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The Legal Environment and Structure of Labor Unions

The Legal Environment and Structure of Labor Unions. Chapter 18. Chapter Overview. The Legal Environment of Labor–Management Relations Union Structures Current and Future Developments in the Labor Movement Summary of Learning Objectives. 18- 3. Introduction.

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The Legal Environment and Structure of Labor Unions

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  1. The LegalEnvironment andStructure ofLabor Unions Chapter 18

  2. Chapter Overview • The Legal Environment of Labor–Management Relations • Union Structures • Current and Future Developments in the Labor Movement • Summary of Learning Objectives 18-3

  3. Introduction • Prior to Industrial Revolution in 19th century • An individual was usually born into a level in society with a predestined standard of living • Custom and tradition kept a person’s position relatively stable • After Industrial Revolution • People were able to contract for employment by offering their skills and services for a wage • Once people had been hired, they and their work output became property of the employer • Before long employees resorted to joint action to gain some influence over terms and conditions of their employment 18-4

  4. Introduction • Initially, public and courts frowned on these attempts • Relationships between employees and management were unilateral • Employees asking for higher wages approached their employers with a “take it or we’ll strike” attitude • Employers usually refused or ignored their requests • The result was a test of economic strength to determine whose wage decisions would prevail • In most instances, employers prevailed • As time passed, society became more aware of plight of employees • Legislation was enacted that was much more favorable toward employees and unions 18-5

  5. The Legal Environment ofLabor–Management Relations • First unions in America appeared between 1790 and 1820 • Local organizations of skilled craftspeople • Demands of these unions were similar to those of unions today • Unions wanted • Job security • Higher wages • Shorter working hours • When management did not agree to these demands, these early unions resorted to strikes, or “turn-outs,” as they were then called • Strike – Collective refusal of employees to work 18-6

  6. The Legal Environment ofLabor–Management Relations • Employers formed associations to take legal action against unions • Philadelphia Cordwainers (shoemakers) case of 1806 • Jury ruled that groups of employees banded together to raise their wages constituted a conspiracy in restraint of trade • Conspiracy doctrine • Stated that a union could be punished if either means used or ends sought were deemed illegal by the courts • Unions ran up against conspiracy doctrine on numerous occasions • Some courts continued to rule that labor unions were illegal per se • Others ruled that the means unions used (e.g., strikes) to achieve their demands were illegal or that the ends sought (e.g., closed shops) were illegal • Closed shop – Prohibits an employer from hiring anyone other than a union member 18-7

  7. The Legal Environment ofLabor–Management Relations • Commonwealth v. Hunt (1842) • Supreme Court of Massachusetts rejected doctrine that actions of labor unions were illegal per se • Court noted that power of a labor union could be used not only for illegal purposes but also for legal purposes • Decision left open the door for legal actions questioning means used and ends sought by labor unions • Legal environment for unions remained vague and uncertain • Some courts held that a closed shop was a lawful objective • Strikes to obtain a closed shop were legal • Others reached an opposite conclusion • During this time, legality of union activities depended to a large extent on court jurisdiction in which case occurred 18-8

  8. The Legal Environment ofLabor–Management Relations • Injunction – Became a popular technique to control union activities by the 1880s • Court order to stop an action that could result in irreparable damage to property when situation is such that no other adequate remedy is available to protect interest of injunction-seeking party • Procedure used in seeking an injunction in a labor dispute was • Complainant (usually the employer) went to court, filed a complaint stating nature of property threat, and requested relief • Judge normally issued a temporary restraining order halting threatened action until a case could be heard • Shortly thereafter, a preliminary hearing was held so judge could decide whether to issue a temporary injunction • After a trial, a decision was made as to whether a permanent injunction should be issued 18-9

