13 A Appendix Wage Determination Mc Graw-Hill Irwin Copyright

13 A Appendix Wage Determination Mc. Graw-Hill/Irwin Copyright © 2012 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Union Membership • 15. 3 million workers in 2009 • 8 million in AFL-CIO (The American Federation of Labor and Congress of Industrial Organizations ) • 6 million in Change to Win The Change to Win Federation (Ct. W) is a coalition of American labor unions • Remaining in other independent unions LO 7 13 App-2

Union Membership • Unionization rate highest among: • Government • Telecommunication • Transportation • Construction • Manufacturing • Lowest among: • Finance • Agriculture • Retail Trade LO 7 13 App-3

Union Membership • Distribution of union membership • 13% men versus 11% women • 14% African American versus 12% white • 11% Asians • 10% Hispanics A trade union (British English, where also amalgamation is used), labour union (Canadian English) or labor union (American English) LO 7 13 App-4

Union Membership LO 7 13 App-5

Decline of Unionism • 22 million workers in 1980 • 15. 3 million workers in 2009 • Structural changes in economy • Increased management opposition to • • LO 7 unions Substitution of machinery for workers Improved wages, fringe benefits, and working conditions 13 App-6

Collective Bargaining • Union status • Closed shop • Union shop • Agency shop • Open shop (A closed shop is a form of union security agreement under which the employer agrees to hire unionmembers only, and employees must remain members of the union at all times in order to remain employed) LO 7 13 App-7

Collective Bargaining • Managerial prerogatives • Wages and hours • Seniority and job protection • Grievance procedures LO 7 13 App-8

The Bargaining Process • Begins 60 days before contract • • • LO 7 expires Possibility of strike Compromise National Labor Relations Board 13 App-9

Economic Effects of Unions • • Featherbedding and work rules Output losses from strikes Efficiency losses from labor misallocation Offsetting factors Featherbedding is the practice of hiring more workers than are needed to perform a given job, or to adopt work procedures which appear pointless, complex and timeconsuming merely to employ additional workers. The term "make-work" is sometimes used as a synonym for featherbedding. LO 7 13 App-1

Economics Effects of Unions Wu A Wn Sector 2: Nonunion Wage Rate Sector 1: Union Wn B Du=MRP Ws C 0 N 2 Dn=MRP E N 1 Employment LO 7 D 0 N 1 N 3 Employment 13 App-1