The Labor The Labor MarketMarket

The Labor The Labor MarketMarket

WagesWages

A wage is the price of labor.A wage is the price of labor.

Wages in the workforce are determined by Wages in the workforce are determined by the laws of supply and demand the laws of supply and demand

The doctor’s salary vs. the fast-The doctor’s salary vs. the fast-food worker’s wage.food worker’s wage.

•Doctors make more money because Doctors make more money because the supply of them is lower and the the supply of them is lower and the demand for them is higher.demand for them is higher.

Why is the Why is the supply of supply of doctors doctors lower?lower?

The labor forceThe labor force

Labor ForceLabor Force: all non-military : all non-military people who are either employed people who are either employed or unemployedor unemployed

UnemployedUnemployed: those looking for : those looking for a job, but don’t have one.a job, but don’t have one.

Types of workersTypes of workers Blue Collar: Blue Collar:

workers in workers in industrial jobsindustrial jobs

Examples?Examples?

White Collar: White Collar: professional or professional or clerical jobsclerical jobs

Examples?Examples?

Unfair treatment of Unfair treatment of laborerslaborers

Glass CeilingGlass Ceiling: an invisible barrier : an invisible barrier that keeps women and minorities that keeps women and minorities from advancing in a business from advancing in a business dominated by white mendominated by white men

The industrial revolution and increased The industrial revolution and increased work in manufacturing created the need for work in manufacturing created the need for organized worker unions.organized worker unions.

Labor UnionsLabor UnionsLabor UnionsLabor Unions In response to the In response to the

unfair practices unfair practices Samuel GompersSamuel Gompers started the first union. started the first union. In 1886 he founded the In 1886 he founded the

American Federation American Federation League. He wanted League. He wanted

higher wages, shorter higher wages, shorter hours, and safer hours, and safer

working conditionsworking conditions. .

In response to the In response to the unfair practices unfair practices

Samuel GompersSamuel Gompers started the first union. started the first union. In 1886 he founded the In 1886 he founded the

American Federation American Federation League. He wanted League. He wanted

higher wages, shorter higher wages, shorter hours, and safer hours, and safer

working conditionsworking conditions. .

Collective bargainingCollective bargainingThe process by which The process by which union and company union and company

representatives meet to representatives meet to negotiate and form a negotiate and form a new labor contractnew labor contract

If collective bargaining If collective bargaining fails then labor and fails then labor and

management may use:management may use:

MediationMediation - A neutral third - A neutral third party that makes suggestionsparty that makes suggestions

ArbitrationArbitration - A neutral third - A neutral third party that makes legally binding party that makes legally binding decisionsdecisions

Labor may resort to a strike Labor may resort to a strike using the following:using the following:

- - Picketing - signs, banners, chantsPicketing - signs, banners, chants

- Primary and Secondary Boycotts- Primary and Secondary Boycotts

- Coordinated Campaigns- Coordinated Campaigns

Management may:Management may:

Initiate a lockout (opposite of strike, firm Initiate a lockout (opposite of strike, firm stops work)stops work)

Hire replacement workersHire replacement workers

Get an injunction (court order to do or stop Get an injunction (court order to do or stop doing something ex. strike)doing something ex. strike)

Taft Hartley Act of 1947Taft Hartley Act of 1947

•The right to work act The right to work act that allowed states to that allowed states to make laws that make laws that ban ban mandatory union mandatory union membershipmembership