Resource Manager Resource Manager: Economics

CHAPTER
■ ■ ■ ■ 12 Resource Manager
■ ■ ■ ■ ■ ■ ■ ■ ■
CHAPTER
■ ■ ■ ■ ■ ■ ■ ■ ■
Teaching Transparency Application and Enrichment

Assessment and Evaluation
Economic Concepts Consumer Applications Free Enterprise
Transparency 16 Enrichment Activity 12 Activity 13 Activity 13
Name Date Class Name Date Class
Chapter 12 Test Form A Chapter 12 Test Form B Performance Assessment
13 Activity 13 ExamView® Pro Testmaker
16 13
Name Date Class Name Date Class
W HY SALARIES DIFFER U SING ARBITRATION Name Date Class
U NEMPLOYMENT Several factors affect salaries. They differ from industry to industry, region to region, but Collective bargaining between management and unions is a process of compromise. However,
12, A 12, B
The bar graph shows the number of people in the civilian labor force and the number of unemployed people in
the United States.
most significantly, from one level of education and training to the next. According to the
U.S. Department of Labor, the average salaries of college-educated workers have grown
almost 25% in the last 20 years while the median wage for male workers with only high
sometimes management and workers are still far apart when a strike deadline is approaching.
If that happens, both parties may agree to submit their cases to an impartial arbitrator. The
arbitrator considers the merits of each side’s arguments as well as the settlements made by
13
school diplomas actually dropped 20%, and wages for men without a high school diploma
dropped by 33%.
other companies in the industry. The arbitrator then dictates an agreement that both sides
must accept.
T HE AMERICAN LABOR FORCE
Name Date Class SCORE T HE AMERICAN LABOR FORCE
Name Date Class SCORE
United States Unemployment
The Bureau of Labor Statistics calls the following chart Education Pays: In a dispute between Big Board, Inc., the state’s largest producer of finished lumber, and its 200 workers
L ABOR RUBRICS
150 represented by Local 14, the arbitrator received the following information: USING KEY TERMS 12, A USING KEY TERMS 12, B
142.00 Unemployment and Earnings by Educational Attainment ▼ BACKGROUND ▼ OBJECTIVES research paper, an
140 (for full time workers age 25 and over) issue controversy
The average industry wage is $11.00 per hour, but Big Board now pays Matching: Match each item in Column A with the items in Column B. Write the correct Matching: Match each item in Column A with the items in Column B. Write the correct The labor movement has tried to organize After completing this activity, students will be
130 125.84
Unemployment Annual Median $12.00, although employees have not had a raise in two years. Other com- letters in the blanks. letters in the blanks. workers to deal with management more able to
120 13. The Taft-Hartley Act of 1947 13. The practice of asking the public not to purchase good or services produced by a company whose workers
Rate Earnings Education Attained panies (and Big Board) have a 40-hour workweek, and most of them (but efficiently and to settle disagreements • Define collective bargaining, mediation,
106.94 are on strike is known as
110
not Big Board) pay double time for work on the weekends. Big Board has A B
a. strengthened the labor union movement in the United States.
b. outlawed closed shops.
A a. picketing.
B b. boycotting.
through negotiations rather than through and arbitration.
100 1.4 72,700 Professional degree only one 15-minute break but longer lunchtimes than its competitors. Most work stoppages. • Examine the impact of unions and strikes on
90 1. closed shop c. gave local unionsa.the workers
power toemployed
negotiateinon behalf
crafts, of their members.
manufacturing, and non-farm 1. skilled worker c. mediating. a. person who learns a trade ord.craft arbitrating.
management and labor.
82.77 1.3 62,400 Doctorate of the industry provides 7 to 8 paid holidays, complete health insurance,
Millions
d. made it illegal to formlabor

a monopoly. b. worker
▼ MATERIALS
80 1.6 50,000 Master’s Degree no dental insurance, and a $100 uniform allowance. In general the industry 14. A deliberate work stoppage employedisincalled
by employees an office, sales, or professional position
2. labor union 2. right-to-work laws Copies of the scenario of Farris Meats
70
1.9 40,100 Bachelor’s Degree
is increasingly profitable. However, Big Board has been losing some of its 14. Collective bargainingb.is the
federal lawinthat
process sets the lowest legal hourly wage rate that
which c. state laws forbidding unionsb.
a. an illegal stoppage. from forcingshop.
a closed workers to join
60 customers to younger competitors. 3. strike may be paid to certain types of workers 3. closed shop unions and pay union dues d. a lockout.
a. bosses give raises to their employees. c. a strike.
2.5 31,700 Associate Degree c. process by which unions and employers negotiate the condi- PROCEDURE
50 b. workers receive annual raises as long as productivity rises. d. person who provides services directly to individuals
3.2 30,400 Some college, no degree Directions: Assume that you are the arbitrator in this dispute. Which demands and offers below seem 4. white-collar workers tions of employment 15.
4. minimum wage law The minimum wage law may
40 reasonable? Which seem unreasonable? Complete the chart with a compromise agreement. c. workers who are laid off receive unemployment benefits. e. stage in contract negotiations between union and manage-
d. state laws forbidding unions from forcing workers to join a. increase unemployment among teenagers and minorities. 1. Organize the class into groups of six. Each group should have three members representing management and
30 4.1 26,000 High school graduate 5. collective bargainingd. unions and employers negotiate the conditions of employment. 5. agency shop ment in which a neutral person steps in to try to get both
unions and pay union dues b. increase the supply of low-paying jobs. three representing labor who are to negotiate a new union contract. The current contract states:
20 7.1 19,700 Less than a high-school diploma Union Demands Management Offers Agreement sides to reach an agreement
7.64 7.04 7.00 6. minimum wage 15.
lawIn 1955, the craft and industrial unions merged forming the 6. white-collar worker c. establish a limit on the amount of wages employers can pay. a. All workers receive $5 per hour for a 45-hour workweek that includes 30 minutes for lunch each day.
10 e. provision providing for an additional wage increase each year
4.09 Wages 10% raise or $13.20 per hour 3% raise or $12.36 per hour a. AFL-CIO. if the general level of prices b. American
in the Federation
economy of Labor.
rises beyond a d. prevent strikes byf.increasing
union made up of workers in an industry, regardless of job or
wages. b. Each worker may take two days of sick leave per year.
0 Directions: Use the data above to answer the questions below. 7. right-to-work laws c. National Association of 7. industrial union skill level
1970 1980 1990 2000* Hours 36-hour week 40-hour week unions.
certain level d. United Steelworkers of America union. c. The company pays $25 of each worker’s $130 health-insurance premium each month.
1. Which level of education experienced the highest rates of unemployment? g. federal law that sets the lowest legal hourly wage that
8. cost-of-living adjustment f. company in which only union members may be hired CRITICAL THINKING QUESTIONS
8. service worker d. Workers may take two weeks unpaid vacation each year.
Persons in Civilian Labor Force Unemployed Persons *estimated Overtime Double time after 36 hours Time and a half after 40 hours; Directions: Answer each of the following sets of questions on a separate sheet of paper. employers can pay
The second highest? Management wants to keep the same contract. The workers want to improve pay, working conditions,
double time on weekends g. association of workers organized to improve wages and work- h. company in which employees are not required to join the
9. blue-collar workers 9. semiskilled worker Answer each of the
Directions: following and benefits.
2. What is the median weekly earnings of a high-school graduate? Of someone with Breaks 15 minutes, 15 minutes
ing conditions for its members union butsets
mostofpay
questions on a separate sheet of paper.
union dues
a bachelor’s degree? 10. lockout
CRITICAL THINKING h.
QUESTIONS
deliberate work stoppage by workers to force an employer to 10. mediation 2. Have the groups negotiate for about 15 minutes and write up a contract. Use the negotiations as the basis for a
morning and afternoon in the afternoon 16. Distinguishing Fact fromi. Opinion Whyjob
person whose dorequires
you think some
some people support minimum wage legislation
training
Copyright © by The McGraw-Hill Companies, Inc.

class discussion on collective bargaining and other tactics used in negotiations.

give in to their demands and others oppose it? What positive and negative effects can such legislation have?
3. Why did the Bureau of Labor Statistics report the above data using the age of 25 as its lower limit? Paid Holidays 10 8
16. Sequencing and Categorizing Information Describe the three levels of unions, and explain the j. company in which only union members may be hired
functions of each. i. situation in which management prevents workers from return- 17. Making Predictions Given past trends and changes in American business, what do you think is likely to 3. Distribute copies of the following scenario to each of the groups. Let them read the scenario and answer the
Health Insurance All paid by company First $250 paid by employee ing to work until they agree to a new contract happen to union membership in the twenty-first century? questions. For each choice, they should give possible effects on both labor and management.
17. Making Comparisons What is the difference between an industrial union and a craft union? RECALLING FACTS AND IDEAS
Dental Insurance All paid by company First $500 paid by employee j. workers employed in offices, sales, or professional positions SCENARIO
Suppose the economy is in a recession and jobs are hard to find. Some large corporations, however, are making
4. Suppose everyone in the U.S. were to earn at least a master’s degree. How would it change the data in the table Uniform Allowance $200 $50 APPLYING SKILLS APPLYING
Multiple Choice: In the blank atSKILLS
the left, write the letter of the choice that best completes large profits. Farris Meats, one of the leading meatpackers in the United States, is doing extremely well. Assume

RECALLING FACTS AND IDEAS the statement or answers the question.
above? What other effects might it have? that Farris Meats has a factory in your hometown of Faithful. Faithful has a population of about 10,000 and at
Using Graphs Study the graph and answer the questions below. Using Graphs Study the graph and answer the questions below. least 4,000 of those work at the Farris factory. In one month, the current contract at the factory will expire.
11. An injunction is a
Multiple Choice: In the blank at the left, write the letter of the choice that best completes Rumor has it that Farris intends to cut wages from $11 an hour to $10 an hour in only the Faithful factory. All of

the statement or answers the question. a. process by which union and management representatives
Union Membership,
reach an1940–97
agreement.
40 the 4,000 workers at the factory belong to a national union of meatpackers. The local chapter in Faithful wants
Union Membership, 1940–97 b. court order preventing an activity. to go on strike, so they contact the national union officials to drum support for their strike. When contract nego-
11. The largest sector of the American labor force
40 is 35
5. What do you give up by going to college after high school? What do you gain? c. rule that prevents nonunion members from working. tiations begin one month later, management will not budge. What would happen if:
a. blue-collar workers. 35 b. white-collar workers. d. stage of the negotiation process in which
30 both sides submit issues on which they cannot agree to a
a. the local union in Faithful strikes without support of their national union?
Percent of Workforce*

c. service sector workers. 30 d. manual workers. neutral third party. 25
b. Farris picks up the slack in the other factories and closes the Faithful factory?
Percent of Workforce*
12. Right-to-work laws have resulted in 25
12. Collective bargaining is the process by which
20
c. the national union supports the local union in Faithful?
Economic Concepts 16
a. tougher union membership requirements.
20
b. unions having less power. a. groups of employees in an open shop 15 negotiate for raises. d. the local union goes on strike without the support of the national union and the Farris Company tells the
c. increased employee benefits. 15 d. increase in union dues. b. groups of employees in a closed shop 10 negotiate for raises. local union that they have three months to go back to work or they will be replaced permanently?
10
c. union and employers negotiate the conditions
5
of employment. e. against national union advice, some other workers in other cities go on a sympathy strike?
5 d. striking workers negotiate with management about returning to work.
0
0
'40 '45 '50 '55 '60 '65 '70 '75 '80 '85 '90 '95 '97
Assessment
'40 '45 '50 '55 '60 '65 '70 '75 '80 '85 '90 '95 '97
Year
Year 1. Have students do a research paper on a historical or current labor dispute.
*Before 1983 = percent of nonagricultural employees.
*Before 1983 = percent of nonagricultural employees.
Application and Enrichment

1983–1996 = percent of emplyed wage and salaried workers.
1983–1996 = percent of emplyed wage and salaried workers.
Source: Bureau of Labor Statistics, 1996
Source: Bureau of Labor Statistics, 1996
18. How did union membership change between 1945 and 1997? 18. What has happened to union membership over the past several decades?
19. What percentage of U.S. workers were members of labor unions in 1975? 19. During which year shown in the graph was union membership highest?
20. If the trend shown in the chart continues, what percentage of U.S. workers would you forecast to be union 20. How does the graph reflect the move toward a service-based rather than a manufacturing-based economy since
members by 2010? the 1970s?
Cooperative Learning Primary and Secondary Math Practice for Economic Cartoons
Activity 13
Simulations and Problems 13 Source Reading 13 Economics Activity 13
ECONOMICS
Technology and Multimedia
Name Date Class
Name Date Class Name Date Class Name Date Class
13
Name Date Class
13 13 13
E MPLOYMENT 13 A NALYZING A PAYCHECK A QUESTION OF ECONOMIC EQUALITY
GROUP PROJECT
Y EAR OF THE EMPLOYEE
Many factors determine
Among these factors
The
thatare
thedemand
in the
many
wages aforworker
level of skills and
companies
can command
programming
abilities
geeks
in theis marketplace.
know-how
a particular
are becoming
so great New York company that sells research on companies to
position job applicants, Mark Oldman has seen graduating seniors
an exalted
Each pay period employers withhold a portion of the federal income tax and often part of the
state income tax so that employees do not have to make one large payment at the end of the
year. The paycheck stub provides information about amounts deducted from a person’s pay
Achieving equal wages has been a long-term battle for women. Today, on average, women
doing the same job as men still make less money. Moreover, a disproportionate number of high-
level jobs still go to men. This situation makes an easy target for a savvy editorial cartoonist.
You and your students can visit ett.glencoe.com—
The civilian labor force in America consists of all individuals from 16 to 65 years of age who
the Web site companion to Economics Today and

elite. Indianapolis
requires and the nature of the work Life Insurance
itself. Co., foreconomy
In a booming example,where
desper- among his clients getting the “Taj Mahal treatment.” He
jobs are Directions: Study the cartoon below. Then answer the questions that follow.
such as social security (FICA taxes) and retirement funds.
Vocabulary PuzzleMaker Software

are working or actively seeking employment. A large number of these people have used the ately
plentiful, wages will needs in
increase to many
retain industries
its staff ofto70 computer
attract engineers
competent employees.tellsThe
of article
22-year-olds being lavished with four-star dinners
classified ads section of the newspaper, completed job applications, been interviewed, and below analyzes theand systemsbenefits
financial analystsafforded
to complete its Year
workers in a2000 conversion
healthy economy. As andyoulate-night
read, trips to the happening dance clubs. . . . A paycheck stub might look like this:
undergone hiring procedures. You will work with members of your group to become familiar projects on time. High-paying competitors lured away 20
consider your own value in the labor force today. Then answer the questions that follow. The job-market crunch has put a premium on innova-
with the employment process by following the steps diagrammed below. percent of the department last year, so this January the tion when it comes to finding and keeping employees.
Gross Pay FICA Federal State Retirement Net Pay
Tomorrow. This innovative integration of electronic and

company announced $1.25 million worth of bonuses of Bruce Skillings of Bernard Hodes, a firm that specializes in
Steps in the Employment Process up to 20 percent of base pay and other rewards employment advertising, encouraged his client EFI, a
F our years ago, Glen Kelley was
redeemable a software specialist
in 2000—choices include at a trip
revolution.
to Disney . . . It’s maker
not justofthecolor-printing
educated andsoftware,
computer-lit-
to do more than the
CPP (current pay period) 473.30 29.34 54.00 11.93 14.19 356.98
a Midwestern shipping
World,company when Whittman-Hart, a erate who . . are
. reaping usual the benefits. Workers at all levels YTD (year to date) 1,419.90 88.02 162.00 35.79 150.39
Interactive Tutor Self-Assessment Software

