Unit 2B - The Market for Labour

Question 1

Labor Markets

Answer 1

• Market where supply of occupational skills interacts with the demand for labor
• Allocates labor to various occupations

Question 2

Competitive Labour Markets

Answer 2

Non-unionized sector of the labour markets

Question 2

Demand of Labour

Answer 2

The quantities of a type of labor demanded by firms at their respective wage rates

Question 3

Non-Union Sectors and the Labor Force

Answer 3

Interaction between demand and supply of labor is what determines wages

Question 4

↑D good X

Answer 4

↑D labor X

Question 5

↑P labor substitutes

Answer 5

↑D labor

Question 6

↑P labor complements

Answer 6

↓D labor

Question 7

Determinants of labor supply

Answer 7

• Skills
• Education
• Experience
• Training

Question 7

↑Worker Productivity

Answer 7

↑D Labor

Question 8

Supply of Labour

Answer 8

The quantities of a service supplied by workers at their respective wage rates

Question 9

↑Taxes (on salaries)

Answer 9

↓S Labor

Question 10

↑Workforce Population

Answer 10

↑S Labor

Question 10

Attitudes in Work

Answer 10

• Women
• Work Hours

Question 10

Legal Requirements for Unions

Answer 10

Employers are legally obligated to bargain with recognized unions

Question 11

Elasticity of Supply Determinants

Answer 11

• Skill needed (education, physical capabilities)
• Time needed for training

Question 12

Right to Strike

Answer 12

Organized unions can withdraw labour services from employer

Question 13

Restricting Labour Supply

Answer 13

• Unions can restrict labour supply to create higher wage rate
• Increases unemployment

Question 14

Skilled Worker v. Unskilled Worker Strikes

Answer 14

Craft unions (skilled workers) more successful at restricting labour supply than unskilled members of union

Question 15

Increasing Demand for Unionized Labour

Answer 15

Unions increase wages by increasing demand for labour for products they produce

Question 16

Methods of Increasing Union Labor demand

Answer 16

• Discouraging employers from using non-union labour
• Advertising products as union made
• Preventing employers from using labour-saving technology
• Pressuring federal Parliament to restrict cheap foreign imports threatening domestically produced goods

Question 17

Process of Unionization

Answer 17

• Workers democratically decide whether to join or form union
• Certification vote conducted by Labour Relations Board

Question 18

The Vote and Effect on Unionization

Answer 18

• If majority vote for union, union becomes ‘certified’ as representative of workers
• If majority doesn’t want to keep union anymore, another vote can decertify it

Question 19

Union Security Clause

Answer 19

Clause of collective agreement specifying whether or not employees must pay union dues and/or join union

Question 20

Security Clause: Open Shop

Answer 20

Employees may choose whether or not to join union and pay dues

Question 21

Security Clause: Closed Shop

Answer 21

Employer agrees to hire only workers who are members of union

Question 22

Union Shop

Answer 22

New employees must join the union and pay dues after serving a probationary period

Question 23

Rand Formula

Answer 23

Employees must pay union dues but can decide to actually join union or not

Question 24

Striking

Answer 24

- Strikes are union’s biggest weapon and is used after mediation and conciliation - Disputes over alleged violations of existing contract cannot be resolved by strike

Question 25

Picketing

Answer 25

People walk around plant or building with signs informing workers and public that employer has been unfair

Question 26

Boycott

Answer 26

Union tries to get people to stop buying things from firm

Question 27

Work-to-Rule

Answer 27

Workers strictly follow all rules and regulations in collective agreement to get management's attention

Question 28

Lockout

Answer 28

Employees are denied access to workplace until they accept employer’s conditions

Question 29

Injunction

Answer 29

- Court order forbidding union members from carrying activities - Ex: Intimidating workers, impeding activities of company

Question 30

Union and Management Conflict Resolution

Answer 30

Employer and union negotiate mutually acceptable collective agreement

Question 31

Conciliation

Answer 31

Neutral third party attempts to prevent negotiations from breaking down

Question 32

Mediation

Answer 32

Neutral third party tries to suggest possible compromise

Question 33

Voluntary Arbitration

Answer 33

- Neutral third party hears sides of dispute - Sides voluntarily submit dispute to arbitration - They accept final decision of arbitrator

Question 34

Compulsory Arbitration

Answer 34

- In some cases, federal/provincial law require compulsory arbitration - Both parties are required to accept the final decision - Rare, only for essential services