LAW, BUSINESS, &

SOCIETY
11th
Edition

McGraw-Hill

2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not
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Learning Objectives

Describe both the decline of labor

unions and their hopes for renewal
Describe the goals of the National
Labor Relations Act (NLRA)
Identify unfair labor practices by
management and unions

14-2

Learning Objectives

Describe the role of the National Labor

Relations Board (NLRB) in enforcing the
NLRA
Describe the process of union
organizing and the related legal issues
Describe bargaining in good faith
Distinguish between unfair labor
practice strikes and economic strikes
14-3

Learning Objectives

Compare and contrast primary

picketing and secondary
picketing/boycotts
Describe employees rights within or
against unions
Explain the impact of right-to-work
laws on union security agreements

14-4

Introduction

Unions are recruiting new groups of

workers to bolster declining
membership
Americas private-sector unions
United Auto Workers (UAW)
Service Employees International Union

(SEIU)

Half of Americans have favourable view

of labor unions
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Introduction

Laws to curtail the power of unions

have been passed in state legislatures
Problems faced by unions
Outsourcing of jobs abroad
Shift from traditional unionized industries
Union corruption
Corporate resistance

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Organizing Labor

Knights of Labor
First major labor organization in the U.S.
Dedicated to principles of social reform

American Federation of Labor (AFL)

National association of local unions

directed to workers pragmatic needs

Built and developed by Samuel Gompers
Organized workers along skilled craft lines

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Organizing Labor

Congress of Industrial Organizations

(CIO)
Organized to the needs of ordinary

laborers

AFL and CIO were united in 1935

Function as AFLCIO

14-8

Labor Protection Laws

Norris-LaGuardia Act, 1932

Clarified that restraint of trade did not

include labor organizations or activities

Wagner Act, 1935

Provided workers the unequivocal right to

organize and engage in concerted

activities for mutual aid and benefit
Established the National Labor Relations
Board
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Management Protection Laws

Taft-Hartley Act
Identified certain activities as unfair labor

practices
Ensured employers right to speak in
opposition to union organizing

14-10

Landrum-Griffin Act, 1959

Requires unions to keep records of funds

Prohibits unions from lending money except

under specified circumstances and procedures

Contains a set of provisions to protect the

rights of individual union members
Duty of fair representation
A union must represent employees without
hostility or discrimination, with complete good
faith and honesty to avoid arbitrary conduct

14-11

National Labor Relations Act

(NLRA)

Governs labor-management relations

Enforced by National Labor Relations
Board (NLRB)
Includes Wagner Act, Taft-Hartley Act,
and portions of the Landrum-Griffin Act
Section 7 - Right to organise
Employees have the right to engage in

concerted activities in the form of strikes

and collective bargaining
14-12

National Labor Relations Act

(NLRA)

Section 8(a) - Unfair Labor Practices by

Management
Interfering, restraining, or coercing with

employees in the exercise of the rights

given to them by Section 7
Dominating, interfering, or assisting with
the formation of any labor organization
Encouraging or discouraging membership
in labor organization by discrimination in
terms of employment
14-13

National Labor Relations Act

(NLRA)
Discharging or taking any action against an

employee because he or she filed charges

or testified under the act
Refusing to bargain collectively with
certified representative of employees

Section 8(a) regulates bargaining

between the employer and the union
At-will disclaimers - Unlawful
Waive the employees right to act with

other employees
14-14

National Labor Relations Act

(NLRA)

Dress codes
Employers can limit attire for a legitimate

business interest

Social media policies

Employers can have policies prohibiting certain

conduct on social media sites

Section 8(b) - Unfair labor practices by

unions
Restraining or coercing an employee to exercise

his or her rights as granted by Section 7

14-15

National Labor Relations Act

(NLRA)
Causing or attempting to cause an

employer to discriminate against an

employee who has:
Chosen not to join a labor organization
Been denied membership

Refusing to bargain collectively with an

employer
Inducing or attempting to induce an
employer to engage in secondary boycott
activities
14-16

National Labor Relations Act

(NLRA)
Requiring employees to become union

members and charging them excessive or

discriminatory dues
Trying to make an employer compensate
workers for services not performed
Picket or threaten to picket an employer in
an attempt to force him/her to recognize or
bargain with a labor organization that is
not the certified representative

Section 9 - Representation procedures

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National Labor Relations

Board (NLRB)

Federal Administrative agency that

regulates labormanagement relations
Tasks
To designate appropriate bargaining units of

workers
To conduct elections for union
representation with the bargaining unit
To certify the results of the elections
To investigate, prosecute, and adjudicate
charges of unfair labor practices
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Choosing a Bargaining
Representative

Election petition
Filed with the NLRB, initiates the formal

organizing process
Voluntary recognition - Employer
acknowledges employees interest in joining
a union
Card check - Employees signify their interest in
the union by signing authorization cards

Failing voluntary recognition, the NLRB will

accept petitions supported by signatures of

at least 30 percent of the employees
14-19

Choosing a Bargaining
Representative

Procedure
Prior to the election, NLRB attempts to settle

certain issues
Addresses whether the proposed bargaining
unit is appropriate for the election

Appropriate bargaining unit

Key consideration - Community of interest

among employees
Factors on which NLRB decides
Physical location of the plants
14-20

Choosing a Bargaining
Representative
Physical contact among employees
Similarity of wages, benefits, and working
conditions
Differences in skill requirements
Common supervision

