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Wage Determination
Appendix
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
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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 (CtW) is a coalition of American labor unions
Remaining in other independent unions
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Unionization rate highest among:
Government
Telecommunication
Transportation
Construction
Manufacturing
Lowest among:
Finance
Agriculture
Retail Trade
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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)
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Decline of Unionism
22 million workers in 1980
15.3 million workers in 2009
Structural changes in economy
Increased management opposition to unions
Substitution of machinery for workers
Improved wages, fringe benefits, and working conditions
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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)
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Collective Bargaining
Managerial prerogatives
Wages and hours
Seniority and job protection
Grievance procedures
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The Bargaining Process
Begins 60 days before contract expires
Possibility of strike
Compromise
National Labor Relations Board
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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 time-consuming merely to employ additional workers.
The term "make-work" is sometimes used as a synonym for featherbedding.
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Wn
Wage Rate
Sector 1: Union
Employment
Wage Rate
Sector 2: Nonunion
Employment
N1
0
0
Du=MRP
B
A
C
N2
Wu
Wn
D
E
Ws
Dn=MRP
N1
N3
Economics Effects of Unions
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