ch17app - Chapter 17 Appendix Labour Unions Market Power in...

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Chapter 17 Appendix Labour Unions Market Power in the Labour Market A labour union is an organized group of workers that aims to increase wages and influence other job conditions. Traditionally, a union was formed by a group of workers who had similar skills but who worked for firms in different industries and regions. The industrial union was created when workers in mass-production industries unionized. These workers had a variety of skills and they worked in the same industry. Union organization is based on a subdivision known as the local . A closed shop is an arrangement in which the firm can hire only union members. A union shop is an arrangement in which the firm can hire workers who are not union members, but new workers must join the union, usually at the end of their probationary period. An open shop is an arrangement in which no employee is required to join the union or pay union dues. The Rand Formula is a compromise between the union shop and the open shop: the requirement that all workers represented by a union must pay union dues, whether they join the union or not.
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ch17app - Chapter 17 Appendix Labour Unions Market Power in...

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