Understanding Organized Labor and Business Responsibilities

1. Ch 22 The US Labor Force

2. Organized Labor • The civilian labor force includes men and women 16 and up who are either working or actively looking for a job

3. Organized Labor • Labor unions are groups of workers who band together to obtain higher pay and better working conditions (14 percent of American workers)

4. Organized Labor • Workers who perform the same skills join together in a craft or trade union; industrial unions bring together different types of workers in the same industry

5. Organized Labor • Before they were declared illegal in 1947 (by the Taft-Hartley Act), closed shops were one kind of union arrangement; a worker had to first join a union to be hired by a company A business that only hires union members

6. Organized Labor • 22 states have passed right-to-work laws which prevent mandatory union membership required by the union shop

7. Organized Labor • A union cannot be brought into a workplace unless a majority votes in favor of it; the National Labor Relations Board makes sure these elections are fair

8. Negotiations • Unions carry out collective bargaining, officials from the union and company meet to discuss workers new contract, wages, and benefits • Mediation occurs when a third party tries to help the union and company reach a compromise (ADD: Non Legally Binding Agreement)

9. Negotiations • Arbitration occurs when a third party listens to each side and decides how to settle the disagreement (ADD: Legally Binding Agreement)

10. Negotiations • Workers can call a strike, in which all workers in the union refuse to go to work in the hopes the company will accept the union’s contract terms • Strikers usually carry signs in front of their workplace; picketing is meant to discourage workers from working and building support for the strike

11. Negotiations • Unions can also encourage members and the public to boycott or refuse to buy, the business’s products

12. Negotiations • Management can use a lockout against strikers; the company prevents workers from entering buildings until they accept their contract terms

13. Negotiations • An injunction is a legal order of a court preventing some activity; it can be used by companies to prevent strikes or unions to prevent lockouts

14. Negotiations • In extreme circumstances the government may resort to seizure, a temporary takeover of operations to allow the government to negotiate with the union

15. Businesses in Our Economy

16. Roles of Businesses • Businesses can act as consumers they buy goods and services from other businesses • Businesses are also employers, they provide jobs to millions of workers

17. Roles of Businesses • Businesses are also producers, large and small businesses produce items to meet people’s basic needs and things that make life more enjoyable

18. Responsibilities • 1. Responsibilities to Consumers: selling products that are safe, products and services should work as promised; businesses should also be truthful in their advertising and should treat all customers fairly

19. Responsibilities • 2. Responsibilities to Owners: to protect stockholders corporations are required to release important financial information, this is called transparency; this allows investors to decide if they want to invest in the company

20. Responsibilities • 3. Responsibilities to Employees: to give workers a safe workplace and treat all workers fairly and without discrimination, treating employees differently on the basis of race, religion, color, gender, age, or disability

21. Responsibilities • 4. Responsibilities to the Community: more businesses are emphasizing their social responsibility, the obligation to pursue goals that benefit society as well as themselves; gifts to charities are one example of how businesses meet this social responsibility