1. The Legal Environment of Business
A Critical Thinking Approach
5th Edition
Nancy K. Kubasek
Bartley A. Brennan
M. Neil Browne

2. Labor-Management Relations
THE LEGAL ENVIRONMENT OF BUSINESS
CHAPTER 19
Laws Governing
Labor-Management Relations

3. Labor-Management Relations
Abuses of Industrial Revolution generated early attempts by workers to organize
These efforts were greeted by police actions, arrests, and convictions in the courts
The Great Depression spurred Congress to legitimize collective bargaining via legislation

4. Principal Labor Legislation
National Labor Relations Act - Wagner Act of 1935
Taft-Hartley Act of 1947
Landrum-Griffith Act of (LMRDA)

5. National Labor Relations Act
First major federal law favoring unions
Right to organize
Right to bargain collectively
Right to engage in concerted action
Unfair labor practices prohibited

6. Taft-Hartley Act
Reaction to perceived abuse by unions of newly created powers
Right to refrain from collective activity
Collective bargaining agreements enforceable in court
Damages for those injured by union actions

7. Landrum-Griffith Act of 1959
Governs internal union operations
Reaction to corruption by union officials
Requires financial disclosure
Gives workers rights against their union

8. National Labor Relations Board (NLRB)
Monitors conduct of organizing process
Prevents unfair labor practices
Establishes rules and regulations
Office of General Counsel is prosecutor

9. NLRB Jurisdiction Has jurisdiction over most employers except:
Agricultural workers
Domestics
Family employees
Supervisors and managers
Confidential employees
Government workers
Transportation workers
Independent contractors

10. Labor Organizing
“Board Rules”
“24-hour Rule”
“Excelsior List”

11. Unfair Labor Practices by Employers
Interference with organizing
Domination or support of labor organizing
Discrimination based on union activity

12. Issue: What Is Unfair Practice?
Cooperative efforts involving management and labor can constitute unfair labor practice.
Labor-management committees
Discrimination based on union activity

13. Unfair Labor Practices by Employees
Restraint or coercion of employees
Forcing employer to discriminate or encourage union activity
Prohibits picketing for recognition of competing union

14. The Bargaining Unit What is appropriate size?
When is the mutuality of interest?
Can an employer recognize the union voluntarily?
When should the union be certified?

15. Collective Bargaining
Begins after certification or recognition
Good faith bargaining required
Subjects of bargaining
Mandatory
Permissive

16. Strikes, Picketing, Boycotts
Strikes: temporary, concerted withdrawal of labor
Management may hire permanent replacement workers
Lawful strikes: non-violent work stoppage
Unlawful strikes:
Unlawful means: sit-down strikes; partial strikes; wildcat strikes
Unlawful purpose: jurisdictional strikes; secondary strike

17. Boycotts Definition: Refusal to deal
Primary boycotts: legal boycott by union against company
Secondary boycotts: illegal boycott by union against third party to coerce company
Exception: “hot cargo agreements”

18. Picketing Informational Signal Jurisdictional Organizational Violent
Massed

19. Global Dimensions of Labor-Management Relations
Many U.S. and multinational corporations seek cheaper labor overseas.
Each country has its own labor laws, many not as balanced as U.S. law.
In some countries, labor organizing is still banned.

20. ILO – International Labor Organization
Attempt to harmonize labor laws around the world
Sets some minimum standards
Enforcement left to local law
Subject to local economic interests; political forces
Limited success

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Copyright © 2009 Pearson Education, Inc.  
Publishing as Prentice Hall