CHAPTER 9- section 3

1
CHAPTER 9- section 3

• UNIONS/ STRIKE/ LOCKOUT
• COLLECTIVE BARGAINING

2
UNIONS

• A trade union (British English) or labor union
  (American English) is an organization of workers
  who have banded together to achieve common goals
  such as better working conditions.

3
FYI

• The trade union, through its leadership, bargains
  with the employer on behalf of union members
  (rank and file1 members) and negotiates labor
  contracts (collective bargaining) with employers.
  This may include the negotiation of wages, work
  rules, complaint procedures, rules governing
  hiring, firing and promotion of workers,
  benefits, workplace safety and policies.

4
FYI

• The agreements negotiated by the union leaders
  are binding on the rank and file members and the
  employer and in some cases on other non-member
  workers.

5
UNIONS

• Although labor unions have been celebrated in
  folk songs and stories as fearless champions of
  the downtrodden working man, this is not how
  economists see them.

6
FYI

• Economists who study unionsincluding some who
  are avowedly pro-unionanalyze them as cartels
  that raise wages above competitive levels by
  restricting the supply of labor to various firms
  and industries.

7
UNIONS

• Many unions have won higher wages and better
  working conditions for their members. In doing
  so, however, they have reduced the number of jobs
  available in unionized companies.

8
FYI

• That second effect occurs because of the basic
  law of demand if unions successfully raise the
  price of labor, employers will purchase less of
  it. Thus, unions are a major anticompetitive
  force in labor markets. Their gains come at the
  expense of consumers, nonunion workers, the
  jobless, taxpayers, and owners of corporations.

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The National Labor Relations Act or Wagner Act

• The National Labor Relations Act or Wagner Act
  (after its sponsor, Senator Robert F. Wagner) is
  a 1935 United States federal law that limits the
  means with which employers may react to workers
  in the private sector that create labor unions,
  engage in collective bargaining, and take part in
  strikes and other forms of concerted activity in
  support of their demands.

10
FYI

• The Act does not apply to workers who are covered
  by the Railway Labor Act, agricultural employees,
  domestic employees, supervisors, federal, state
  or local government workers, independent
  contractors and some close relatives of
  individual employers.

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Taft-Hartley Labor Act, 1947

• Taft-Hartley Labor Act, 1947, passed by the U.S.
  Congress, officially known as the
  Labor-Management Relations Act. Sponsored by
  Senator Robert Alphonso Taft and Representative
  Fred Allan Hartley, the act qualified or amended
  much of the National Labor Relations (Wagner) Act
  of 1935, the federal law regulating labor
  relations of enterprises engaged in interstate
  commerce, and it nullified parts of the Federal
  Anti-Injunction (Norris-LaGuardia) Act of 1932.

12
FYI

• The act established control of labor disputes on
  a new basis by enlarging the National Labor
  Relations Board and providing that the union or
  the employer must, before terminating a
  collective-bargaining agreement, serve notice on
  the other party and on a government mediation
  service. The government was empowered to obtain
  an 80-day injunction against any strike that it
  deemed a peril to national health or safety.

13
AF of L CIO

• The American Federation of Labor and Congress of
  Industrial Organizations, commonly AFL-CIO, is a
  national trade union center, the largest
  federation of unions in the United States, made
  up of 56 national and international unions,3
  together representing more than 11 million
  workers (as of June 2008, the most recent
  official statistic).1

14
FYI

• It was formed in 1955 when the AFL and the CIO
  merged after a long estrangement. From 1955 until
  2005, the AFL-CIO's member unions represented
  nearly all unionized workers in the United
  States. The largest union in the AFL-CIO is the
  American Federation of State, County and
  Municipal Employees (AFSCME), with more than a
  million members, since 2005 when several large
  unions split away from AFL-CIO.

15
FAIR LABOR STANDARDS ACT

• The Fair Labor Standards Act of 19381
  (abbreviated as FLSA also referred to as the
  Wages and Hours Bill2) is a United States
  federal law. It applies to employees engaged in
  interstate commerce or employed by an enterprise
  engaged in commerce or in the production of goods
  for commerce3, unless the employer can claim an
  exemption from coverage. The FLSA established a
  national minimum wage,4 guaranteed
  'time-and-a-half' for overtime in certain
  jobs,5 and prohibited most employment of minors
  in "oppressive child labor," a term defined in
  the statute.6

16
FYI

• It was formed in 1955 when the AFL and the CIO
  merged after a long estrangement. From 1955 until
  2005, the AFL-CIO's member unions represented
  nearly all unionized workers in the United
  States. The largest union in the AFL-CIO is the
  American Federation of State, County and
  Municipal Employees (AFSCME), with more than a
  million members, since 2005 when several large
  unions split away from AFL-CIO.

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OPEN UNION SHOP

• An open shop is a place of employment at which
  one is not required to join or financially
  support a union as a condition of hiring or
  continued employment. Open shop is also known as
  merit shop.

