Chapter 23:

Labor Law

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©2001 West Legal Studies in Business. All Rights Reserved.

Introduction

• Historically, employment law was governed by the common law doctrine of

“employment at will” where either employer or employee could terminate the relationship at any time, for any reason.

• Today employment law is heavily regulated by federal labor statutes.

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§1: Federal Labor Laws

Norris-LaGuardia Act .

– Protects peaceful strikes by limiting the injunction powers of federal courts.

– Case 23.1:

Burlington Northern Santa Fe v.

International Brotherhood of Teamsters (2000).

National Labor Relations Act .

– Establishes the right of workers to strike and engage in collective bargaining.

– Case 23.2: NLRB v. Town and Country Electric (1995).

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©2001 West Legal Studies in Business. All Rights Reserved.

Labor Union Laws

[2]

Labor Management Relations Act .

– Prohibits certain unfair union practices such as closed shops.

Labor-Management Reporting and

Disclosure Act .

» Regulates the internal operations of unions and outlaws hot-cargo agreements.

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§2: The Decision to Form or

Select a Union

• Preliminary Organization.

– Authorization Cards.

• Appropriate Bargaining Unit.

• Job Similarity.

– Work-Site Proximity.

– Non-Management Employees.

• Moving Toward Certification.

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§3: Union Elections

• Union organization involves:

– Elections.

» An election can be held only if it can be shown that at least 30% of the workers will be represented.

– Management Election Campaigns.

» The National Labor Relations Board regulates the rights and obligations of employers and workers in the election process.

» No Threats.

» Laboratory Conditions.

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§4: Collective Bargaining

• Collective bargaining is the process by which management and labor negotiate the terms and conditions of employment.

– The NLRB will certify an exclusive bargaining agent for labor.

– Both labor and management must bargain in good faith, but the law does not require that they reach an agreement.

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©2001 West Legal Studies in Business. All Rights Reserved.

Subjects of Bargaining

• Terms and Conditions of Employment.

– Pay, Safety conditions, Insurance, Pensions.

• Closing or Relocating a Plaint.

– Severance Pay.

– Management must bargain over the economic consequences of moving a plant.

• Case 23.3:

Stroehmann Bakeries v. NLRB

(1996).

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©2001 West Legal Studies in Business. All Rights Reserved.

§5: Strikes

• There are two basic forms of strikes:

– Economic Strikes.

» These are strikes over wages.

» Workers can be replaced by permanent replacements.

– Unfair Labor Practice Strikes.

» These are strikes alleging that the employer has committed an unfair labor practice.

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Illegal Strikes

• Secondary Boycotts.

• Common Situs Picketing.

• Hot-Cargo Agreements.

– Employers agree not to use non-union goods of other employers.

• Wildcat Strikes.

• Strikes that Threaten National Health.

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©2001 West Legal Studies in Business. All Rights Reserved.

§6: Lockouts

• Occurs when the employer shuts down to prevent employees from working.

• When an employer believes a strike is imminent.

• Lockouts may be a legal employer response.

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©2001 West Legal Studies in Business. All Rights Reserved.

§7: Unfair Labor Practices

• Employer’s Refusal to Recognize Union and

Negotiate.

– Presumption of Employee Support.

– Questions of Majority Support.

– Case 23.4:

Canteen Corp. v. NLRB (1997).

• Employer’s Interference in Union Activities.

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©2001 West Legal Studies in Business. All Rights Reserved.

Unfair Labor Practices

[2]

• Employer’s Domination of Union.

• Employer’s Discrimination Against Union

Employees.

• Union’s Unfair Labor Practices.

– Coercion.

– Discrimination.

– Case 23.5:

Marquez v. Screen Actors Guild

(1998).

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§8: Rights of Nonunion

Employees

• Concerted Activity.

• Safety.

• Employee Communities.

– Case 23.6:

In Re Simmons Industries

(1996).

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Focus on Ethics: Employment

• Duties of Agents and Principals.

• Disability-Based Discrimination.

• English-Only Policies.

– Yniguez v. Arizona (9 th Cir. 1995).

• Labor Law and Quality Control.

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Law on the Web

• NLRB

• AFL-CIO.com

Legal Research Exercises on the Web

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