  9. Effects of an Injunction • Failure of union to abide by temporary restraining order or temporary injunction meant risking contempt-of-court charges • Compliance • Meant a waiting period of many months before matter came to trial • Often waiting period was enough to destroy effectiveness of union • Courts placed a broad interpretation on the term property • Historically, courts had issued injunctions to prevent damage to property where an award of money damages would be an inadequate remedy • Courts now held that an employer’s property included right to operate business and make a profit • Expectation of making a profit became a property right • Even a peaceful strike could be alleged to be injurious to expectation of making a profit and could be stopped by an injunction 18-10

  10. Injunction • Generally granted by courts upon request • Were frequently used to control union activities until 1930s • Attitude of courts seemed to have been that management had right to do business without interference of unions 18-11

  11. Yellow-Dog Contract • Term coined by unions to describe an agreement between an employee and an employer stipulating that • As a condition of employment, worker would not join a labor union • These contracts could be oral, written, or both • Hitchman Coal & Coke Co. v. Mitchell • Supreme Court case of 1917 that upheld legality of yellow-dog contracts • Yellow-dog contracts were made illegal by the Norris–La Guardia Act of 1932 18-12

  12. Sherman Anti-Trust Act (1890) • Law made trusts and conspiracies that restrain interstate commerce illegal and forbade persons from monopolizing or attempting to monopolize interstate trade or commerce • Any person who believed he or she had been injured by violations of the act was given right to sue for • Triple the amount of damages sustained • Costs of the suit • Reasonable attorney’s fee • Primary intent of Congress in passing the law was to protect public from abuses of corporate monopolies • Danbury Hatters case • Landmark case of 1908 in which the Supreme Court decided that the Sherman Anti-Trust Act applied to all unions 18-13

  13. Clayton Act (1914) • Brief of Section 6 of the Act states • Labor of a human being is not a commodity or article of commerce • Brief of Section 20 of the Act states • No restraining order or injunction shall be granted by any court of United States in any case between an employer and employees • Duplex Printing Co. v. Deering • Case in which the Supreme Court ruled that unions were not exempt from the control of the Sherman Anti-Trust Act 18-14

  14. Railway Labor Act (1926) • Set up the administrative machinery for handling labor relations within the railroad industry • First important piece of prolabor legislation • Act was extended to airlines in 1936 • One provision established the National Mediation Board to administer the act • Another provision eliminated yellow-dog contracts for railroad employees • Established mechanisms for mediation and arbitration of disputes between employers and unions within the industry • However, the original act applied only to railroad employees and not to those employed in other industries 18-15

  15. Norris–La Guardia Act (1932) • Prolabor act that eliminated use of yellow-dog contracts and severely restricted the use of injunctions • Prohibited federal courts from issuing injunctions to keep unions • From striking • Paying strike benefits • Picketing (unless the picketing involved fraud or violence) • Peacefully assembling • Restricted issuance of injunctions • Temporary restraining orders could not be issued for more than five days • Gave employees right to organize and bargain with employers on terms and conditions of employment • Drawback – Lack of administrative procedures to ensure implementation of rights • Employees could gain bargaining rights only if • Their employer voluntarily agreed to recognize union • Employees struck and forced recognition 18-16

  16. National Labor Relations (Wagner) Act (1935) • Signaled a change in the federal government’s role in labor– management relations • Gave workers right to organize • Obligated management of organizations to bargain in good faith with unions • Defined illegal management practices relating to unions • Created National Labor Relations Board (NLRB) to administer act • Established procedures for use in union elections • Directed NLRB to conduct such elections and investigate unfair practices 18-17

  17. National Labor Relations (Wagner) Act (1935) • Prohibited employers from engaging in uncertain unfair labor practices, including • Interference with, restraint of, or coercion of employees in exercising their rights under act • Domination of, interference with, or financial contributions to a union • Discrimination in regard to hiring, firing, or any term or condition of employment to encourage or discourage membership in a union • Discharge of or discrimination against an employee for filing charges or giving testimony under the act • Refusal to bargain in good faith with the legal representative of the employees 18-18

