Transcript Chapter 9 - The Labor Market

The Labor Market
Wages

A wage is the price of labor.

Wages in the workforce are determined by the
laws of supply and demand
The doctor’s salary vs. the fast-food
worker’s wage.
• Doctors make more money because
the supply of them is lower and the
demand for them is higher.
Why is the
supply of
doctors lower?
The labor force

Labor Force: all non-military people
who are either employed or
unemployed

Unemployed: those looking for a
job, but don’t have one.
Types of workers

Blue Collar: workers
in industrial jobs

Examples?

White Collar:
professional or
clerical jobs

Examples?
Unfair treatment of
laborers

Glass Ceiling: an invisible barrier that
keeps women and minorities from
advancing in a business dominated by
white men

The industrial revolution and increased work in
manufacturing created the need for organized
worker unions.
Labor Unions
In response to the unfair
practices Samuel
Gompers started the first
union. In 1886 he founded
the American Federation
League. He wanted
higher wages, shorter
hours, and safer working
conditions.

Collective bargaining
The process by which
union and company
representatives meet to
negotiate and form a new
labor contract
If collective bargaining fails
then labor and management
may use:
Mediation - A neutral third party that
makes suggestions
Arbitration - A neutral third party that
makes legally binding decisions
Labor may resort to a strike using
the following:
- Picketing - signs, banners, chants
- Primary and Secondary Boycotts
- Coordinated Campaigns
Management may:

Initiate a lockout (opposite of strike, firm stops
work)

Hire replacement workers

Get an injunction (court order to do or stop doing
something ex. strike)
Taft Hartley Act of 1947
• The right to work act that
allowed states to make
laws that ban mandatory
union membership
Exit Question
• What do you think of unions and their value?