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Chapter 3

Chapter 3. Labor Law: Background and Basic Principles. Origin of Labor Relations Law. The Constitution Article 1, Section 8 of the U.S. Constitution Amendments First Amendment Fifth Amendment Fourth Amendment Common Law Other Sources. Origin of Labor Relations Law (cont’d).

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Chapter 3

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  1. Chapter 3 Labor Law: Background and Basic Principles

  2. Origin of Labor Relations Law • The Constitution • Article 1, Section 8 of the U.S. Constitution • Amendments • First Amendment • Fifth Amendment • Fourth Amendment • Common Law • Other Sources MGMT 523 – Chapter 3

  3. Origin of Labor Relations Law (cont’d) • Major Federal Labor Relations Laws • Railway Labor Act • Norris-La Guardia Act • Wagner (National Labor Relations) Act • Taft-Hartley (Labor-Management Relations) Act • Landrum-Griffin (Labor Management Reporting and Disclosure) Act MGMT 523 – Chapter 3

  4. Origin of Labor Relations Law (cont’d) • Labor Relations Administrative Agencies • National Labor Relations Board (NLRB) • Federal Mediation and Conciliation Service (FMCS) • U.S. Department of Labor (USDOL) • National Mediation Board (NMB) • National Railroad Adjustment Board (NRAB) • State and local administrative agencies MGMT 523 – Chapter 3

  5. Legal Interpretations (1806-1931) • Basis for the Legal System • Protection of employers’ tangible property rights • Protection of employers’ intangible rights to do business and make a profit • Criminal Conspiracy Doctrine • Illegal for workers to join together to pressure employers for better wages or working conditions • Civil Conspiracy Doctrine • Employees who acted in concert could inflict harm even if the employees’ cause was just MGMT 523 – Chapter 3

  6. Legal Interpretations (1806-1931) (con’t) • Breach of Contract/Use of the Labor Injunction • Labor disputes constitute interference in contracts between employers and employees • Yellow Dog Contracts • Courts issued labor injunctions to stop the concerted activities of employees MGMT 523 – Chapter 3

  7. Legal Interpretations (1806-1931) (con’t) • Application of Antitrust Legislation • Sherman Antitrust Act (1890) • Intended to prevent the restraint of trade by regulating business monopolies • Danbury Hatters (Loewe v. Lawlor) case • Supreme Court ruled that the labor organization’s use of the boycott was illegal • Individual union members held liable for damages MGMT 523 – Chapter 3

  8. The Norris-La Guardia Act of 1932 • Protection of Workers’ Basic Rights • Limited federal courts to issue injunctions for employees’ lawful non-violence • Yellow-dog contracts unenforceable • Encouraged more impartiality on the part of the courts in labor disputes • Shortcomings • No regulatory agency designated • No specific unfair labor practices for employers MGMT 523 – Chapter 3

  9. The National Labor Relations Act of 1935 • Also called the Wagner Act • Set national labor policy for labor • Encouraged the use of collective bargaining • Protected employees’ rights to organization and representation • Established the National Labor Relations Board (NLRB) • Defined the unfair labor practices of employers MGMT 523 – Chapter 3

  10. Labor Management Relations Act of 1947 • Also called the Taft-Hartley Act • Amended the NLRA to add union unfair labor practices • Set up union security options for states • Allowed unions to be sued by employers MGMT 523 – Chapter 3

  11. Labor Management Reporting and Disclosure Act of 1959 • Also called the Landrum-Griffin Act • Passed to protect union member rights and ensure union democracy • Required secret-ballot elections of officers • Required membership approval in setting dues and levying assessments • Set federal financial reporting requirements • Allowed neutral, secondary employers injured by unlawful union activities to sue unions MGMT 523 – Chapter 3

  12. National Labor Relations Board (NLRB) • Functions of the NLRB • Interpret and administer the LMRA • Responsibilities • Composition of NLRB • Five-Member Panel • General Counsel MGMT 523 – Chapter 3

  13. Persons Covered by the LMRA • Most private-sector employers and employees • Groups excluded • Agricultural laborers • Private domestic service employees • Individuals covered by the Railway Labor Act • Individuals employed by parent or spouse • Public-sector employees • Independent contractors and supervisors MGMT 523 – Chapter 3

  14. Concerted and Protected Employee Activity • Concerted Activity • An action taken by or on behalf of two or more employees to express a grievance • Interboro Doctrine • An employee working alone may be considered to be engaged in concerted activity if seeking to enforce the terms of a collective bargaining agreement MGMT 523 – Chapter 3

  15. NLRB Unfair Labor Practices • Charging Party • Respondent • Merit • Administrative Law Judge (ALJ) • Types of Unfair Labor Practice Cases • Routine Cases • Lead Cases MGMT 523 – Chapter 3

  16. Charge Injunction Investigation Withdrawal-Refusal to Issue Complaint-Settlement Complaint and Answer Injunction Hearing and Decision Dismissal Remedial Order Other Disposition Court Enforcement and Review Basic Procedures in Cases Involving Charges of ULPs MGMT 523 – Chapter 3

  17. Remedies in ULP Cases • Cease-and-Desist Orders • Instruct the respondent to stop the ULP • Require respondent to post written notices of ULP • Affirmative Relief Action • Require the respondent to provide a make-whole remedy to individuals adversely affected by the ULP MGMT 523 – Chapter 3

  18. Federal Courts and ULP Decisions • Courts must enforce decision if: • The decision is a reasonable interpretation of congressional intent for the LMRA • The decision is supported by substantial evidence contained in the case record. • Petition for Certiorari • A court of appeals’ decision appealed to the Supreme Court when lower court decisions conflict with each other MGMT 523 – Chapter 3

  19. Current Labor Policy • Favors the powerful (employers) over the powerless (employees) • Discourages unionism through foot-dragging • Offers insufficient statutory remedies • Is grossly outdated • Laws protecting individuals have usurped the role of collective bargaining MGMT 523 – Chapter 3

  20. Transportation-Related Labor Relations Laws • Railway Labor Act of 1926 • First comprehensive collective bargaining law • Airline Deregulation Act of 1978 • Ended government regulation of fares and routes • Staggers Rail Act of 1980 • Increased flexibility in setting rates and service levels MGMT 523 – Chapter 3

  21. Other Laws Affecting Labor Relations • ADA of 1990 • The Bankruptcy Act of 1984 • The WARN of 1988 • RICCO Act of 1970 MGMT 523 – Chapter 3

  22. Employment Discrimination Laws and Executive Orders • Civil Rights Act of 1991 • ADEA of 1967 • Executive Orders • 11246 • 11375 MGMT 523 – Chapter 3

  23. Related Labor Relations Laws • Vocational Rehabilitation Act of 1973 • USSERA of 1994 • Social Security Act of 1935 • FLSA of 1938 • ERISA of 1974 • OSHA of 1970 • FMLA of 1993 MGMT 523 – Chapter 3

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