Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning Chapter 18 Labor-Management Relations

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 2 Federal Labor Law Four major federal labor law statutes are: Norris-LaGuardia Act of 1932 Labor-Management Relations Act Labor-Management Reporting and Disclosure Act National Labor Relations Act

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 3 Norris-LaGuardia Act Extended legal protection to peaceful strikes, picketing, and boycotts.Extended legal protection to peaceful strikes, picketing, and boycotts. Restricted the power of the courts to issue injunctions against unions engaged in peaceful strikes.Restricted the power of the courts to issue injunctions against unions engaged in peaceful strikes. Case 18.1 Burlington Northern Santa Fe Railway Co. v. International Brotherhood of Teamsters Local 174 (2000).Case 18.1 Burlington Northern Santa Fe Railway Co. v. International Brotherhood of Teamsters Local 174 (2000).

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 4 National Labor Relations Act of 1935 (Wagner Act) Established the rights of employees to engage in collective bargaining and to strike.Established the rights of employees to engage in collective bargaining and to strike. Created the National Labor Relations Board (NLRB) to oversee union elections and prevent employers from engaging in unfair labor practices (such as refusing to recognize and negotiate with a certified union or interfering in union activities).Created the National Labor Relations Board (NLRB) to oversee union elections and prevent employers from engaging in unfair labor practices (such as refusing to recognize and negotiate with a certified union or interfering in union activities).

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 5 Labor-Management Relations Act Extended to employers protections already enjoyed by employees.Extended to employers protections already enjoyed by employees. Provided a list of activities prohibited to unions (secondary boycotts, use of coercion or discrimination to influence employees’ decisions to participate or refrain from union activities) and allowed employers to propagandize against unions before any NLRB election.Provided a list of activities prohibited to unions (secondary boycotts, use of coercion or discrimination to influence employees’ decisions to participate or refrain from union activities) and allowed employers to propagandize against unions before any NLRB election. Prohibited closed shops (which require that all workers belong to a union as a condition of employment), allowed states to pass right-to-work laws, and provided for an eighty-day cooling-off period.Prohibited closed shops (which require that all workers belong to a union as a condition of employment), allowed states to pass right-to-work laws, and provided for an eighty-day cooling-off period.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 6 Labor-Management Reporting and Disclosure Act Regulated internal union business procedures and union elections.Regulated internal union business procedures and union elections. Imposed restrictions on the types of persons who may serve as union officers and outlawed hot-cargo agreements.Imposed restrictions on the types of persons who may serve as union officers and outlawed hot-cargo agreements.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 7 The Decision to Form or Select a Union The key starting point for labor relations law is the decision by a company’s employees to form a union, which is usually referred to in the law as their bargaining representative.The key starting point for labor relations law is the decision by a company’s employees to form a union, which is usually referred to in the law as their bargaining representative. If the workers decide that they want the added power of collective union representation, they must follow certain steps to have a union certified.If the workers decide that they want the added power of collective union representation, they must follow certain steps to have a union certified.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 8 Preliminary Organizing Before beginning an organizing effort, a union will attempt to assess worker support for unionization by obtaining signed authorization cards from the employees.Before beginning an organizing effort, a union will attempt to assess worker support for unionization by obtaining signed authorization cards from the employees. It can then ask the employer to recognize the union, or it can submit the cards with a petition to the National Labor Relations Board.It can then ask the employer to recognize the union, or it can submit the cards with a petition to the National Labor Relations Board.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 9 Appropriate Bargaining Unit In determining whether workers constitute an appropriate bargaining unit, the NLRB considers whether the skills, tasks, and jobs of the workers are sufficiently similar so they can all be adequately served by a single negotiating position.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 10 Moving toward Certification Certification by the NLRB means that the union is the exclusive representative of a bargaining unit and that the employer must recognize the union and bargain in good faith with it over issues affecting all employees who are within the bargaining unit.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 11 Union Election Labor law provides for an election to determine whether employees choose to be represented by a union and, if so, which union.Labor law provides for an election to determine whether employees choose to be represented by a union and, if so, which union. If the election is a fair one, and if the proposed union receives majority support, the board certifies the union as the bargaining representative.If the election is a fair one, and if the proposed union receives majority support, the board certifies the union as the bargaining representative.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 12 Union Election Campaign Employer’s Right to Limit Campaign Activities. Employers retain great control to limit union activities as long as it can offer legitimate business justifications for those limitations.Employer’s Right to Limit Campaign Activities. Employers retain great control to limit union activities as long as it can offer legitimate business justifications for those limitations. In regulating the union’s presence on the business premises, the employer must treat the union in the same way it would treat any other entity having on-site contact with its workers.In regulating the union’s presence on the business premises, the employer must treat the union in the same way it would treat any other entity having on-site contact with its workers. –Case 18.2 Associated Rubber Co. v. NLRB (2002). The NLRB is particularly sensitive to any threats in an employer’s communications to workers, such as declarations that a union victory will result in the closing of the plant.The NLRB is particularly sensitive to any threats in an employer’s communications to workers, such as declarations that a union victory will result in the closing of the plant. The NLRB will also closely monitor sudden policy changes regarding compensation, hours, or working conditions that the employer makes before the election.The NLRB will also closely monitor sudden policy changes regarding compensation, hours, or working conditions that the employer makes before the election.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 13 Management Election Campaign Management may also campaign among its workers against the union.Management may also campaign among its workers against the union. The employer may not make threats of reprisals if employees vote to unionize.The employer may not make threats of reprisals if employees vote to unionize. If the employer issues threats or engages in other unfair labor practices and then wins the election, the NLRB may invalidate the results.If the employer issues threats or engages in other unfair labor practices and then wins the election, the NLRB may invalidate the results.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 14 Collective Bargaining Once a union is elected, its representatives will engage in collective bargaining with the employer.Once a union is elected, its representatives will engage in collective bargaining with the employer. Each side tries to use its economic power to persuade or pressure the other side to grant concessions.Each side tries to use its economic power to persuade or pressure the other side to grant concessions.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 15 Subjects of Bargaining Topics such as wages, hours of work, and other conditions of employment are discussed during collective bargaining sessions.Topics such as wages, hours of work, and other conditions of employment are discussed during collective bargaining sessions. Other topics, such as college scholarships for the children of union members, may also be brought up for consideration.Other topics, such as college scholarships for the children of union members, may also be brought up for consideration. Some demands, such as a demand for featherbedding or for a closed shop, are illegal.Some demands, such as a demand for featherbedding or for a closed shop, are illegal. Case 18.3 National Steel Corp. v. NLRB (2003).Case 18.3 National Steel Corp. v. NLRB (2003).

