Chapters 18 - 19 chug Flashcards
The north american union of Canada USA Mexico C.U.M (24 cards)
Wage rate
Payment received by a worker per unit of time worked or unit of output produced
Piece rate
When a worker is paid per unit of output produced
Time rate
When a worker is paid per hour worked
Bonus
An extra payment to workers as a reward for good performance
Commission
When a worker receives a small percentage of the value of the sales they make
Minimum Wage
A legally set minimum amount that a worker can be paid per hour
Wage differential
The difference in wages between different workers
Elasticity of demand for labour
The responsive of labour demand to a change in the wage
Elasticity of supply for labour
The responsiveness of labour supply to a change in the wage
Specialisation
When a worker, firm or economy concentrates on particular products or tasks
Division of labour
Workers specialising on particular tasks
Trade union
An association which represents the interests of a gorup of workers
Collective bargaining
When a group of workers negotiates together with their employer
Industrial Action
Action taken by workers to disrupt production and put pressure on employers to agree to demands
Strike Action
When workers temporarily refuse to work
Advantages to workers
Gains benefits of collective bargaining (wages, working conditions, fringe benefits etc.)
Advantages to firms
Better working relations, profit and productivity increase, easier communication
Advantages to non-unionized workers
Non-excludable, gain benefits of union
Disadvantages to workers
Pressures union members on industrial action, less employed from less demand
Disadvantages to firms
Industrial action causes decreases in revenue
Disadvantages to the economy
Prevents economic mobility
Factors affecting strength of a trade union
Timing, profitability, unemployment, proportion of workers unionized, level of skill required for job, favorability of government legislature
Industrial Actions (types)
Strikes, protests, go slow, work to rule
Why do trade unions push for benefits
- Higher worker profitability
- Firm profitability
- Inflation
- Comparability (To other professions or senior/junior workers)
