Chapter 15Chapter 15Labor Law Labor Law

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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Learning ObjectivesLearning Objectives Discuss the history of unions in the United

States

Identify the Norris-LaGuardia Act of 1932 and what it covers

Identify the National Labor Relations Act of 1935 (Wagner Act) and what it requires

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Learning ObjectivesLearning Objectives List and explain several collective bargaining

agreement clauses

Explain unfair labor practices and give examples

Describe the Taft-Hartley Act of 1947 and its requirements

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Learning ObjectivesLearning Objectives Define the Landrum-Griffin Act of 1959 (Labor

Management Reporting and Disclosure Act) and its provisions

Discuss collective bargaining in the public sector and how it differs from the private sector

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Coming Together on IssuesComing Together on Issues Labor law – different and discrete from

employment law

Collective bargaining: Negotiations and agreements between management and labor about wages, hours, and other terms and conditions of employment

Nature of the American economy – shift from agrarian to industrial

Basis for modern labor issues

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A Historical AccountingA Historical Accounting Criminal conspiracy laws – Early union activity

considered to be common law criminal conspiracies

Injunctions: Court order requiring individuals or groups of persons to refrain from performing certain acts that the court has determined will do irreparable harm

Yellow dog contracts: Agreements stating that employees do not belong to a union and will not join one; now illegal

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A Historical AccountingA Historical Accounting Antitrust attacks

Sherman Antitrust Act

Secondary boycotts: Union pressure on management by getting others who do business with management to cease

Clayton act

Issue of injunction against labor

Constitutional challenges to early congressional enactments

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Out of Necessity Comes ChangeOut of Necessity Comes Change National War Labor Board

Peaceful resolution of labor disputes

National Industrial Recovery Act

Put business in charge of regulating prices and production

Established a minimum wage

Gave workers collective bargaining and other rights

Declared unconstitutional in 1935

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Out of Necessity Comes ChangeOut of Necessity Comes Change Decrease in unionization

Reduction in heavily unionized industries

Aggressive nonunionizing campaigns by employers

Union concessions during downturns in the economy

North American Free Trade Agreement (NAFTA)

International competition

Labor unions still remain an important part of the workplace

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Labor LawsLabor Laws Began with

Restricting court responses to union activity

Establishing the right of employees to form labor organizations

Protection against unfair labor practices

Unions gained power and abused it, resulting in additional labor management legislation

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The Norris-Laguardia ActThe Norris-Laguardia Act The first major labor law statute enacted in the

United States

Provisions

Curbed courts’ power to intervene in labor disputes

Issue of injunctive relief

Yellow contracts made non-enforceable in any court in the U.S.

Significant impact in curbing prosecution under the antitrust laws

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The National Labor Relations Act of The National Labor Relations Act of 1935 (Wagner Act)1935 (Wagner Act)

The National Labor Relations Act

Enacted to avoid the unconstitutional delegation of legislative power

Outlines unfair labor practices

Administered by NLRB

Unfair job practices by unions are notably missing from the act

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The National Labor Relations Act of The National Labor Relations Act of 1935 (Wagner Act)1935 (Wagner Act)

The National Labor Relations Board

Enforces labor laws in the private sector and conducts union elections

Community of interests – formation of a bargaining unit

Concerted activity

Union organizing

Discussion of unionization and solicitation of union support

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The National Labor Relations Act of The National Labor Relations Act of 1935 (Wagner Act)1935 (Wagner Act)

Unions Meaning

Community of interests

Factors employees have in common for bargaining purposes

Bargaining unit The group of employees in a workplace that have the legal right to bargain with the

employer

Shop steward Union member chosen as intermediary between union members and employer

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The National Labor Relations Act of The National Labor Relations Act of 1935 (Wagner Act)1935 (Wagner Act)

Unions Meaning

Collective bargaining agreement

Negotiated contract between labor and management

Industrial union Union organized across an industry, regardless of members’ job type

