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Labor Unions: Legal Environment and Structure

Labor Unions: Legal Environment and Structure. History. Prior to Industrial Revolution (19th century) After Industrial Revolution : Employees used joint action to gain influence over terms and conditions of employment. 18- 2.

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Labor Unions: Legal Environment and Structure

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  1. Labor Unions: Legal Environmentand Structure

  2. History • Prior to Industrial Revolution(19th century) • After Industrial Revolution: Employees used joint actionto gain influence over terms and conditionsof employment. 18-2

  3. Legal Environment ofLabor–Management Relations • First unions in U.S.: 1790 to 1820 • Local organizations of skilled craftspeople • Unions wanted: • Job Security • Higher Wages • Shorter Working Hours • Strike: Collective refusal to work. 18-3

  4. Legal Environment ofLabor–Management Relations • Employers formed associations to take legal action against unions. • Philadelphia Cordwainers(shoemakers) case (1806): Jury ruled that groups of employees banded together to raise their wages constituted a conspiracy in restraint of trade. 18-4

  5. Legal Environment ofLabor–Management Relations • Conspiracy Doctrine: Union punished if either means or ends deemed illegal by courts. • Some courts continued to rule that labor unions were illegal. • Others ruled that means unions used (e.g., strikes) to achieve demands were illegal or that ends sought (e.g., closed shops) were illegal. • Closed Shop: Prohibits employer from hiring anyone other than a union member. 18-5

  6. Legal Environment ofLabor–Management Relations • Commonwealth v. Hunt(1842): Supreme Court of Massachusetts rejected doctrine that actions of labor unions were illegal per se. • During this time, legality of union activities depended largely on court jurisdictionin which case occurred. 18-6

  7. INJUNCTIONS • Court orderto stop action that could result in irreparable damage to property. • Popular technique to control union activitiesby the 1880s. 18-7

  8. Injunction Procedure • Complainant (usually employer) went to court, filed complaint stating nature of property threat, requested relief. • Judge normally issued temporary restraining orderhalting threatened action until case could be heard. • Preliminary hearingfor judge to decide whether to issue a temporary injunction. • After a trial, a decision was made as to whether a permanent injunctionshould be issued. 18-8

  9. Injunction Effects • Failure of union to abide by temporary restraining order or temporary injunction meant risking contempt-of-court charges. • Compliance: • Long waiting period before matter came to trial. • Often enough to destroy effectivenessof union. 18-9

  10. Injunction Effects • Courts placed broad interpretation on term “property”: • Courts held that employer’s property included right to operate businessand make a profit. • Even a peaceful strikecould be alleged to be injurious to expectation of making a profit. 18-10

  11. Injunctions • Generally granted by courts upon request: • Were frequently used to control union activitiesuntil 1930s. • Attitude of Courts: Management had right to do business without interference of unions. 18-11

  12. Yellow-Dog Contract • Agreement between employee and employer that: As a condition of employment, worker would not join a labor union. • Hitchman Coal & Coke Co. v. Mitchell(1917): • Supreme Court upheld legality of yellow-dog contracts • Yellow-dog contracts made illegal by the Norris–La Guardia Act(1932). 18-12

  13. Sherman Anti-Trust Act (1890) • Trusts and conspiracies restraining interstate commercebecame illegal; forbade monopolizing --- or attempting to monopolize --- interstate trade. • Primary intent of Congress in passing the law: Protect public from abuses of corporate monopolies. 18-13

  14. Danbury Hatters case (1908) • Landmark case: Supreme Court ruled that Sherman Anti-Trust Act applied to all unions. 18-14

  15. Clayton Act (1914) • Labor of a human being is not a commodityor article of commerce. • No restraining order or injunctionshall be granted by any court in any case between an employer and employees. • Duplex Printing Co. v. Deering(1921): • Supreme Court ruled that unions were not exempt from control of Sherman Anti-Trust Act. Basically, nullified the Clayton Act. 18-15

