Labor Relations and Collective Bargaining Eighth Edition © 2007 Prentice Hall Inc. All rights reserved CHAPTER 1 History and Law.

Labor Relations and Collective Bargaining

Eighth Edition

© 2007 Prentice Hall Inc. All rights reserved

www.prenhall.com/carrell

CHAPTER 1

History and Law

PART I: Labor Relations Overview

Michael R. Carrell & Christina Heavrin

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Chapter OutlineChapter Outline

Roots of the American Labor MovementGrowth of National UnionsEarly Judicial RegulationPro-Labor LegislationCreation of a National Labor PolicyPublic Sector Collective Bargaining

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Labor NewsLabor News

Rival Unions Split With AFL-CIO on Eve of 50th Anniversary of Merger in July 2005

New Federation: “Change to Win” Led by the Teamsters Union and its powerful president, James P. Hoffa; the Service Employees International Union, the largest AFL-CIO union; the United Food and Commercial Workers; and UNITE (textile, restaurant hotel employees).

AFL-CIO lost 4 million of 13 million members, and seven of 56 national unions.

Why the split?: (1) Change to Win will focus on organizing new members; (2) Rivalry between AFL-CIO Pres. John Sweeney and SEIU Pres. Andrew L. Stern; (3) National Republican leaders may have prompted Stern and other leaders of the Change to Win Coalition to make their historic move. Sweeney and the AFL-CIO have been major supporters of the Democratic Party.

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Roots of the American Labor Movement

Roots of the American Labor Movement

Pre-Revolutionary America Agricultural economy Little division between employers and employees Labor force

Free laborers Indentured servants Black slaves

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Post-Revolutionary America First labor unions of craftspeople in 1790s

Trade societies

Growth of American factory system in 1830s Lowell System

Influx of immigrants Growth of large, national corporations provided the

impetus to unionize

Roots of the American Labor Movement (cont.)

Roots of the American Labor Movement (cont.)

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Growth of National UnionsGrowth of National Unions

National Labor Union (NLU) - 1866 Membership for skilled and unskilled workers Advocated

Creation of local unions Reforms to help workers

Spurred the formation of numerous national trade unions

National Colored Labor Union (NCLU) Refused membership by the NLU

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Molly Maguires Strike by the Miners’ and Laborers’ Benevolent Association against

anthracite mine owners in 1875 Infiltrated by Pinkertons Labor movement portrayed as violent and criminal

Railway Strike - 1877 First general strike to sweep the U.S. First use of federal troops to suppress labor action Initiated a wave of 117,000strikes to 1890 Initiated a new labor weapon—the strike

Haymarket Square Riot - 1886 Demonstration in support of 8-hour day led to a series of confrontations

with Chicago police Public became fearful of labor organizations

Growth of National Unions (cont.)Growth of National Unions (cont.)

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Knights of Labor - 1869 Secret labor organization ‘One big union’ for skilled and unskilled workers President: Terrence Powderly Went public after successful railroad strikes in 1881 Precipitous decline

Homestead Strike - 1892 Involved the Amalgamated Association of Iron and Steel Workers

and the Carnegie Steel Company Armed confrontation between strikers and armed Pinkerton

guards Union broken at plant and other steel mills


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Pullman Strike - 1894 Involved the Pullman Palace Car Company and the

American Railway Union Injunction issued using the Sherman Antitrust Act

Union leaders were jailed

Eugene Debs - founder of American Railway Union Led the democratic socialist movement in America Espoused industrial unionism Ran for president of the U.S. in 1920


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American Federation of Labor (AFL) - created in 1886 Federation of autonomous national craft unions Samuel Gompers was the first president

Reorganized the Cigarmakers Union

Policies of the AFL Business Unionism

Focus on bread-and-butter issues, not social reform Promote practice of collective bargaining Support for political parties sympathetic to labor’s goals

8-hour day Prohibition of child labor Workers’ compensation for injuries sustained on the job

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Bunker Hill & Sullivan Mining Incident, Cour d’Alene, Idaho Western Federation of Miners (WFM) involved in a series of violent

strikes 1899 - WFM demanded recognition of union Company fired all WFM members Federal troops arrested miners

“Bull Pen”

1903 Women’s Trade Union League – first association dedicated to organizing women.

Samuel Gompers believed a woman’s place was in the home. WTUL advocated 8 hour work day, minimum wage, abolition of child labor.