1. Write ad 2. Prepare interview questions 3. Create application form a new computer and a year’s supply of pizza campus based recruiting. So this spring EFI
fast-growing Chicago consulting
Techies cangroup, offered
crow the him but
loudest, a job.
plenty appear
of otherto be getting
fields a boost. Sky
co-sponsored The Concert,
White Castle burger
a popular annual San Francisco
Kelley, now 31, was willing to jump, but with one tough chain is so desperate for As
counter jockeysfansin gathered
all its central
print media offers your students a wealth of opportuni-

face talent crunches and steeply rising salaries. Marketing, event. 250,000 . . . company staff Directions: Study the stub carefully, then do some math to answer these questions.
condition: he. . . needed
retailing,the company to pay
manufacturing, andforlawyering
expen- are Indiana
all onoutlets
the that it is handing
passed out 20,000 out $500 in cashoftobubble
containers any- soap (and blow-
4. Run classified ad 5. Review applications sive infertility treatments.
rebound and Theinfirm
dire answered with an
need of mid-level one who. .stays
practitioners. . on ers)
the jobwithat labels
least sixreading,
months.“Welcome
... to the revolution. How many paychecks has this person received to date? (1)
extraordinary insurance packagein that
First-timers covered
the job marketeveryhave never had it so www.efijobs.com.” What amount is actually printed on the paycheck? (2)
penny. . . and offered
good.himWilliam
a 12 percent
Banis,raise to boot.of. .career
director . services at How much has this person had withheld for federal income tax in this pay period?
ExamView® Pro Testmaker

The treatments, which eventually cost $30,000, failed.
ties. The student text directs students to the Web site for
Northwestern University, says starting salaries for theWith
class some McGinn,478,000 information-
Daniel, Patricia King, Pamela Klein, Michael Hirsh, and Kera (3) For state tax? (4)
6. Conduct interviews 7. Hire and negotiate wages Then Kelley and his of wife,
1998 Carrie, wanted
averaged aboutto$40,000.
adopt. Stock
. . . At Vault Reports, a Ketchum. “Year of the Employee.” Newsweek, July 20, 1998.
options from Whittman-Hart paid for the entire $20,000 technology jobs currently unfilled, What percentage of the person’s gross pay is withheld for federal taxes each payment period?
bill. . . . (5) For state tax? (6)
no group is more in demand than
Such tales abound in today’s drum-tight job market. What percentage of gross pay is contributed to FICA? (7) To the retirement fund?
ANALYZING THE READING computer whizzes.
COOPERATIVE GROUP PROCESS Stunning pay increases and gold-plated stock options,
the following options:

(8) Doug Marlette
once the sort of bait 1.dangled
What didmostly in front of prospec-
the Chicago-based consulting group Whitman-Hart offer software specialist Glen Kelley to keep him on Fill in this paycheck stub for someone who has worked 2 weeks for a total of 80 hours at $8.14 an hour. The
1. Group Work Stage 1: Organize into groups of five 4. Group Sharing Stage 4: Exchange your classified tive chief executives, areasnow used to lure everyone from
an employee? person’s pay is based on 50 weeks per year. The year’s total federal income tax withheld for this person will be EXAMINING THE CARTOON
NBR Economics & You Video Program (English/Spanish)

students. In your group, elect one member to be a ads page with another group. Each group member secretaries on up. Many companies have started to play As Dilbert’s creator knows, what’s changed most is the
the game of “top this” with nonmonetary perks, too. psychology of the workplace. . . . As part of its merger with $2,341, and the total state tax withheld will be $628.
layout editor in charge of creating your classified applies for one job of interest from the page by Multiple Choice
ads page based on information and suggestions completing one of the group’s application forms. Neversoft Entertainment, a Hollywood computer games another company, New Jersey-based Beneficial Financial
designer, not only allows staffers to bring their dogs to Corp. will lay off hundreds of employees at its headquar- Gross Pay FICA Federal State Retirement Net Pay 1. What American tradition is the basis for the cartoon?
supplied by group members.
5. Group Analysis Stage 5: Group members review work, but also supplies the Milk-Bones. . . . Atlanta-based ters this summer. According to a human-resources
2. Individual Work Stage 2: Write a classified ad each application, then interview each job applicant. 2. What are the basic causes of the limited supply of good workers? CPP (current pay period) (9) 40.37 0 a. striving to achieve a white-collar job b. framing the first dollar one ever earns
announcing an opening for a job of your choice. The individual who wrote each ad asks the five
Revenue Systems gives every employee access to its fleet
of BMWs.
manager there, many recipients of these pink slips are
“thrilled to death.” While the older staffers are worried, c. taking pride in one’s work d. doing the best job one can
• Chapter Overviews • Student Web Activities

Refer to the classified ad section of a newspaper for questions from the prepared list. Group members can
Presentation Plus!
It’s the revenge of the downsized: near-record-low she explains, younger, computer-literate ones expect to Federal taxes withheld comes to a sizable amount. Where does this money go? One way of looking at how the 2. What is the relationship between the jobs of the two people?
examples of job descriptions, types of information ask additional questions. Complete the employment unemployment and a long economic boom have created find jobs paying 20 percent to 30 percent more within a
federal government spends your tax dollars is to apply the percentages spent by the government in different areas to a. They are in equivalent jobs. b. The woman has a higher level job than the man.
to include, relevant skills, and format styles. You process by discussing the following questions: How nightmares for employers and fat opportunities for street- month. In the meantime, they’re getting hefty severance
may also refer to the Occupational Outlook much emphasis should an employer place on the 3. Adams,
According to theofarticle, whichstripprofessionals are in the amount you pay in federal taxes. For instance, in a recent year the government spent 2.4 percent of its budget on c. The man has a higher level job than the woman. d. There is no relationship between their jobs.
wise employees. Scott creator the comic packages. . . greatest
. demand? What other fields are experiencing a
Handbook in your local library. Then compile a list application and the interview? What criteria do shortage of workers? veterans’ programs. It is possible to think that 2.4 percent of your total taxes went to veterans’ programs. If you paid
• Self-Check Quizzes • Textbook Updates

“Dilbert” . . . puts it this way: “There has never been a With some 478,000 information-technology jobs cur- 3. Which economic concept is illustrated by the cartoon?
of five questions that you might ask a job candidate employers use to decide which applicant to hire? better time in history to heap abuse upon your boss.” rently unfilled, no group is more in demand than $1,120 in taxes, then, $26.88 went to veterans’ programs. To arrive at the dollar amount you multiply your total taxes
applying for the position. What factors affect the wages paid for various jobs? a. equilibrium b. comparable worth
Though the ‘90s started as the decade of job insecu- computer whizzes. Companies are willing to do almost by the percentage: $1,120 .024 $26.88.
c. circular flow of income d. comparative advantage
3. Group Work Stage 3: Individuals submit their ads rity, a funny thing happened after corporate America tried anything to attract these precious few. In Silicon Valley, Calculate how many of your tax dollars went to each of the following areas:
Glencoe Skillbuilder Interactive Workbook CD-ROM,

to the group. Classify the jobs as unskilled, semi- Group Process Questions to slash-and-burn its way to prosperity: good workers stealing tech staff away from rivals is called “nerd (10) 7.1% health (11) 19.6% national defense Critical Thinking
skilled, skilled, or professional. Give the ads to Were the goals of this assignment clear? were suddenly in 4. What
short otherThe
supply. perks and benefits
economy’s besidesrustling,”
steady salary areand
companies offering
it’s enough to lure
to give any the best workers?
programmer major
(12) 3.5% education (13) 13.7% interest payment on the national debt
the layout editor, who arranges them in a page of Did members work well together? growth has been the biggest cause of this talent dearth, attitude. Thomas Schmidt is a 34-year-old computer con- 4. Analyzing the Cartoon What two points about the job market is the cartoonist making?
classified ads. While the layout editor is busy, work but other broad trends have also done their part: a shrink- sultant who specializes in the hot field of systems
together to devise a general job application form Did members respect each other’s point of view? ing labor supply as fewer young people entered the integration. In the past two years, he has changed jobs
that inquires about an applicant’s education,
experience, and skills.
What is the most important thing you learned while
participating in group work?
work force, and rising demand thanks to the computer twice and doubled his salary in the process. . . .
5. What factors besides salary should a person consider before accepting a job? Explain your answer.
Primary and Secondary Source Readings 25

5. Expressing Your Opinion Do you think this cartoon has the power to change a reader’s mind? Explain. Level 2 Answers are provided for you in the Web Activity
26 Primary and Secondary Source Readings
Interactive Lesson Planner Lesson Plan. Additional Web resources and Interactive
Puzzles are also available.
MindJogger Videoquiz
Review and Reinforcement Use the Glencoe Web site for additional resources.
Interactive Economics! CD-ROM All essential content is covered in the Student Edition.
Critical Thinking Economic Vocabulary Reinforcing
Activity 13 Reteaching Activity 12 Activity 12 Economic Skills 27 Audio Program (English or Spanish)
Name Date Class Name Date Class Name Date Class
13
C U SING LIBRARY RESOURCES
27
Additional Resources
M AKING INFERENCES ABOUT SAMUEL GOMPERS HAPTER 12 THE AMERICAN LABOR FORCE
When you make inferences, you use stated facts and information, as well as what you already
know, to form ideas.
Directions: Use the following clues to fill in the vocabulary terms on the grid below.
ACROSS DOWN
Libraries contain many resources. These resources include traditional resources, such as ency-
clopedias, atlases, almanacs, and periodicals, as well as online resources, such as computer
databases and access to the World Wide Web. Knowing which resources to use will improve Spanish Resources
Reading for the Student
Directions: Read the following information about the life of Samuel Gompers, a leader in the labor move- the quality and efficiency of your research.
ment. Then answer the questions that follow. 2. Made up of all the workers in an industry, regard- 1. Cooks, piano tuners, health-care aides, and barbers
less of job or level of skill; an example is the (two words) Directions: You are writing a term paper on trade between the United States and Japan. To make the
Samuel Gompers was born in London, England, in 1850. He went to school for only four years. When he left school,
AFL-CIO (two words). report interesting, you want to include many real-world examples. You also want to make sure that your
he received training as a cigar maker in London, and he began working at this trade as a young boy. Gompers and his 3. Jobs that require some training in modern
report covers very recent developments. Choose sources from among the following:
family came to the United States in 1863. Eventually he, like many other immigrants, became active in labor unions. 6. People who are employed or actively seeking work technology
In 1886 Gompers’s views were more conservative than those of some other early labor leaders, who believed (three words) Business Week, Fortune, Forbes––business magazines published weekly
4. Lowest legal hourly wage for certain types of
that strikes were acceptable. Gompers thought that laborers could achieve their goals by bargaining peacefully with
business leaders and by voting for political candidates whose views were favorable to workers.
1. Was Gompers a skilled or an unskilled laborer? What information enables you to make this inference?
7. Refusal to purchase goods or services for labor
reasons
9. Office workers, salespeople, and professionals (two
words)
workers (two words)
5. An association of workers organized to improve
wages and working conditions for its members
(two words)
Statistical Abstract of the United States––published yearly
World Almanac, Information Please Almanac––published yearly
World Development Report––published yearly
The World Wide Web
Murray, R. Emmett, and Thomas Geoghegan. Lexicon of
2. Do you infer that Gompers’s parents were wealthy or not wealthy? What evidence helps you make this
10. Workers in jobs that require no special training 8. Collar category that includes craftworkers, workers
in manufacturing, and nonfarm laborers
1. What source would you use to find out the value of Japan’s exports to the United States between 1985
and 1995?
Spanish Economic Concepts Transparency 16 Labor: More Than 500 Key Terms, Biographical Sketches, and
inference?
2. What source would you use to find out how economic conditions in Japan differ from economic conditions in
the United States? Historical Insights Concerning Labor in America. New York:
3. Why might immigrants be especially attracted to labor unions?
Spanish Vocabulary Activity 12 New Press, 1998. A guide to labor in the United States.
3. Where would you find examples of U.S. businesses that have been successful in Japan?
4. Suppose the workers at a factory have not received a pay raise in five years. In Gompers’s view, which of the
following actions would probably be the best way for the workers to try to obtain a raise quickly? Explain your 4. Where would you find out what actions Japan’s Ministry of International Trade and Industry (MITI) has taken in
Spanish Reteaching Activity 12 Reading for the Teacher
choice. the past month?

a. striking to compel management to grant a raise
b. meeting with the factory owner to try to work things out
c. voting for a presidential candidate who wants to help workers
Spanish Section Quizzes for Chapter 12 Kaufman, Bruce E. The Economics of Labor Markets.
Hindsdale, IL: Dryden Press, 1997.
Spanish Chapter 12 Audio Program, Activity, and Test
312A 312B
CHAPTER
■ ■ ■ ■ ■ ■ ■ ■ ■
CHAPTER
■ ■ ■ ■ ■ ■ ■ ■ ■
Section Resources
ACTIVITY Easy Planning and Preparation!
Reading Objectives Reproducible Resources Technology/Multimedia Resources From the Classroom of
Use Glencoe’s Presentation Plus!,
Section 1 Reproducible Lesson Plan 12-1 Daily Focus Transparency 38 Roger A. Miller a Microsoft PowerPoint® application,
Americans at Work to teach The American Labor Force.
Daily Lecture Notes 12-1 Economic Concepts Transparency 16 New Castle High School
• How are workers categorized With this multimedia teacher tool, you
Guided Reading Activity 12-1 Vocabulary PuzzleMaker
New Castle, Indiana can customize ready-made presentations. At your fingertips
according to skill level and training? Reading Essentials and Study Guide 12-1
• How do skill, type of job, and location Interactive Tutor Self-Assessment Software Labor and Management are interactive transparencies, on-screen lecture notes,
Daily Focus Activity 38 MindJogger Videoquiz Have students bring in employee manuals from their audiovisual presentations, and links to the Internet and to
affect supply and demand in the labor
Section Quiz 12-1* part-time jobs or from a parent or other relative’s work- other Glencoe multimedia.
market? NBR's Economics & You*
places. Study the benefits and procedures listed in the
Presentation Plus! Interactive Lesson Planner
manuals. Have students compare the benefits and discuss
ExamView® Pro Testmaker why there are differences among them (safety issues, Planning has never been easier! Organize
seniority, and so on). your week, month, semester, or year with all
Then have students organize into two groups to take the lesson helps you need to make teaching
Section 2 Reproducible Lesson Plan 12-2 Daily Focus Transparency 39
creative, timely, and relevant—the way it is meant to be. The
part in a simulated labor dispute. Half the class will be
Organized Labor Daily Lecture Notes 12-2 Vocabulary PuzzleMaker Interactive Lesson Planner opens Glencoe’s Chapter 12
labor; the other half, management. Labor will select an
• What obstacles did labor unions face Guided Reading Activity 12-2 Interactive Tutor Self-Assessment Software resources, helps you build your schedule, and tracks your
issue or benefit (one missing from the employee manuals)
when they began to organize in the Reading Essentials and Study Guide 12-2 MindJogger Videoquiz progress.
and negotiate for the benefit through collective bargaining
1800s? with management. Both sides should try to come up with
Daily Focus Activity 39 NBR's Economics & You*
• How do closed shops, union shops, the best solution for the dispute.
Section Quiz 12-2* Presentation Plus!
and agency shops differ?
ExamView® Pro Testmaker
Key to Ability Levels
Section 3 Reproducible Lesson Plan 12-3 Daily Focus Transparency 40
Teaching strategies have been coded for varying
Collective Bargaining Daily Lecture Notes 12-3 Vocabulary PuzzleMaker Block Schedule learning styles and abilities.
• What are the major issues over which Guided Reading Activity 12-3 Interactive Tutor Self-Assessment Software L1 BASIC activities for all students
union contracts are negotiated? Reading Essentials and Study Guide 12-3 MindJogger Videoquiz L2 AVERAGE activities for average to above-average
Activities that are particularly suited to use within the block
• What workers’ actions and students
Daily Focus Activity 40 NBR's Economics & You* scheduling framework are identified throughout this chapter
management responses may L3 CHALLENGING activities for above-average students
Section Quiz 12-3* Presentation Plus! by the following designation: BLOCK SCHEDULING
accompany a strike? ELL ENGLISH LANGUAGE LEARNER activities
• How has collective bargaining in the Reinforcing Economic Skills 27 ExamView® Pro Testmaker
United States changed in recent
years?
*Also available in Spanish
Voluntary Standards Emphasized in Chapter 12 Resources Available from NCEE