Solicitation
Lechmere case ruling - Employers do not have
to allow union organizers on their property
Salting - Union organizers applying for jobs with
the intent of unionizing employees from inside

14-21

Case: Solicitation

Case
Wal-Mart Stores, Inc. v. National Labor

Relations Board
400 F.3d 1093 (8th Cir. 2005)

Issue
Petitioner appeals the NLRBs order finding

it violated the NLRA by punishing

employee Brian Shieldnight for union
solicitation
14-22

Choosing a Bargaining
Representative

Election for union representation

Union is selected by a majority of votes

cast by the employees

NLRB oversees to ensure the election is
free from unfair influence by the union or
employer
Section 8(c), Taft-Hartley Act - Ensures
employers and labor organizations First
Amendment rights

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Choosing a Bargaining
Representative

Threats of reprisal or force

Employers cannot discriminate in

employment to encourage or discourage

union membership

Promise of benefit
Employers promise and withdrawal of

benefits constitute an unfair labor practice

Union persuasion
Unions are restricted from preelection

persuasion practices
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Case: Interference by
Employer

Case:
Multi-Ad Services v. NLRB
255 F.3d 363 (7th Cir. 2001)

Issue
The petition asks to review whether Multi-

Ad violated the NLRA by interfering with

employees efforts to form a union

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Choosing a Bargaining
Representative

Remedies for election misconduct

Unfair labor practices can result in the

imposition of penalties and remedies

Decertification
Employees resisting a union can file a

decertification petition with the NLRB

Requires at least 30 percent support from the
employees

Election rules are followed to determine if

the union enjoys continuing majority support

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Choosing a Bargaining
Representative

Withdrawal of recognition
Employer can unilaterally withdraw

recognition of a union that has lost the

support of majority of its members
Requires objective evidence

Strategies used by the management to

resist the union
Declaring bankruptcy
Closing down business
Runaway shop
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Choosing a Bargaining
Representative

Union as exclusive bargaining agent

Certified union becomes the exclusive

agent for all employees

Employer must deal with the certified
representative in the bargaining unit

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Collective Bargaining

Section 8(a)(5)
Employer should engage in good-faith

collective bargaining with a representative

of the employees
Section 8(b)(3) imposes similar duty on labor
organizations

Failure to bargain constitutes an unfair

labor practice

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Bargaining in Good Faith

Obligates the parties to participate

actively in deliberations
Section 8(d) - Mandatory bargaining
subjects
Wages
Hours
Other terms and conditions of employment

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Bargaining in Good Faith

Permissive bargaining subjects

Matters not directly related to wages,

hours, and terms and conditions of

employment
Do not fall within the category of
prohibited subjects

Prohibited bargaining subjects

Subjects that are illegal under NLRA or

other laws
14-31

Case: Permissive and

Prohibited Bargaining
Subjects
Case
ColgatePalmolive Co.
323 NLRB No. 82 (1997)

Issue
Union filed an unfair labor practice charge

against Colgate for using hidden

surveillance cameras

14-32

Administering the Agreement

Bargaining involves resolving grievances

Problems are addressed through the

grievance procedure included in collectivebargaining agreements

Final and binding arbitration

Provided if disputes are not resolved after

negotiation

Fair representation
Union might breach its duty if it declined to

represent an employers grievance

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Types of Strikes

Unfair labor practice strikes

Response to the employers commission of

an unfair labor practice

Strikers can be temporarily replaced

Economic strikes
Used to persuade employers to provide

favorable benefits or better working

conditions
Strikers can be permanently replaced
14-34

Case: Strikes

Case
Diamond Walnut Growers, Inc. v. NLRB
113 F.3d 1259 (D.C.Cir. 1997); cert. den.

118 S.Ct.1299 (1998)

Issue
NLRB filed a complaint alleging that

Diamond had violated NLRA by unlawfully

discriminating against employees because
of their protected activity
14-35

Picketing and Boycotts

Picketing - Union members gathering

and marching at a place of business
Primary picketing - Expressed directly to

the employer
Enjoys constitutional and statutory
protection

Secondary picketing/boycotts - Directed to

a business other than the primary

employer
Unlawful
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Lockouts

Management locks its doors to some or

all of its employees
Defensive act to:
Protect businesses against sudden strikes
Prevent sabotage or violence

Not lawful if it hinders any legitimate

union activity

14-37

Employees Rights Within or

Against the Union

Unions duty of fair representation

Employee cannot bargain individually with

the employer
Union has a duty to fairly represent all
members of the bargaining unit

Bill of Rights of labor organization

members - Ensures:
Equal voting rights
Right to sue the union
Rights of free speech and assembly
14-38

Union Security Agreements

and Right-to-Work Laws

Union shop agreements

Unions seek all employees to become

union members after they have been

employed for some period

Agency shop agreements

Unions require employees to pay union

dues and fees

14-39

Union Security Agreements

and Right-to-Work Laws

Right to work laws

Prohibit union security arrangements in

collective-bargaining agreements
Do not require nonmembers to pay dues or
fees

Closed shop
Employers can hire only individuals who

belonged to unions
Forbidden by the NLRA
14-40

Public-Sector Unions

Some states have legislation that limit

workers collective-bargaining rights
Legal regulation of labor-management
relations begins with state law
Certain states prohibit strikes or permit
them under restricted conditions
To emphasize the role of public employees

as servants of the voters

14-41