2. CHAPTER SEVENTEEN Labor Law

3. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-3  Section 7 of the National Labor Relations Act gives employees the right to organize, form, join, or assist labor organizations, and to collectively bargain  It also gives employees the right to refrain from these activities Statutory Basis

4. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-4 Coming Together on Issues  Collective bargaining is negotiations and agreements between management and labor about wages, hours, and other terms and conditions of employment  Prior to current legislation –Criminal conspiracy laws allowed conviction of employees engaging in union activities

5. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-5 –Injunctions were used to stop collective bargaining activities  Enforced yellow dog contracts –Antitrust legislation was applied to union activities until Clayton Act of 1914 –Supreme courts challenged constitutionality of early legislation  World War I brought beginning of legislation of labor disputes –National War Labor Relations Board –National Industry Recovery Act –National Labor Relations Board

6. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-6 Labor Laws  Four main federal laws are the statutory basis for labor law and unionization –Norris-LaGuardia Act of 1932 –Wagner Act of 1935 –Taft-Hartley Act –Landrum-Griffin Act of 1959 Each will be explored individually…

7. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-7 The Norris- LaGuardia Act  Endorsed collective bargaining as a matter of public policy  Curtailed use of the injunction  Made yellow dog contracts unenforceable  Prohibited restraint of strikes and picketing  Permitted relief funds from union to strikers and publication of labor disputes

8. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-8 The Wagner/National Labor Relations Act  Mainstay of seminal labor legislation  Established National Labor Relations Board to enforce labor laws in the private sector –Gave both judicial and remedial powers to NLRB  Guarantees employees the right to engage in concerted activities for mutual aid or protection

9. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-9  Allowed for the certification and decertification of unions –Shop stewards are intermediaries between union and employer –Industrial unions are unions with branches at particular workplaces –Business agents represent union members’ interests at a given jobsite –Employers must bargain in good faith –Unions have duty of fair representation –Prohibits other unfair labor practices –Permits certain strikes and lockouts as well as picketing

10. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-10 The Taft-Hartley Act  Enacted as an amendment to Wagner Act to curb excesses by unions  Subordinated rights of employers, employees and unions to public health, safety and interest  Identified unfair labor practices committed by unions  Recognized right of employee to refrain from concerted activity

11. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-11  Outlawed closed shops –Employee must become a member of the union to obtain a job  Allowed for agency shops and union shops –Agency shops require nonunion members to pay union dues –Union shops require employees to join the union with a certain amount of time after becoming employed  Permitted right-to-work laws

12. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-12 The Landrum-Griffin Act  Labor Management Reporting and Disclosure Act  Enacted in response to union corruption  Provided a bill of rights for union members  Provided procedures for conduction of union elections  Provided for safeguarding of union funds

13. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-13 Labor Relations in the Public Sector  Federal employees exempted from NLRA –Given right to form and join unions in 1962 –Federal unions prohibited from bargaining over wages and benefits and from striking –Federal labor law administered by Federal Labor Relations Authority, established by Civil Service Reform Act of 1978

14. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-14  State, county and municipal employees –Professional associations –Craft unions –Industrial-type union –Most not allowed to strike because of public health and safety and sovereignty doctrine

15. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-15 Management Considerations  Do not try to negatively influence a decision to unionize  Do not assume conversations with employees will remain confidential  Conduct all negotiations only with union representatives  Bargain in good faith  Know what the law requires  Keep lines of communication open