Craft unions Unions organized by the employee’s craft or trade

Business agent The representative of a union, usually craft

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The National Labor Relations Act of The National Labor Relations Act of 1935 (Wagner Act)1935 (Wagner Act)

Good faith bargaining

Mandatory subjects of bargaining: Wages, hours, and other conditions of employment, which, by law, must be negotiated between labor and management

Permissive subjects of bargaining: Nonmandatory subjects that can be negotiated between labor and management

Closed shop: Employer hires only union members

Bad-faith bargaining

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The National Labor Relations Act of The National Labor Relations Act of 1935 (Wagner Act)1935 (Wagner Act)

Duty of fair representation

Requires the union to represent all employees fairly and nondiscriminatorily

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Collective Bargaining AgreementsCollective Bargaining Agreements Management security clause: Parties agree

that management has the right to run the business and make appropriate business decisions as long as applicable laws and agreements are complied with

Midterm negotiations: Collective bargaining negotiations during the term of the contract

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Unfair Labor PracticesUnfair Labor Practices Unfair labour practices may include

Refusal to bargain in good faith

Engaging in activities that would tend to attempt to control or influence the union

Interfering with union’s affairs

Discriminating against employees who join or assist unions

Strikes and Lockouts

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The Taft-Hartley ActThe Taft-Hartley Act Amendment to the NLRA

Enacted to curb excesses by unions

Section 7, unfair labor practice for unions to

Restrain employees in the exercise of their rights or employers in the selection of their representatives for collective bargaining

Cause an employer to discriminate against an employee

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The Taft-Hartley ActThe Taft-Hartley Act Section 7, unfair labor practice for unions to

(continued)

Refuse to bargain with an employer

Engage in jurisdictional or secondary boycotts.

Charge excess or discriminatory initiation fees or dues.

Cause an employee to pay for goods or services that are not provided

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The Taft-Hartley ActThe Taft-Hartley Act

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Key Terms MeaningRight-to-work

lawsPermits employees to choose not to become a

part of the union

Union shop Union and management agree that employees must be a member of the union

Union shop clause

Provision in a collective bargaining agreement allowing a union shop

Agency shop clause

Requires nonunion members to pay union dues without having to be subject to the union rules

Free riders Bargaining unit employees who do not pay dues but whom the union is still obligated to

represent

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The Landrum-Griffin ActThe Landrum-Griffin Act Also known as the Labor Management

Reporting and Disclosure Act

Enacted in response to congressional investigations into union corruption

Bill of rights for union members

Procedures for holding union elections

Safeguarding funds

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Union Members’ Bill of RightsUnion Members’ Bill of Rights Right to attend union meetings, vote on union

business, and nominate candidates for union Right to bring an agency or court action against the union after exhausting union procedures

Certain procedures must be followed before any dues or initiation fee increases

Full and fair hearing when being disciplined by the union; exception – failure to pay dues

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Labor Relations in the Public SectorLabor Relations in the Public Sector

Federal employees

Many states have collective bargaining statutes covering most public employees

Federal restrictions

Civil Service Reform Act of 1978

Federal Labor Relations Authority

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Labor Relations in the Public SectorLabor Relations in the Public Sector

State, county, and municipal public employees

Professional associations

Craft unions

Industrial-type unions

AFL-CIO

Difference between public and private collective bargaining

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Management TipsManagement Tips If employees decide they wish to unionize, do

not try to negatively influence the decision

Do not assume any employee you speak to for the purpose of persuading employees not to unionize will keep the conversation confidential

Know the kinds of things the employer can legally do to influence the unionizing decision, and do only those things that are permissible

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Management TipsManagement Tips Once the union is in place, conduct all

negotiations only with the union representatives

Treat the collective bargaining process as one would any business activity

Know what the law requires

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Management TipsManagement Tips Keep the lines of communication open

Try to keep the “us versus them” mentality from having a negative impact on the collective bargaining process

Play hardball without setting management up for an unfair labor practice charge