A Labor Union is …

• A group of workers organized to advance the interests of the group

• When labor and management sit down to discuss a new contract, this process is called ………

• Collective bargaining

Example of a collective bargaining agreement in the NBA

• KEY POINTS • The following are the key points agreed to by the NBA and the Players

Association in their new 6-year collective bargaining agreement: • Players will be guaranteed to receive 57 percent of league revenues (BRI),

the same percentage paid to players the last two seasons. (This is the first time the league has ever agreed to guarantee the players an agreed-upon percentage of revenues.)

• The Salary Cap will increase from 48 percent of BRI to 51 percent of BRI. All Cap exceptions will remain unchanged, including the Mid-Level Exception ($4.9 million per team this past season).

• The maximum length of a player contract will be reduced by 1 year, from 7 years for a team’s own players and 6 years for other players to 6 years and 5 years.

• The league will guarantee that, on average, all teams will have 14-player rosters.

• The maximum annual increases in multi-year player contracts will be reduced from 12.5 percent for a team’s own players and 10 percent for other players to 10.5 percent and 8 percent.

• Players will be subject to 4 random drug tests per season and penalties for use of performance-enhancing drugs will be increased.

When Collective Bargaining Fails:

• Tactics by Workers• Strike: walkout or

refusal to work • Boycott: voluntarily

abstaining from using, buying, or dealing with someone

• Picket: form of protest in an attempt to dissuade others from going in or to take action

Tactics by Owners• Scabs: refers to people who continue to

work during strike action by trade unionists • Lockout: employer prevents employees

from working • Injunction: Next slide • Yellow-Dog

Contracts• Blacklist

• Injunction: remedy in the form of a court order, whereby a party is required to do, or to refrain from doing, certain acts. The party that fails to adhere to the injunction faces civil or criminal penalties and may have to pay damages or accept sanctions for failing to follow the court's order

Ways to resolve differences

• Mediation• a 3rd party offers

possible solutions• Arbitration• Both sides agree in

accept the arbitrator’s decision

Government

Types of Labor Unions

1. Closed Shops—company in which only union members may be hired

2. Union Shops—requires employees to join the union soon after they are hired

3. Open Shops---a company in which employees do not have to join a union

4. What type does Texas have?1. Open Shops2. Right to Work Laws—state law that forbids

contracts requiring employees to join a union3. Right to work laws create free riders