  16. Railway Labor Act (1926) • First important piece of pro-labor legislation • Act was extended to airlines in 1936. • Established National Mediation Boardto administer. • Eliminated yellow-dog contractsfor railroad employees. • Established mechanisms for mediation and arbitrationof disputes between employers and unions within the industry. 18-16

  17. Norris–La Guardia Act (1932) • Pro-labor act: Eliminated use of yellow-dog contracts and severely restricted use of injunctions. • Prohibited federal courts from issuing injunctions to keep unions from: • Striking • Paying Strike Benefits • Picketing (unless it involved fraud or violence) • Peacefully assembling • Temporary restraining orders limited to 5 days. • Gave employees right to organize and bargainwith employers on terms and conditions of employment. 18-17

  18. Norris–La Guardia Act (1932) • Drawback: Lack of administrative proceduresto ensure implementation of rights. • Employees could gain bargaining rightsonly if: • Employer voluntarily agreedto recognize union • Employees struck and forced recognition 18-18

  19. National Labor Relations (Wagner) Act (1935) • Gave workers right to organize. • Obligated management of organizations to bargain in good faithwith unions. • Defined illegal management practices. • Created National Labor Relations Board (NLRB) to administer act. • Directed NLRB to conduct elections and investigate unfair practices. • Established union election procedures. 18-19

  20. National Labor Relations (Wagner) Act (1935) • Prohibited employers’ 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, employee for filing charges or giving testimony under the act. • Refusal to bargainin good faith with the legal representative of the employees. 18-20

  21. Labor–Management Relations (Taft–Hartley) Act (1947) • Growth in union membership led to increase in union militancy: Strikes frequent and widespread. • Taft-Hartley Act: made federal government a watchdog to ensure union–management relations are conducted fairly by both parties. • Spelled out unfair labor practicesby employers and prohibited managersfrom forming or joining labor union. 18-21

  22. Taft–Hartley Act • Prohibits employers from discriminating in hiring, firing, or any term of employment to encourage or discourage membership in a union. • Made closed and preferential shops illegal: • Exception in construction industry: Permits agreements to require union membershipwithin 7 days of employment, and a “union hiring hall”. 18-22

  23. Taft–Hartley Act • Free-speech clause: Management has right to express its opinionabout unions to its employees, provided they carry no threat of reprisal or force. • Prohibited secondary boycotts: involving other employers in relationship between union and employer (primary employer). 18-23

  24. Taft–Hartley Act • In general, Unions are Forbidden to: • Coerce employees who do not want to join. • Force employers to pressure employeesto join. • Refuse to bargainin good faith with employer. • Force an employer to pay for services not performed (Feather-Bedding). • Engage in certain types of Secondary Boycotts. • Charge excessive Initiation Feeswhen union membership is required (union shop agreement). • Union Shop : Requires employees to join union and remain members. 18-24

  25. National Labor Relations Board (NLRB) • 5-member panelcreated by NLR Act. Appointed by President with advice and consent of Senate and with authority to administer Wagner Act. • Each member serves a 5-year term. • Office of General Counsel: Independent office created by Taft–Hartley Act to investigate unfair labor practices & present charges with merit to NLRB. • In unfair labor practice cases, NLRB sits as judge and General Counselacts as prosecutor. • Applies only to unfair labor practice charges. Union election procedures handled by NLRB. 18-25

  26. Right-to-Work Laws • Legislation enacted by individual statesthat 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. 18-26

  27. Labor–Management Reporting and Disclosure (Landrum–Griffin) Act (1959) • Regulates labor unionsand requires disclosure of certain union financeinformation to the government. • Amendment to -- and extension of Wagner Act – Regulating internal union affairsand protecting rights of individual union members. 18-27

  28. Landrum–Griffin Act – Provisions • Union membersguaranteedright to: • Vote in union elections. • Oppose incumbent leadership in union by nominating opposition candidates. • Majority vote of members by secret ballot is required before union duescan be increased. • Reports covering most financial aspects of unionmust be filed with U.S. Department of Labor. • Officers and employees of unions are required to report financial dealings with employeesthat might influence union members’ interests. 18-28

