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Chapter 32 Labor Law. The right of workers to form, join, and assist labor unions is a statutorily protected right in the United States. Federal Labor Union Statutes. Norris-LaGuardia Act. National Labor Relations Act. Labor-Management Relations Act.

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Chapter 32 labor law l.jpg

Chapter 32Labor Law

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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The right of workers to form, join, and assist labor unions is a statutorily protected right in the United States.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


Federal labor union statutes l.jpg
Federal Labor Union Statutes is a statutorily protected right in the United States.

Norris-LaGuardia Act

National Labor Relations Act

Labor-Management Relations Act

Labor-Management Reporting and Disclosure Act

Railway Labor Act

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


Norris laguardia act l.jpg
Norris-LaGuardia Act is a statutorily protected right in the United States.

  • Stipulates that it is legal for employees to organize.

  • Removes the federal courts’ power to enjoin peaceful union activity.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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National Labor Relations Act is a statutorily protected right in the United States.

  • Also known as the Wagner Act or NLRA.

  • Establishes the right of employees to:

    • form, join, and assist labor organizations

    • bargain collectively with employers

    • engage in concerted activity to promote these rights

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Labor-Management Relations Act is a statutorily protected right in the United States.

  • Also known as the Taft-Hartley Act.

  • Expands the activities that labor unions can engage in.

  • Gives employers the right to engage in free-speech efforts against unions prior to a union election.

  • Gives the President the right to seek an injunction against a strike that would create a national emergency.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Labor-Management Reporting and Disclosure Act is a statutorily protected right in the United States.

  • Also known as the Landrum-Griffin Act.

  • Regulates internal union affairs and establishes the rights of union members.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Railway Labor Act is a statutorily protected right in the United States.

  • Covers employees of railroad and airline carriers.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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National Labor Relations Board (NLRB) is a statutorily protected right in the United States.

  • Administrative body comprised of five members appointed by the president and approved by the senate.

    • Oversees union elections

    • Prevents employers and unions from engaging in illegal and unfair labor practices

    • Enforces and interprets certain federal labor laws.

  • NLRB decisions are enforceable in court.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Organizing a Union is a statutorily protected right in the United States.

  • Section 7 of the NLRA

    • Gives employees the right to join together to form a union.

  • Appropriate Bargaining Unit

    • The group that the union is seeking to represent.

    • Must be defined before the union can petition for an election.

    • Managers and professional employees may not belong to unions formed by employees whom they manage.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Types of Union Elections is a statutorily protected right in the United States.

  • 30 percent of the employees in the bargaining unit must indicate interest in joining or forming a union.

    • Not a commitment to vote for the union

  • NLRB is petitioned, investigates and sets election date.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Union Elections is a statutorily protected right in the United States.(continued)

  • Contested election

    • Management opposes the union

    • NLRB required to supervised

    • Simple majority vote wins election

  • Consent election

    • Management does not contest

    • NLRB does not supervise

  • Decertification election

    • Employees no longer want union

    • Supervised by NLRB

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Union Elections is a statutorily protected right in the United States.(continued)

  • If a simple majority of the employees of the appropriate bargaining unit vote to join a union,

    • the union is certified as the bargaining agent of all the employees,

    • even those who did not vote for the union.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Union Solicitation on Company Property is a statutorily protected right in the United States.

  • An employer may restrict union solicitation activities by employees to nonworking areas during employees’ free time.

  • Off-duty employees may be barred from union solicitation on company premises.

  • Non-employee union organizers or officers may be prohibited from soliciting on behalf of the union anywhere on company property.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Union Solicitation on Company Property is a statutorily protected right in the United States.(continued)

Inaccessibility Exception

  • Permits employees and union officials to engage in union solicitation on company property

    • Employees must be beyond reach of reasonable union efforts to communicate with them.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Illegal Interference with an Election is a statutorily protected right in the United States.

  • Section 8(a) of the NLRA – makes it an unfair labor practice for an employer to interfere with, coerce, or restrain employees from exercising their statutory right to form and join a union.

  • Section 8(b) of the NLRA –prohibits unions from engaging in unfair labor practices that interfere with a union election.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Collective Bargaining is a statutorily protected right in the United States.

  • The act of negotiating contract terms between an employer and the members of a union.

  • Collective Bargaining Agreement –the resulting contract from a collective bargaining procedure.