Content Standard 10 Students will understand that • Personal Decision Making: Focus on Economics
institutions evolve in market economies to help individuals • Personal Finance Economics: Wallet Wisdom
and groups accomplish their goals. • Choices & Changes: Choice Making, Productivity, and
Planning
Content Standard 13 Students will understand that
income for most people is determined by the market value To order these materials, or to contact your State
of the productive resources they sell. What workers earn Council on Economic Education about workshops and
Blackline Master Software Videodisc Videocassette
depends, primarily, on the market value of what they pro- programs, call 1-800-338-1192 or visit the NCEE Web site
Transparency CD-ROM Audiocassette duce and how productive they are. at http://www.nationalcouncil.org
312C 312D
Introducing CHAPTER 12
CHAPTER 12 1
SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319
ECONOMICS
& YOU Overview
The American Labor Force Section 1 describes the different
READER’S GUIDE categories of jobs in the American
!8LV2" Chapter 14
Disc 1, Side 1
Terms to Know
• civilian labor force
economy and explains how supply
and demand determine the wages
THE COLUMBUS DISPATCH, MARCH 17, 1999 • blue-collar workers for various jobs.
ASK: Why did unions become • white-collar workers
popular in the 19th century? Baseball player, president, and cowboy—great jobs,
• service workers
right? Wrong. Try Web site manager, computer systems
They fought for safer working • unskilled workers BELLRINGER
conditions, shorter working hours, analyst, and software engineer. • semiskilled workers Motivational Activity
and such benefits as paid health Why It’s Important Low stress, short workweeks, • skilled workers
insurance and vacations. and room for advancement • professionals Project Daily Focus
Do you have a part-time job? • minimum wage law
put those professions Transparency 38 and have
Also available in VHS. Who determines how much you get
near the top of the Reading Objectives students answer the questions.
paid? How can you earn more? This list in Jobs Rated 1. How are workers catego- This activity is also available
chapter will explain the major categories Almanac, a book rank- rized according to skill level as a blackline master.
Chapter Overview of the labor force and the factors ing 250 of the best and worst jobs in the country. and training?
Chapter 12 explains the compo- that affect wages. Nine of the top 10 jobs were in computer 2. How do skill, type of job, Daily Focus Transparency 38
or math-related fields. Physical labor fared and location affect supply
sition of the American labor force, and demand in the labor
how supply and demand affect worst in the rankings, with oil field “roustabouts,” market? 38
Scarcity of workers and demand for particular workers influence their wage rates as
determined by the interaction of supply and demand in particular labor markets.
wages, the development of orga- To learn more lumberjacks, and fishermen taking the final three D ETERMINATION OF WAGES
nized labor, and the procedures and about workers spots on the list.
does the level of skills and education of each worker.

purposes of collective bargaining. in the United
States, view
the Economics & You Chapter
14 video lesson: The
American Labor Force
E veryone—from a factory worker to the president of a corpo-

ration—belongs to the productive resource known as labor.
1. Garbagemen perform a useful, but unskilled, job for society. Economists are profes-
sionals whose advice helps companies be more profitable. 2. Wage rates are
Use MindJogger As you read this section, you’ll learn how workers are cate-
Videoquiz VHS to preview gorized, how wages are determined, and why employers need to

Chapter 12 content. pay more to get (and keep) good workers.
1. Do you agree that economists aren’t as important as
garbagemen? Why?
2. Why aren’t garbagemen paid as much as economists? What
The Civilian Labor Force
Answers
factors determine wage rates?
Chapter Overview Visit the When discussing labor, economists use the term labor force civilian labor force: total num- Daily Focus Transparencies
ber of people 16 years old or

Economics Today and Tomorrow Web in a specific way. The civilian labor force is the total number of older who are either employed
site at ett.glencoe.com and click on people 16 years old or older who are either employed or actively or actively seeking work
Chapter 12— Chapter Overviews READER’S GUIDE
Introduce students to chapter to preview chapter information. The American Labor Force 313
content and key terms by having Answers to the Reading Objectives
them access Chapter 12—Chapter questions are on page 319.
Overviews at ett.glencoe.com Preteaching Vocabulary
SECTION 1 RESOURCE MANAGER Have students find the defini-
CHAPTER LAUNCH ACTIVITY tions of the Terms to Know in the
Encourage students to imagine that they represent workers at a fast-food restaurant Reproducible Masters Multimedia Glossary. Then have students use
or a convenience store and that they are about to negotiate pay and working condi- Reproducible Lesson Plan 12–1 Daily Focus Transparency 38 these terms in a paragraph that
tions. Have them consider what they might ask for. Then have them consider what the Reading Essentials and Study Guide 12–1 Economic Concepts Transparency 16 describes the American labor force.
manager of the restaurant or convenience store might be willing to give. Ask students Guided Reading Activity 12–1 Vocabulary PuzzleMaker
Vocabulary PuzzleMaker
how they and the manager might be able to bring what is being asked and what is Section Quiz 12–1 Interactive Tutor Self-Assessment
being offered closer together. Guide students toward the idea of compromise. Conclude Daily Focus Activity 38 Software
Daily Lecture Notes 12–1 ExamView® Pro Testmaker
by pointing out that in this chapter students will learn how compromise plays a major
MindJogger Videoquiz
role in the settlement of labor-management disputes.
NBR’s Economics & You
312 313
CHAPTER 12 CHAPTER 12
Employment Status of United States Population entered the workforce because of higher wages, often became
SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319 SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319
FIGURE 12.1 blue-collar workers—craft workers, workers in manufacturing, blue-collar workers: category of
and nonfarm laborers. workers employed in crafts, man-
3.1%
ufacturing, and nonfarm labor
9.9% 6,432,000 The largest sector of the labor force is white-collar workers.
Disabled
Total Workforce 20,798,000 Office workers, salespeople, and highly trained individuals such as Guided Reading Activity 12–1
Keeping House white-collar workers: category
16 Years and Older physicians and engineers are classified as white-collar workers. This of workers employed in offices, Name Date Class
The number of people 63.7% Civilian Labor Force sales, or professional positions
133,033,000 138,816,000 sector experienced steady growth throughout the twentieth century. 12-1
Guided Practice age 16 and older who are Employed 66.5% In recent years, a shift away from farm work and blue-collar For use with the textbook pages 313–319
not in the labor force is A MERICANS AT WORK

Not in the Labor Force jobs to the service sector of the economy has occurred. Service service workers: people who
L1 Understanding Ideas Write the not the same number as 10.9% 68,996,000 provide services directly to FILLING IN THE BLANKS
the nation’s unemploy- 22,743,000 33.0% workers are those who provide services directly to individuals. Directions: Use your textbook to fill in the blanks using the words in the box. Some words may be used
four skill categories of labor— Retired Cooks, piano tuners, health-care aides, and barbers are all service
individuals more than once.
ment rate. Why? Armed Forces civilian labor force blue-collar workers professionals
unskilled, semiskilled, skilled, and 1,056,000 workers. See Figure 12.2.

service workers
unskilled workers
minimum wage law
white-collar workers
semiskilled workers
labor
location
skilled workers
supply and demand
4.4%
professional—along the top of the
labor market skill market failure
0.5%
9,142,000
board. Call on volunteers to identify In School 2.8%
Introduction/The Civilian Labor Force
Everyone belongs to the productive resource known as 1 __________________________. The
jobs that fall in each category. List 4.7%

5,783,000 12.2 2 __________________________ is the total number of people 16 years old or older who are either
employed or actively seeking work.
Categories of Workers
Unemployed 3 __________________________ are employed in craft, manufacturing, and nonfarm labor. Office workers, salespeople,
9,881,000
responses under the appropriate Other 0.5%
and doctors are examples of the largest sector of the labor force— 4 __________________________. While
5 __________________________ are those who provide services directly to individuals. Jobs are also categorized by
category heading. Then ask students 1,056,000

Worker Categories by Type of Job Economists skill level. 6 __________________________ are workers with no specialized training. Those whose jobs require some
training often using modern technology are known as 7 Those with the most educa-
Armed Forces sometimes classify workers by their type of occupation,

to write a classified advertisement
regardless of the skills necessary to perform the job.
for one job from each category. (To Source: Standard & Poor’s
assist students, you might provide
them with copies of the classified For an online update of this graph, visit ett.glencoe.com and A White-collar workers include office workers, ECONOMICS
sections of various newspapers.) click on Textbook Updates—Chapter 12. salespeople, and highly trained individuals & YOU
Have students compare and discuss such as engineers. The American Labor Force
their advertisements.
Daily Lecture Notes 12–1

seeking work. Individuals not able to work, such as disabled peo-
ple or those in prisons or mental institutions, are not included in
!8LV2" Chapter 14
Disc 1, Side 1
the civilian labor force. People in the armed forces or those not
ASK: What are the four major
12-1 looking for a paying job, such as full-time students and home-
categories of workers in the
L ECTURE LAUNCHER makers, are excluded as well. Figure 12.1 shows the civilian
American labor force? blue-
In 1950 the percentage on Nonfarm jobs in service-producing businesses was 59%, in 1970
it was 67%. By the year 2005 it is projected that this figure will rise to 82%. Who comprises labor force in comparison to the total working-age population.
the civilian labor force? How is it changing? What are the various skill levels? collar workers, white-collar work-
PAGES 313–314
I. The Civilian Labor Force
ers, service workers, and farm-
A. The civilian labor force is the total number of people 16 years or older who are
employed or seeking work.
B. People not included in the civilian labor force: mental or physically disabled people,
Categories of Workers workers
prisoners, people in the armed forces, and those not looking for a paying job.
• Discussion Question Workers in the United States are categorized in several ways. Also available in VHS.
Why do you think certain working people are not included in the civilian labor force?
(By definition, the term civilian means a non-military or non-government officer. This would
automatically exclude military people and federal and state officers. Others, such as full-time
One way is to group them according to the type of work they per-
students and homemakers, may be working, but do not bring in an income, and therefore
are not considered part of the civilian labor force.) form. Another way is by the level of training or education their
PAGES 314–316
II. Categories of Workers
jobs require.
A A di h f k h d bl ll ( f k f d Project Economic Concepts
Blue-Collar, White-Collar, and Service Workers During Transparency 16 and have students
the late 1800s and early 1900s, many farmworkers moved to discuss the accompanying questions.
cities. This migration occurred in part because the increased use C Service workers provide
of farm machinery required fewer agricultural workers. Higher B Blue-collar workers include craft services—haircuts, food
Answer: The unemployment rate is wages paid to workers in the growing industries of urban areas workers, workers in manufacturing, service, child care, and so
based on the civilian labor force. also lured farmworkers there. Displaced farmers, and others who and nonfarm laborers. on—directly to individuals.
Those not able to work—such as dis-
314 CHAPTER 12 The American Labor Force 315
abled people and those in prison or
mental institutions—people in the
armed services, and those not look-
ing for a paying job—such as full-
time students and homemakers—are Meeting Special Needs Cooperative Learning
not counted as part of the labor
Limited Math Skills When reviewing statistics on wages, students with limited math skills Organize students into several groups, and have groups create collages that illustrate
force.
may confuse the terms mean and median. Help these students by offering the following clues: the United States labor force. Have group members collect magazine, newspaper, and
1. The median is the middle (both words have a d sound, which can be used as a memory other media pictures of people at work. Inform groups that jobs should range in fields from
aid). Only by ranking the numbers from largest to smallest can you find the middle. If manual labor to the most recent high-tech developments. Have groups use these pictures
there are two “middle numbers,” add them and then divide by two to find the true middle to create their collages. Point out that collages should show diversity in terms of range of
number, or median. occupations, types of people working, and types of location. Have groups display their fin-
2. The mean is the average—simply add all the numbers and divide by the number of entries. ished collages around the classroom. ELL BLOCK SCHEDULING
Refer to Inclusion for the Social Studies Classroom Strategies and Activities
314 315
SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319
unskilled workers: people

