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

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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
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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Basic Procedures in Cases Involving
Charges of ULPs
Charge
Injunction
Investigation
Injunction
Complaint and Answer
WithdrawalRefusal to Issue
ComplaintSettlement
Hearing and Decision
Dismissal
Remedial Order
Court Enforcement and Review
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Other Disposition
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 makewhole remedy to individuals adversely
affected by the ULP
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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
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Current Labor Policy
Favors the powerful (employers) over
the powerless (employees)
 Discourages unionism through footdragging
 Offers insufficient statutory remedies
 Is grossly outdated
 Laws protecting individuals have
usurped the role of collective bargaining

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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
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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

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Employment Discrimination Laws
and Executive Orders
Civil Rights Act of 1991
 ADEA of 1967
 Executive Orders

– 11246
– 11375
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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

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