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Labor Relations. Chapter 14 December 8, 2004. Major Labor Laws. Railway Labor Act (RLA) of 1926 Norris LaGuardia Act (Anti-Injunction Act) Wagner Act (National Labor Relations Act) of 1935 Taft-Harley Act (Labor-Management Relations Act) of 1947

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labor relations

Labor Relations

Chapter 14

December 8, 2004

major labor laws
Major Labor Laws
  • Railway Labor Act (RLA) of 1926
  • Norris LaGuardia Act (Anti-Injunction Act)
  • Wagner Act (National Labor Relations Act) of 1935
  • Taft-Harley Act (Labor-Management Relations Act) of 1947
  • Landrum-Griffin Act (Labor-Management Disclosure Act) of 1959

MQM 323/Fall 2004

government regulation of labor relations
Government Regulation of Labor Relations
  • The Railway Labor Act (RLA) of 1926
    • Purpose of the act is to avoid service interruptions resulting from disputes between railroads and their operating unions.
    • National Mediation Board
    • National Railway Adjustment Board
  • The Norris-LaGuardia Act of 1932
    • Restricts the ability of employers to obtain an injunction against unions for their lawful activities.

MQM 323/Fall 2004

government regulation of labor relations4
Government Regulation of Labor Relations
  • The Wagner Act (National Labor Relations Act) of 1935
    • Protects employee rights to organize and bargain collectively through representatives of their choice.
    • Created the National Labor Relations Board (NLRB) to govern labor relations in the United States.
      • Holds secret ballot union representation elections.
      • Prevents and remedies unfair labor practices.

MQM 323/Fall 2004

wagner act
Wagner Act
  • Section 7 of the Act guarantees these rights:
    • To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives.
    • To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection.
    • To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment.

MQM 323/Fall 2004

unfair labor practices ulps
Unfair Labor Practices (ULPs)
  • Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits:
    • Interference with Section 7 rights
    • Domination of a union (company union)
    • Discrimination against union members
    • Arbitrary discharge of union members
    • Refusal to bargain with the union

MQM 323/Fall 2004

amendments to the wagner act
Amendments to the Wagner Act
  • The Taft-Hartley Act (The Labor-Management Relations Act) of 1947
    • Balances the rights and duties of labor and management in the collective bargaining arena by defining unfair union practices.
  • The Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959
    • Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers.

MQM 323/Fall 2004

unfair union practices
Unfair Union Practices
  • Interfering with representation elections
  • Influencing employers to discriminate with regard to union membership
  • Refusal to bargain collectively with employer
  • Interference with certified employee representative’s relationship with employer
  • Assessment of excessive initiation fees and dues on bargaining unit members
  • “Featherbedding”

MQM 323/Fall 2004

labor relations process
Labor Relations Process
  • Workers desire collective representation
  • Union begins its organizing campaign
  • Collective negotiations lead to a contract
  • The contract is administered

MQM 323/Fall 2004

the labor relations process
The Labor RelationsProcess

MQM 323/Fall 2004

Figure 14.1

why employees unionize
Why Employees Unionize
  • As a result of economic needs (wages and benefits)
  • Dissatisfaction with managerial practices
  • To fulfill social and status needs.
  • Unionism is viewed as a way to achieve results they cannot achieve acting individually
  • To comply with union-shop provisions of the labor agreement in effect where they work

MQM 323/Fall 2004

employer tactics opposing unionization
Employer Tactics Opposing Unionization
  • Stressing favorable employer-employee relationship experienced without a union.
  • Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy
  • Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights
  • Use statistics to show that unions commit large numbers of unfair labor practices.
  • Initiate legal action when union members and leaders engage in unfair labor practices

MQM 323/Fall 2004

how employees become unionized
How Employees Become Unionized
  • Bargaining Unit
    • A group of two or more employees who share common employment interests and conditions and may reasonably be grouped together for purposes of collective bargaining.
  • Exclusive Representation
    • The legal right and responsibility of the union to represent all bargaining unit members equally, regardless of whether employees join the union or not.

MQM 323/Fall 2004

the labor organization process
The Labor Organization Process

Workers Seek Collective Representation

Union Begins The

Organizing Process



Representation Election is Held

Collective Bargaining For A Contract

Contract Administration

MQM 323/Fall 2004

impact of unionization on managers
Impact of Unionization on Managers
  • Challenges to Management Prerogatives
    • Management prerogatives versus union participation in decision-making in the work place.
  • Loss of Supervisory Authority
    • Constraints on management in directing and disciplining the work force by terms of the collective bargaining agreement.

