© 2004 West Legal Studies in Business, a Division of Thomson Learning

17.1

Chapter 17Chapter 17

Federal Labor Law: Federal Labor Law:

Unionization and Unionization and

Collective BargainingCollective Bargaining

17.2

Development of Labor Development of Labor LawLaw

Unions legalized in late 1800sUnions legalized in late 1800sSherman Anti-Trust Act of Sherman Anti-Trust Act of 18901890Clayton Act of 1914Clayton Act of 1914Norris-LaGuardia Act of 1932Norris-LaGuardia Act of 1932National Labor Relations Act National Labor Relations Act of 1935of 1935Taft-Hartley Act of 1947Taft-Hartley Act of 1947Landrum-Griffin Act of 1959Landrum-Griffin Act of 1959

17.3

National Labor National Labor Relations BoardRelations Board

Two main functions:Two main functions:

Prevent unfair labor practicesPrevent unfair labor practices

Settle representation questionsSettle representation questions

Types of proceedingsTypes of proceedings

Complaint case (C case)Complaint case (C case)

Representation case (R case)Representation case (R case)

ExemptionsExemptions

Federal, state, and local Federal, state, and local government employeesgovernment employees

17.4

Union-Employee ConflictsUnion-Employee Conflicts

ConflictConflict

Employer wantsEmployer wants the most work the most work done under the cheapest done under the cheapest conditions and at the lowest conditions and at the lowest pricesprices

Employee wantsEmployee wants the highest the highest wages, the best conditions, and wages, the best conditions, and the shortest hoursthe shortest hours

Common goalCommon goal

Both want to preserve the Both want to preserve the companycompany

17.5

Ways a Union Ways a Union Can OrganizeCan Organize

By voting in a union at a By voting in a union at a representation electionrepresentation election

Secret ballots are castSecret ballots are cast

Majority vote is neededMajority vote is needed

By signing authorization cardsBy signing authorization cards

By the NLRB’s ordering the By the NLRB’s ordering the employer to bargain with a employer to bargain with a unionunion

17.6

Preelection Campaign Preelection Campaign StatementsStatements

NLRA recognizes employees NLRA recognizes employees have the right to free speechhave the right to free speech

Employers can state their Employers can state their legal position and viewslegal position and views

R elections should be R elections should be conducted in “laboratory conducted in “laboratory conditions”conditions”

17.7Representation Representation Elections: Election Bar Elections: Election Bar

RuleRuleForces employees to think Forces employees to think before voting for a unionbefore voting for a union

Reduces disruption of Reduces disruption of employers’ businesses that R employers’ businesses that R elections causeelections cause

Reduces the drain on NLRB Reduces the drain on NLRB resourcesresources

17.8Representation Representation Elections: Contract Bar Elections: Contract Bar

RuleRuleStops workers from getting rid of Stops workers from getting rid of or changing unions while or changing unions while contract existscontract exists

Exceptions Exceptions

Collective bargaining longer than Collective bargaining longer than three yearsthree years

Union schism exists or union is Union schism exists or union is defunctdefunct

Employer has greatly expanded its Employer has greatly expanded its operationsoperations

17.9

Other Court Reviews of Other Court Reviews of NLRB Union CertificationNLRB Union CertificationRunaway shopRunaway shop

Bankruptcy to escape Bankruptcy to escape collective bargaining collective bargaining agreementsagreements

Going out of businessGoing out of business

Duty to bargainDuty to bargain

Bargaining topics (wages, Bargaining topics (wages, hours, working conditions)hours, working conditions)

17.10

Collective Bargaining Collective Bargaining Agreement Agreement

Union negotiates with Union negotiates with employer on behalf of the employer on behalf of the employeesemployees

Norris-LaGuardia Act Norris-LaGuardia Act prohibits federal courts from prohibits federal courts from issuing injunctions in labor issuing injunctions in labor disputesdisputes

Arbitration, binding Arbitration, binding arbitration arbitration

17.11

Arbitration ProvisionsArbitration Provisions

Included in bargaining Included in bargaining agreements to settle labor agreements to settle labor disputes by using neutral disputes by using neutral third partythird party

Courts give great weight to Courts give great weight to what arbitrator decideswhat arbitrator decides

May be appealed, but May be appealed, but unlikely reversedunlikely reversed

17.12

Devices AffectingDevices AffectingUnion SecurityUnion Security

State right-to-work lawsState right-to-work laws

Closed shopsClosed shops

Union shopsUnion shops

Agency shopsAgency shops

17.13

More Measures toMore Measures toSettle DisputesSettle Disputes

Strikes – used by unionsStrikes – used by unions

Whipsaw strikesWhipsaw strikes

Economic strikesEconomic strikes

Lockouts – used by employerLockouts – used by employer

Secondary boycotts Secondary boycotts

Force someone to stop Force someone to stop handling another’s products or handling another’s products or doing business with them doing business with them

17.14

Unions for Unions for Government EmployeesGovernment EmployeesCivil Service Reform Act of Civil Service Reform Act of 1978 set up Federal Labor 1978 set up Federal Labor Relations AuthorityRelations Authority

Hears complaints from federal Hears complaints from federal workersworkers

Hears requests for bargaining Hears requests for bargaining in certain issuesin certain issues

Most states allow public Most states allow public employees to form unions, employees to form unions, but with restrictionsbut with restrictions

17.15

Recap – Terms to KnowRecap – Terms to Know

Clayton ActClayton Act

Norris-LaGuardia ActNorris-LaGuardia Act

National Labor Relations Act National Labor Relations Act

Taft-Hartley ActTaft-Hartley Act

R cases and C casesR cases and C cases

Election bar and contract bar rulesElection bar and contract bar rules

Right-to-work laws, closed shops, Right-to-work laws, closed shops, union shops, agency shopsunion shops, agency shops

Strikes and lockoutsStrikes and lockouts