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 16 Good Faith Bargaining If the parties reach an impasse, the union may call a strike against the employer to bring additional economic pressure to bear.If the parties reach an impasse, the union may call a strike against the employer to bring additional economic pressure to bear. This is one way in which the union can offset the superior bargaining power possessed by management.This is one way in which the union can offset the superior bargaining power possessed by management.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 17 Strikes The right to strike is protected by the U.S. Constitution.The right to strike is protected by the U.S. Constitution. During a strike, an employer is no longer obligated to pay union members, and union members are no longer required to show up for work.During a strike, an employer is no longer obligated to pay union members, and union members are no longer required to show up for work.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 18 Illegal Strikes An otherwise lawful strike may become illegal because of the conduct of the strikers. Two types of illegal strikes include: Secondary BoycottsWildcat Strikes

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 19 Secondary Boycotts Strikers are not permitted to engage in a secondary boycott by picketing the suppliers of an employer.Strikers are not permitted to engage in a secondary boycott by picketing the suppliers of an employer. Similarly, striking employees are not permitted to coerce the employer’s customers into agreeing not to do business with it.Similarly, striking employees are not permitted to coerce the employer’s customers into agreeing not to do business with it. “Hot Cargo” Agreements.“Hot Cargo” Agreements.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 20 Wildcat Strikes A wildcat strike occurs when a small group of union members engages in a strike against the employer without the permission of the union.A wildcat strike occurs when a small group of union members engages in a strike against the employer without the permission of the union.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 21 Replacement Workers If company’s employees go on strike, the company has the right to hire replacements (“scabs”).If company’s employees go on strike, the company has the right to hire replacements (“scabs”). Employer may even offer permanent positions with company and can use employment agency to fill replacements.Employer may even offer permanent positions with company and can use employment agency to fill replacements. If the strike is called by the union to protest the employer’s unwillingness to engage in good faith negotiations, the employer must rehire the striking workers after the strike is settled, even if it has since replaced them with other workers.If the strike is called by the union to protest the employer’s unwillingness to engage in good faith negotiations, the employer must rehire the striking workers after the strike is settled, even if it has since replaced them with other workers.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 22 Lockouts Employers may respond to threatened employee strikes by shutting down the plant altogether to prevent employees from working.Employers may respond to threatened employee strikes by shutting down the plant altogether to prevent employees from working. Lockouts are used when the employer believes a strike is imminent.Lockouts are used when the employer believes a strike is imminent.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 23 Unfair Labor Practices

