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are150-4review-questions-4-answers - University of...

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University of California, Davis Department of Agricultural and Resource Economics ARE 150 Fall 2010 Philip Martin Dist 11/3/10 [email protected] Due 11/18/10 Review Questions 4-- Midterm 2 is Tuesday, November 23 Please type or write neatly, and put your discussion section, 4-5 or 5-6, on your answers. Each answer is worth one point. Note that questions 21-24 from Review questions #3 will also be covered on Midterm #2. 1. Unions have four major weapons to put pressure on employers: - strikes , which are collective refusals to work. Employers may respond to strikes by shutting down, which makes the strike a contest between lost profits and lost wages, or by hiring temporary or permanent replacement workers and continuing to operate - control over the supply of labor ; unions usually want to reduce the number of workers available to employers, which should put upward pressure on wages. Unions may urge limits on immigration and try to control training and entry into an occupation, as when craft unions operate apprenticeship programs to influence the number of carpenters or electricians and medical associations regulate medical schools, influencing the number of doctors who can be trained - political activities —electing politicians who approve legislation or make appointments to regulatory agencies favorable to the union’s cause - consumer boycotts —positive and negative--appealing to consumers to buy union-label goods and not to buy goods made by employers with whom the union has a dispute to put pressure on particular firms/employers The extremes of union power are (1) a craft construction union such as the carpenters that goes on strike against builders in one town and encourages its members to work in another town versus (2) a utility that continues to collect most of its revenues while workers are on strike. Employers counter these union weapons by hiring replacement workers to continue production or by locking out workers, by trying to expand the supply of labor, and by engaging in political activities. 2A. Farm workers who go on an economic strike leave their jobs to put economic pressure on the employer, that is, they withhold their labor to encourage the employer to raise wages or improve benefits and working conditions. Economic strikers can be permanently replaced, which means that, when they offer unconditionally to return to work, they must be rehired or, if they have been replaced, they must be put on a rehire list and rehired as job vacancies occur-- without discrimination because of their strike activities. ULP strikers are entitled to back pay and to reinstatement to their old jobs when they unconditionally offer to return to work, even if the employer must discharge replacement workers to open up jobs for them. The strikers in O.P.
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Murphy and Sons 5 ALRB 63 (1979) were considered ULP strikers because Murphy engaged in bad faith bargaining before the September 13, 1977 strike— the strikers were protesting Murphy's unlawful dilatory bargaining tactics, and most were rehired with back pay. However, strikers lawfully fired for picking
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