Labor and Unions

Unemployment Rate

3.6% in MN 

Civilian Labor Force

• The total number of people 16 years old or

older who are either employed or actively

seeking work

• Not included: those not able to work, not looking

– Disabled, prisoners, mental institution patients

– Armed forces, full-time students, homemakers,

retired

Divided into 3 categories

-White Collar: Office, Sales, Professionals

-Blue Collar: Crafts, Manufacturing, Non-farm labor

-Service Workers: Provide services directly to individuals (Hair care, Child care, Food service, Healthcare

workers)

Skilled Labor

Learned a trade or crafe

Unskilled Worker

No special training

Blue Collar Workers

-Manual Labor

-Paid Hourly/By piecework

-Manufacturing/Non-farm labor

White Collar Workers

Office, Sales,

-Paid by Salary

Service Workers

-Provide services directly to individuals

-Haircare, healthcare, childcare

Labor Unions

Association of workers organized to

improve wages and working conditions

-Local, National, Federation

-Craft Union and Industrial Union

Craft Unions

Specific trades (electricians -- IBEW)

Industry Union

An entire industry—no matter

what the job or skill level (United Auto Workers)

Closed Shop

Only hires union members

COLA (Cost-of-Living Adjustment)

An increase to wages, salaries, or benefits to help recipients keep pace with inflation

“As the tide rises so do all ships”

Fringe Benefits

Non-wage compensation provided to employees in addition to their regular salary, such as health insurance, retirement plans, and paid time off

Negotiations

The communication and bargaining process between two or more parties to reach a mutually acceptable agreement

Lockout

Situation that occurs when management prevents workers from returning to until they agree to a new contract

Boycott

Economic pressure exerted by unions urging the public not to purchase the goods or services produced by a company

Strike

Deliberate work stoppage by workers to force an employer to give in to their demands

Picketing

Action of strikers who walk in front of a workplace carrying signs that state their disagreements with the company

Mediation

• If a compromise cannot be reached…...

• a neutral person listens to both sides

• makes suggestions

Arbitration

• Each side submits a proposal to a third party

• agree to accept the decision

(one proposal will be accepted)

Right-to-Work Laws

• Forbid union/closed shops

• Those who choose not to join enjoy the benefits

        of the union without paying dues

Many states were passing these laws in the 2000s

Collective Bargaining

• Negotiate the conditions of employment for

all union members

– Salary, benefits, etc.

• Requires compromise

• Threat of withholding work (strike) to achieve

goals

Three Factors that Affect Wages

1. Skills

Increased skill = fewer qualified people = higher wages

2. Type of Job

Unpleasant/Dangerous = fewer people = higher wages

Enjoyable/Prestigious = more people = same wages

3. Location

Large City/Population = More Interest = Lower Wages

Nowhere Land/No one Around = fewer people = Higher wagers