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 24 Unfair Labor Practices Employer’s Refusal to Recognize Union and Negotiate.Employer’s Refusal to Recognize Union and Negotiate. –Presumption of Employee Support. –Questions of Majority Support. –Case 18.4: Canteen Corp. v. NLRB (1997). Employer’s Interference in Union Activities.Employer’s Interference in Union Activities.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 25 Unfair Labor Practices Employer’s Domination of Union.Employer’s Domination of Union. Employer’s Discrimination Against Union Employees.Employer’s Discrimination Against Union Employees. Union’s Unfair Labor Practices.Union’s Unfair Labor Practices. –Coercion. –Discrimination.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 26 Rights of Non- Union Employees The National Labor Relations Act protects concerted action on the part of nonunion employees.The National Labor Relations Act protects concerted action on the part of nonunion employees. Employee Committees.Employee Committees. Protected concerted action includes walkouts and other activities regarding wages, hours, workplace safety, or other terms or conditions of employment.Protected concerted action includes walkouts and other activities regarding wages, hours, workplace safety, or other terms or conditions of employment.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 27 For Review 1.What federal statutes govern labor unions and collective bargaining? 2.How does the way in which a union election is conducted protect the rights of employees and employers? 3.What type of strikes are illegal? 4.What activities are prohibited as unfair employer practices? 5.What are the rights of nonunion employees?

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 28 Union Organization Union organization involves:Union organization involves: –Elections. An election can be held only if it can be shown that at least 30% of the workers will be represented.An election can be held only if it can be shown that at least 30% of the workers will be represented. –Election Campaigns. The National Labor Relations Board regulates the rights and obligations of employers and workers in the election process.The National Labor Relations Board regulates the rights and obligations of employers and workers in the election process. Each side can pursue their objectives, but cannot interfere, beyond certain limits, in the other’s activities.Each side can pursue their objectives, but cannot interfere, beyond certain limits, in the other’s activities.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 29 Collective Bargaining Collective bargaining is the process by which management and labor negotiate the terms and conditions of employment.Collective bargaining is the process by which management and labor negotiate the terms and conditions of employment. –The NLRB will certify an exclusive bargaining agent for labor. –Both labor and management must bargain in good faith, but the law does not require that they reach an agreement.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 30 StrikesStrikes There are two basic forms of strikes:There are two basic forms of strikes: –Economic Strikes. These are strikes over wages.These are strikes over wages. Workers can be replaced by permanent replacements.Workers can be replaced by permanent replacements. –Unfair Labor Practice Strikes. These are strikes alleging that the employer has committed an unfair labor practice.These are strikes alleging that the employer has committed an unfair labor practice.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 31 Worker Health and Safety The Occupational Safety and Health Act. (OSHA).The Occupational Safety and Health Act. (OSHA). –The fundamental federal law aimed toward safety in the workplace. –Enforcement is by OSHA, NIOSH, and the OSHRC. –Procedures and Violations: Employers with 11 or more employees required to keep records.

Miller Cross 4 th Ed. © 2005 by West Legal Studies in Business / A Division of Thomson Learning 32 Worker Health and Safety State Workers’ Compensation Laws.State Workers’ Compensation Laws. –These laws reduce employer liability to employees for workplace injuries, and provide a measure of assurance that workplace injuries will be compensated, regardless of the solvency of the employer, by: –Requiring that injured employees make a claim against the employer’s workers’ compensation insurance policy, instead of suing the employer. –Requiring most employers to carry workers’ compensation insurance.