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Labor Relations and Collective Bargaining
Seventh Edition
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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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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
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 Terrence Powderly was president 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
Growth of National Unions (cont.)Growth of National Unions (cont.)
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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
Growth of National Unions (cont.)Growth of National Unions (cont.)
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Growth of National Unions (cont.)Growth of National Unions (cont.)
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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Growth of National Unions (cont.)Growth of National Unions (cont.)
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”
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Growth of National Unions (cont.)Growth of National Unions (cont.)
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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Growth of National Unions (cont.)Growth of National Unions (cont.)
Congress of Industrial Unions (CIO) - created in 1935 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
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 others’ 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 ofIndustrialWorkers
(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
Cordwainers’ConspiracyCases
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.)
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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Creation of National Labor Policy (cont.)
Creation of National Labor Policy (cont.)
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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Creation of National Labor Policy (cont.)
Creation of National Labor Policy (cont.)
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
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Creation of National Labor Policy (cont.)
Creation of National Labor Policy (cont.)
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
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.)
Public Sector Collective Bargaining (cont.)
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Public Sector Collective Bargaining (cont.)
Public Sector Collective Bargaining (cont.)
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
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Public Sector Collective Bargaining (cont.)
Public Sector Collective Bargaining (cont.)
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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Public Sector Collective Bargaining (cont.)
Public Sector Collective Bargaining (cont.)
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
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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
Public Sector Collective Bargaining (cont.)
Public Sector Collective Bargaining (cont.)