Chapter 15 Labor Law McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

15-2 Learning 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

15-3 Learning 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

15-4 Learning 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

15-5 Coming 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

15-6 A 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

15-7 A 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

15-8 Out 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

15-9 Out 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

15-10 Labor 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

15-11 The 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

15-12 The National Labor Relations Act of 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

15-13 The National Labor Relations Act of 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

15-14 The National Labor Relations Act of 1935 (Wagner Act) UnionsMeaning Community of interests Factors employees have in common for bargaining purposes Bargaining unitThe group of employees in a workplace that have the legal right to bargain with the employer Shop stewardUnion member chosen as intermediary between union members and employer

15-15 The National Labor Relations Act of 1935 (Wagner Act) UnionsMeaning Collective bargaining agreement Negotiated contract between labor and management Industrial unionUnion organized across an industry, regardless of members’ job type Craft unionsUnions organized by the employee’s craft or trade Business agentThe representative of a union, usually craft

15-16 The National Labor Relations Act of 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

15-17 The National Labor Relations Act of 1935 (Wagner Act)  Duty of fair representation  Requires the union to represent all employees fairly and nondiscriminatorily

15-18 Collective 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

15-19 Unfair 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

15-20 The 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

15-21 The 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

15-22 The Taft-Hartley Act Key TermsMeaning Right-to-work lawsPermits employees to choose not to become a part of the union Union shopUnion and management agree that employees must be a member of the union Union shop clauseProvision in a collective bargaining agreement allowing a union shop Agency shop clauseRequires nonunion members to pay union dues without having to be subject to the union rules Free ridersBargaining unit employees who do not pay dues but whom the union is still obligated to represent

15-23 The 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

15-24 Union 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

15-25 Labor 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

15-26 Labor 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

15-27 Management 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

15-28 Management 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

15-29 Management 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