1. Chapter 15 Labor Law
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2. Learning Objectives Discuss history of unions in the United States
Cover Norris-LaGuardia Act of 1932, National Labor Relations Act of 1935 (Wagner Act), Taft-Hartley Act of 1948, Landrum Griffin Act of 1959
List and explain several common collective bargaining agreement (CBA) clauses
Explain unfair labor practices and give examples
Discuss collective bargaining in the public sector and how it differs from the private sector

3. 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
Replaces employment “at-will” for those workers
Defines ‘other terms and conditions,’ by contract

4. Historical Accounting
Shift of the American economy from agrarian to industrial
Criminal conspiracy laws – Early union activity considered to be common law criminal conspiracies
Case: Commonwealth v. Hunt, 1842
Injunctions: Court order requiring individuals or groups of persons to refrain from performing certain acts (like striking) that the court has determined will do irreparable harm
Yellow dog contract: Agreements with provision that employee does not belong to a union and will not join one; now illegal
Antitrust attacks
Sherman Antitrust Act
Unions as “Conspiracies in restraint of trade”
Clayton Act
Exempted labor union activity from Antitrust coverage
Constitutional challenges to early congressional labor laws – no federal “interstate commerce” power to regulate, as it was then defined

5. Out of Necessity, Change (1)
National War Labor Board – WW1
Peaceful resolution of labor disputes -> model
National Industrial Recovery Act – New Deal
Put business in charge of regulating prices and production
Established a minimum wage
Gave workers collective bargaining and other rights
Declared unconstitutional in 1935
FDR frustration, ‘Court-packing scheme’
Supreme Court gets message, broadens definition of Interstate Commerce
New Deal legislation upheld (including FLSA)
National Labor Relations Act (Wagner Act)
Guaranteed rights to organize and bargain
Established NLRB to oversee unionization elections and bargaining
Management Unfair Labor Practices (none for Labor, yet)

6. Out of Necessity, Change (2)
Unions flourished (pendulum) --> expensive strikes
Taft-Hartley Act 1948
Union Unfair Labor Practices (symmetry)
Right-to-work states
Cooling-off period
Union Corruption/organized crime linkage
Landrum Griffin Act 1959 to guarantee internal democracy
MPPAA amendments to ERISA 1980, re pensions
1970s+ Decrease in private sector unionization
Heavily unionized industries decline (manufacturing)
Aggressive anti-unionizing campaigns by employers
Union concessions during downturns in the economy
North American Free Trade Agreement (NAFTA)
International competition, ‘Globalization’
Lack of success in new private sector campaigns
Labor unions remain an important part of the workplace, esp. public sector

7. National Labor Relations Act of 1935 (NLRA)
The National Labor Relations Act of 1935 is considered to be the LANDMARK statute that deals with labor relations and unions
Statutory Basis, Section 7 of NLRA
“Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collectively bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all such activities.”
Section 7 of NLRA gave EE right to:
Engage in concerted activity for mutual aid or protection (i.e. UNIONS…EE can participate, join, discuss, communicate unionizing activity),
Collectively bargain (in good-faith) with ER;
Refrain from participating in Unions.
Section 8 of the NLRA prevents ER from:
Interfering with, restraining, or coercing EE in the exercise of their rights.
Interfering with the formation of a labor organization.
Discriminating in the hiring or tenure of employment or discouraging membership in a labor organization.
Retaliating for filing charges or testifying under the act.
Refusing to bargain with the representatives of the EE.
Any of these violations may constitute a “UNFAIR LABOR PRACTICE”
The National Labor Relations Board (NLRB) is the independent federal agency that enforces labor laws in the private sector
It is LEGAL for an ER to discourage unionization, however ER can’t interfere with EE’s right to unionize (see Exhibits 15.5 and 15.8)

8. Community of interests Collective bargaining agreement
NLRA Concepts - UNIONS
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
Collective bargaining agreement
Negotiated contract between labor and management
Industrial union
Union organized across an industry, regardless of members’ job type (ex. United Auto Workers (UAW))
Craft unions
Unions organized by the employee’s craft or trade (ex. International Woodworkers of America)
Business agent
The representative of a union, usually craft

9. NLRA Concepts – Good Faith Barganing
Good Faith Bargaining
Mandatory subjects of bargaining: Wages, hours, and other conditions of employment, which, by law, must be negotiated between labor and management
Scenario 2
Permissive subjects of bargaining: Non-mandatory subjects that can be negotiated between labor and management
See Exhibit 15.6 – Selected Collective Bargaining Agreement Clauses
Closed shop: Employer hires only union members
Bad-faith bargaining, ILLEGAL, and subject to unfair labor practice (note: illegal for unions to mandate this)
Organizing Campaigns: NLRB oversight
‘Laboratory conditions’, majority vote
Scenario 1
Duty of fair representation
Requires the union to represent all employees fairly and non-discriminatorily
Emphasis on latter – does not ensure a good deal for members

10. 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

11. Employer Unfair Labor Practices
Unfair labor practices may include
Refusal to bargain in good faith
Case: Gimrock Construction v. IUOE, Local 487
Engaging in activities that would tend to attempt to control or influence the union
Interfering with union’s affairs
Case: Electromation v. NLRB, Scenario 3
Discriminating against employees who join or assist unions
Exhibit 15.5 and 15.8 – Examples of legal and illegal labor practices
Strikes and Lockouts – both legal if “primary”
Economic vs. ULP strikes re: rehire obligation
If ER hires replacement workers for economic or ULP strikers, then ER is legally obligated to reinstate ULP workers).
See types of strikes in Exhibit 15.9.
Case: Columbia Portland Cement v. NLRB,

12. The Taft-Hartley Act (1)
Amendment to the NLRA
Enacted to curb excesses by unions, rebalance process
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
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 (“featherbedding”)

13. The Taft-Hartley Act (2)
Key Terms
Meaning
Right-to-work laws
Permits employees to choose not to become a part of the union
Union shop
Union and management agree that employees must join union within some period after hire (vs. closed shop)
Union shop clause
Provision in a collective bargaining agreement allowing a union shop
Agency shop clause
Requires non-union 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
14-13

14. 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: see also Multi-Employer Pension Plan Amendments Act (part of ERISA)

15. 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

16. Labor Relations in the Public Sector
Fundamental economics differ vs. private sector
Can’t outsource DMV to India
No ‘invisible hand’ to protect against overreaching
Public employees covered
Many states have collective bargaining statutes covering most public employees
Federal restrictions
Civil Service Reform Act of 1978
Federal Labor Relations Authority
State, county, and municipal public employees
Professional associations
Craft unions
Industrial-type unions
AFL-CIO
Difference between public and private collective bargaining
No strike clauses  slowdowns and the Blue Flu

17. Management Tips
Recognize that your employees know unions affect your workplace without organizing your employees, and there are costs assoc’d. with union (dues). Philosophical objections, too.
If employees consider unionizing, do not directly interfere with the process (seek expert advice)
Do not assume any employee you speak to for the purpose of persuading employees not to unionize [or any other reason] 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
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
Keep the lines of communication open
Try to keep “us versus them” mentality from having a negative impact on the collective bargaining process
Bargain hard without setting management up for an unfair labor practice charge
You often ‘get’ the union you ‘deserve.’