Civilian labor force: men and

women ages 16+ who are either

working or actively looking for a
job.

Employment and Union Affiliation

Workers
Represented
by Unions
1.4%
Unionized
Workers
13.5%
Nonunionized
Workers
85.1%

Types of Unions
Craft union: an association of skilled workers who
perform the same kind of work.
Trade union: an association of skilled workers who
perform the same kind of work.
Industrial union: an association of all workers in
the same industry, regardless of the job each worker
performs.
Company union: a union organized, supported, or
run by employers to head off efforts by others to
organize workers.

There are four kinds of

arrangements between labor
unions and management:
Closed shop: a situation in which the employer
agrees to hire only union members.
Union shop: an employment situation where
workers to do not have to belong to the union to be
hired, but must join soon after and remain a
member for as long as they keep their jobs.
Modified union shop: workers do not have to
belong to a union to be hired and cannot be made
to join one to keep their jobs.
Agency shop: an agreement that does not require
a worker to join a union as a condition to get or
keep a job, but does require the worker to pay
union dues to help pay collective bargaining costs.

Collective bargaining: used to

resolve most disputes between
labor and management.
Grievance procedure: they contract someone to
help them with problems that can pop up in the
future.
Mediation: bring in a third person to settle a dispute
with a solution both people will accept.
Arbitration: both people state their cases in front of
a third person, formerly agreed upon to have the
final say.
Fact-facing: third party gets information from both
union and management and makes
recommendations on how to solve the problem.
Minimum wage: the lowest wage that can be paid
by law to most workers- first set in 1939 at 25 cents
per hour. In New Jersey today it is $8.38 per hour.

Factors that determine wages:

Comparable worth: the principle stating that
people should receive equal pay for work that is
different from, but just as demanding as, other
types of work.
Two-tier wage system: a system that keeps
high wages for current workers, but have a much
lower wage for newly hired workers.
Seniority: length of time a person has been on
the job.
Signaling theory: states that employers are
willing to pay more for people with certificates,
diplomas, degrees, and other indicators or
"signals" of superior ability.
Labor mobility: the ability and willingness of
workers to relocate in markets where wages are
higher.
Theory of negotiated wages: states that
organized labor's bargaining strength is a factor
that helps determine wages.
Equilibrium wage rate: the wage rate that
leaves neither a surplus nor a shortage in the

labor market
Traditional theory of wage determination:
the theory that states that the supply and
demand for a worker's skills and services
determine the wage or salary.

Levels of Labor:
Professional labor: those individuals with the
highest level of knowledge-based education and
managerial skills.
Skilled labor: includes workers who are able to
operate complex equipment and can perform
their tasks with little supervision.
Semiskilled labor: workers with enough
mechanical abilities and skills to operate
machines that require a minimum amount of
training.
Unskilled labor: those who work primarily with
their hands because they lack the training and
skills required for other tasks.