  • The employer and the union must bargain with each other in good faith.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Subjects of Collective Bargaining is a statutorily protected right in the United States.

  • Compulsory Subjects

    • Wages

    • Hours

    • Other terms and conditions of employment

  • Illegal Subjects

    • Closed shops

    • Discrimination

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Subjects of Collective Bargaining is a statutorily protected right in the United States.(continued)

  • Permissive Subjects

    • Size and composition of the supervisory force

    • Location of plants

    • Corporate reorganizations

    • Subjects may be bargained for if company and union agree

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Union Security Agreements is a statutorily protected right in the United States.

  • Union Shop

    • Employee must join the union within a certain number of days after being hired.

    • Employees who do not join must be discharged by the employer upon notice from the union.

    • Union members pay union dues to the union.

    • Union shops are lawful.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Union Security Agreements is a statutorily protected right in the United States.(continued)

  • Agency Shop

    • Employees do not have to become union members.

    • Must pay an agency fee to the union.

      • Amount equal to union dues

    • Agency shops are lawful.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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State Right-to-Work Laws is a statutorily protected right in the United States.

  • Section 14(b) of the Taft Hartley Act

    • allows states to enact right-to-work laws that outlaw union or agency shops.

    • Individual employees cannot be forced to join a union or pay union dues and fees.

      • Applies even though a union has been elected by other employees.

    • 22 states have enacted right-to-work laws.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Strikes is a statutorily protected right in the United States.

  • The NLRA gives union management the right to recommend that the union call a strike if a collective bargaining agreement cannot be reached.

  • A majority vote of the union’s members must agree to the action before there can be a strike.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


Picketing l.jpg
Picketing is a statutorily protected right in the United States.

  • The actions of strikers walking in front of the employer’s premises carrying signs announcing their strike.

  • The right to picket is implied from the NLRA.

  • An employer may seek an injunction against unlawful picketing.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Picketing is a statutorily protected right in the United States.(continued)

Picketing is lawful unless it

  • It is accompanied by violence

  • Obstructs customers from entering the employer’s place of business

  • Prevents non-striking employees from entering the employer’s premises

  • Prevents pickups and deliveries at the employer’s place of business

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Secondary Boycott Picketing is a statutorily protected right in the United States.

  • A type of picketing where unions try to bring pressure against an employer by picketing his or her suppliers or customers.

  • Such picketing is lawful only if it is product picketing.

  • It is illegal if it is directed against the neutral employer instead of the struck employer’s product.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


Illegal strikes l.jpg
Illegal Strikes is a statutorily protected right in the United States.

  • Several types of strikes have been held to be illegal.

  • They are not protected by federal labor law.

  • Illegal strikers may be discharged by the employer with no rights to reinstatement.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Violent Strikes is a statutorily protected right in the United States.

Sit-Down Strikes

Partial or Intermittent Strikes

Wildcat Strikes

Strikes during the 60-day Cooling-Off Period

Strikes in Violation of a No-Strike Clause

Illegal strikes are:

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


Crossover worker l.jpg
Crossover Worker is a statutorily protected right in the United States.

  • Individual members of a union do not have to honor the strike.

  • They may:

    • Choose not to strike, or

    • Return to work after joining the strikers for a time

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Replacement Workers is a statutorily protected right in the United States.

  • Workers who are hired to take the place of striking workers.

  • They can be hired on either a temporary or permanent basis.

  • If replacement workers are given permanent status, they do not have to be dismissed when the strike is over.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Employer Lockout is a statutorily protected right in the United States.

Act of the employer to prevent employees from entering the work premises when the employer reasonably anticipates a strike.

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


Internal union affairs l.jpg
Internal Union Affairs is a statutorily protected right in the United States.

  • Unions may adopt internal union rules to regulate the operation of the union, acquire and maintain union membership, etc.

  • Title I of the Landrum-Griffin Act – referred to as labor’s bill of rights. Gives each union member equal rights and privileges to:

    • Nominate candidates for union office

    • Vote in elections

    • Participate in membership meetings

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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Internal Union Affairs is a statutorily protected right in the United States.(continued)

  • A union may discipline members for:

    • Walking off the job in a non-sanctioned strike

    • Working for wages below union scale

    • Spying for an employer

    • Any other unauthorized activity that has an adverse economic impact on the union

© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman


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