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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 U.S; unions, the basics of collective bargaining, and the economic effects of unions;...
13A Appendix WageDetermination McGrawưHill/Irwin Copyrightâ2012byTheMcGrawưHillCompanies,Inc.Allrightsreserved UnionMembership 15.3 million workers in 2009 • million in AFL-CIO • million in Change to Win • Remaining in other independent unions LO7 13App-2 Union Membership • Unionization rate highest among: • Government • Telecommunication • Transportation • Construction • Manufacturing • Lowest among: • Finance • Agriculture • Retail Trade LO7 13App-3 Union Membership •Distribution of union membership • 13% men versus 11% women • 14% African American versus 12% white • 11% Asians • 10% Hispanics LO7 13App-4 Union Membership LO7 13App-5 Decline of Unionism • 22 million workers in 1980 • 15.3 million workers in 2009 • Structural changes in economy • Increased management opposition to • • LO7 unions Substitution of machinery for workers Improved wages, fringe benefits, and working conditions 13App-6 Collective Bargaining • Union status • Closed shop • Union shop • Agency shop • Open shop LO7 13App-7 Collective Bargaining • Managerial prerogatives • Wages and hours • Seniority and job protection • Grievance procedures LO7 13App-8 The Bargaining Process • Begins 60 days before contract • • • LO7 expires Possibility of strike Compromise National Labor Relations Board 13App-9 Economic Effects of Unions • Featherbedding and work rules • Output losses from strikes • Efficiency losses from labor • LO7 misallocation Offsetting factors 13App-10 Economics Effects of Unions Wu A Wn Sector 2: Nonunion Wage Rate Wage Rate Sector 1: Union Wn B Du=MRP Ws C N2 Dn=MRP E N1 Employment LO7 D N1 N3 Employment 13App-11 ... 13App-3 Union Membership •Distribution of union membership • 13% men versus 11% women • 14% African American versus 12% white • 11% Asians • 10% Hispanics LO7 13App-4 Union Membership LO7 13App-5... for workers Improved wages, fringe benefits, and working conditions 13App-6 Collective Bargaining • Union status • Closed shop • Union shop • Agency shop • Open shop LO7 13App-7 Collective Bargaining... Board 13App-9 Economic Effects of Unions • Featherbedding and work rules • Output losses from strikes • Efficiency losses from labor • LO7 misallocation Offsetting factors 13App-10 Economics Effects of Unions