Lecture 22 - Lecture Lecture22 Unions Roadmap Roadmap...

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Lecture 22 Unions
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Roadmap Unions Overview (legislation) Statistics on Unions d l f i h i Models of Union Behavior Monopoly unions model Efficient contract model The Effect of Unions on Wages
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Unions Labor Unions : are organizations of workers whose primary objectives are to improve the pecuniary and non pecuniary conditions of employment h b among their members. Industrial Union: represents most or all of the k i i d t fi dl f th i workers in an industry or firm regardless of their occupations. (e.g. automobile workers, rubber workers, coal miners) Craft Unions : represent workers in a single occupational group. (e.g. painting, dockworkers, writers)
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Spheres of Influence Unions primarily affect the labor market through negotiation. Centralized or decentralized U i l ff t th l b k t b Unions also affect the labor market by exploiting their political power as a voting bl k block. In the UK they have their own party.
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Union Membership and Bargaining Coverage, Selected Countries, 2004 Note: One can be covered without being a member of a union.
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Legislation in the US Before 1935 there was no explicit legislation regarding unions. In some cases unions were deemed to be monopolies and as such illegal under antitrust laws. 1935: National Labor Relations Act. Required employers to bargain with unions that represented the majority of their employees and made it illegal to interfere with workers rights to organize collectively. (private sector only)
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The NLRA, as enacted in 1935, listed five unfair labor practices. 1 I t f i ith t i i i l i th i i ht 1. Interfering with, restraining or coercing employees in their rights under Section 7. These rights include freedom of association, mutual aid or protection, self organization, to form, join, or assist labor organizations, to bargain collectively for wages and working conditions through representatives of their own choosing, and to engage in other protected concerted activities with or without a union. Section 8(a)(1) 2. Assisting or dominating a labor organization. Section 8(a)(2) 3. Discriminating against employees to encourage or discourage acts in support of a labor organization. 8(a)(3) 4 Discriminating against employees who file charges or testify 4. Discriminating against employees who file charges or testify. 8(a)(4) 5. Refusing to bargain collectively with the representative of the employer's employees. 8(a)(5)
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1947: The Labor Management Relations Act (T f H l A ) R i d f (Taft Hartley Act). Restricted some aspects of union activity and permitted workers to vote i l ti th t ld d tif i f in elections that could decertify a union from representing them in collective bargaining.
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