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Lecture Economics (6/e): Chapter 28 - Stephen L. Slavin

The objectives of this chapter are to introduce labor unions. The following will be discussed in this chapter: A short history of the labor movement, labor legislation, the economic power of unions and employers, the economic power of monopsonies, collective bargaining, the strike. | Chapter 28 Labor Unions 28-1 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Objectives A short history of the labor movement Labor legislation The economic power of unions and employers The economic power of monopsonies Collective bargaining The strike 28-2 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. A Short History of the Labor Movement Labor unions are a traditional American institution Until the 1940s most Americans had unfavorable opinions of unions The AF of L rang in the modern era of unions in 1886 With the emergence of the large corporation, individual workers had little bargaining power Thousands of workers banded together did have some leverage 28-3 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. A Short History of the Labor Movement Employers fought labor unions tooth and nail Union members were blacklisted Those who were suspected of union sympathies were fired Court orders were obtained to prevent strikes Some times private detectives , labor goons, and sympathetic local police were used to put down strikes violently 28-4 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Key Labor Legislation The National Labor Relations Act (The Wagner Act, 1935) The Wagner Act put the force of government behind collective bargaining The Taft-Hartley Act (1945) was put forth as a measure to protect “employers” rights 28-5 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Key Labor Legislation The Landrum-Griffin act (1959) This act protected union members from abuses by their own union leadership This act also attempted to cut down on embezzlement of union funds by union leaders 28-6 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Union Membership, 1900-2000 28-7 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Union membership reached its peak in the late 1970s Union Membership, 1900-2000 28-8 | Chapter 28 Labor Unions 28-1 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Objectives A short history of the labor movement Labor legislation The economic power of unions and employers The economic power of monopsonies Collective bargaining The strike 28-2 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. A Short History of the Labor Movement Labor unions are a traditional American institution Until the 1940s most Americans had unfavorable opinions of unions The AF of L rang in the modern era of unions in 1886 With the emergence of the large corporation, individual workers had little bargaining power Thousands of workers banded together did have some leverage 28-3 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. A Short History of the Labor Movement Employers fought labor unions tooth and nail Union members were blacklisted Those who were suspected of union sympathies were fired Court orders were obtained .