Lesson: Organized Labor

Lesson: Organized Labor

January 26, 2025

Bell Ringer

Analyze two main reasons why workers in an organization may go on strike.

Open Ended

Analyze two main reasons why workers in an organization may go on strike.

Lesson Objectives

At the end of this lesson;

• I will be able to describe how the labor movement developed 

• I will be able to discuss why organized labor has declined and explain how labor unions affect wage rates and employment

Organized Labor

Organized labor refers to associations of workers formed to

protect their rights and interests and improve their working

conditions. These associations, often called unions, engage

in collective bargaining with employers to negotiate wages,

benefits, and workplace rules. They play a crucial role in

the economy by influencing employment standards and

advocating for fair treatment of workers.

What is Organized Labor?

Workers began to organize in the late 18th century to improve

wages and working conditions.

The American Federation of Labor (AFL) is formed in 1886,

marking a turning point in the labor movement.

Early Unions

Rise of National
Unions

Labor Legislation

The National Labor Relations Act of 1935 protects the right of

workers to organize and bargain collectively.

Historical Development of Organized
Labor

Multiple Choice

Which organization's formation in 1886 is considered a turning point in the labor movement?

• The National Labor Relations Act

• The American Federation of Labor (AFL)

• Early Unions

• National Unions

Multiple Choice

Which piece of legislation protects the right of workers to organize and bargain collectively?

• The National Labor Relations Act

• The American Federation of Labor (AFL)

• Early Unions

• National Unions

Effects on Prices and Market
Dynamics

Role of Organized Labor in a Market Economy

Impact on Wages and Productivity

Organized labor negotiates for higher wages

and better working conditions, which can lead

to increased productivity. Unions often push for

fair compensation, potentially raising overall

wage levels in industries.

Higher wages negotiated by unions may result

in increased prices for goods and services. This

can affect market dynamics, potentially

leading to reduced demand or shifts in

employment patterns across sectors.

Match

Match the following

• Groups of workers who have organized to collectively bargain with employers.

• The percentage of the workforce that belongs to a union.

• The output of goods or services produced per unit of input.

• The amount of money earned per hour of work.

• Higher wages negotiated by unions may lead to increased prices for goods and services, potentially affecting market demand and employment patterns.

Organized Labor

Union Membership

Productivity

Hourly Compensation

Effects on Prices and Market Dynamics

• Organized Labor

• Union Membership

• Productivity

• Hourly Compensation

• Effects on Prices and Market Dynamics

Types of Labor Unions

Craft Unions

●Workers with specialized skills

●Focus on specific crafts or trades

●Examples: electricians, plumbers

Industrial Unions

●Workers in the same industry

●Regardless of specific skills

●Examples: autoworkers, steelworkers

Collective Bargaining Process

​Collective bargaining involves several key steps: preparing for negotiations by gathering data and formulating proposals, engaging in negotiations between union and employer representatives, reaching a tentative agreement that addresses key issues, and ratifying the agreement by a union member vote. If the agreement is rejected, the process may involve mediation or arbitration to reach a final settlement.

Open Ended

"Imagine you are a factory worker in the early 20th century, facing long hours and poor conditions. How might organizing with your coworkers change your situation? Let’s explore the world of organized labor!"

This act protects employees' rights to organize and bargain
collectively with employers. It established the National Labor
Relations Board (NLRB) to enforce these rights.

This act amended the Wagner Act, placing limitations on some
union activities and expanding employer rights. It prohibited
certain unfair labor practices by unions.

National Labor
Relations Act of
1935 (Wagner Act)

Labor Management
Relations Act of
1947 (Taft-Hartley
Act)Labor-Management
Reporting and
Disclosure Act of
1959
(Landrum-Griffin
Act)

This act aimed to regulate internal union affairs and protect the
rights of union members against their own unions. It established
reporting requirements for unions.

Fair Labor
Standards Act of
1938

While not solely focused on unions, this act established minimum
wage, overtime pay, recordkeeping, and child labor standards
affecting all covered workers.

Labor Laws and

Regulations

Adaptation Strategies

Challenges Facing Modern Labor Unions

Attracting Younger Members

​Labor unions struggle to appeal to younger workers in the gig economy, facing declining membership and relevance in modern workplaces.

​Unions are embracing technology, offering flexible membership options, and advocating for gig worker rights to stay relevant in the changing labor landscape.

●Higher wages and benefits for union members

●Improved workplace safety and working conditions

●Enhanced job security and protection against unfair dismissal

●Collective bargaining power for better
terms of employment

Pros of Labor Unions

Cons of Labor Unions

Pros and Cons of Labor Unions

●Increased labor costs for businesses

●Potential for decreased productivity
due to union regulations

●Risk of strikes disrupting operations

●Union dues and fees for members

Potential increase in prices due to increase in cost of production

Open Ended

Identify 2 advantages and 2 disadvantages of labor unions.

The End

Class Engagement Activities