MQM 323/Fall 2004

union structure and governance
Union Structure and Governance
  • Craft Unions
  • Industrial Unions
  • Employee Associations
  • National Unions
  • Local Unions

MQM 323/Fall 2004

Presentation Slide 14–4

types of unions
Types of Unions
  • Craft unions
    • Unions that represent skilled craft workers
  • Industrial unions
    • Unions that represent all workers—skilled, semiskilled, unskilled—employed along industry lines
  • Employee associations
    • Labor organizations that represent various groups of professional and white-collar employees in labor-management relations.

MQM 323/Fall 2004

typical organization of a local union
Typical Organization of a Local Union

Local Union Meeting (Normally Monthly)

Business Representative



Sergeant at Arms


Various Committee Chairpersons

Training and Education

Grievance Committee:Chief Steward and Shop Stewards

Collective Bargaining


MQM 323/Fall 2004

Local Union Members

structure and functions of local unions
Structure and Functions of Local Unions
  • Local Officers
    • Elected officials who lead the union and serve on the bargaining committee for a new contract.
  • Union Steward
    • An employee, as a nonpaid union official, represents the interests of members in their relations with management.
  • Business Unionism
    • The term applied to the goals of U.S. labor organizations, which collectively bargain wages, hours, job security, and working conditions.

MQM 323/Fall 2004

types of arbitration
Types of Arbitration
  • Compulsory Binding Arbitration
    • A process for employees such as police officers, firefighters, and others in jobs where strikes cannot be tolerated to reach agreement.
  • Final-offer Arbitration
    • The arbitrator must select one or the other of the final offers submitted by the disputing parties with the award is likely to go to the party whose final bargaining offer has moved the closest toward a reasonable settlement.

MQM 323/Fall 2004

the collective bargaining process
The Collective Bargaining Process
  • PREPARE FOR NEGOTIATIONS------------------------------
  • Gather data
  • Form bargaining terms
  • DEVELOP STRATEGIES------------------------------
  • Develop management proposals and limits of concessions
  • Consider opponents’ goals
  • Make strike plans



  • AGREEMENT------------------------------
  • Clarify contract language
  • Ratify agreement
  • CONDUCT NEGOTIATIONS--------------------------------
  • Bargain in good faith
  • Analyze proposals
  • Resolve proposals
  • Stay within bargaining zone




Legal requirements


Strike replacements


Figure 14.2

MQM 323/Fall 2004

Presentation Slide 14–7

the bargaining process
The Bargaining Process
  • Collective Bargaining Process
    • The process of negotiating a labor agreement, including the use of economic pressures by both parties.
  • Bargaining Zone
    • Area within which the union and the employer are willing to concede when bargaining.
  • Interest-based Bargaining
    • Problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship.

MQM 323/Fall 2004

items in a labor agreement



Work schedules

Management rights

Union security



Grievance procedures

No strike/no lockout clause


Safety procedures

Severance pay


Pensions and benefits


Items In A Labor Agreement

MQM 323/Fall 2004

items in a labor agreement cont d
Items In A Labor Agreement (cont’d)
  • Progressive clauses will cover:
    • Employee access to records
    • Limitations on use of performance evaluation
    • Elder care leave
    • Flexible medical spending accounts
    • Protection against hazards of technology equipment (VDTs)
    • Limitations against electronic monitoring
    • Procedures governing drug testing
    • Bilingual stipends
    • Domestic partnership benefits

MQM 323/Fall 2004

management and union power in collective bargaining
Management and Union Power in Collective Bargaining
  • Bargaining Power
    • The power of labor and management to achieve their goals through economic, social, or political influence.
  • Union Bargaining Power
    • Strikes, pickets, and boycotts
  • Management Bargaining Power
    • Hiring replacement workers
    • Continuing operations staffed by management
    • Locking out employees

MQM 323/Fall 2004

union power in collective bargaining


Buy Here







Union Power in Collective Bargaining




This Union

On Strike

MQM 323/Fall 2004

employer power in collective bargaining
Employer Power in Collective Bargaining

Management methods for applying economic pressure during bargaining:

Outsourcing normal work

Locking out workers

Hiring replacement workers

Demanding concessions

MQM 323/Fall 2004

union security agreements
Union Security Agreements
  • Dues Checkoff
    • Gives the employer the responsibility of withholding union dues from the paychecks of union members who agree to such a deduction.
  • “Shop” Agreements
    • Require employees to join or support the union.
    • Union shop requires employee membership.
    • Agency shop allows voluntary membership; employee must pay union dues and fees.

MQM 323/Fall 2004

grievance arbitration
Grievance Arbitration
  • Rights Arbitration
    • Arbitration over interpretation of the meaning of contract terms or employee work grievances.
  • Fair Representation Doctrine
    • The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters.

MQM 323/Fall 2004

current challenges to unions
Current Challenges to Unions

Important issues confronting unions

Foreign competition and technological change

The long-term decrease in union membership

Employers’ focus on maintaining nonunion status

MQM 323/Fall 2004