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Chapter 3 Labor Law: Background and Basic Principles.

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Presentation on theme: "Chapter 3 Labor Law: Background and Basic Principles."— Presentation transcript:

1 Chapter 3 Labor Law: Background and Basic Principles

2 MGMT 523 – Chapter 3 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

3 MGMT 523 – Chapter 3 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

4 MGMT 523 – Chapter 3 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

5 MGMT 523 – Chapter 3 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

6 MGMT 523 – Chapter 3 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

7 MGMT 523 – Chapter 3 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

8 MGMT 523 – Chapter 3 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

9 MGMT 523 – Chapter 3 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

10 MGMT 523 – Chapter 3 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

11 MGMT 523 – Chapter 3 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

12 MGMT 523 – Chapter 3 National Labor Relations Board (NLRB) Functions of the NLRB –Interpret and administer the LMRA –Responsibilities Composition of NLRB –Five-Member Panel –General Counsel

13 MGMT 523 – Chapter 3 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

14 MGMT 523 – Chapter 3 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

15 MGMT 523 – Chapter 3 NLRB Unfair Labor Practices Charging Party Respondent Merit Administrative Law Judge (ALJ) Types of Unfair Labor Practice Cases –Routine Cases –Lead Cases

16 MGMT 523 – Chapter 3 Basic Procedures in Cases Involving Charges of ULPs Charge Investigation Complaint and Answer Hearing and Decision Remedial Order Court Enforcement and Review Dismissal Other Disposition Injunction Withdrawal- Refusal to Issue Complaint- Settlement Injunction

17 MGMT 523 – Chapter 3 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

18 MGMT 523 – Chapter 3 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

19 MGMT 523 – Chapter 3 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

20 MGMT 523 – Chapter 3 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

21 MGMT 523 – Chapter 3 Other Laws Affecting Labor Relations ADA of 1990 The Bankruptcy Act of 1984 The WARN of 1988 RICCO Act of 1970

22 MGMT 523 – Chapter 3 Employment Discrimination Laws and Executive Orders Civil Rights Act of 1991 ADEA of 1967 Executive Orders –11246 –11375

23 MGMT 523 – Chapter 3 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


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