Jobs Categorized by Skill Level Another way to catego-
rize workers is by the skills required to perform their occupa-
tion. Unskilled workers are those whose jobs require no
Economic Connection to... Literature SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319
whose jobs require no specialized specialized training. Jobs such as waiting on tables and custo-
L2 Classifying Information Call on training
dial work are considered unskilled, although obviously these Shakespeare as Business Guru? Economic Connection
students to identify the jobs done by
Literature
types of work require skills such as patience and the ability to
people they know or jobs they have
read about in newspapers or seen on
semiskilled workers: people
whose jobs require some training,
often using modern technology
pace oneself or to work according to a schedule. Such jobs may
also demand the ability to work well with people.
I f you want to succeed in business, study
the masters: Warren Buffett. Lee Iacocca.
Bill Gates. And William Shakespeare.
To weather acts of betrayal, you might
turn to Julius Caesar. Newly promoted lead-
ers can find parallels with Shakespeare’s
to...
television. List their responses on the Semiskilled workers are those whose jobs require some Shakespeare and Business
skilled workers: people who Shakespeare’s plays deal with people in Henry V, who struggles to gain respect in Why are Shakespeare’s plays
board. Then ask students to con- have learned a trade or craft training, often using modern technology. The job of nurse’s
positions of power and responsibility. A his new role as king. Consider Hamlet when
struct a three-column chart in their either through a vocational school aide, for example, is considered a semiskilled occupation. such a source of ideas for busi-
or as an apprentice to an experi- workshop at Shakespeare’s Globe Theater you’re facing indecision and action. And
notebooks, using “Jobs,” “Labor Cate- enced worker
Someone who has learned a trade or craft, either through a ness leaders? According to
teaches business leaders to read Shake- Macbeth teaches how to avoid becoming
gory,” and “Factors Affecting Supply vocational school or as an apprentice to an experienced worker, Richard Olivier, who runs the
speare’s works for wisdom that can be obsessed with power for its own sake. ■
and Demand” as column headings. is considered a skilled worker. Police officers and masons hold Globe Theater’s workshops, it is
applied in the work world. —The Columbus Dispatch, May 27, 1999
Direct students to select 10 jobs from skilled occupations. because Shakespeare “deals with
the list on the board and enter them professionals: highly educated Professionals are those with college degrees and usually people in a position of power.
individuals with college degrees additional education or training. Also classified as white-collar
in the first column of the chart. In and usually additional education There are always kings, dukes,
the second column, have them note or training workers, people who hold professional jobs include teachers, princes, who are put in some kind
whether the jobs are unskilled, semi- architects, and accountants. As shown in Figure 12.3, workers product that the worker produces. The worker’s productivity will of dilemma about how to deal with
skilled, skilled, or professional. Ask may move from one skill level to another as they gain training be the major factor in determining his or her success. An employee authority, whether it is being
students to enter in the third column and experience. whose value is easily and generally recognized cannot be under- threatened by someone or where
what factors they think might affect 12.3 paid for long by a firm, because another firm will soon entice power has to be negotiated.”
how supply and demand determine Supply and Demand that worker away with a higher salary.
wages for these jobs. Have students Worker Categories by Skill The type of job also affects the amount an employer is willing
share and compare their finished This woman moved from a semiskilled
in the Labor Market to pay and a potential employee is willing to accept. Jobs that are
charts. position—lumberjack—to a skilled posi- The labor market, like other markets, is affected by supply unpleasant or dangerous, such as coal mining, often pay higher Independent
tion—manager of the lumberyard. and demand. Suppliers are the workers who offer their services, wages compared to other jobs requiring equal levels of skill. Practice
while the demand comes from employers who require workers. Again, the demand for workers is high, but the supply of laborers
willing to do the work may be low. L3 Debate Organize the class into
Supply and Demand Factors That Affect Wages Three In contrast, some jobs are enjoyable or prestigious or desirable two groups to debate the following:
major factors affect how supply and demand determine prices, enough that people are willing to take them even at low wages. Should professional athletes, rock
After students have studied or in this case wages, in the labor market. These factors include Many people take lower-paying jobs in industries such as film- singers, and movie stars command
Figure 12.3, have them suggest skill, type of job, and location. making and publishing for these reasons. In high salaries for their labors? Sug-
how other categories of labor The first factor, skill, is the ability a person brings to a job. It these cases, the demand for workers is low, gest that students focus on economic
might be illustrated. Possible may come from talent, initiative, education and/or training, or whereas the supply of individuals waiting for arguments in the debate.
answers: unskilled—restaurant experience. Because the demand for highly talented individuals prestigious positions is high. BLOCK SCHEDULING
worker cleaning a table, landscap- is usually high, whereas the supply of such employees is often The location of both jobs and workers
ing worker raking leaves; profes- scarce, a shortage occurs. As you remember from Chapter 7, a is the third factor in determining wages.
sional—doctor examining patient, shortage usually results in high prices—or high wages. A highly If workers are relatively scarce in an area, Student Web Activity Visit the Economics
educated brain surgeon and a talented major league home-run hit- companies may have to pay high wages to Today and Tomorrow Web site at ett.glencoe.com
architect viewing blueprints.
ter, for example, both are paid large sums of money because their attract workers to move there. Alaska, for and click on Chapter 12— Student Web
skills are in high demand relative to supply. example, has the highest wages per person Activities to see how the Internet can help you See the Web Activity Lesson
A worker’s initiative also plays a large role in determining in the country. In contrast, a company in a find a job. Plan at ett.glencoe.com for an
wages. Overall, a worker’s wages will reflect the value of the highly populated area often can hire people introduction, lesson description,
and answers to the Student Web
The American Labor Force 317 Activity for this chapter.
Free Enterprise Activity Extending the Content

Point out that wages often include fringe benefits, such as paid vacation time, health Labor Categories The labels unskilled, semiskilled, skilled, and professional are helpful
insurance, and pension contributions. Organize students into several groups, and have in developing a broad picture of the different segments of the labor force. However, some
each group select a local company. Have groups visit or write to the personnel depart- individuals may not fall into a single category. A college student, for example, may work at
ments of these companies to discover what fringe benefits the companies offer. Have an unskilled job as server at a fast-food restaurant while he or she attends college. In
groups share their findings with the rest of the class. addition, the definition of the term technician—traditionally a skilled position—has begun to
change. Some technicians today require considerable training, including a college degree,
to prepare them for very difficult and demanding jobs. Moreover, the line between some
technicians and scientists—who are considered professionals—is very thin.
316 317
at relatively low wages. Even professionals in such a location may jobs is imperfect. Workers cannot know exactly what all other
SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319 SECTION
SECTION 1,
1, Pages
Pages 313–319
313–319
not receive high wages. See Figure 12.4. employers will pay for their services. Employers, for their part, do
not know what all workers are willing to accept. Economists call
Restrictions on Wages If the labor market were perfectly com- this lack of information a market failure.
L2 Analyzing Ideas Point out that petitive, the changing supply and demand for labor would result in Two other factors restrict supply and demand in terms of their Section Quiz 12–1
the United States labor force has constantly shifting wage rates. The labor market, however, is not influence on wages. One is the federal minimum wage law, minimum wage law: federal law Name Date Class
undergone many changes. More which sets the lowest legal hourly wage rate that may be paid to that sets the lowest legal hourly
perfectly competitive. For one reason, the flow of information about wage rate that may be paid to
12, 1
often than not, these changes have certain types of workers. Although the purpose of the minimum certain types of workers A MERICANS AT WORK SCORE
resulted from the introduction of 12.4 wage is to help workers, some studies have shown that the oppo- Matching: Place a letter from column B in the blank in column A. (10 points each)
A B
new technology. Have students site often occurs. An increase in the minimum wage causes some 1. civilian labor force a. people who provide services directly to individuals
b. total number of people 16 years old or older who
research and write an illustrated Supply and Demand Factors Affecting Wages firms to hire fewer low-skilled workers. This can delay the acqui- 2. blue-collar
3. professionals c.
are either employed or actively seeking work
category of workers employed in crafts,
manufacturing, and nonfarm labor
paper on the impact of the computer sition of job skills by teenagers and minorities and reduce their 4. white-collar
5. service workers
d. individuals with college degrees and usually
additional education or training
e. category of workers employed in offices, sales, or
and computer-related innovations, Insulation Worker subsequent attractiveness in the labor force. professional positions
$48.40
$47.77
Multiple Choice: In the blank at the left, write the letter of the choice that best
$47.35
such as the Internet, on the labor A Location Sheetmetal Worker
Another factor that restricts the influence of supply and completes the statement or answers the question. (10 points each)
6. Which of the following is an unskilled worker?
a. nurse’s aide b. delivery person
demand on wages is the process of wage negotiations between
$40.38
force. Suggest to students that since A skilled ironworker Structural and
c. bricklayer
7. The largest sector of the labor force is
d. architect
these changes are ongoing, they will earn more in Reinforcing Ironworker organized labor (unions) and management. Supply and demand a. blue-collar workers.
c. white-collar workers.
b. farm workers.
d. unskilled workers.
8 A word processor is
should make the final paragraph of urban areas of the Roofer have less influence on wage negotiations than do such things as
North or Midwest, the company’s ability to pay higher wages, the length of the nego-
the paper a discussion of possible New York
future changes.
where blue-collar City tiated contract, and seniority—length of time on the job. You’ll Reteach
wages are higher, learn more about organized labor in Sections 2 and 3. Have students write questions to
than in the South, which the Terms to Know are the
Practice and assess
which has traditionally key skills with answers. Call on volunteers to quiz
$18.83
had lower wages. Nashville Skillbuilder Interactive the class with their questions.
$14.97
Workbook, Level 2.
Meeting Lesson
Objectives B Type of Job Reading Essentials and
$21.68
People with dangerous jobs, such 1 Study Guide 12–1
Assign Section 1 Assessment as Houston New
as these firefighters specializing Name Date Class
$14.56
homework or an in-class activity. in oil-well fires, will receive higher
Orleans 12, 1
Use Interactive Tutor Self- wages than others who do not Understanding Key Terms Applying Economic Concepts For use with textbook pages 313–319
A MERICANS AT WORK
have life-threatening occupations. 1. Define civilian labor force, blue-collar workers, 4. The Civilian Labor Force Are you technically
Assessment Software to review
white-collar workers, service workers, unskilled a member of the civilian labor force? Explain KEY TERMS
Section 1. workers, semiskilled workers, skilled workers, why you are or are not considered part of this
civilian labor force Total number of people 16 years old or older who are employed or seeking work
(page 313)
blue-collar workers Category of workers employed in crafts, manufacturing, and nonfarm labor
(page 315)
Source: Bureau of Labor Statistics

professionals, minimum wage law. group. white-collar workers Category of workers employed in offices, sales, or professional positions (page 315)
service workers Category of workers who provide services directly to individuals (page 315)
unskilled workers People whose jobs require no specialized training (page 316)
semiskilled workers People whose jobs require some training, often using modern technology
(page 316)
Reviewing Objectives skilled workers People who have learned a trade or craft either through a vocational school or as an
apprentice to an experienced worker (page 316)
professionals Highly educated individuals with college degrees and usually additional education or train-
ing (page 316)
2. What are four categories of workers as deter- minimum wage law federal law that sets the lowest hourly wage that may be paid to certain types of
C Skill mined by skill level and education?

Critical Thinking Activity workers (page 319)
Point out that the cost of living Kevin Brown, pitcher for the 5. Understanding Cause and Effect Draw DRAWING FROM EXPERIENCE
3. Graphic Organizer Create a diagram like the Did you realize that your school is like a miniature labor force? Every day white-collar, blue-collar,
influences regional differences in Los Angeles Dodgers, signed one below to explain how skill, type of job, and two line graphs showing (1) how the labor professional, service, skilled, semiskilled, and unskilled employees are at work around you. The
t h k t di d ffi t ff f h l i th th t k i di id d
a $105 million seven-year location affect supply and demand in the labor supply would change in a highly remote loca-
wages. The cost of living in the
contract. His wages are market. tion if very high wages were offered to
North and Midwest, in general, is high because his types prospective employees, and (2) how the
higher than in the South. Wages, Highly Skilled demand for labor would change in a firm that
of skills are in high Effect on Dangerous Job Effect on
therefore, tend to be higher in the Supply Demand just invested in robotics. For help in using
demand but in Remote Location
North and Midwest. short supply.
line graphs, see page xv in the Economic Have students write a brief para-
Handbook. graph explaining how the forces of
supply and demand affect wages.
318 CHAPTER 12 The American Labor Force 319
Relevant Issues in Economics

Wage Discrimination Discrimination—unfair treatment based on personal characteris- 1. All definitions can be found in the Glossary. 4. Answers should indicate that students under-
tics or beliefs, such as race, gender, or religion—results in differences in wage rates. In 2. unskilled, semiskilled, skilled, professional stand that the civilian labor force consists of
the past, women and minorities were excluded from the highest-paying jobs regardless of 3. The supply of workers in the labor market who people 16 years of age or older who are
education or skill. As a result, they were trapped in lower-paying jobs. The Equal Pay Act fit these categories (Highly Skilled, Dangerous employed or actively seeking work.
of 1963—which required businesses to pay men and women the same for equal work— Job, and Remote Location) is low. The demand 5. Graphs should indicate an increase in supply
for labor that fits these categories is high. of labor in the area where high wages are paid
and the 1964 Civil Rights Act—which outlawed discrimination in hiring and firing—helped
and a decrease in the demand for labor in the
to end the worst examples of discrimination. Even so, women earn as much as 20 percent firm that had invested in robotics.
less than a man with exactly the same educational achievement and skills.
318 319
319
CHAPTER 12
SECTION
SECTION 2,
2, Pages
Pages 321–326
321–326
SPOTLIGHT 2
To emphasize the problem facing

tech companies, mention that a
SPOTLIGHT ON THE ECONOMY Overview
survey conducted in 1999 by the Section 2 describes the rise of
READER’S GUIDE organized labor in the United States
American Management Association
found that nearly two-thirds of
companies were having trouble fill-
How to Keep the Tech Terms to Know
• labor union
and how unions are organized.
ing skilled jobs. Then point out that

to tackle this problem, some com-
Workers That You’ve Got 1884 GOVERNMENT REPORT DESCRIBING WORKING CONDITIONS
FOR WOMEN IN A SMALL FACTORY, BOSTON
The work is dangerous . . .

• strike
• craft union
• industrial union
BELLRINGER
Motivational Activity
panies have taken quite extreme Check It Out! In Section 1 you learned how supply and Translated: Pay more, make your company • local union
[and they] are liable to get their
measures. Some offer cash “sign- demand affect wages. In this article, read to learn what more fun, and help workers develop and advance • closed shop Project Daily Focus
fingers jammed under the bench,
on” bonuses to new employees, companies should do to keep valued employees. in their jobs. It’s not rocket science, or even as • union shop Transparency 39 and have
or caught in the die when it
while others encourage workers to tough as programming C++ yourself, and it’s • agency shop students answer the questions.
comes down to press the • right-to-work laws
stay by providing new cars or stock
in the company. W ith only 7 candidates for every 10 tech-
nology jobs, the information technology
(IT) staff squeeze is getting worse. Turnover
probably less expensive than recruiting and train-
ing new workers.
—Reprinted from June 21, 1999 issue of Business Week by special
parts of the buttons
together. A man (although Reading Objectives
1. What obstacles did labor
This activity is also available
as a blackline master.
permission, copyright © 1999 by The McGraw-Hill Companies, Inc. not a surgeon) is provided
rates are 20% a year and rising. American com- unions face when they Daily Focus Transparency 39
panies have an estimated 190,000 IT openings. to dress wounds three began to organize in the
The Top Five Reasons Tech Workers Quit*
Where to find folks? Here’s an idea: Be nicer to times for each individual 1800s?
Under 30 Over 30
39
To find up-to-date news and without charge; after-
1. It is declining. 2. The actual numbers of members would rise even as the percent-
2. How do closed shops,
age declined, owing to the increased size of the American labor force, and so could
the ones you have. That’s the key suggestion in Not enough advancement 87% 70%
analysis on the economy, busi- wards, the person injured union shops, and agency O RGANIZED LABOR
a new survey by human-resources consultants Too boring 85 71
ness, technology, markets, Want more time off 56 43 must pay all expenses. There are 35 machines in shops differ? Union Membership, by Percentage of
at the Hay Group in Philadelphia. 100
American Labor Force (1930-2000)
Want company-paid tuition 39 16

entrepreneurs, investments, Top reasons tech workers bolt? Poor career use, and accidents are of very frequent occurrence. 90
Want more support from boss 67 55
Percentage of Labor Force in Labor Unions

and finance, have students development, boring work environment, low pay, U. A . W
misrepresent the situation.

