers Organizing Committee. Lewis played the leading role in the negotiations that led to the successful conclusion of the Flint sit-down strike conducted by the UAW in 1936-1937 and in the Chrysler sit-down strike that followed.
The CIO's actual membership (as opposed to publicity figures) was 2,850,000 for February 1942. This included 537,000 members of the UAW, just under 500,000 Steel Workers, almost 300,000 members of the Amalgamated Clothing Workers, about 180,000 Electrical Workers, and about 100,000 Rubber Workers. The CIO also included 550,000 members of the United Mine Workers, which did not formally withdraw from the CIO until later in the year. The remaining membership of 700,000 was scattered among thirty-odd smaller unions. (Galenson, p. 585)
The war mobilization dramatically expanded union membership, from 8.7 million in 1940 to over 14.3 million in 1945, about 36% of the work force. For the first time large numbers of women factory workers were enrolled. Both the AFL and CIO supported Roosevelt in 1940 and 1944, with 75% or more of their votes, millions of dollars, and tens of thousands of precinct workers. However, Lewis opposed Roosevelt on foreign policy grounds in 1940. He took the Mine Workers out of the CIO and rejoined the AFL. All labor unions strongly supported the war effort after June 1941 (when Germany invaded the Soviet Union). Left-wing activists crushed wildcat strikes. Nonetheless, Lewis realized that he had enormous leverage. In 1943, the middle of the war, when the rest of labor was observing a policy against strikes, Lewis led the miners out on a twelve-day strike for higher wages; the depth of public dismay—even hatred—of Lewis was palpable. In November 1943 the Fortune poll asked, "Are there any prominent individuals in this country who you feel might be harmful to the future of the country unless they are curbed?" 36% spontaneously named Lewis. (Next came 3% who named Roosevelt.) As a result the Conservative coalition in Congress was able to pass anti-union legislation, leading to the Taft-Hartley Act of 1947.
American Free Enterprise System: Your Town - A Story of America (1940), 10:57
Easy Rider, 2:47
Cf. http://www.youtube.com/watch?v=nIfUD70yvz8
Email (or hand in hard copy) to gmsmith@shanahan.org.
Thursday HW
1. p. 224, #11-20
Friday HW
1. p. 224, #27
