Chapter 10Chapter 10

LABOR UNIONSLABOR UNIONS

A. THE RISE OF LABOR UNIONS A. THE RISE OF LABOR UNIONS

1. The rise was brought on by unsafe 1. The rise was brought on by unsafe conditions, conditions, long workdays, and poor long workdays, and poor wageswages

2. There were no laws against child labor2. There were no laws against child labor

3. Workday = 12 to 14 hours a day, 3. Workday = 12 to 14 hours a day, sometimes sometimes in deadly conditions in deadly conditions

4. Sweatshops were commonplace - people 4. Sweatshops were commonplace - people work long hours for very low paywork long hours for very low pay

5. Labor unions were formed to improve 5. Labor unions were formed to improve conditions since the 19th centuryconditions since the 19th century

6. A labor union is an organization that 6. A labor union is an organization that fights for workers’ rights, wages and fights for workers’ rights, wages and

benefits in a specific industrybenefits in a specific industry

7. Management are the overseers of the 7. Management are the overseers of the workers who are hired to keep costs workers who are hired to keep costs down, who, in turn produce as much as down, who, in turn produce as much as possible in order to make a profitpossible in order to make a profit

8. 1st modern union = 1866 to 1872 = 8. 1st modern union = 1866 to 1872 = National Labor Union (NLU) - fought National Labor Union (NLU) - fought for 8 hr work day for 8 hr work day

LABOR UNIONSLABOR UNIONS

B. PROS and CONS of UNIONS B. PROS and CONS of UNIONS

1. Pros:1. Pros:a) Provides an 8 hr wk day and 40 hr a) Provides an 8 hr wk day and 40 hr work weekwork weekb) Overtime pay for more that 8 hrs a b) Overtime pay for more that 8 hrs a daydayc) health benefits including medical care c) health benefits including medical care

and compensation when hurtand compensation when hurtd) vacation pay, sick pay, and time off for d) vacation pay, sick pay, and time off for

baby or ill relativebaby or ill relativee) Quality of work may be better than e) Quality of work may be better than non-unionized labornon-unionized labor

2. Cons:2. Cons:

a) Many believe individual workers a) Many believe individual workers can bargain with management can bargain with management

b) Production costs go up because of b) Production costs go up because of demand for higher pay demand for higher pay

c) Can divide and disrupt companies c) Can divide and disrupt companies

d) Quality of work may not be as d) Quality of work may not be as good as non-unionized labor good as non-unionized labor

C. DO YOU HAVE TO JOIN?C. DO YOU HAVE TO JOIN?

1. If your job is part of a union - you should join1. If your job is part of a union - you should join2. Must pay union dues in order to receive benefits 2. Must pay union dues in order to receive benefits

- they support the union- they support the union3. In a union shop, new employees must join the 3. In a union shop, new employees must join the

union after 60 or 90 daysunion after 60 or 90 days4. In an agency shop, employees don’t have to join 4. In an agency shop, employees don’t have to join

but still pay duesbut still pay dues5. If your state has right-to-work laws, you don’t 5. If your state has right-to-work laws, you don’t

have to join a unionhave to join a union6. 1947 – Taft-Hartley Act - outlawed closed shop 6. 1947 – Taft-Hartley Act - outlawed closed shop

(union only workers) and allows for right-to-(union only workers) and allows for right-to-work lawswork laws

D. UNIONS AND MANAGEMENTD. UNIONS AND MANAGEMENT

1. Fringe benefits - health care, vacations, sick 1. Fringe benefits - health care, vacations, sick days, etc – just what workers wantdays, etc – just what workers want

2. Management wants to keep workers’ “fringe” 2. Management wants to keep workers’ “fringe” benefits costs downbenefits costs down

3. Both sides will meet through collective 3. Both sides will meet through collective bargaining – meeting to work out acceptable bargaining – meeting to work out acceptable agreements through compromiseagreements through compromise

4. If no agreement takes place, the union may 4. If no agreement takes place, the union may strike (call for a work stoppage)strike (call for a work stoppage)

5. Management may hire “scab” workers - 5. Management may hire “scab” workers - nonunion workers hired to take the place of nonunion workers hired to take the place of those on strikethose on strike

6. Unions may call for boycotts - telling 6. Unions may call for boycotts - telling consumers not to buy a company’s consumers not to buy a company’s products which could hurt the profits for products which could hurt the profits for the companythe company

7. Management may choose to lockout 7. Management may choose to lockout employees – it will close its doors to employees – it will close its doors to workers, which means they won’t get workers, which means they won’t get paid!paid!

8. Tactics could result in violence at the 8. Tactics could result in violence at the work place!work place!

9. Both sides could go to arbitration - 9. Both sides could go to arbitration - whatever the arbitrator decides, both whatever the arbitrator decides, both sides would come to an agreementsides would come to an agreement

E. UNIONS TODAY E. UNIONS TODAY

1. The number of people in unions has 1. The number of people in unions has decrease decrease in the past 20 yearsin the past 20 years

2. Decreases have occurred (1) since there 2. Decreases have occurred (1) since there are fewer jobs in an industry, (2) people are fewer jobs in an industry, (2) people

don’t don’t believe unions are as strong, and (3)believe unions are as strong, and (3)Competition from foreign countriesCompetition from foreign countries

3. Unions have agreed to either give up wage 3. Unions have agreed to either give up wage increases for job security or have promised to increases for job security or have promised to maintain workers benefits instead of trying to maintain workers benefits instead of trying to increase them increase them

F. AFL-CIOF. AFL-CIO

1. The American Federation of Labor – 1. The American Federation of Labor – Congress of Industrial OrganizationsCongress of Industrial Organizations

2. Includes 70 unions and 13 million 2. Includes 70 unions and 13 million membersmembers

3. AFL - skilled craft workers3. AFL - skilled craft workers

4. CIO – unskilled assembly line workers4. CIO – unskilled assembly line workers

5. Joined together to try and improve 5. Joined together to try and improve conditions for all forms of laborconditions for all forms of labor