  29. Landrum–Griffin Act – Provisions • Each union required to file constitution and bylaws with U.S. Department of Labor. • Formal requirementsfor conducting national and local union elections. • Members allowed to bring suit against union officials for improper management of union’s funds and conflict-of-interest situations. 18-29

  30. Landrum–Griffin Act – Provisions • Trusteeships allowing national/international unions to take over management of local union can be established only under: • Provisions specified in constitution • Bylaws of union • Only for corruption or financial misconduct 18-30

  31. Civil Service Reform Act (1978) • Regulates labor–management relations for federal government employees. • Established 3-Member Federal Labor Relations Authority(FLRA) to administer act. • Created Office of General Counselwithin FLRA to investigate and prosecute unfair labor practices: Appointed by President, with approval of Senate, for a 5-year term. • Created Federal Services Impasses Panel(FSIP) within FLRA to provide assistance in resolving negotiation impasses in federal sector. 18-31

  32. Civil Service Reform Act – Provisions • Established unfair labor practicesfor the management of federal agencies and unions. • Established the general areas that are subject to collective bargaining. • Required binding arbitration for all grievancesthat have not been resolved in earlier stages of the grievance procedure. • Prohibited strikes in the federal sector. 18-32

  33. Union Structures • Four basic types of units: • Federations of local, national, and international unions (e.g., AFL–CIO) • National or international unions • City and state federations • Local unions 18-33

  34. AFL–CIO • Is NOT a union, but an organization composed of unions. • Combination of national, international, & local unions. • Formed in 1955; amalgamation of American Federation of Labor (AFL) and Congress of Industrial Organizations (CIO). 18-34

  35. AFL–CIO AFLwas composed of Craft unions: • Unions having only skilled workersas members. CIOwas composed of Industrial unions: • Union members are both skilled and unskilled workers in a particular industry or group of industries. 18-35

  36. 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 18-36

  37. Local Unions • Local usually depends on Field Representativefor assistance in handling: • Contract negotiations • Strikes • Arbitration hearings 18-37

  38. Local Unions • If membership scattered over several employers: • Local unions often have a business agent -- 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 active participant in arbitration 18-38

  39. Developments In the Labor Movement • In 2008: 12.4% of wage and salary workers were union members, down from 20.1% in 1983. • 2008 datahighlights: • Men more likely to be union members. • Black workers more likely to be union members than were whites, Asians, and Hispanics. • Nearly 4 in 10 government workers were union members in 2008, compared with less than 1 in 10 workers in private-sector industries. • Nearly 40% of workers in education, training, and library occupations were union members. 18-39

  40. Developments In the Labor Movement • 2008 datahighlights (cont’d): • 35% of workers in protective service occupation (including fire fighters and police officers) were union members. • 3 states had union membership rates over 20%: • New York (24.9%) • Hawaii (24.3%) • Alaska (23.5%) • North Carolina (3.5%), Georgia (3.7%), and South Carolina (3.9%) reported lowest union membership rates. 18-40

  41. Developments In the Labor Movement • Historically, labor unions have gained strength from blue-collar production workers: • Workforce continues to grow principally in the service sectorof economy. • Less than 12% of service sector is unionized. • Unions successful in organizing narrow segments of service sector, such as teachers, pilots, and musicians. 18-41

  42. Developments In the Labor Movement Continued increase in Union Mergersis likely. • 2 Basic Forms of Union Mergers: • Amalgamation: 2 or more unions, normally of about equal size, forming new union. • Absorption: Involves merging of one union into a considerably larger one. 18-42

  43. Developments In the Labor Movement • About 50 AFL–CIO affiliates have under 50,000 members. • Another 30 have under 100,000 members. • Larger unions bring more pressure on management in: • Negotiating collective bargaining agreements • Union organizing campaigns 18-43

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