80
*Data: Hay Group 70 .

search feature articles and spe- not enough chances for promotion, and not
Answers
60
cial reports on the Business enough technology to work on. The answers Think About It
50
40
Week Web site. came from a study of IT professionals who had 30
left their jobs in the prior 12 months. Says Hay 1. According to the article, in what three ways could
www.businessweek.com 20
companies “address employees’ concerns”?
T o have some control over the wages they receive as well 10
Group’s Vincent Milich: “It’s surprising that even 0
as over other working conditions, American workers

1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000*
amid this worker shortage, tech companies are 2. Why should companies try to hold on to their IT Year
still not effectively addressing these key issues.” employees? formed labor unions. A labor union is an association of labor union: association of *estimated Source: Bureau of Labor Statistics
workers organized to improve wages and working conditions workers organized to improve 1. What is the current trend in labor union membership?
Milich says companies can combat malaise wages and working conditions 2. Why might it be more useful to consider union membership in
terms of percentage of the work force, instead of in terms of
[onset of illness] by “taking the pulse of the work- for its members. As you read this section, you’ll learn that for its members actual numbers of members?
force more often and implementing programs unions are based on the idea that workers as a group will have Daily Focus Transparencies
Some companies are not tak- more influence on management than will individual workers
that address employees’ concerns.”
ing the enlightened approach acting alone. (In discussing labor-management relations, the
recommended by the Hay Group. term management refers to those in charge of a company—the READER’S GUIDE
If they have trouble replacing the executives and managers.)
workers who have left, they sim- Answers to the Reading Objectives
ply load more work on the The American Labor Force 321
questions are on page 326.
employees who remain. Preteaching Vocabulary
Have students write two sen-
tences, one explaining the differ-
Answers to Think About It SECTION 2 RESOURCE MANAGER ence between craft unions and
industrial unions, the other
1. increase pay, make the company more fun, and help workers develop and advance in Reproducible Masters Multimedia explaining the differences among
their jobs Reproducible Lesson Plan 12–2 Daily Focus Transparency 39 a closed shop, a union shop, and
2. because it is very expensive to recruit and train new workers Reading Essentials and Study Guide 12–2 Vocabulary PuzzleMaker an agency shop.
Guided Reading Activity 12–2 Interactive Tutor Self-Assessment Software
Section Quiz 12–2 ExamView® Pro Testmaker
Daily Focus Activity 39 MindJogger Videoquiz
Daily Lecture Notes 12–2 NBR’s Economics & You
Presentation Plus!
320 321
Labor’s Early Struggle for Recognition The major weapon for workers to fired and blacklisted—kept from being employed. Strikes, or delib- strike: deliberate work stoppage
SECTION
SECTION 2,
2, Pages
Pages 321–326
321–326 FIGURE 12.5 by workers to force an employer SECTION
SECTION 2,
2, Pages
Pages 321–326
321–326
use against management was the strike. More often than not, however, striking unions erate work stoppages by workers to force an employer to give in to to give in to their demands
were viewed as dangerous by the public, who turned against them. their demands, often resulted in violence between strikers and
police, as described in Figure 12.5. Not until the mid-1930s did
Congress begin to pass laws to regulate labor-management rela- Guided Reading Activity 12–2
1892 Silver Mines Unrest Miners tions. Several of these laws are explained in Figure 12.6. Name Date Class
strike to protest wage cut; the 1892 Homestead Massacre Steel

workers strike to protest a wage 12-2
state jails more than 1,000 workers.
Guided Practice cut; 13 people are killed. The American Labor Movement For much of its history, craft union: union made up of For use with the textbook pages 321–326
skilled workers in a specific trade O RGANIZED LABOR

1886 Haymarket Affair A bomb organized labor in the United States has been split into two groups:
L2 Analyzing Ideas Call on stu- WA Coeur
explodes at a labor rally, killing
or industry RECALLING THE FACTS
d'Alene NH
ME craft unions and industrial unions. A craft Directions: Use the information in your textbook to answer the questions.
dents to identify the reasons why 7 police officers. Police fire into VT
N 1. Why do workers organize into labor unions?
MT the crowd, killing 10. union is made up of skilled workers
unions were popular and grew in OR in a specific trade or industry, such as
2. What idea are labor unions based on?
WI CT Lawrence
strength during the years from the ID SD MN
MA carpentry or printing. The first per-
NY 3. In the 1800s, how did businesses try to stop labor unions?
late 1800s to the mid-1900s. Then WY Chicago MI RI

Homestead manent federation, or organization
point out that since the 1980s, union NV NE IA Pullman
PA
1912 Textile Strike of national labor unions, was the
12.7 4. What is the purpose of a strike?
CO IL OH Police beat 40
5. How are craft and industrial unions organized?
membership has been declining. Ask UT IN

strikers' hungry American Federation of Labor
Craft unions:
CA
students to write a paragraph dis- 1894 Pullman Strike About WV VA children. (AFL), composed of craft unions The AFL Samuel Gompers estab- Industrial Unions:
14,000 troops attack striking KY

cussing the possible causes for this railroad workers, killing 30. lished the American Federation of Labor
NC and led by Samuel Gompers. See
and served as its president from 1886 to
change. AZ OK AK
TN
1902 Anthracite Coal Strike Figure 12.7 at right.
1924. Among other causes, he fought for
Independent
NM About 140,000 miners strike
TX
MS AL to win union recognition. the eight-hour workday. Practice
Daily Lecture Notes 12–2 1887 Sugarcane Workers Strike State LA
militia breaks strike, killing 30 people, L1 Constructing a Time Line Have
mostly African Americans.
12-2 FL students work in small groups to cre-
ate illustrated time lines of organized
L ECTURE LAUNCHER
The first known labor strikes occurred in 1768. Journeymen tailors went on strike in New York
City to protest a cut in their wages. What are labor unions? What does their existence say
about the power of the individual worker?
Labor Unrest FIGURE 12.6 Labor-Management labor in the United States from the
PAGES 322–324
I. Development of Labor Unions
Legislation early 1800s to the present day. Sug-
gest that students include 10 to 15
A. In the 1800s working conditions were terrible and unions were often illegal.
B. Strikes often resulted in violence between workers and the police.
C. The first permanent union, The American Federation of Labor (AFL) was made up of
entries in their time lines. Also, point
craft unions and led by Samuel Gompers.
D. In 1938, the Congress of Industrial Organizations (CIO) was created, and the automo- Legislation Description out that time lines should be con-
bile and steel industries were the first to be organized.
E. AFL and CIO joined forces in 1955 because they felt greater gains could be made if the
craft and industrial unions worked together.
Development of Labor Unions Norris-LaGuardia Act, 1932 Limits the power of the courts to stop picketing and boycotts, and structed with sheets of butcher
• Discussion Question
The labor movement’s main goal was to protect workers and help them earn fair Working conditions in the 1800s were very different from makes yellow-dog contracts illegal. This type of contract is the paper so that they may be displayed
wages. What do you suppose are the main goals of labor unions today? (Answers may
vary. Students may suggest that unions still try to get workers fair wages. Others may feel
that unions are not as needed today as they used to be.) those of today. Buildings were often poorly lighted and ventilated, practice whereby employers require that employees pledge not on the walls of the classroom.
and the machinery was sometimes dangerous to operate. The to join a union. BLOCK SCHEDULING
workweek was long, and wages were low. No unemployment
Wagner Act, 1935 Guarantees labor’s right to organize and bargain collectively. Sets
insurance helped those who were out of work until they found up National Labor Relations Board (NLRB) to oversee the estab-
new jobs. Health-care benefits, sick leave, and paid vacations and lishment and operation of unions.
ECONOMICS holidays did not exist.
& YOU Workers began to form unions to force employers to improve Taft-Hartley Act, 1947 Outlaws certain strike tactics, permits states to pass laws making
wages and working conditions, shorten the workday, and end union shops illegal, and allows the President to delay a strike if it
The American Labor Force Have students review the infor-
will threaten the nation’s health and safety.
child labor. Unionism, however, met with strong resistance. In mation in Figure 12.6. Then
!8LV2" Chapter 14
Disc 1, Side 1
the 1800s, state legislatures—influenced by business interests—
passed laws against unions, and courts upheld them.
Landrum-Griffin Act, 1959 Increases government control over unions and guarantees union
members certain rights, such as freedom of speech in union
activities and control over union dues.
point out that public opinion
turned against unions in the mid-
Many businesses refused to hire union members or deal with 1940s. Some people were upset
ASK: Why did unions first unions. Workers who were found trying to organize unions were by the labor unrest—in 1946
become popular? They fought
alone, 116 million workdays were
for safer working conditions, 322 CHAPTER 12 The American Labor Force 323
lost to strikes. Other people
shorter working hours, and such
feared that Communists had infil-
benefits as paid vacations and
trated the unions.
health insurance.
Also available in VHS. Meeting Special Needs Cooperative Learning
Limited English Proficiency Students with limited English proficiency may have diffi- Organize students into several groups, and have groups investigate the roles that
culty understanding the types of labor unions that developed and how unions are orga- women, African Americans, and other minority groups played in the development of the
nized. They may find it easier to comprehend the material if they outline the section. American labor movement. Have them use their findings to create a brochure that might
Suggest that they list the different types of unions and levels of union operations and the accompany a museum exhibit on minorities and organized labor in the United States.
major characteristics of each in outline form. Suggest that brochures include an overview of the exhibit and several exhibit items—
paintings, pictures, charts, graphs, and other visuals—accompanied by explanatory cap-
Refer to Inclusion for the Social Studies Classroom Strategies and Activities for tions. Have groups present and discuss their brochures. BLOCK SCHEDULING
students with different learning styles.
322 323
industrial union: union made up An industrial union is made up of all the workers in an indus- Supporters of union shops and agency shops argue that
SECTION
SECTION 2,
2, Pages
Pages 321–326
321–326 of all the workers in an industry SECTION
SECTION 2,
2, Pages
Pages 321–326
321–326
try regardless of job or level of skills. Attempts to organize indus- employees in companies that are unionized should be required
regardless of job or skill level
trial unions date to the late 1800s and the leadership of Eugene V. to pay union dues because they benefit from contracts the union
Debs, founder of the American Railway Union. The first significant negotiates. Opponents believe that a person should not be
L2 Writing a Report Have students effort to unionize unskilled and semiskilled workers did not begin, required to join a union.
select a federal law that regulates however, until the formation of the Congress Since 1947 a number of states, as shown in Figure 12.8, have
organized labor. Have them write a of Industrial Organizations (CIO) in 1938. passed right-to-work laws that forbid union shops. These laws right-to-work laws: state laws
forbidding unions from forcing
report on this law, discussing the allow workers to continue working in a particular job without join- workers to join and pay union Have students study the map
reasons for its enactment; its main The AFL-CIO During the late 1930s and ing a union. The benefits negotiated by the union must be made dues in Figure 12.8. ASK: In which
points; and any important outcomes early 1940s, both the AFL and the CIO regions of the United States are
for workers, businesses, or the econ- launched organizing campaigns that made
omy as a whole.
Improving Working the lines between industrial and craft unions
most right-to-work states
found? the South and West
Conditions Worldwide less clear. AFL unions began recruiting semi-
Overseas factories drew attention in the 1990s after skilled and unskilled workers, while the CIO FIGURE 12.8 States With Right-to-Work Laws
Economic Connection human-rights groups disclosed that clothing sold in began organizing workers in the skilled
to... History Wal-Mart was produced in a Honduran sweatshop. The trades. The resulting rivalry cost both union
WA
federations time and effort.
Vietnamese factory making Nike products was accused
By the mid-1950s, union leaders realized MT ND N VT
NH
ME
May Day In countries around the of having dangerous levels of chemicals. The White
that the labor movement would make greater OR MN Meeting Lesson
world, May 1—May Day—is cele- House convened manufacturers and human-rights ID
brated as International Workers’ groups in 1996 to address such abuses.
gains if craft and industrial unions worked
WY
SD WI
NY MA Objectives
together. As a result, the two federations MI RI
Day or Labor Day. One notable Since then, Nike and other companies have taken NE IA PA CT Assign Section 2 Assessment as
merged in 1955 to form the present AFL-CIO. NV
exception is the United States, steps to improve conditions for workers. At Nike’s UT IN OH NJ homework or an in-class activity.
IL
where Labor Day is celebrated on Vietnamese factory, for example, ventilation has been CA CO KS MO
WV VA DE Use Interactive Tutor Self-
the first Monday in September. improved and workers are using a less toxic glue. How Unions KY
NC
MD
Assessment Software to review
TN
May Day actually commemorates Federal contractors are required to certify that no abu- Are Organized AZ
NM
OK AK SC
Section 2.
an event in American labor history. sive child labor went into the goods they buy. ■ Organized labor operates at three levels: MS AL GA
The American Federation of Labor
the local union, the national or international TX LA Section Quiz 12–2
(AFL) declared a national strike on union, and the federation. Name Date Class
May 1, 1886, to demand an eight- FL 12, 2

AK
hour workday. Some 350,000 local union: members of a union Local Unions A local union consists of the members of a HI
O RGANIZED LABOR SCORE
workers across the United States in a particular factory, company, union in a particular factory, company, or geographic area. The Matching: Place a letter from Column B in the blank in Column A. (10 points each)
responded and struck. In the fol- or geographic area

local deals with a company by negotiating a contract and making Right-to-Work State A B
1. labor union a. union made up of all the workers in an industry
lowing years, this first major effort sure the terms of the contract are kept. The influence that a local Source: National Right to Work Organization
2. strike
3. craft union
b.
regardless of job or skill level
deliberate work stoppage by workers to force an
employer to give in to their demands
to win an eight-hour workday was has often depends on the type of membership policy it has nego- 4. industrial union
5. closed shop
c.
d.
association of workers organized to improve wages
and working conditions for its members
company in which only union members may be
hired
marked by May Day celebrations closed shop: company in which tiated with management. e. union made up of skilled workers in a specific trade
or industry
in other countries. AFL-CIO members

only union members could be Not all local unions are alike. Membership requirements and Multiple Choice: In the blank at the left, write the letter of the choice that best
completes the statement or answers the question. (10 points each)
hired 6. The word management refers to
the ways in which management relates to union members vary a. those in charge of a company.
c. union leaders.
b. unskilled workers in a company.
d. skilled workers in a company.
from one kind of shop to another. In a closed shop, companies

7. Which of the following describes reactions to unions in the 1800s?
a. state laws supported unions b. businesses favored unions
union shop: company that c. states passed laws against unions d. workers opposed unions
requires new employees to join a could hire only union members. The Taft-Hartley Act of 1947 out-
union after a specific period of time lawed closed shops, however. In a union shop, a new employee
must join the union after a specific period of time, usually three
agency shop: company in which
employees are not required to join months. In an agency shop, employees are not required to join
the union, but must pay union dues the union, but they must pay union dues.
324 CHAPTER 12
Extending the Content Relevant Issues in Economics

Attitudes Toward Unions After years of being viewed negatively by many Americans, Unions and Wages Economists have tried to evaluate the economic impact of unions
unions appear to be winning public support once again. A survey conducted in 1999 found by looking at wages in unionized and nonunionized industries. Several studies found that
that in the six years since 1993, negative attitudes toward unions dropped from 34 percent union workers received wages that were 10 to 17 percent higher than those of nonunion
of the population to 23 percent. In the same period, positive attitudes toward unions workers. However, most economists do not feel that unions have driven up the overall
showed a moderate rise. Among Americans aged 18–34, positive attitudes exceeded neg- level of wages in the economy. In other words, businesses are not paying wage rates
ative attitudes two to one. This approval among younger people, union leaders feel, bodes higher than they can bear. Union workers’ higher wages, then, come not at the expense of
well for recruitment in the future. businesses but at the expense of the wages of nonunion workers.
324 325
CHAPTER 12
available to workers who do not join the union. Unions have less
SECTION
SECTION 2,
2, Pages
Pages 321–326
321–326
power in states with right-to-work laws than in other states.
National Unions Above the locals are the national unions.

