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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 l.jpg

Chapter 3

Labor Law: Background and Basic Principles


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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Employment Discrimination Laws and Executive Orders

  • Civil Rights Act of 1991

  • ADEA of 1967

  • Executive Orders

    • 11246

    • 11375

MGMT 523 – Chapter 3


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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