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Industrial Workers of the World (IWW) - created in 1905 Wobblies Comprised of Western Federation of Miners, other

activist political and labor groups Goals

Become one large industrial union Overthrow capitalism in favor of a cooperative society

Participated in a number of highly-publicized strikes

Ludlow Massacre - 1914 “Day that will live in infamy” in the history of labor Tent colony of miners fired on and set afire

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Congress of Industrial Organizations (CIO) - created in 1935 and originally called Committee for Industrial Organizations Federation of industrial unions of unskilled workers John L. Lewis was the first president

Leader of United Mine Workers Believed that AFL did not represent the interests of unskilled

workers Viewed by some as “ruthless” and “autocratic”

Policies of the CIO Promote solidarity with African-American, female, and immigrant

workers Compete with AFL to organize workers

Merged with AFL in 1955 in order to: End union raids on each other’s memberships Deal with anti-union sentiment in the U.S.

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Growth of National Unions - Periods of Violence

Growth of National Unions - Periods of Violence

MollyMaguires

RailwayLaborStrike

HaymarketSquare

HomesteadStrike

PullmanStrike

Bunker Hill& Sullivan

Mining

1870 1875 1880 1885 1890 1895 1915

Year

1900

LudlowMassacre

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Growth of National Unions - Labor Organizations

Growth of National Unions - Labor Organizations

NationalLaborUnion

Knightsof Labor

AmericanFederation

of Labor (AFL)

AmericanRailwayUnion

InternationalWorkers ofthe World

1860 1880 1900 1920 1940 1960

Year

Congress ofIndustrial

Organizations(CIO)

AFL-CIOmerger

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Early Judicial RegulationEarly Judicial Regulation

Cordwainers Conspiracy Cases English common law protected employers’ property

rights If 2 or more people conspired to commit an illegal act, they

were guilty of conspiracy whether or not they ever completed the particular illegal act

Cases in Philadelphia, New York, and Pittsburgh

Commonwealth v. Hunt - 1842 Reversed criminal conspiracy interpretation for union

activity Must prove an illegal purpose or reliance on illegal means

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Early Judicial RegulationEarly Judicial Regulation

CordwainersConspiracyCases

Mere “combination” of workers to raise wages is illegal

Strikes deprived others of their rights and property

Illegal to conspire to impoverish another

Questioned the legality of means usedto force employers to meet labor’s demands

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Use of labor injunctions Abandonment of criminal conspiracy doctrine did not

signal judicial acceptance of unions Injunctions used to suppress union activity Danbury Hatter’s case

Sherman Antitrust Act designed to prevent conspiracies in restraint of interstate commerce

Union boycott was a form of interference Erdman Act - 1888

Gave certain protections to union members Provided mediation and conciliation of railway labor

disputes

Early Judicial Regulation (cont.)Early Judicial Regulation (cont.)

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Pro-Labor LegislationPro-Labor Legislation

Clayton Act(1914)

Ostensibly limited court’s injunctive powers against unions

Declared that labor was not a commodity

Declared that labor organizations were not illegal combinations or conspiracies in restraint of trade

Largely ineffective in granting injunctive relief to unions

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Pro-Labor Legislation (cont.)Pro-Labor Legislation (cont.)

National War Labor Board Created during WWI to prevent labor disputes that

might weaken the country’s military effort Substituted settlements based on mediation or

conciliation Self organization and collective bargaining became

public policy Disbanded after WWI

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Pro-Labor Legislation (cont.)Pro-Labor Legislation (cont.)

Railway Labor Act - 1926 Collective bargaining became public policy on

nation’s interstate railroads Fostered peaceful settlement of labor disputes by

means of mediation and arbitration Declared constitutional by U.S. Supreme Court Act was expanded to include airline industry in 1936

Set up multi-stage mediation procedure that involves: A “cooling off” period Appointment of Presidential boards to investigate disputes

and push for settlements

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Creation of National Labor PolicyCreation of National Labor Policy

Norris-LaGuardia

Act

Davis-Bacon

Act

WagnerAct

Walsh-Healey

Act

Fair LaborStandards

Act

Taft-Hartley

Act

Landrum-Griffin

Act

1930 1935 1940 1945 1950 1960

Year

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Creation of National Labor Policy (cont.)


