Economic Notes

Chapter 8

Microeconomics – Study of the parts of the economy

• Types of unions:

• Craft or Trade Unions – organization of workers who have the same skills

• Ex. Plumbers union, teachers, electricians

• Industrial Union – Organization of workers in the same industry

• Ex. U.A.W. (United Auto Workers), Iron workers

Triangle Shirtwaist Factory

Fire

http://www.cbsnews.com/8301-3445_162-20045115.html

Child labor

http://www.history.com/videos/the-fight-to-end-child-labor

Apple labor violations

http://www.cbsnews.com/8301-3445_162-57367950/the-dark-side-of-shiny-apple-products/

Tools used by unions

• Collective Bargaining – the right of a union to choose representatives to negotiate on the memberships behalf

• Strike – refusal to work• Boycott – refusal to buy a company’s products• Picketing – workers carrying signs which protest a

company’s actions• Union Labels – labeling products so people buy union

goods and support unions• Political Action Committees – groups to act in favor

of unions, lobbyists• Work To Rule – work to the letter of the contract

Illegal options:

• Wild Cat Strike – workers go on strike even though the union voted not to strike

• Slow Down – work slower or sabotage the job (it is illegal to not do a job you are paid for)

• Blacklist – list union activists and refuse to give them jobs

Tools of Management:

• Injunctions – government order for strikers to return to work

• Lockouts – management prevents workers from working, therefore not earning money. This puts economic pressure on them

• Strikebreakers – Hire other workers to replace striking workers

• Relocation – move a business to a new location where the workers are less organized and willing to work for lower wages

Government Actions

• Mediation – method for settling a labor dispute, in which a 3rd party listens to both sides and suggests a solution to the situation (it is not binding, just a suggestion)

• Arbitration – method for settling a labor dispute, in which a 3rd party listens to both sides and makes a decision to solve the situation (binding, both parties must comply)

• Real wages – adjusted for inflation

• Money Wages – nominal value