Chapter 12.2, Problem 1R

To determine

To explain the importance of terms, Labor union, Craft union, Industrial union, Local union, Closed shop, Union shop, Agency shop & Right-to-work-laws.

Explanation of Solution

The significance of the terms above can be explained as:

·         Labor union: Labor unions are of great importance as they provide the security to the workers of all classes to work considering their benefits, needs & rights and through which labor exploitation can be stopped.

·         Craft union: These kinds of unions are important as they are formed by the people for the same class of workers and they know about their rights and benefits to be availed for the higher standard of living.

·         Industrial union: These unions are of major significance as they work under the rules and regulations of management which helps even the management to address them easily and listen to them for their rights in the industry along with maintaining the efficiency in the industry work.

·         Local union: These are of major importance so that an area or region can be easily regulated under some head which can be under the guidance of either the national or international members.

·         Closed shop: Closed shops help in finding the workers belonging to the unions as a member. It is easy for the companies to get such required union members under one roof.

·         Union shop: It is of major importance because it helps in adding more and more workers to the unions by giving them the security of the job in which they are.

·         Agency shop: Here the importance of such shops are because they help in generating the revenues of the unions by the collection of fee of the unions in which the non-members also need to pay the fee, which persuades them to join the union as they are paying for it.

·         Right-to-work laws: This law is of major importance as it helps the workers who do not like to join any unions can opt out of the payment to be made. It allows them the right to choose if they want to be a part of the union or want to pay for it depending upon their wish and will.

Economics Concept Introduction

Introduction:

Labor union: Labor unions are formed so as to get the increased wages and the benefits regarding the job in the industry along with the healthy environment to work in with job security.

Craft union: When the workers of the same category of the work come together and form a union that is known as craft unions also called horizontal unions.

Industrial union: These unions are of major importance in today’s world as these are such unions in which the different categories of workers whose aims are same in the industry and are under same rules and regulations from the management are called industrial unions also known as vertical unions.

Local union: It is the union of the workers of a local company or region with a national or international union head.

Closed shop: These are one in which only the worker belonging to the union as a member is hired by the employers.

Union shop: It is a term which means a company in which people who enter in the company not belonging to any union have to join the union under some specified time period so as to keep their jobs.

Agency shop: This is a kind of union in which both the member and non-member of the union will be hired on the condition that either being a non-member, the workers has to pay the fees and the dues of the union.

Right-to-work laws: This law provides the workers with the right to choose if they want to be a part of the union or not.