Stock market crash of 1929 created conditions that led to sympathy for workers’ problems Judicial process was too slow to deal with problems State legislation was ineffectual

Norris-La Guardia Act - 1932 First attempt at comprehensive national labor policy Limited courts’ injunctive powers against union

activities Made yellow dog contracts unenforceable

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NationalLabor

RelationsAct

(Wagner Act,1935)

Gave most private employees the rightto organize, bargain collectively, and strike

Defined employer unfair labor practices• interfering with employee rights guaranteed by the Act•refusal to bargain in good faith•discrimination against union members•any attempt to dominate or interfere with employee unions

Created the National Labor RelationsBoard (NLRB)•members appointed by the President•conducts representation elections•power to enforce the Act

Constitutionality of the Act upheld in Jones and Laughlin Steel Corporation

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Regulation of wages Davis-Bacon - 1931

Construction contractors required to pay prevailing wages (i.e., union scale) on federal projects

Walsh-Healey Act - 1936 Federal contractors required employers to pay time and

one-half for more than 8 hours of work per day

Fair Labor Standards Act - 1938 Provided minimum wage for workers in interstate

commerce Established 40-hour work week Abolished child labor under the age of 16 Amended to create special minimum wage for workers

under the age of 20 Amended in 2004: changed “exempt” classification

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Labor ManagementRelations Act(Taft-HartleyAmendments,

1947)

Enacted in response to public’s concern about imbalance in labor law that appeared to favor unions

Recognized workers right not to organize• Closed shop made unlawful

Defined union unfair labor practices•unions required to bargain in good faith•unions can be sued for breach of contract•restraint or coercion of employees in exercise of their rights•discrimination against employee for not engaging in union activities

Restrictions on strike activities

Right-to-work laws

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Creation Of A National Labor Policy (cont.)

Creation Of A National Labor Policy (cont.)

Labor- Management

Reporting andDisclosure Act

(Landrum-Griffin Act,

1959)

U.S. Senate hearing on union corruption led Congress to establish stricter controls on union operations. First federal law to limit union internal affairs.

Bill of Rights of Members of Unions•right to nominate candidates and participate in union elections•right to attend and participate in union meetings•protection against excessive dues, fees, and assessments•assured due process protections in union’s disciplinary actions

Limited certain union actions involving picketing and boycotts

Required unions to file financial reports

Unions required to have constitutions and bylaws

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Public Sector Collective BargainingPublic Sector Collective Bargaining

Wagner Act did not guarantee rights to public employees Spoils system - caused turnover of government

workers

Pendleton Act – 1873 Established a bipartisan 3-member Civil Service

Commission which: Determined fitness for promotion Forbade contributions to political campaigns Gave Congress control of wages, hours, and working

conditions of federal employees Many states instituted civil service merit systems

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Hatch Act - 1939 Limited political activities of public employees Deterred labor unions from trying to organize

federal employees Amendments in 1993 removed restrictions on

partisan activities of federal workers

Sovereignty Doctrine Government must be able to exercise its power

unfettered by any force other than the people Collective bargaining incorrectly perceived as a

threat to sovereignty doctrine Doctrine had many weak points

Public Sector Collective Bargaining (cont.)


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Executive Order 10988 - President John F. Kennedy, 1962

Established framework for labor-management relations in the federal government

Recognized rights to join or not join a labor organization Granted recognition to labor organizations Detailed topics subject to collective bargaining

Employees could not mandate negotiations of economic issues Management’s rights clause reserved government’s power to direct and discipline

workers Binding arbitration not final step in grievance procedure

Right to strike denied Dispute resolution left to agency heads rather than an impartial

authority 1968 Memphis sanitation strike (to get minimum wage) by African-

American workers ignited first wave of public sector union actions.

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CivilService

Reform Act(1978)

Codifies presidential policies toward federal labor-managementRelations and improves opportunities for collective bargaining

Established Federal Labor RelationsAuthority•oversees creation of bargaining units•conducts elections•decides representation cases•determines unfair labor practices•seeks enforcement of its decisions

Established Federal Service Impasse Panel•provides assistance in resolving impasses in negotiations

Mandates inclusion of grievance procedure with final binding arbitration

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Executive Order 12871 - President William J. Clinton, 1993

Established National Partnership Council to advise the President about labor-management issues

Made up of union leaders, representatives from Federal Labor Relations Board, Federal Mediation and Conciliation Service, and executive branch directors

Intended to change the manner in which unions and managers reached decisions

In 2001 President George W. Bush issued Executive Order 13203 and abolished the labor- management partnerships and ended a period of public sector union growth (61% of all federal workers).

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State and local government laws Enacted by more than 2/3 of states to grant

collective bargaining rights to some public employees

Favorability toward collective bargaining process differs from state to state

Usually specify bargaining over wages, hours, and terms of employment

Limit the right to strike Specify unfair labor practices



Labor Relations and Collective Bargaining Eighth Edition © 2007 Prentice Hall Inc. All rights reserved CHAPTER 1 History and Law.

Documents

labor action

knights of labor

labor unions of craftspeople

prentice hall

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pinkertons labor movement

labor news rival unions

secret labor organization