After completing this chapter, students will be able to: List the major causes of wage differentials; Indentify the types, benefits, and costs of "pay-for-performance" plans; relate who belongs to ; unions, the basics of collective bargaining, and the economic effects of unions;. | Wage Determination Appendix Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Union Membership million workers in 2009 8 million in AFL-CIO 6 million in Change to Win Remaining in other independent unions LO7 13App- Unionization rate highest among: Government Telecommunication Transportation Construction Manufacturing Lowest among: Finance Agriculture Retail Trade LO7 Union Membership 13App- Distribution of union membership 13% men versus 11% women 14% African American versus 12% white 11% Asians 10% Hispanics LO7 Union Membership 13App- LO7 Union Membership 13App- Decline of Unionism 22 million workers in 1980 million workers in 2009 Structural changes in economy Increased management opposition to unions Substitution of machinery for workers Improved wages, fringe benefits, and working conditions LO7 13App- Collective Bargaining Union status Closed shop Union shop Agency shop Open shop LO7 13App- Collective Bargaining Managerial prerogatives Wages and hours Seniority and job protection Grievance procedures LO7 13App- The Bargaining Process Begins 60 days before contract expires Possibility of strike Compromise National Labor Relations Board LO7 13App- Economic Effects of Unions Featherbedding and work rules Output losses from strikes Efficiency losses from labor misallocation Offsetting factors LO7 13App- Wn Wage Rate Sector 1: Union Employment Wage Rate Sector 2: Nonunion Employment N1 0 0 Du=MRP B A C N2 Wu Wn D E Ws Dn=MRP N1 N3 Economics Effects of Unions LO7 . | Wage Determination Appendix Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Union Membership million workers in 2009 8 million in AFL-CIO 6 million in Change to Win Remaining in other independent unions LO7 13App- Unionization rate highest among: Government Telecommunication Transportation Construction Manufacturing Lowest among: Finance Agriculture Retail Trade LO7 Union Membership 13App- Distribution of union membership 13% men versus 11% women 14% African American versus 12% white 11% Asians 10% Hispanics LO7 Union Membership 13App- LO7 Union Membership 13App- Decline of Unionism 22 million workers in 1980 million workers in 2009 Structural changes in economy Increased management opposition to unions Substitution of machinery for workers Improved wages, fringe benefits, and working conditions LO7 13App- Collective Bargaining Union status Closed shop Union shop Agency shop Open shop LO7 13App- Collective Bargaining Managerial prerogatives Wages and hours Seniority and job protection Grievance procedures LO7 13App- The Bargaining Process Begins 60 days before contract expires Possibility of strike Compromise National Labor Relations Board LO7 13App- Economic Effects of Unions Featherbedding and work rules Output losses from strikes Efficiency losses from labor misallocation Offsetting factors LO7 13App- Wn Wage Rate Sector 1: Union Employment Wage Rate Sector 2: Nonunion Employment N1 0 0 Du=MRP B A C N2 Wu Wn D E Ws Dn=MRP N1 N3 Economics Effects of Unions LO7 13App-