Reteach These organizations are the individual craft or industrial unions Background
that represent locals nationwide. Those unions that also have mem-
Have students use the Terms to Point out that Walter Reuther
Know to write a summary of
Section 2.
bers in Canada or Mexico are often called international unions.
National unions send in organizers to help employees organize Walter Reuther was a leader in the Democratic
Party, and he served as an adviser
campaigns to set up locals. To help in negotiating a contract
between a local and a particular company, the nationals provide LABOR LEADER (1907–1970) to Democratic presidents from
Reading Essentials and lawyers and other staff members. In certain industries such as steel Franklin Roosevelt to Lyndon
Study Guide 12–2 and mining, the national union negotiates the contract for the entire Johnson. Reuther was especially
we’re operating way up here in the
Name
For use with textbook pages 321–326

Date Class
12, 2
industry. After the majority of union members accept the contract,
all the locals within the industry must work under the contract. W alter Reuther ranks among
the greatest American
labor leaders of the twentieth cen-
stratosphere and you shouldn’t get
excited about these little problems
influential during Johnson’s admin-
istration. He played a major role in
the passage of the Civil Rights Act
O RGANIZED LABOR
Some of the largest unions are the International Brotherhood of
Teamsters, the United Automobile Workers (UAW), and the United ■ President of the tury. A driving force in the union- that are bothering you every of 1964 and in the development of
KEY TERMS
labor union Association of workers organized to improve wages and working conditions for its members
(page 321) Steelworkers of America (USW). United Automobile organizing movement of the morning. Johnson’s War on Poverty program.
strike Deliberate work stoppage by workers to force an employer to give in to their demands (page 323)
craft union Union made up of skilled workers in a specific trade or industry (page 323)
industrial union Union made up of all workers in an industry regardless of their job or skill level
(page 324)
Workers (UAW), 1930s and 1940s, he was the first But to make that the sole pur-
local union Members of a union in a particular factory, company, or geographic area (page 324)
closed shop Company in which only union members may be hired (page 324)
union shop Company that requires new employees to join a union after a specific period of time
Federation Level At the federation level is the AFL-CIO, 1946–1970
union leader to negotiate for, and pose of the labor movement is to
(page 324)
agency shop Company in which employees are not required to join a union, but must pay union dues
(page 324)
which is made up of national and international unions. More than ■ President of the win, benefits that workers today miss the main target. The labor
right-to-work laws State laws forbidding unions from forcing workers to join and pay union dues
(page 325)
70 unions with about 13 million Congress of movement is about changing society.
take for granted—cost-of-living After students read the excerpt,
DRAWING FROM EXPERIENCE members are associated with the Industrial I mean, I don’t think I am eloquent
You might expect that service employees, like the cooks in your cafeteria, could be members of a Practice and assess raises, pension plans, employer- underscore that Reuther strongly
labor union. However, would it surprise you that your teachers may working under a union AFL-CIO. Organizations
contract with your school system? The National Education Association (NEA) and the American
key skills with funded health insurance, and when I say to a guy: What good is a believed that unions should work to
Skillbuilder Interactive (CIO), 1952–1955
profit sharing. Reuther was also dollar an hour more in wages if improve society as a whole. ASK:
Workbook, Level 2. ■ Helped to bring
deeply involved in the civil rights your neighborhood is burning Do you think that unions should
about the merger
and environmental movements. down? What good is another week’s be involved in social issues such
of the American
In a class discussion, have stu- 2 Federation of Labor As another union leader noted, vacation if the lake you used to go as civil rights and the environ-
(AFL) and the CIO “Walter Reuther was on the front to, where you’ve got a cottage, is ment, or do you think that they
dents outline the contributions and
in 1955 lines of the battle for a better polluted and you can’t swim in it should limit their actions to work-
limitations of labor unions. Understanding Key Terms Applying Economic Concepts
■ Posthumously world.” In the excerpt below, and the kids can’t play in it? What place issues such as hours and
1. Define labor union, strike, craft union, indus- 4. Economic Institutions List and evaluate the wages? Encourage students to
trial union, local union, closed shop, union shop, four pieces of legislation highlighted in Figure awarded the Reuther explains his philosophy good is another $100 pension if the
explain their responses.
agency shop, right-to-work laws. 12.6 on page 323. Rate the acts as follows:
“+” for acts that benefited unions, “–” for acts
Presidential Medal
of Freedom for dis-
of unionism: world goes up in atomic smoke?
”
Reviewing Objectives Checking for Understanding
2. What obstacles did labor unions face when they
began to organize in the 1800s?
that harmed unions, “0” for acts that had a
mixed impact on unions.
tinguished civilian
service in peace- “ My main point is that the
labor movement is about that 1. What do you think Reuther meant by
time in 1995
problem we face ‘tomorrow morn- the “little problems that [bother
3. Graphic Organizer Create a chart like the
one below to summarize the differences among ing’. . . . The guys have a right to workers] every morning”?
closed shops, union shops, and agency shops. Critical Thinking Activity expect the labor movement to deal 2. What did Reuther think was the main
Type of Union Summary 5. Synthesizing Information According to with that problem. I can’t give “target” of the labor movement?
Figure 12.8 on page 325, is your state a
right-to-work state? How do right-to-work
them some philosophical baloney
laws affect unions? Do you agree or disagree and say: Well, fellows, you know
with right-to-work laws? Explain your answer.
326 CHAPTER 12 327
Answers to Checking for Understanding

1. All definitions can be found in the Glossary. agency: employees are not required to join the 1. Answers may vary. Most students will suggest such problems as paying the bills and
2. State laws outlawed unions; businesses union, but must pay union dues making sure families have enough to eat.
refused to hire union members or to deal with 4. Norris-LaGuardia Act +; Wagner Act +; Taft- 2. Reuther thought the main target of unions was to change society.
union representatives, and often fired and Hartley Act –; Landrum-Griffin Act 0
blacklisted union organizers. 5. See map on page 325 for right-to-work states.
3. closed: companies may hire only union work- Unions have less power in areas where there
ers; union: new employees must join the union are right-to-work laws.
after a set period of time, usually three months;
326 327
SECTION
SECTION 3,
3, Pages
Pages 328–333
328–333 Negotiations SECTION
SECTION 3,
3, Pages
Pages 328–333
328–333
3 Negotiations take place when labor and management meet to
discuss in detail a wide range of contract issues. Figure 12.9 on cost-of-living adjustment
page 330 lists the most important issues that labor and manage- (COLA): provision calling for an
additional wage increase each
ment may negotiate, including working hours, fringe benefits, and year if the general level of prices
a cost-of-living adjustment (COLA). In most cases, negotiations rises
Overview are friendly and result in an agreement that satisfies all parties. Guided Practice
mediation: a neutral person tries
Section 3 describes the basic fea- to get both sides to reach an
Mediation If negotiations become hostile or compromise breaks agreement during negotiations L1 Illustrating Ideas Review the
tures of collective bargaining and READER’S GUIDE down, labor and management may try mediation. Mediation occurs text on collective bargaining with
explains how unions have declined Terms to Know when a neutral person steps in and tries to get both sides to reach arbitration: union and manage- students. Ensure that students
in recent years. • collective bargaining an agreement. The mediator suggests possible solutions and works
ment submit the issues they can-
understand that when conflicts arise
not agree on to a third party for a
• cost-of-living adjustment THE NEW YORK TIMES, JUNE 30, 1998 to keep the two sides talking with each other. final decision between labor and management,
(COLA)
In a move that could lead to the first work stoppage The federal government, through the Federal mediation and arbitration may be
BELLRINGER • mediation
Mediation and Conciliation Service (FMCS), pro- used to find compromises. Then ask
Motivational Activity • arbitration in National Basketball Association history, the 29 league
• picketing vides a mediator free of charge upon request of students to create a flowchart show-
owners Monday agreed to lock out the
• boycott either union or management. In a typical year, ing the collective bargaining process.
Project Daily Focus players and suspend all league business
Transparency 40 and have
• lockout
• injunction
until the two parties sign a new labor
FMCS mediators are involved in thousands of
negotiations. A number of state and private medi-
C
A R EE R S Call on volunteers to display and
agreement.
explain their flowcharts.
students answer the questions. ators also help resolve disputes.
Reading Objectives The lockout will begin Labor Relations
This activity is also available
as a blackline master. 1. What are the major issues at midnight Tuesday Arbitration If mediation fails, the negotiation
Specialist Daily Lecture Notes 12–3
over which union contracts night, when the process may go one step further to arbitration. In Job Description Qualifications 12-3
are negotiated?
Daily Focus Transparency 40 current collective arbitration, the two sides submit the issues they ■ Prepare
2. What workers’ actions and infor- ■ Master’s degree L ECTURE LAUNCHER
management responses
bargaining agree- cannot agree on to a third party for a final deci- mation for in labor rela- Federal employees cannot strike. Any kind of strike or halting of work by federal employees
was outlawed by the Labor-Management Relations (Taft-Hartley) Act of 1947. The govern-
ment expires. With sion. Both sides agree in advance to accept the management tions or human
ment, therefore, has the right to intervene and cease all strikes that occur, as President
40 may accompany a strike? Reagan did to the air-traffic controller strike in 1981. Besides striking what are some of the
industries are more effective, perhaps due to broader economic forces such as demand
or union to use other ways for laborers to express dissatisfaction. What is collective bargaining? Why are
industries. 2. Answers will vary but may include that unions in nonmanufacturing
3. How has collective bargain- no negotiations planned arbitrator’s decision, although one or both sides resources, and companies sometimes reluctant to raise wages? What is required for labor and management
to resolve their differences?
C OLLECTIVE BARGAINING during collec-
may not be completely happy with the outcome. background in
Collective Bargaining Settlements— ing in the United States and several major eco- tive bargaining
PAGE 329
Average Change in Wage Rates law I. Negotiations

20 changed in recent years? nomic issues to be The FMCS often helps in these cases by provid- negotiations A. Labor and management meet to discuss contract issues
B. Mediation takes place when labor and management cannot agree or become hostile;
resolved, next season ing labor and management with a list of private ■ Interpret unio
instead they find a neutral person to try to help them reach an agreement.
for workers in these industries.
15 n C. Arbitration takes place when mediation fails; labor and management then ask a third
party to make a decision, agreeing to unconditionally accept that decision.
may not start on time. arbitrators in their area. contract issues • Discussion Question
Why do you think arbitration is a last resort for management and labor? (Because
Percent
10 both sides must agree to do what the arbitrator says before the decisions are even made.
Starting Salary: $39,900 Either side might be very disappointed by the contract—in fact, they may find they were
better off agreeing before the arbitration.)
5
Strikes and Management Job Outlook: Good
between wage rate increases for workers in manufacturing and nonmanufacturing
1. Answers will vary. Generally, wage rate increases are declining, as is the gap
0
Most contracts are settled at the bargaining —Occupational Outlook Han
dbook, 1998–99
1970 1975 1980 1985 1990 1995
table. Sometimes, however, negotiations break
C
Years
collective bargaining: process ollective bargaining, as mentioned above, is the process
Manufacturing industries Nonmanufacturing industries
by which unions and employers by which unions and employers negotiate the conditions down and a strike results. The number of strikes
negotiate the conditions of in the United States has declined sharply since 1975, When negotiations break down,
1. What trend or trends can you identify in the graph?
employment of employment. At the center of the collective bargaining
2. What conclusions can you draw from the graph?
as shown in Figure 12.10 on page 331. a process called fact-finding may
Answers
process is compromise. The company wants to keep wages and

benefits low to hold its labor costs down and remain competitive Strikers usually walk up and down in front of their workplace be used. Under this procedure,
Daily Focus Transparencies
in the market. The union wants to increase wages and benefits for carrying picket signs that state their disagreement with the com- labor and management agree to
its members as much as possible. As you read this section, you’ll pany. Picketing is meant to discourage workers from crossing the picketing: action of strikers who have an independent third party
walk in front of a workplace carry-
READER’S GUIDE learn that both sides must be prepared to give and take a little. picket line to work for the employer. It is also aimed at embarrass- ing signs that state their disagree- review the issues and recommend
ing the company and building public support for the strike. ment with the company possible solutions. Fact-finding is
Answers to the Reading Objectives 328 CHAPTER 12 The American Labor Force 329 particularly useful when one or
questions are on page 333. both parties have been less than
Preteaching Vocabulary truthful in an attempt to win pub-
Have students locate the defini- lic support or when one party
does not believe the claims of the
tions of the Terms to Know in the SECTION 3 RESOURCE MANAGER Meeting Special Needs other.
Glossary. Then have them use
each term correctly in sentences. Reproducible Masters Multimedia Learning Disability To help learning disabled students, illustrate the importance of
Reproducible Lesson Plan 12–3 Daily Focus Transparency 40 headings and subheadings for understanding the framework of each section. Model stu-
Reading Essentials and Study Guide 12–3 Vocabulary PuzzleMaker dent use by asking questions such as: “What would I do if I wanted to know what each
Guided Reading Activity 12–3 Interactive Tutor Self-Assessment Software section was about?” For Section 3 read: Negotiations, Mediation, Arbitration; Strikes and
Section Quiz 12–3 ExamView® Pro Testmaker Management, Lockouts, Injunctions; and so on. Ask students to rephrase each set of
Daily Focus Activity 40 MindJogger Videoquiz headings using complete sentences.
Daily Lecture Notes 12–3 NBR’s Economics & You
Presentation Plus! Refer to Inclusion for the Social Studies Classroom Strategies and Activities for
students with different learning styles.
328 329
Striking unions may also use a boycott to exert more eco-
SECTION
SECTION 3,
3, Pages
Pages 328–333
328–333 SECTION
SECTION 3,
3, Pages
Pages 328–333
328–333
nomic pressure against a firm. In a boycott, unions urge the pub- boycott: economic pressure
FIGURE 12.9 Union Contract Issues lic not to purchase goods or services produced by a company. In exerted by unions urging the pub-
lic not to purchase the goods or
addition, unions may ask politicians to push management for a services produced by a company
L2 Understanding Ideas On the settlement or to publicly support the union’s demands. Guided Reading Activity 12–3
board, write the title “Unions.” Issue Description Strikes can drag on for months and even years. After a long Name Date Class
Under the title, draw a two-column Wages Most contracts provide for wage increases of a certain percentage period of time, strikers sometimes become discouraged. Some may 12-3
chart with “Supporters’ Views” and for each worker during each year of the contract. Some contracts decide to go back to work without gaining what they wanted. In For use with the textbook pages 328–333
C OLLECTIVE BARGAINING
“Critics’ Views” as column headings. also provide for an additional increase each year if the general most cases, however, strikes are settled as management and labor
OUTLINING
Call on students to come to the level of prices in the economy rises beyond a certain amount. return to the negotiating table and work out an agreement. Directions: Locate the heading in your textbook. Then use the information under the heading to help you
write each answer.
board and enter in the chart infor- This provision is known as a cost-of-living adjustment. I. Negotiations
A. Introduction
mation on how unions are viewed Working Hours The contract establishes the number of hours a day that employ- Lockouts When faced with a strike, management has methods
1. When do negotiations take place?
2. What types of things do labor and management negotiate?
today. Have students use this infor- ees must work. Employees who work longer hours must usually of its own to use against strikers. One is the lockout, which lockout: situation that occurs B. Mediation—Why is mediation sometimes necessary in negotiations?
occurs when management prevents workers from returning to when management prevents
mation to write a brief essay titled, be paid extra wages, called overtime pay. workers from returning to work
C. Arbitration—How does arbitration work?
“Unions Today: Pros and Cons.” work until they agree to a new contract. Another tactic is to bring until they agree to a new contract II. Strikes and Management
Fringe Benefits Fringe benefits are payments other than wages made to employ- A. Introduction
Have several students read their in strikebreakers, called scabs by strikers. These are people willing 1. What is the purpose of picketing?
ees. These can include health and life insurance, a retirement

