1. Ch. 19-1 © 2006 Prentice Hall THE LEGAL ENVIRONMENT OF BUSINESS A Critical Thinking Approach Fourth Edition Nancy K. Kubasek Bartley A. Brennan M. Neil Browne Nancy K. Kubasek Bartley A. Brennan M. Neil Browne

2. © 2006 Prentice Hall Ch. 19-2 THE LEGAL ENVIRONMENT OF BUSINESS CHAPTER 19 Laws Governing Labor-Management Relations

3. © 2006 Prentice Hall Ch. 19-3 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-4 THE LEGAL ENVIRONMENT OF BUSINESS Principal Labor Legislation National Labor Relations Act - Wagner Act of 1935 Taft-Hartley Act of 1947 Landrum-Griffith Act of 1959 (LMRDA)

5. © 2006 Prentice Hall Ch. 19-5 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-6 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-7 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-8 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-9 THE LEGAL ENVIRONMENT OF BUSINESS NLRB Jurisdiction Has jurisdiction over most employers Exceptions: Government workers Transportation workers Independent contractors Agricultural workers Domestics Family employees Supervisors and managers Confidential employees

10. © 2006 Prentice Hall Ch. 19-10 THE LEGAL ENVIRONMENT OF BUSINESS Labor Organizing “Board Rules” “24-hour Rule” “Excelsior List”

11. © 2006 Prentice Hall Ch. 19-11 THE LEGAL ENVIRONMENT OF BUSINESS Unfair Labor Practices by Employers Interference with organizing Domination or support of labor organizing Discrimination based on union activity

12. © 2006 Prentice Hall Ch. 19-12 THE LEGAL ENVIRONMENT OF BUSINESS Issue: What Is Unfair Practice?  Cooperative efforts involving management and labor can constitute unfair labor practice.  “Quality circles”  “Autonomous” and “semiautonomous work groups”  Labor-management committees  Discrimination based on union activity

13. © 2006 Prentice Hall Ch. 19-13 THE LEGAL ENVIRONMENT OF BUSINESS Unfair Labor Practices by Employees Restraint or coercion of employees Forcing employer to discriminate Picketing for recognition of competing union

14. © 2006 Prentice Hall Ch. 19-14 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-15 THE LEGAL ENVIRONMENT OF BUSINESS Collective Bargaining Begins after certification or recognition Good faith bargaining required Subjects of bargaining MandatoryPermissive

16. © 2006 Prentice Hall Ch. 19-16 THE LEGAL ENVIRONMENT OF BUSINESS Strikes, Picketing, Boycotts Strikes: temporary, concerted withdrawal of labor Management may hire permanent replacement workers Lawful strikes: nonviolent work stoppage Unlawful strikes Unlawful strikes Unlawful means: sit-down strikes; partial strikes; wildcat strikes Unlawful purpose: jurisdictional strikes; secondary strike

17. © 2006 Prentice Hall Ch. 19-17 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-18 THE LEGAL ENVIRONMENT OF BUSINESS Picketing InformationalSignalJurisdictionalOrganizationalViolentMassed

19. © 2006 Prentice Hall Ch. 19-19 THE LEGAL ENVIRONMENT OF BUSINESS 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. © 2006 Prentice Hall Ch. 19-20 THE LEGAL ENVIRONMENT OF BUSINESS 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