Wages & Labor Disputes

Notes by Sasha

Determining Wages:
Skill Levels:
1. Unskilled Level: Not trained for machines and equipment
2. Semiskilled level: operate machines with minimum training.
3. Skilled labor: trained and need little supervision
4. Professional labor: a lot of training, education and skills.
Theories:
1. Market theory: rely on supply and demand.
2. Negotiated Theory: based on bargaining strength of organized labor.
3. Signaling theory: employers pay more for highly educated people.

How to resolve Labor disputes:
Resolution:
1. Collective bargaining: negotiation between labor and management over pay, benefits, working hours, etc.
2. Mediation: bring in neutral 3rd party to resolve disputes.
3. Arbitration: both sides/parties agree to place disputes before 3rd party which make the final decision.
4. Fact-Finding: 3rd party collects facts about dispute and gives recommendations.