Chapter 23 Unions and the Employment Relationship 4/16/2017 Chapter 23 Unions and the Employment Relationship 23-1 Establishment of Unions 23-2 Employment Relations in a Unionized Workplace Chapter 23 LAW

23-1 Establishment of Unions GOALS Discuss the development of labor law Understand how a union is formed Chapter 23

HISTORY OF LABOR LAW The current state of labor law in the US is best understood through a brief look at relevant history. The early labor organizations were mostly created in reaction to specific situations. Early labor law Unions were held to be organizing their members to extort higher wages at the expense of the consuming public. Chapter 23

HISTORY OF LABOR LAW Early labor law (cont.) About 1842 the courts ceased classifying unions as criminal conspiracies. The legal attack shifted to civil law. Courts held that strikes, boycotts, etc., were actions in breach of the employment contract. Companies felt justified in firing any employee suspected of sympathizing with unions and could do so because contracts in most states were terminable at will. Chapter 23

HISTORY OF LABOR LAW Early labor law (cont.) In other states, companies made employees agree to yellow-dog contracts. As a condition of employment , employees agreed not to join a union. Court-issued injunctions were often used to hinder union organization efforts aimed at employees already working under such contracts. Chapter 23

HISTORY OF LABOR LAW Early labor law (cont.) Injunctions were often issued by a judge after hearing only one side of an argument, typically the employer’s. These were known as ex-parte injunctions. If employees struck or continued to strike in the face of the injunction, they could be arrested and imprisoned for contempt of court. Chapter 23

HISTORY OF LABOR LAW Early labor law (cont.) In 1890 Congress passed the Sherman Antitrust Act which prohibited restraints of trade and made business monopolies illegal. Federal judges came to interpret this act as making unions illegal. In 1914 in a portion of the Clayton Act, Congress responded by exempting unions from the Sherman Antitrust Act. Chapter 23

HISTORY OF LABOR LAW The Depression era As part of its sweeping economic reform under the leadership of President Franklin Roosevelt, the federal government solidified the status of unions in this country by assuming regulatory responsibility for labor unions. Today, most labor relations are governed by the National Labor Relations Board (NLRB). The NLRB administers the rights and duties given to workers, employers, and unions. Chapter 23

HISTORY OF LABOR LAW The Depression era (cont.) Control of labor relations in smaller businesses is left to the states. Chapter 23

What federal agency currently exercises control over labor relations? Chapter 23

HOW IS A UNION ESTABLISHED? Determining the bargaining unit Within a unionized company, any group of employees whose employment contract is negotiated together is called a bargaining unit. Common employment interests such as training are important considerations in who should be included in the bargaining unit. Employees who have supervisory responsibilities or those who have a confidential role in creating management-labor policies cannot be in a bargaining unit. Chapter 23

HOW IS A UNION ESTABLISHED? Attempting voluntary recognition To establish a union, the organizers obtain employee signatures on authorization cards. These cards indicate that the workers wants to be represented by a particular union. If a sizable percentage of workers sign authorization cards for a particular union, it may approach management and ask to be recognized as the exclusive bargaining representative. Chapter 23

HOW IS A UNION ESTABLISHED? Holding a certification election If management denies voluntary recognition, the union can ask the NLRB to conduct a representation election. At least 30% of employees in proposed bargaining unit must have signed the authorization card or petition. NLRB will conduct hearings to determine who is eligible to vote. NLRB will conduct election in which employees vote in secrecy. If union is selected, NLRB will acknowledge that union as the exclusive bargaining unit. This is call certification. Chapter 23

HOW IS A UNION ESTABLISHED? Holding a certification election (cont.) Certification campaigns During certification campaigns, it is illegal for an employer to fire or to threaten to fire union sympathizers to discourage unionization. Employers may not threaten to close the plant, reduce the number of workers, or move work out the country. Management may not support one union over another. Labor unions may not picket, make threats, or engage in violence. Chapter 23

HOW IS A UNION ESTABLISHED? Holding a certification election (cont.) Decertification If a union has been certified and later 30 percent of the employees decide they want different or no representation, they can petition the NLRB to conduct a decertification election. At this election, employees can reject union representation or select a different union. An employer cannot file a decertification petition. Managerial employees are not permitted to vote in certification or decertification elections. Chapter 23

HOW IS A UNION ESTABLISHED? Negotiating the employment contract – Whether or not they are union members, all workers in each bargaining unit are bound by the collective agreement reached between the union and the employer. Whether or not an employee must join the union depends on the type of shop that has been authorized in the negotiation process. Chapter 23

HOW IS A UNION ESTABLISHED? Negotiating the employment contract (cont.) Union and agency shops In a union shop, non-union employees may be hired, but they must join the union within a stated maximum period, usually 30 days. The agency shop is a variation of the union shop. Employees are not required to join the union, but if they do not, they must nevertheless pay union dues as a condition of employment. Chapter 23

HOW IS A UNION ESTABLISHED? Negotiating the employment contract (cont.) Open and closed shops In the open shop, employees are not required to belong to a union or to pay dues. Union and nonunion workers are bound by the negotiated contract. In a closed shop, the employer agrees that workers must belong to the recognized union before they are hired. The Labor Management Relations Act (a/k/a Taft-Hartley Act) of 1946 allows individual states to pass right-to-work laws. Right-to-work laws prohibit compulsory union membership and ban the union shop, closed shop, and agency shop. Chapter 23

What is a bargaining unit? Chapter 23

23-2 Employment Relations in a Unionized Workplace GOALS Explain how a collective bargaining agreement is negotiated Recognize unfair labor practices Chapter 23

