timeline for making profit: Investors will need an indication of when they expect some return on their investment so you need to provide some reasonable timelines of when that will be

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Chapter 32

Labor Law and Collective Bargaining

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The right of workers to form, join, and assist labor unions is a statutorily protected right in the United States.

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Learning Objectives

Describe how a union is organized
Explain the consequences of an employer’s illegal interference with a union election
Describe the process of collective bargaining
Describe employees’ rights to strike and picket
Explain labor’s bill of rights

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Federal Labor Union Statutes

Norris-LaGuardia Act

National Labor Relations Act

Labor-Management Relations Act

Labor-Management Reporting and Disclosure Act

Railway Labor Act

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Organizing a Union

Employees have right to:
Form, join, and assist labor organizations
Bargain collectively through chosen representatives
Engage in concerted activity to promote these rights
Bargaining unit must be defined before union petitions for election

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Types of Union Elections

Contested election: contested by the employer
Consent election: not contested by the employer
Decertification election: employees may wish to dissolve union

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Union Solicitation on Company Property

Employer may restrict solicitation activities by employees to nonworking areas during employees’ free time
Nonemployees may be prohibited from soliciting on behalf of the union anywhere on company property
Inaccessibility exception: permits employees to engage in union solicitation on company property, if they are beyond reach of the union

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Case 32.1: U.S. Supreme Court Organizing a Labor Union

Case
Lechmere, Inc. v. National Labor Relations Board
502 U.S. 527, 112 S.Ct. 841, 117 L.Ed.2d 79, Web 1992 U.S. Lexis 555
Supreme Court of the United States
Issue
May a storeowner prohibit nonemployee union organizers from distributing leaflets in a shopping mall parking lot owned by the store?

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Illegal Interference with an Election

Unfair labor practice for employer to interfere with, coerce, or restrain employees from exercising their statutory right to form and join unions
Unions prohibited from engaging in unfair labor practices that interfere with a union election

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Collective Bargaining

Act of negotiating contract terms between an employer and the members of a union
Subjects of collective bargaining:
Compulsory subjects: wage, hours, and other terms and conditions of employment
Permissive subjects: not compulsory or illegal
Illegal subjects: cannot be negotiated or agreed upon

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Union Security Agreements

Closed shop: employer agrees to hire only employees who are already members of a union
Union shop: employer may hire anyone whether he belongs to a union or not, but the employee must join the union within a certain time period
Agency shop: employer may hire anyone whether she belongs to a union or not, but the employee must pay an agency fee to the union

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Strikes

A union can call a strike:
If a collective bargaining agreement cannot be reached
To obtain economic benefits
To correct an unfair labor practice
Union members refuse to work during a strike

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Cooling-Off Period

A mandatory sixty days’ notice before a strike can commence
Gives the employer and union enough time to negotiate a settlement
Illegal for a strike to commence during the sixty- day period

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Illegal Strikes

Violent strikes
Sit-down strikes
Partial or intermittent strikes
Wildcat strikes
Strike in violation of no-strike clause

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Crossover and Replacement Workers

Crossover workers: employees who choose not to strike or return to work after joining the strikes
Replacement workers: hired on temporary or permanent basis to take the place of the striking employees

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Employer Lockout

Act of the employer to prevent employees from entering the work premises when the employer reasonably anticipates a strike.

Employer Lockout

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Picketing

Strikers walking in front of the employer’s premises, carrying signs announcing their strike
Picketing is lawful unless it:
Is accompanied by violence
Obstructs customers from entering employer’s place of business
Prevents entry of nonstriking employees
Prevents pickups and deliveries at employers place of business

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Secondary Boycott Picketing

Unions try to bring pressure against an employer by picketing the employer’s suppliers or customers
Lawful only if it is product picketing, that is, picketing against the employer’s product
Illegal, if directed against the neutral employer

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Internal Union Affairs

Unions may adopt internal union rules to regulate the operation of the union, acquire and maintain union membership, and the like
Subject to Landrum-Griffin Act’s labor bill of rights. Each union member has equal rights and privileges to:
Nominate candidates for union office
Vote in elections
Participate in membership meetings

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Internal Union Affairs

A union may discipline members for:
Walking off the job in a nonsanctioned strike
Working for wages below union scale
Spying for an employer
Any other unauthorized activity that has an adverse economic impact on the union

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