  18. Labor–Management Relations (Taft–Hartley) Act (1947) • Accompanying growth in union membership was an increase in union militancy • Strikes became much more frequent and widespread • Taft-Hartley Act – Legislation placed the federal government in a watchdog position to ensure that union–management relations are conducted fairly by both parties • Under the act, employees have a right to • Organize a union • Bargain collectively with an employer • Engage in other concerted activities for purpose of collective bargaining • Spelled out unfair labor practices by employers and prohibited managers from forming or joining a labor union 18-19

  19. Labor–Management Relations (Taft–Hartley) Act (1947) • Prohibited employers from discriminating in regard to hiring, firing, or any term or condition of employment to encourage or discourage membership in a union • Made closed and preferential shops illegal • Permitted agreements in construction industry, which required union membership within seven days of employment • Permitted a practice in the construction industry referred to as a union hiring hall • Free-speech clause • Management has right to express its opinion about unions or unionism to its employees, provided they carry no threat of reprisal or force • Prohibited secondary boycotts • Issue involving other employers (secondary employers) in relationship between a union and an employer (the primary employer) 18-20

  20. Labor–Management Relations (Taft–Hartley) Act (1947) • In general, unions were forbidden to • Coerce employees who do not want to join • Force employers to pressure employees to join a union • Refuse to bargain in good faith with an employer • Force an employer to pay for services not performed (featherbedding) • Engage in certain types of secondary boycotts (taking action against an employer that is not directly engaged in a dispute with a union) • Charge excessive initiation fees when union membership is required because of a union shop agreement • Union shop agreement – Requires employees to join union and remain members as a condition of employment 18-21

  21. National Labor Relations Board • National Labor Relations Board • Five-member panel created by National Labor Relations Act and appointed by the president of U.S. with advice and consent of Senate and with authority to administer Wagner Act • Each member serves for a five-year term • One of the five is appointed as board chairperson by the president, with Senate confirmation • Office of General Counsel • Separate and independent office created by the Taft–Hartley Act to investigate unfair labor practice charges and present those charges with merit to NLRB • In unfair labor practice cases, the board sits as judge and the general counsel acts as prosecutor • Division of authority between board and general counsel applies only to unfair labor practice charges • Union election procedures are handled solely by the board 18-22

  22. National Labor Relations Board • Each regional office headed by a regional director appointed by the board • Regional director serves as the local representative of the • General counsel – Processing unfair labor practice charges • Board – Administering union election procedures 18-23

  23. Right-to-Work Laws • Right-to-work laws • Legislation enacted by individual states under authority of Section 14(b) of Taft–Hartley Act that can forbid various types of union security arrangements, including compulsory union membership • Employees in unionized organizations are represented by union but are not required to belong to union or pay union dues • Taft-Hartley Act • Created an independent agency known as Federal Mediation and Conciliation Service within federal government • Assists parties in labor disputes to settle such disputes through conciliation and mediation • Established procedures that the president of U.S. can use for resolving labor disputes that imperil national health and safety 18-24

  24. Map of Right-to-Work States 18-25

  25. Labor–Management Reporting and Disclosure (Landrum–Griffin) Act (1959) • Legislation enacted in 1959 regulating labor unions and requiring disclosure of certain union finance information to the government • Based on McClellan Committee hearings • Amendment to and extension of Wagner Act – Regulating internal union affairs and protecting rights of individual union members 18-26

  26. Landrum–Griffin Act – Provisions • Union members are guaranteed right to vote in union elections • Union members are guaranteed right to oppose their incumbent leadership • In union meetings • By nominating opposition candidates • A majority affirmative vote of members by a secret ballot is required before union dues can be increased • Reports covering most financial aspects of union must be filed with U.S. Department of Labor • Officers and employees of unions are required to report any financial dealings with employees that might potentially influence union members’ interests 18-27

  27. Landrum–Griffin Act – Provisions • Each union is required to file a constitution and bylaws with U.S. Department of Labor • Rigid formal requirements are established for conducting both national and local union elections • Union members are allowed to bring suit against union officials for improper management of union’s funds and for conflict-of-interest situations • Trusteeships that allow national or international unions to take over management of a local union can be established only under • Provisions specified in constitution • Bylaws of union • Only to combat corruption or financial misconduct 18-28