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CLOSED UNION SHOP

• A closed shop is a form of union security
  agreement under which the employer agrees to only
  hire union members, and employees must remain
  members of the union at all times in order to
  remain employed.1

19
AGENCY SHOP

• An agency shop is a form of union security
  agreement where the employer may hire union or
  non-union workers, and employees need not join
  the union in order to remain employed.1
  However, the non-union worker must pay a fee to
  cover collective bargaining costs.1 The fee
  paid by non-union members under the agency shop
  is known as the "agency fee."23

20
FYI

• Where the agency shop is illegal, as is common in
  labor law governing American public sector
  unions, a "fair share provision" may be agreed to
  by the union and the employer.23 The
  provision requires non-union employees a pay
  "fair share fee" to cover the costs of the
  union's collective bargaining activities.

21
Collective bargaining

• Collective bargaining is a process between
  employers and employees to reach an agreement
  regarding the rights and duties of people at
  work. Collective bargaining aims to reach a
  collective agreement which usually sets out
  issues such as employees pay, working hours,
  training, health and safety, and rights to
  participate in workplace or company affairs.1
• .

22
FYI

• During the bargaining process, employees are
  typically represented by a trade union.2 The
  union may negotiate with a single employer (who
  is typically representing a company's
  shareholders) or may negotiate with a federation
  of businesses, depending on the country, to reach
  an industry wide agreement

23
REAL MONEY/ Money wage

• Money wage refers to a wage that is concerned
  purely with money. This is not inflation
  proof.Real wage means that the total "amount of
  things that this can buy," is equal to Real
  wage.

24
FYI

• For e.g. you are paid 10, with which you can buy
  one gallon of milk. After sometime, you are paid
  12, but you can still buy just one gallon of
  milk. This is known as rise in "money wage." Had
  the amount of milk that you could buy with the
  given money increased, it would have been Real
  Wage.

25
ESCALATOR CLAUSE

• A provision of a contract which calls for an
  increase in price in the event of an increase in
  certain costs.

26
FYI

• For example, an escalator clause may specify that
  rent due will increase with inflation. also
  called escalation clause. opposite of
  de-escalation clause.

27
STRIKE

• A work stoppage undertaken in support of a
  bargaining position or in protest of some aspect
  of a previous agreement or proposed agreement
  between labor and management.

28
RIGHT TO WORK LAWS

• Right-to-work laws are statutes enforced in
  twenty-two U.S. states, mostly in the southern or
  western U.S., allowed under provisions of the
  Taft-Hartley Act, which prohibit agreements
  between trade unions and employers making
  membership or payment of union dues or "fees" a
  condition of employment, either before or after
  hiring.

29
BOYCOTT

• A boycott is a form of consumer activism
  involving the act of voluntarily abstaining from
  using, buying, or dealing with a person,
  organization, or country as an expression of
  protest, usually for political reasons.

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PRIMARY BOYCOTT

• A primary boycott occurs when a union or other
  political or community organization encourages
  both its members and the general public not to
  buy the products of a firm involved in a labor or
  political dispute.

31
FYI

• Primary boycotts generally occur during labor
  negotiations and are a way for a union to either
  get management to the negotiating table or to
  help the union press for its demands. Success
  involving primary boycotts is mixed.

32
SECONDARY BOYCOTT

• A secondary boycott is an attempt by labor to
  convince others to stop doing business with a
  particular firm because that firm does business
  with another firm that is the subject of a strike
  and/or a primary boycott.

33
LOCKOUT

• A lockout is a work stoppage in which an employer
  prevents employees from working. This is
  different from a strike, in which employees
  refuse to work.
• .

34
lockout may happen for several reasons

• A lockout may happen for several reasons. When
  only part of a trade union votes to strike, the
  purpose of a lockout is to put pressure on a
  union by reducing the number of members who are
  able to work.

35
FYI

• For example, if the anticipated strike severely
  hampers work of non-striking workers, the
  employer may declare a lockout until the workers
  end the strike. Another case in which an employer
  may impose a lockout is to avoid slowdowns or
  intermittent work-stoppages

36
INJUNCTION

• Law . a judicial process or order requiring the
  person or persons to whom it is directed to do a
  particular act or to refrain from doing a
  particular act.

37
INJUNCTION

• Emergency injunctions that are in effect only a
  short time are called temporary restraining
  orders.

38
FYI

• Courts can also issue preliminary injunctions to
  take effect immediately and effective until a
  decision is made on a permanent injunction, which
  can stay in effect indefinitely or until certain
  conditions are met.

39
STRIKE BREAKER

• An employee hired to replace a striking worker.
  (See scab.)
•  A worker who refuses membership in a labor
  union.
• An employee who works while others are on strike
  a strikebreaker.
• A person hired to replace a striking worker.

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PUBLIC EMPLOYEES STRIKES

• Labor Law Stopping Public-Employee Strikes

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PUBLIC EMPLOYEES STRIKES

• There is no right to strike against the public
  safety by anybody, anywhere, at any time,"
  declared Massachusetts' Governor Calvin Coolidge
  when he broke the Boston police strike in 1919.
  "A strike of public employees is unthinkable and
  intolerable," added President Roosevelt in 1937.

42
FYI

• On pain of one year's imprisonment, federal
  employees are forbidden even to belong to a union
  that advocates strikes other bans against
  public-employee strikes are on the books in
  eleven states, ranging from New York to Hawaii.

43
FYI

• And even without specific laws, the country's
  courts have almost universally upheld Government
  authority and enjoined public-employees' strikes
  throughout U.S. history.