HOW IS A LABOR CONTRACT NEGOTIATED WITH A UNION? Collective bargaining - Collective bargaining is the process whereby the union and the employer negotiate a contract of employment that binds both sides. Unions choose their own negotiators. Management and/or company lawyers typically represent the company. Pay and benefits are the most commonly negotiated issues. Chapter 23

HOW IS A LABOR CONTRACT NEGOTIATED WITH A UNION? Should the union and management fail to reach an agreement, the union employees may choose to strike and the employer to hold a lockout. Strike – A strike is a collective work stoppage intended to force an employer to alter its position on an issue. Chapter 23

HOW IS A LABOR CONTRACT NEGOTIATED WITH A UNION? Lockout – A lockout occurs when an employer temporarily closes down operations to induce the workers and their representatives to alter their position on an issue. Great economic pressure confronts both sides if either a strike or lockout occurs. Employee wages cease. Production stops. Chapter 23

HOW IS A LABOR CONTRACT NEGOTIATED WITH A UNION? When collective bargaining negotiations become deadlocked (stalemated) and a strike is imminent or in progress, the government may intervene by bringing the parties together to settle their differences. Mediation – In mediation, a mediator talks with both sides and attempts to achieve a compromise. Mediation is not binding against either party. Chapter 23

HOW IS A LABOR CONTRACT NEGOTIATED WITH A UNION? Arbitration – The parties may submit their deadlocked dispute to binding arbitration if allowed under the contract. The arbitrator holds a hearing and makes a determination that is enforceable at law against both employer and union. Chapter 23

Who are the parties to a collective bargaining agreement? Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices (ULPs) seek to ensure unions are treated fairly by prohibiting certain actions of employers and, likewise, prohibiting unions from taking certain actions against employers or their own members. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Management’s unfair labor practices Interfering with employees’ efforts to form, join, or assist unions – This includes refusing to deduct union dues, disrupting organizing meetings, threatening to fire employees to keep them from organizing a union, and threatening to stop operations, replace workers with machine, or move operations. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Management’s unfair labor practices (cont.) Dominating a union or giving it financial or other support – This preserves the independence of unions in representing the interests of the employees. Encouraging or discouraging union membership – Employers may not threaten to blacklist employees who join unions. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Management’s unfair labor practices (cont.) Refusing to bargain in good faith with the union – Management must participate actively in attempting to reach an agreement. However, the law does not require that management agree to a union proposal. Management must only engage in good faith bargaining. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices by unions – The Taft-Hartley Act and other statutes require that unions treat employees and management fairly. Unfair labor practices by unions include: Refusing to bargain collectively in good faith Attempting to force an employer to pay for featherbedding which is payment for services not performed. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices by unions (cont.) Picketing (that is, patrolling near the employer’s property with signs) by uncertified unions trying to force the employer to bargain with that union. Engaging in strikes and boycotts prohibited by law. Most nonviolent strikes are legal. Requiring an excessive or discriminatory fee for initiation into the union. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices by unions (cont.) Forcing or attempting to force employees to support a union or to restrain employees from supporting competing unions. Causing or attempting to cause an employer to discriminate against an employee because of union-related activities. The Labor-Management Reporting and Disclosure Act requires that unions operate in a manner that gives members full voice in decision making. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices in strikes and boycotts Strikes An economic strike is one where the dispute is over wages, hours, or conditions of employment. An employer may give the striking employee’s job to someone else. Unions commonly refuse to settle unless members are rehired. In an unfair labor practice strike, the employer may not permanently give the striking worker’s job to someone else. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices in strikes and boycotts Strikes (cont) Strikes of public employees generally are prohibited. Public workers may strike anyway or stay away from work claiming illness (blue flu). Workers and their leaders are subject to court orders directing them to return to work. If they ignore court order, they may be fired or jailed. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices in strikes and boycotts Strikes (cont) A national emergency strike is one that involves national defense or major industries or would endanger national health and safety. The President of the US has the power to obtain an injunction in federal court forcing a cooling-off period of 80 days. Strikes and lockouts are illegal during the cooling-off period. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices in strikes and boycotts Boycotts – A boycott is a refusal to buy or to use someone’s products or services. A primary boycott involves the employees’ refusals to buy their employer’s products or services. Primary boycotts are legal and are often accompanied by a strike or picketing at the employer’s place of business. A secondary boycott is illegal. This occurs when striking employees try to get customers to stop buying the products or services of a third party. Picketing is legal only if customers are urged to not buy products made by a particular manufacturer, not all products. Chapter 23

WHAT ARE UNFAIR LABOR PRACTICES? Unfair labor practices in strikes and boycotts Boycotts (cont.) Secondary boycotts are legal when the National Labor Relations Act or state statutes do not apply. Farm workers are not covered by the NLRA. Chapter 23

What is the difference between an economic strike and an unfair labor practice strike? Chapter 23

PREVENT LEGAL DIFFICULTIES In an employment relationship based on collective bargaining, remember…. Employees generally have the legal right to organize into unions and bargain collectively with employers. An employer may not legally discharge an employee for engaging in union activities. An employer that does so is guilty of an unfair labor practice. A union member has the right to vote for union officers in secret elections and to see accurate and timely information on union finances and activities. Continued on the next slide Chapter 23

PREVENT LEGAL DIFFICULTIES Employers should cooperate with unions that represent their employees in good faith for the common good of all parties involved. Unless there is a legal union shop, employers may not discharge or otherwise discriminate against workers because they join a union or because they refuse to join a union. Employers must bargain collectively in good faith with representatives of any union chosen by a majority of the workers in each bargaining unit. Chapter 23