  28. Civil Service Reform Act (1978) • Executive orders – Issued by the president of the United States for managing and operating federal government agencies • Executive Order 10988 (President Kennedy) • Executive Order 11491 (President Nixon) • Civil Service Reform Act – Legislation enacted in 1978 regulating labor–management relations for federal government employees 18-29

  29. Civil Service Reform Act – Provisions • Established the Federal Labor Relations Authority (FLRA) • Three-member panel created by the Civil Service Reform Act whose purpose is to administer the act • Created the Office of the General Counsel within FLRA to investigate and prosecute unfair labor practices • Appointed by the president, with approval of the Senate, for a term of five years • Created the Federal Services Impasses Panel (FSIP) • Entity within the FLRA whose function is to provide assistance in resolving negotiation impasses within federal sector • Composed of a chairperson and at least six other members who are appointed by the president for a term of five years 18-30

  30. Civil Service Reform Act – Provisions • Established unfair labor practices for the management of federal agencies and unions • Established the general areas that are subject to collective bargaining • Required binding arbitration for all grievances that have not been resolved in earlier stages of the grievance procedure • Prohibited strikes in the federal sector 18-31

  31. Union Structures • Organizational units were developed within union movement to deal with problems and take advantage of opportunities • Four basic types of such units exist • Federations of local, national, and international unions (e.g., AFL–CIO) • National or international unions • City and state federations • Local unions 18-32

  32. Important Dates in the Labor Movement 18-33

  33. AFL–CIO • American Federation of Labor–Congress of Industrial Organizations (AFL–CIO) • Combination of national, international, and local unions joined together to promote interest of union and workers • Formed in 1955 by amalgamation of American Federation of Labor (AFL) and Congress of Industrial Organizations (CIO) • Composed of craft unions • Unions having only skilled workers as members • Most craft unions have members from several related trades (e.g., Bricklayers, Masons, and Plasterers International Union) • CIO was developed to organize industrial unions • Unions having as members both skilled and unskilled workers in a particular industry or group of industries 18-34

  34. AFL–CIO • Not a union – Is merely an organization composed of • Affiliated national and international unions • Affiliated state and local bodies • Local unions affiliated directly with AFL–CIO • Eight trade and industrial departments • Not all national and international unions belong to it • Majority of unions are affiliated with it • Basic policies are set and its executive council elected at a national convention held every two years • Executive council—composed of the president, secretary-treasurer, executive vice president, and 29 other members—carries out established policies • General board meets at the call of the president or the executive council and acts on matters referred to it by the executive council 18-35

  35. National and International Unions • Organizational structure of most is similar to that of AFL–CIO • International unions – Often have members in both United States and Canada • Both unions operate under a constitution and have a national convention with each local union represented in proportion to its membership • Convention usually elects an executive council consisting of • A president • A secretary-treasurer • Several vice presidents • President – Appoints and manages a staff for handling matters such as • Organizing activities • Research • Legal problems 18-36

  36. National and International Unions • Field organization usually has • Several regional offices • District offices • Headed by a regional director • Field representatives – Responsible for conducting union organizing campaigns and assisting local unions in collective bargaining and handling grievances 18-37

  37. City and State Federations • City federations receive charters from the AFL–CIO • Composed of local unions within a specified area • Local unions send delegates to city federation meetings – Generally held on a biweekly or monthly basis • Primarily, it coordinates and focuses political efforts of local unions • During elections they usually endorse a slate of candidates • Maintain an informal lobby at city hall and present labor issues to legislative committees • Other issues and activities that city federations frequently address include • School board policies • Community fund-raising drives • Public transportation problems 18-38

  38. City and State Federations • Do not always focus their efforts only on labor issues • State federations are also chartered by the AFL–CIO and are composed of local unions and city federations • Goal of state federations is to influence political action favorable to unions • They try to persuade union members to vote for union-endorsed candidates • During state legislative sessions, the state federation actively lobbies for passage of bills endorsed by labor unions 18-39

