Labor Management Relationship

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1 McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All Right Reserved The Legal & Regulatory Environment of Business 16e Labor Management Relationship Chapter 22 Reed Pagnattaro Cahoy Shedd Moorhead 22-2 TANK TANK TANK Do unions adequately serve to equalize the bargaining power between employers and their employees? a. Yes b. No

2 Learning Objectives To understand the role unions play in the U.S. labor market. To describe the development of labor law focusing on The Clayton Act, The Railway Labor Act and the Norris-LaGuardia Act. To appreciate the significance of The Wagner Act, including the creation of the National Labor Relations Board and unfair practices by management. To recognize how The Taft-Hartley Act amended labor law to balance the power between labor and management, including the recognition of unfair labor practices by unions Introduction Labor Law Prohibits unfair labor practices Good faith collective bargaining Relationship between employers and unions 22-5 Labor Laws Union workers organizing collective voices to increase ability to communicate with employer Inherently neither good nor bad Largest unions represent teachers, government employees, service workers

3 Labor-Management Relationship Collective bargaining Clayton Act (1914) - legitimate union practices exempted Railway Labor Act (1926) Collective bargaining for railroads & airlines National mediation board Norris-Laguardia Act (1932) Yellow-dog contracts Prohibited certain court actions 22-7 The Wagner Act (1935) Created National Labor Relations Board National Labor Relations Act (Wagner Act) Business Affecting Commerce - Small Employers Under State Laws Granted NLRB Quasi- Judicial Authority 22-8 National Labor Relations Board U.S. Independent agency 5 members President appoints Conducts quasi-judicial hearings to investigate and enforce sanctions Jurisdiction over any business affecting commerce

4 Personnel Exempt from NLRB Authority Those covered under the Railway Labor Act Employees who work for their spouse or parents Household/Domestic workers Independent Contractors Government employees Agricultural workers Certification Of Unions Employer may voluntarily recognize and bargain with union NLRB certification of union Certification election Secret ballot NLRB supervised upon petition Certification through cards = election RULES Workers Unionized 25.0% 20.0% 15.0% 20.1% 18.0% 16.0% 14.9% 13.5% 12.5% 10.0% 5.0% 0.0% Source: Bureau of Labor Statistics

5 % Union Membership by Industry (2007) 45 Education, Training, 40 Library 35 Construction Telecommunications Transportation & Public Util. Sales & Related Local Government Source: Bureau of Labor Statistics Unfair Labor Practices By Management Interference with concerted activities Discrimination as result Of NLRB proceeding Discrimination based on union affiliation Domination of labor organization Refusal to bargain In good faith Compulsory/Voluntary Bargaining Issues Compulsory Bargaining Issues Wages Hours Terms and conditions of employment Voluntary Internal union business Designation of negotiators Making transcripts of negotiations NLRB and the courts often must determine if a bargaining issue is compulsory or voluntary

6 Taft-Hartley Act (1947) Rapid growth of union movement Ensure free flow of commerce 80-day cooling-off Management free speech Federal mediation and conciliation service Union Shop Closed shop - membership required before applying Union shop - membership required after employment (30 days) Right-to-work laws pop pop pop QUIZ QUIZ QUIZ Unfair labor practices are illegal actions taken by management against union activity? a. True b. False

7 Free Speech Statements made by employers frequently were targeted as unfair labor claims until Taft-Harley remedied the problem. 8(c) The expressing of any views, argument or opinion or the dissemination thereof, whether written, printed, graphic or visual form, shall not constitute or be evidence of an unfair labor practice under any provisions of this act if such expression contains no threat of reprisal or force or promise of benefit. (Emphasis added) Suits Against Unions Union responsible for actions of its agents Money judgment against union assets Members Sue for damages from illegal strike Sue for breach of duty in fair representation Failing to enforce union constitution & bylaws Unfair (Illegal) Labor Practices by Unions Restraining/ coercing employee to join union Cause employer to discriminate against nonunion member Striking/picketing for illegal purposes Engaging in secondary boycotts Jurisdictional strike

8 Amendments Landrum-Griffin Act (1959) Agreeing to engage in secondary boycotts Union-mgmt. Agreement with adverse affect on 3 rd party Hot-cargo contract Picketing when not certified Employer recognize another union Valid election already conducted Unreasonable picketing timeframe TANK TANK TANK Do unions adequately serve to equalize the bargaining power between employers and their employees? a. Yes b. No

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