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CHAPTER SEVENTEEN
Labor Law
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
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
17-4
Coming Togetheron 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
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
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…
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
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
17-8
The Wagner/NationalLabor 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
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
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
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
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
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
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
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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
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
17-15
ManagementConsiderations
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