  39. Local Unions • Most operate under constitution of their national or international union • Number of them are independent • They operate without a national affiliation • Can be affiliated directly with AFL–CIO without being connected with a national or international union • As a rule, membership of a local union elects officers, who carry out union activities • Typically members elect • A president • A vice president • Secretary-treasurer • Usually form several committees 18-40

  40. Local Unions • Chief stewards and departmental stewards • Recruit new employees into union • Listen to employee complaints • Handle grievances • Observe management’s administration of union contract • Generally, most officials work at a regular job but have some leeway in using working time to conduct union business • In large locals, most officials are full-time, paid employees of union • Local usually depends on field representative of its national or international union for assistance in handling • Contract negotiations • Strikes • Arbitration hearings 18-41

  41. Local Unions • In industries where membership is scattered among several employers • Local unions often have a business agent who is a full-time, paid employee of local union • Agent manages • Internal union activities • Negotiates contracts • Meets with company officials to resolve contract interpretation issues • Handles grievances • Serves as an active participant in arbitration hearings 18-42

  42. Union Membership History as a Percentage of the U.S. Workforce, 1921–2003 18-43

  43. Current and Future Developments In the Labor Movement • In January 2004, U.S. Department of Labor published a report indicating that • 12.9 percent of wage and salary workers were union members, down from 13.3 percent in 2002 • 2003 data include these highlights • Men were more likely to be union members than women • African Americans were more likely to be union members than were whites, Asians, and Hispanics • Nearly 4 in 10 government workers were union members in 2003, compared with less than 1 in 10 workers in private-sector industries • Nearly two of five workers in the education, training, and library occupations were union members 18-44

  44. Current and Future Developments In the Labor Movement • 2003 data include these highlights • Nearly two of five workers in protective service occupation which includes fire fighters and police officers • Four states had union membership rates over 20 percent in 2003 • New York (24.6 percent) • Hawaii (23.8 percent) • Alaska (22.3 percent) • Michigan (21.9 percent) • North Carolina (3.1 percent) and South Carolina (4.2 percent) reported the lowest union membership rates 18-45

  45. Current and Future Developments In the Labor Movement • Historically, labor unions have gained their strength from blue-collar production workers • Workforce has grown and will continue to grow principally in the service sector of economy • Less than 10 percent of service sector is currently organized • Unions have been successful in organizing narrow segments of service sector, such as teachers, pilots, and musicians • Expected that a major emphasis of future organizing campaigns will be directed toward convincing unorganized white-collar employees • Personal and professional needs can be satisfied through union representation 18-46

  46. Current and Future Developments In the Labor Movement • By the late 1990s, investments in private pension plans reached approximately $3 trillion • Labor unions are likely to attempt to influence how these monies are invested • Specifically, unions will probably request that funds not be invested in stock of antiunion companies or companies that engage in antiunion practices • Another likely development is the continued increase in union mergers 18-47

  47. Current and Future Developments In the Labor Movement • Union mergers take two basic forms • Amalgamation – Involves two or more unions, normally of roughly equal size, forming a new union • Absorption – Involves merging of one union into a considerably larger one • Roughly 50 of the AFL–CIO affiliates have under 50,000 members, and another 30 have under 100,000 members • Larger unions can, of course, bring much more pressure on management in • Negotiating collective bargaining agreements • Union organizing campaigns 18-48

  48. Summary of Learning Objectives • Describe the conspiracy doctrine • Define injunction • Explain a yellow-dog contact • Define the Railway Labor Act (1926) • Describe the Norris–La Guardia Act (1932) • Define the Wagner Act (1935) • Explain the Taft–Hartley Act (1947) • Describe right-to-work laws 18-49

  49. Summary of Learning Objectives • Explain the Landrum–Griffin Act (1959) • Describe the AFL–CIO • Define amalgamation and absorption 18-50

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