©2001 West Legal Studies in Business. All Rights Reserved. 1 Chapter 23: Labor Law

©2001 West Legal Studies in Business. All Rights Reserved. 2 IntroductionIntroduction Historically, employment law was governed by the common law doctrine of “employment at will” where either employer or employee could terminate the relationship at any time, for any reason. Today employment law is heavily regulated by federal labor statutes.

©2001 West Legal Studies in Business. All Rights Reserved. 3 §1: Federal Labor Laws Norris-LaGuardia Act.Norris-LaGuardia Act –Protects peaceful strikes by limiting the injunction powers of federal courts. –Case 23.1: Burlington Northern Santa Fe v. International Brotherhood of Teamsters (2000).Burlington Northern Santa Fe v. International Brotherhood of Teamsters National Labor Relations Act.National Labor Relations Act –Establishes the right of workers to strike and engage in collective bargaining. –Case 23.2: NLRB v. Town and Country Electric (1995).NLRB v. Town and Country Electric

©2001 West Legal Studies in Business. All Rights Reserved. 4 Labor Union Laws [2] Labor Management Relations Act.Labor Management Relations Act –Prohibits certain unfair union practices such as closed shops. Labor-Management Reporting and Disclosure Act.Labor-Management Reporting and Disclosure Act »Regulates the internal operations of unions and outlaws hot-cargo agreements.

©2001 West Legal Studies in Business. All Rights Reserved. 5 §2: The Decision to Form or Select a Union Preliminary Organization. –Authorization Cards. Appropriate Bargaining Unit. Job Similarity. –Work-Site Proximity. –Non-Management Employees. Moving Toward Certification.

©2001 West Legal Studies in Business. All Rights Reserved. 6 §3: Union Elections 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. –Management Election Campaigns. »The National Labor Relations Board regulates the rights and obligations of employers and workers in the election process. »No Threats. »Laboratory Conditions.

©2001 West Legal Studies in Business. All Rights Reserved. 7 §4: Collective Bargaining 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.

©2001 West Legal Studies in Business. All Rights Reserved. 8 Subjects of Bargaining Terms and Conditions of Employment. –Pay, Safety conditions, Insurance, Pensions. Closing or Relocating a Plaint. –Severance Pay. –Management must bargain over the economic consequences of moving a plant. Case 23.3: Stroehmann Bakeries v. NLRB (1996).Stroehmann Bakeries v. NLRB

©2001 West Legal Studies in Business. All Rights Reserved. 9 §5: Strikes There are two basic forms of strikes: –Economic Strikes. »These are strikes over wages. »Workers can be replaced by permanent replacements. –Unfair Labor Practice Strikes. »These are strikes alleging that the employer has committed an unfair labor practice.

©2001 West Legal Studies in Business. All Rights Reserved. 10 Illegal Strikes Secondary Boycotts. Common Situs Picketing. Hot-Cargo Agreements. –Employers agree not to use non-union goods of other employers. Wildcat Strikes. Strikes that Threaten National Health.

©2001 West Legal Studies in Business. All Rights Reserved. 11 §6: Lockouts Occurs when the employer shuts down to prevent employees from working. When an employer believes a strike is imminent. Lockouts may be a legal employer response.

©2001 West Legal Studies in Business. All Rights Reserved. 12 §7: Unfair Labor Practices Employer’s Refusal to Recognize Union and Negotiate. –Presumption of Employee Support. –Questions of Majority Support. –Case 23.4: Canteen Corp. v. NLRB (1997).Canteen Corp. v. NLRB Employer’s Interference in Union Activities.

©2001 West Legal Studies in Business. All Rights Reserved. 13 Unfair Labor Practices [2] Employer’s Domination of Union. Employer’s Discrimination Against Union Employees. Union’s Unfair Labor Practices. –Coercion. –Discrimination. –Case 23.5: Marquez v. Screen Actors Guild (1998).Marquez v. Screen Actors Guild

©2001 West Legal Studies in Business. All Rights Reserved. 14 §8: Rights of Nonunion Employees Concerted Activity. Safety. Employee Communities. –Case 23.6: In Re Simmons Industries (1996).In Re Simmons Industries

©2001 West Legal Studies in Business. All Rights Reserved. 15 Focus on Ethics: Employment Duties of Agents and Principals. Disability-Based Discrimination. English-Only Policies. –Yniguez v. Arizona (9 th Cir. 1995).Yniguez v. Arizona Labor Law and Quality Control.

©2001 West Legal Studies in Business. All Rights Reserved. 16 Law on the Web NLRB AFL-CIO.com Legal Research Exercises on the Web