essays to the class. plan, and time off for vacations and holidays.
to cross a picket line to work for the terms the company offers.
Working Conditions Contracts often provide for a joint union and management com- Independent
mittee to ensure that safe and pleasant working conditions exist.
Working conditions are a particularly important issue to employ-
Practice
ees in industries that deal with poisonous substances or danger- FIGURE 12.10 Strikes Compare the trend in strikes with what is happening in union L2 Radio News Reports Have stu-
ous machinery. membership. How do you think the two are related?
Have students review the infor- dents research a recent strike in their
mation in Figure 12.9. Then lead Job Security At issue under job security is protection against layoffs because state. Have them note the reasons for
of technological change or a slowdown in business. Most con- the work stoppage, the procedures
them in a discussion of the fol-
tracts do not forbid layoffs, but rather set up rules that the Labor Strikes Involving 1,000 Workers used to end the dispute, and the res-
lowing questions: How would
employer must follow when laying off workers. For example, olution. Have students present their
you rank these issues in order of those with the least seniority—amount of time spent with the Strike!
400 findings in the form of a radio news
importance if you represented company—are usually laid off first.
labor? How would you rank Strike! report lasting two to three minutes.
Grievance Procedures Grievance procedures are a set of formal rules used 300 Call on volunteers to “broadcast”
Number of Strikes
them if you represented manage-
to resolve a dispute between union members their reports to the class.
ment? If you represented labor, and management. A grievance, or
which of these issues would you 200 Strike! BLOCK SCHEDULING
complaint, may be filed if one side
be willing to give the most feels that the other is not living up Strike!
ground on and why? If you repre- to the terms of the contract. If the 100
sented management, which of union and the company can-
not settle the grievance, a third Strike!
these issues would you be will- 0 Strike!
ing to give the most ground on party will often be asked to
judge the matter objectively. Answer: Most students will suggest
and why? Conclude by pointing
1950 1960 1970 1980 1990 1998
that as union membership declines,
out that collective bargaining
Years so too will the numbers of strikes,
involves such decisions. Source: Standard & Poor’s
because with fewer unionized work-
For an online update of this graph, ers there are fewer workers to
visit ett.glencoe.com and click on respond to union calls for work
Textbook Updates—Chapter 12. stoppages.
330 CHAPTER 12
Cooperative Learning Free Enterprise Activity

Inform students that in recent years, the AFL-CIO and its affiliated unions have made Have students role-play a labor-management dispute that must be mediated. Select
great efforts to recruit new members. Then organize students into several groups, and have three students to act as mediators, and have them research conflict resolution methods
groups research how union recruiting methods have changed recently. Suggest that they used in mediation. Then select six students—three to act as union representatives and
consider such questions as: Have unions increased spending on recruiting? If so, by how three to act as management representatives—and have them draw up opposing positions
much? Do unions use different recruiting tactics than they did in the past? Are unions aiming regarding wages, working conditions, and health benefits. Have the mediators negotiate
recruiting drives at different segments of the working population than they did in the past? an agreement acceptable to both labor and management. Have the rest of the class cri-
Direct groups to use library resources and the Internet in their research. If possible, they tique the mediation, noting what each side lost and gained. BLOCK SCHEDULING
might also interview union representatives. Have groups present their findings in oral reports.
330 331
now enjoy a sense of security that helps to maintain some control
SECTION
SECTION 3,
3, Pages
Pages 328–333
328–333 SECTION
SECTION 3,
3, Pages
Pages 328–333
328–333
FIGURE 12.11 Declining Union Membership The labor movement today faces many over their jobs and lives.
problems. The percentage of union members among the labor force reached a high Union supporters also note that the collective bargaining process
in the mid-1940s and has been declining since 1955. has brought more order and fairness to the workplace. It has made
clear the rights and responsibilities of both management and labor. Section Quiz 12–3
Because working conditions have improved so dramatically Name Date Class
over the years, nonunion workers often see little to gain from 12, 3
Union Membership joining a union. Figure 12.11 shows how much union member-
ASK: What has happened to 40 C OLLECTIVE BARGAINING SCORE
union membership since the ship has declined since the 1940s. In addition, the nature of the Matching: Place a letter from Column B in the blank in column A. (10 points each)
A B
1950s? It has steadily declined. 35 economy itself is changing. More jobs are opening in the white- 1. collective bargaining a. situation that occurs when management prevents
workers from returning to work until they agree to a
collar and service sectors, whereas blue-collar jobs are decreasing 2. picketing new contract
Percent of Workforce
3. boycott b. court order preventing some activity
c. process by which unions and employers negotiate
30 due to automation. 4. lockout
d.
the conditions of employment
activity in which workers walk up and down in front
5. injunction
of a workplace with signs that state their reasons for
striking
e. economic pressure exerted by unions urging the
25
Critics
public not to purchase a company’s goods or
The labor movement also has its critics. Some oppo- services
Multiple Choice: In the blank at the left, write the letter of the choice that best
20 nents charge that unions have grown so large and bureaucratic completes the statement or answers the question. (10 points each)
6. Which of the following union contract issues deals with a cost-of-living adjustment?
ECONOMICS that they are out of touch with their members’ needs. Others
a. wages
c. working conditions
b. fringe benefits
d. job security
7. The state of negotiations in which union and management submit the issues they cannot agree on to a
& YOU 15 claim that increased wages are passed on to consumers in the
third party for a final decision is called
The American Labor Force form of higher prices.

10 Employers often argue that union rules decrease productivity. Reteach
!8LV2" Chapter 14
Disc 1, Side 1
5
They point to rules that slow the introduction of new technology
or require more employees than necessary to do a job. In addi-
To help students understand col-
lective bargaining procedures and
0 tion, corruption among some labor leaders has damaged the Practice and assess
ASK: What positive and nega- 1940 ’45 ’50 ’55 ’60 ’65 ’70 ’75 ’80 ’85 ’90 ’95 2000
the decline of unions, have them
reputation of organized labor with the public. key skills with
tive effects can a strike have Years Skillbuilder Interactive develop an annotated outline of
on workers? It can bring wage Source: U.S. Department of Labor, Bureau of Labor Statistics Workbook, Level 2. Section 3.
increases and greater benefits
and security for workers. It also For an online update of this graph, visit ett.glencoe.com and
Reading Essentials and
can mean lengthy unemployment
click on Textbook Updates—Chapter 12. 3 Study Guide 12–3
and future job insecurity due to Name Date Class
the company’s loss of revenues

and consumer confidence.
Injunctions Management sometimes requests a court injunction to Understanding Key Terms 4. How has collective bargaining in the United
For use with textbook pages 328–333
12, 3
States changed in recent years?

limit picketing or to prevent a strike from continuing or even occur- 1. Define collective bargaining, cost-of-living C OLLECTIVE BARGAINING
Also available in VHS. injunction: court order prevent- ring. An injunction is a legal order of a court preventing some activ- adjustment (COLA), mediation, arbitration,
picketing, boycott, lockout, injunction. Applying Economic Concepts KEY TERMS
collective bargaining Process by which unions and employers negotiate the conditions of employment
ing some activity ity. Under the Taft-Hartley Act of 1947, the President of the United (page 328)
5. Labor Unions What is your opinion of the mediation Process in which a neutral third party steps into negotiations and tries to get both sides to
reach agreement (page 329)
States can obtain an injunction to delay or halt a strike for up to 80 Reviewing Objectives influence of unions today? How is your opinion
cost-of-living adjustment (COLA) Provision providing an additional wage increase if the general prices
rise beyond a specified level during the year (page 329)
arbitration Process in which negotiating parties submit issues they cannot agree on to a third party for a
final decision (page 329)
days if the strike will endanger the nation’s safety or health. During 2. Graphic Organizer Create a chart like the
similar to or different from the information given picketing Activity in which striking workers carry signs outside their workplace that state their disagree-
ment with their employer (page 329)
this cooling-off period, the two sides must try to reach a settlement. in the text concerning the decline of unionism? boycott Economic pressure exerted on a company by refusing to purchase its goods or services (page 331)
one below to list and describe the major issues lockout Process in which an employer prevents workers from working until they agree to a new contract
(page 331)
injunction Court order that prohibits some activity (page 332)
over which union contracts are negotiated.

DRAWING FROM EXPERIENCE
Meeting Lesson Decline of Unions Issue Description

Critical Thinking Activity
Suppose that students at your school wanted to change some school policy. How likely would
achieving the change be if a few students, speaking for themselves, went to the principal individ-
ually and asked for the change? Do you think the request would get more attention if just one
t d t tt i i l b t ith titi i d b th ti t d tb d ?
Objectives The establishment of the AFL in 1886 is considered the begin- 6. Making Generalizations Write two news-
ning of the modern union era. Since that time, unions have paper accounts of a fictional local strike. One
Assign Section 3 Assessment as 3. What workers’ actions and management
achieved many of their goals. Union supporters list among their account should be from the perspective of a
homework or an in-class activity. responses may accompany a strike?
union member. The other account should be
accomplishments better wages and working conditions for all
Use Interactive Tutor Self- written from the standpoint of management.
employees—union and nonunion. They point out that many workers Have students speculate on how
Assessment Software to review issues between unions and manage-
Section 3. 332 CHAPTER 12 The American Labor Force 333 ment might be handled other than
through collective bargaining.
Extending the Content

Collective Bargaining in Japan When labor contracts expire in Japan, unions often 1. All definitions can be found in the Glossary. 5. Answers will vary. Ensure that students support
stage a brief work stoppage to show their power and influence. After workers have 2. Students’ answers should include the informa- their answers with explanations.
returned to work, union and management leaders meet to hammer out a new contract. tion found in Figure 12.9 on page 330. 6. Newspaper articles will vary. Have students
3. workers: picketing, boycotts; management: share and compare their articles.
lockouts, strikebreakers, injunctions
4. It has declined due to the decline in union
membership.
332 333
333
Study & C H A P T E R 12
Study & Writing Skills CHAPTER
Writing Skills 12
Using Library Resources Using Library Resources
Read through the list of ECONOMICS
resources—providing actual exam- Your teacher has assigned a major research report, so you go to the library. As you wander the aisles
& YOU
ples, if possible—and note the types surrounded by books, you wonder: Where do I start my research? Which reference works should I use?
of information that each provides. The American Labor Force
Inform students that these resources • Encyclopedia: set of Learning the Skill
usually can be found in the refer-
ence section of the library. Then
books containing short
articles on many subjects
Libraries contain many resources. Listed on the left
are brief descriptions of important ones.
Chapter Overview Visit the Economics
Today and Tomorrow Web site at ett.glencoe.com !8LV2" Chapter 14
Disc 1, Side 1
arranged alphabetically and click on Chapter 12— Chapter Overviews
point out that the reference library to review chapter information. If you do not have access
• Biographical dictionary:
has one more very useful resource— brief biographies listed Practicing the Skill to a videodisc player, the
the librarian. Asking the librarian alphabetically by last Suppose you are assigned • For much of its history, organized labor in the Economics & You programs are
for guidance can save a great deal of names United States has been split into two groups: craft also available in VHS.
a research report dealing with G r a n d v i ew H e i g h t s P u b l i c L i b r a r y
time if students are researching a • Atlas: collection of maps the famous labor leaders
File
Menu
Commands
Back Search
Screen
Exit Help
Help
SECTION 1 Americans at Work unions and industrial unions.
Your Search: Congress
topic they know little about. and charts Samuel Gompers and Eugene
AUTHOR/TITLE
1. Lewis, Finlay.
DATE
1980
• The civilian labor force is the total number of peo-
• Organized labor operates at three levels: the local
Work through the questions in 2. United States. Congress. House 1969
union, the national or international union, and the
• Almanac: annually V. Debs. Read the questions Aliens in the skies; the scientific rebuttal
3. Newfield, Jack. 1969 ple 16 years old or older who are either employed
federation.
Use the Chapter 12 Summary
the Practicing the Skill section, updated reference that
Robert Kennedy; a memoir.
or actively seeking work.
below, then decide which of 4. United States. Congress. House 1971
to preview, review, condense, or
making sure that students under- provides current statistics
Thirty years of treason; excerpts from hearings
• Local unions may negotiate a union shop or an
the sources described on the
5. Reeves, Thomas C., 1936–
The life and times of Joe McCarthy; a biography
1982
• Workers in the United States are categorized reteach the chapter.

stand why certain resources are and historical informa- 6. McCarthy, Agnes. 1965
agency shop.
tion on a wide range of left you would use to answer Worth fighting for; a history of the Negro in
according to the type of work they perform—blue-
more appropriate for locating partic- America
collar, white-collar, or service worker.

subjects each question and why.
Preview/Review
more
ular kinds of information. Finally, Click on an item for more details : PRT
1. During which years did Start Over Back Sort List Help Other Locations Limit Search
• Another way to categorize workers is by the skills SECTION 3 Collective Bargaining
assign the Application Activity. • Card catalog: listing of
every book in the library, the men lead their unions? required to perform their occupation—unskilled, Vocabulary PuzzleMaker Soft-
either on cards or com- semiskilled, skilled, or professional.
• Collective bargaining is the process by which
2. What were the most unions and employers negotiate the conditions of ware reinforces the key terms used
Reinforcing Economic Skills 27 puterized; search for
Name Date Class books by author, subject,
famous labor actions each Computerized card catalog
• Three major factors—skill, type of job, and loca- employment. in Chapter 12.
or title dealt with? tion—affect how supply and demand determine Interactive Tutor Self-Assess-
27
prices, or in this case wages, in the labor market.
• Labor and management may negotiate working
3. How did the public react to hours, wages, fringe benefits, and a cost-of-living ment Software allows students to
U SING LIBRARY RESOURCES • Periodical guide: set of
Libraries contain many resources. These resources include traditional resources, such as ency-
clopedias, atlases, almanacs, and periodicals, as well as online resources, such as computer books listing topics cov- the labor unions’ activities? • Factors that restrict supply and demand in terms of adjustment (COLA). review Chapter 12 content.
4. What benefits do we enjoy their influence on wages include minimum wage
databases and access to the World Wide Web. Knowing which resources to use will improve
ered in magazines and
•
the quality and efficiency of your research.
Directions: You are writing a term paper on trade between the United States and Japan. To make the If negotiations become hostile or compromise
report interesting, you want to include many real-world examples. You also want to make sure that your
report covers very recent developments. Choose sources from among the following: newspaper articles today as a result of these laws and organized labor.
breaks down, labor and management may try
Business Week, Fortune, Forbes––business magazines published weekly
Statistical Abstract of the United States––published yearly
World Almanac, Information Please Almanac––published yearly
World Development Report––published yearly
The World Wide Web
• Computer database: two labor leaders? mediation or arbitration. Condense
1. What source would you use to find out the value of Japan’s exports to the United States between 1985
and 1995?
collections of information SECTION 2 Organized Labor • Striking unions may use picketing or a boycott to Have students listen to the
organized for rapid search
and retrieval
Application Activity exert economic pressure against a firm. Chapter 12 Audio Program (also
2. What source would you use to find out how economic conditions in Japan differ from economic conditions in
the United States?
Using library resources, research the origins and • A labor union is an association of workers organ-
ized to improve wages and working conditions for • When faced with a strike, management may use a available in Spanish) in the TCR.
important leaders of the American Federation of Labor. Assign the Chapter 12 Audio Pro-
3. Where would you find examples of U.S. businesses that have been successful in Japan?
its members. lockout or an injunction against strikers.
Present the information you find to the class. gram Activity and give students the
Practice and assess • Workers began to form unions to force employers • The percentage of union members among the labor
Chapter 12 Audio Program Test.
key skills with to improve working conditions, shorten the workforce reached a high in the mid-1940s and has
Skillbuilder Interactive been declining since 1955.
day, and end child labor.
Workbook, Level 2.
Glencoe Skillbuilder
Reteach
334 The American Labor Force 335
Interactive Workbook, Have students com-
Level 2 plete Reteaching Activity 12 in the
This interactive CD-ROM rein- TCR (Spanish Reteaching Activities
forces student mastery of essen- are also available).
tial social studies skills. Answers to Practicing the Skill Economics Journal
1. Biographical dictionary or encyclopedia—these sources would provide a quick method Categories of Workers Over a one-week period, have students keep note of the
of finding this specific information. An almanac might also reveal this information. employed people with whom they come into contact. Students should record the jobs these
2. Card catalog or computer database—these sources would provide titles of books in people do. Next to each job, have students classify it as unskilled, semiskilled, skilled, or pro-
which this broad information might be included. fessional. At the end of the recording period, have students select one of the jobs they listed.
3. Periodical guides might direct researchers to articles on this subject. Direct them to interview the people who do these selected jobs. Interview questions should
4. Card catalog, computer database, or periodical guides would be best to find informa- include: How did you get this job? What skills or special knowledge did you need to get
tion on this specialized information. hired? What skills or special knowledge did you need to acquire on the job? What do you
Application Activity Encourage students to identify the resources they used and why. see in the future for your job? Have students write a brief report summarizing their findings.
334 335
Thinking Critically period. Working in groups, compute the
Assessment and Activities 12 1. Determining Cause and Effect Explain why
mean average number of unemployed. Assessment and Activities
workers with more education and training 1994 7,996,000
generally get paid higher wages. 1995 7,404,000
2. Predicting Consequences Create a diagram 1996 7,236,000 Applying Economic
like the one below to explain the factors 1997 6,739,000 Concepts
that may cause a decline in union mem- 1998 6,210,000 Benefits: winning strike
Have students visit the f. company in which only union members bership in the future.
could be hired (now illegal) Now compute the median average unem- demands—higher wages, more
Economics Today and Tomorrow ployment rate for the seven years listed below. fringe benefits, better working con-
Web site at ett.glencoe.com to g. forbids contracts that require employees
Un
De Me
ditions, more job security, griev-
io
to join a union
cl mb
1992 7.5
n
review Chapter 12 and take the
in e
ance procedures that favor workers,
in rs
g hi
Self-Check Quiz. 1993 6.9
Self-Check Quiz Visit the Economics Recalling Facts and Ideas 1994 6.1 and so on. Costs: loss of wages and
p
Today and Tomorrow Web site at ett.glencoe.com other benefits, and possible loss of
Section 1 1995 5.6
and click on Chapter 12— Self-Check Quizzes job if strike is not settled; negative
to prepare for the Chapter Test. 1. Which category of worker has a higher- 1996 5.4
education degree as well as additional Applying Economic 1997 4.9 publicity because of the strike;
training? Concepts 1998 4.5 actions of management—lockouts,
2. What is the difference between blue- injunctions, use of strikebreakers.
MindJogger Videoquiz Economic Costs and Benefits There are costs For help in determining averages, see page xx
Identifying Key Terms collar and white-collar workers? and benefits for every activity. Strikes are no in the Economic Handbook.
3. What factors determine how much a
Use MindJogger to review Identify the letter of the definition in Column B
person is paid for his or her work?
exception. Many workers believe that the ben- Reviewing Skills
Chapter 12 content. that correctly defines each term in Column A. efits exceed the costs or they would not strike.
List the benefits to workers of going on strike.
Technology Reports will vary. After students
Column A Section 2 Then list the costs of going on strike. Activity have presented their reports, ask
1. unskilled workers 4. What are the major kinds of labor them which resources they used in
Using a Spreadsheet Keep track of the
2. agency shop unions? their research and why.
Identifying Key employed individuals with whom you come
3. arbitration 5. What two union federations merged in Reviewing Skills
Terms 4. injunction 1955?
into contact over a one-week period. Write
Using Library Resources Use library resources down the types of jobs they do. Then use
1. d 5. right-to-work law 6. How do right-to-work laws affect workers
these jobs as the basis of a spreadsheet show-
Cooperative
to research one of the following labor strikes:
2. a 6. closed shop who do not belong to unions?
Baltimore & Ohio Railroad Workers, 1877; ing the training, average salary, and prospects Learning Project
3. e 7. boycott
Haymarket Riot, 1886; Homestead Strike, for growth for each job. Use the Internet or Mean: 7,117,000
4. c Section 3
1892; Pullman Strike, 1894; Anthracite Coal sources such as the Occupational Outlook
Column B 7. Wages are one of the most important Median: 5.6
5. g Strike, 1902; Textile Strike in Lawrence, Handbook or O*Net to find this information.
a. company in which employees are not major issues in collective bargaining
6. f Massachusetts, 1912; Ludlow Massacre in
required to join a union but must pay negotiations. What are other important
7. b Ludlow, Colorado, 1914. Write a report
union dues issues? Technology Activity
b. refusal to purchase the goods and services 8. If management and labor have reached describing the people or groups involved, the
conditions that led to the incident, what hap- Spreadsheets will vary. Interested
Recalling Facts of a company a bargaining deadlock, they may try to
pened, and the conclusion. students might want to collate job
c. court order preventing some activity, often engage in mediation. If mediation fails,
and Ideas a strike what is the next possible “friendly” step? France’s trucking union struck in 1997,
information by industry or skill
1. professional parking their vehicles on roads and highways level to create new spreadsheets.
d. those having no special training in job- 9. What do union workers do when they go Cooperative
2. Blue-collar workers are related skills on strike? leading into Paris. Research and report on the
e. procedure for settling undecided issues 10. What has been the most recent trend
Learning Project reasons for the strike, how long it lasted, the
employed in manufacturing and Analyzing the
trades, while white-collar work- between labor and management by giving in the importance of labor unions in Analyze the data that follow for the num- effect on the economy of Paris, and the result
ers are employed in office and them to a third party for a final decision America? ber of unemployed persons over a five-year of the strike. Global Economy
service jobs. Reports will vary. Have students
3. skill level, type of job, and 336 CHAPTER 12 The American Labor Force 337 present their findings to the class.
location
4. craft unions and industrial
unions Chapter Bonus
5. American Federation of Labor
9. They stop all work, and they may also Thinking Critically 2. Answers may include: Workers today
picket and boycott the company. receive better wages and have better work- Test Question
(AFL) and Congress of 1. Answers may vary, but students should
10. Union membership has been declining ing conditions than in the past; more jobs
Industrial Organizations (CIO) mention that employers compete with one ASK: What is the major differ-
and, as a result, union power and influ- are opening in the white-collar and service
6. They protect the right of the another for better-educated workers by ence between mediation and
ence have declined. sectors, which have fewer unions; more
worker to continue working at a offering higher wages and fringe benefits. arbitration? In mediation, the
people are working at home.
job without joining a union. decision reached is not binding
7. working hours, fringe benefits, on the two parties. In arbitration,
working conditions, job secu- the decision is binding—the par-
rity, and grievance procedures ties must accept it.
8. arbitration
336 337
Focus on Focus on Free Enterprise eBay’s success was no accident, mostly Fiesta®
Free Enterprise due to people Omidyar recruited to

run the company. He hired
eBay, Inc. Star

Wars ™
toys
Meg Whitman as chief
executive officer of eBay in
1998. Today she is the rich-
est female CEO in the world.
Have students answer the Free
Enterprise in Action questions.
Inform students that today eBay eBay has 7.7 million registered
The Online Auctioneer
O
is the largest online auction house ne night in 1995, while Pierre users, with membership growing at an
in the world, and Pierre Omidyar Omidyar’s idea was fairly average of 75,000 per week. It has hur-
and its other principal officers are Omidyar and his fiancée were hav- simple: set up a Web site where people Safe Harbor to protect buyers from fraudu- Have students discuss why they
tled past being an auction room for Pez™
among the world’s richest business ing dinner, the subject of Pez™ dispensers with similar interests could meet to buy dispensers and other odd collectibles. It now lent transactions. It offers such services as think eBay has been such a great
executives. and sell unique items—the equivalent of offers some 3.3 million items in 2,500 cate- product authentication and transaction success.
came up. She was an avid collector of these
an Internet flea market. Omidyar opened gories—everything from Star Wars™ toys to insurance. Also, through Safe Harbor feed-
colorful little candy servers. Where, she the site—called eBay—in September 1995. back, members can report on their experi-
antique pottery.
wondered, might she meet people with a A few days later, eBay held its first auction. ences during auctions. Any person who
An eBay auction follows a set pattern. The eBay “Community” receives a poor feedback rating may be
similar passion to talk and trade? First, a seller places a description of the
Ask students who have taken Each day, eBay hosts more than 1.8 mil- “vaporized”—expelled from eBay.
Omidyar, a pioneer of online commerce, item to be sold, often accompanied by pho- There are now more than 50
part in a silent auction to describe lion auctions, receiving about 3 bids per
tographs, on the Web site. Next, buyers second. The close interaction that takes Future Plans local eBay sites across the United
how this kind of sale takes place. knew the place—the Internet.
check in and make bids on the item. After a place between buyers and sellers during The rapid rise of eBay has led to the States. In addition, there are spe-
(The item is shown, and bidders cial eBay Web pages for users in
set period of time, usually three to seven these auctions has helped to create a sense growth of Internet auction companies. In
write their bids—there is usually a days, the auction is closed and the Australia, Canada, Germany, Great
of community among eBay users. In fact, response, Whitman moved to expand the
minimum starting bid and mini- sale item goes to the highest bid- Britain, and Japan.
eBay has become a way of life for many. company. In April 1999, eBay acquired
mum bid raises. After a set period der. Six percent of the sale price a fine-arts auction house through which
According to surveys, eBay members spend
of time, the highest bidder takes the goes to eBay as a commission. it plans to host sales of high-priced art
about 130 minutes a month at the Web site.
item.) Then point out that this, items. In addition, eBay has plans to set
essentially, is how eBay works— Slow Start Ironing Out Some Wrinkles up local auction sites for large items,
except that the auctions take place At first, business was With so much activity, it is not surpris- such as automobiles and boats. The com-
online. slow. Just 10 people reg- ing that eBay has experienced some petition, Whitman states, has been good
istered to use eBay’s instances of fraud. eBay’s management, for eBay. “It has made us more nimble,”
services in 1995. In however, has established a system called she says.
time, however, more
and more people vis-
ited the Web site, Free Enterprise in Action
More than 400,000 items are
attracted by the
added daily to eBay’s auction list. opportunity of find- 1. Why might fraud be a problem for a business
Products available for bid include ing a bargain. In like eBay? What steps has eBay taken to
antiques; books, movies, and combat fraud?
1996, eBay made a
music; coins and stamps; comput- profit of $150,000. 2. How has eBay responded to the competition
ers and computer software; dolls By 1998, profits hit provided by other Internet auction sites?
and figures; jewelry and gem- $2.4 million.
stones; photo and electronic
Pierre Omidyar and Meg Whitman
equipment; pottery and glass; Pez™
sports memorabilia; and toys. 338 339
Extending the Content Answers to Free Enterprise In Action

The eBay Way of Life Members of the eBay community can meet in chat rooms pro- 1. There is a great deal of activity on the Web site, and with users essentially acting on the
vided by the company to discuss common interests and concerns. Sometimes, this has honor system, some fraud is possible. eBay established a system called Safe Harbor,
resulted in eBay users from the same geographical area getting together to do charitable which offers such services as product authentication and transaction insurance. Also,
work or political organization. through Safe Harbor feedback, members can report on their experiences during auc-
tions. Any person who receives a poor feedback rating may be expelled from eBay.
2. It has expanded, acquiring a fine-arts auction house through which to sell high-priced
art items and setting up local auction sites for large items, such as automobiles and
boats.
338 339

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CHAPTER

Teaching Transparency Application and Enrichment

d. made it illegal to formlabor

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Application and Enrichment

the Web site companion to Economics Today and

Vocabulary PuzzleMaker Software

Tomorrow. This innovative integration of electronic and

Interactive Tutor Self-Assessment Software

print media offers your students a wealth of opportuni-

ExamView® Pro Testmaker

the following options:

NBR Economics & You Video Program (English/Spanish)

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• Self-Check Quizzes • Textbook Updates

Glencoe Skillbuilder Interactive Workbook CD-ROM,

Primary and Secondary Source Readings 25

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choice. the past month?

*Also available in Spanish

Voluntary Standards Emphasized in Chapter 12 Resources Available from NCEE

does the level of skills and education of each worker.

E veryone—from a factory worker to the president of a corpo-

Copyright © by The McGraw-Hill Companies, Inc.

The Civilian Labor Force

ber of people 16 years old or

not in the labor force is A MERICANS AT WORK

unskilled, semiskilled, skilled, and 1,056,000 workers. See Figure 12.2.

jobs that fall in each category. List 4.7%

category heading. Then ask students 1,056,000

Armed Forces sometimes classify workers by their type of occupation,

Daily Lecture Notes 12–1

unskilled workers: people

Free Enterprise Activity Extending the Content

Source: Bureau of Labor Statistics

C Skill mined by skill level and education?

Relevant Issues in Economics

To emphasize the problem facing

ing skilled jobs. Then point out that

The work is dangerous . . .

Want company-paid tuition 39 16

Percentage of Labor Force in Labor Unions

misrepresent the situation.

*Data: Hay Group 70 .

Week Web site. came from a study of IT professionals who had 30

companies “address employees’ concerns”?

T o have some control over the wages they receive as well 10

Group’s Vincent Milich: “It’s surprising that even 0

as over other working conditions, American workers

Copyright © by The McGraw-Hill Companies, Inc.

strike to protest wage cut; the 1892 Homestead Massacre Steel

skilled workers in a specific trade O RGANIZED LABOR

late 1800s to the mid-1900s. Then WY Chicago MI RI

membership has been declining. Ask UT IN

14,000 troops attack striking KY

May 1, 1886, to demand an eight- FL 12, 2

responded and struck. In the fol- or geographic area

in other countries. AFL-CIO members