U.S. Labor Unions

Question 1

Labor Union

Answer 1

A labor union is an organization of employees that represents employees in dealings with employers on such matters as grievances, wages, benefits, overtime, work hours, and other conditions of employment. Unions are also active in politics and lobbying.

Question 2

Collective Bargaining

Answer 2

Negotiation of wages and other conditions of employment by an organized body of employees.

Question 3

Labor Conspiracy Theory

Answer 3

A doctrine known as the labor conspiracy theory was developed in the early 1800s that stated that collective bargaining would interfere with the market and destroy competition. See Commonwealth v. Pullis (1806).

Question 4

Anti-Tust Law

Answer 4

Antitrust laws, also referred to as ‘competition laws’, are statutes developed by the U.S. Government to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy. These laws have evolved along with the market, vigilantly guarding against would-be monopolies and disruptions to the productive ebb and flow of competition. Antitrust laws are applied to a wide range of questionable business activities, including but not limited to: Market allocation, bid rigging, price fixing, monopolies, and mergers and acquisitions.

Question 5

Clayton Act

Answer 5

Congress enacted the Clayton Act in 1914, which declared that human labor was not an article of commerce, and that labor unions were not to be considered a violation of antitrust laws.

Question 6

Yellow Dog Contracts

Answer 6

Businesses fought back against the Clayton Act (1914) with yellow dog contracts, in which applicants acknowledged that they were not union members and agreed not to become one.

Question 7

The Norris-Laguardia Act

Answer 7

The Norris-Laguardia Act (1932) banned yellow-dog contracts, barred the federal courts from issuing injunctions against nonviolent labor disputes, and created a positive right of noninterference by employers against workers joining trade unions.

Question 8

National Labor Relations Act of 1935

Answer 8

The passage of the National Labor Relations Act, or Wagner Act, in 1935 gave labor unions certain legal rights and powers under federal law. Unions now have the right to collectively bargain without domination of employers. It prevents employers from interfering with employees’ right to collectively bargain and discriminating against employees in hiring or firing because of union membership or against an employee that exercises his rights. The Wagner Act also recreated the National Labor Relations Board that has the power to investigate employee complaints and issue cease and desist orders against violating companies.

Question 9

National Labor Relations Board

Answer 9

The National Labor Relations Act (or Wagner Act) also recreated the National Labor Relations Board which enforces the National Labor Relations Act. It has the power to investigate employee complaints, issue cease and desist orders against violating companies, and conduct elections for unionization. (1935)

Question 10

Labor Management Relations Act

Answer 10

Congress passed the Labor Management Relations Act, also known as the Taft-Hartley Act, in 1947 that outlined certain unfair labor acts of unions as a counterweight to the unfair labor acts of employers laid out in the Wagner Act. Taft-Hartley also created the Federal Mediation and Conciliation Service that provides a means to handle strikes that create a national emergency. The Act also banned a closed shop, which mandated that an employer hire only union members and fire any employee who drops his union membership.

Question 11

Federal Mediation and Conciliation Service

Answer 11

The Federal Mediation and Conciliation Service (FMCS) is an independent agency of the United States government, founded in 1947 via the Labor Management Relations Act, which provides mediation services to industry, community, and government agencies worldwide. One of its most common tasks is to help to mediate labor disputes around the country. FMCS headquarters is located in Washington, D.C. Its employees include certified mediators.

Question 12

Collective Bargaining Unit

Answer 12

A collective bargaining unit is a group of employees who bargain about the terms and conditions of employment with an employer as a group instead of individually.

Question 13

Key Things to Know for Employer Restrictions and Rights in Unionizing Process & Collective Bargaining

Answer 13

• The National Labor Relations Board is charged with enforcing the National Labor Relations Act, which includes unionization. - Employers can prohibit organization activities during paid working hours. However, they cannot prohibit such activities during paid breaks. - A company is allowed to present its opinion about unionization to its employees. - Employers are allowed to only negotiate with the collective bargaining unit’s exclusive representative.

Question 14

Collective Bargaining Agreement

Answer 14

A collective bargaining agreement is an agreement entered into by a company and a union that govern key aspects of the employer-employee relationship, such as pay, benefits, hours, working conditions, and other terms and conditions of employment.

Question 15

Bargaining Strategies in Labor Relations - Distributive Bargaining Strategy

Answer 15

In distributive bargaining strategy the negotiators believe there are a limited amount of resources available for the taking and if one side wins, the other side loses - zero-sum/win-lose. The goal is to get as much of the resources distributed to your side as possible. Compare with ‘Integrative Bargaining Strategy’.

Question 16

Bargaining Strategies in Labor Relations - Integrative Bargaining Strategy

Answer 16

In integrative bargaining strategy the parties attempt to cooperate, seek common ground, and reach an agreement where everyone wins - positive sum game/win-win. In other words, it’s an attempt to enlarge the pie rather than fighting over the biggest slice as in distributive bargaining. Compare with ‘Distributive Bargaining Strategy’.

Question 17

Collective Bargaining - Union Tactics - Strikes

Answer 17

A strike occurs when workers stop work in order to pressure the company to make a bargaining concession. Strikes come in two general flavors: economic strikes and unfair labor practice strikes. An economic strike is about trying to win some economic benefit for employees, such as a raise in wages. An unfair labor practice strike is a strike undertaken when an employer has violated a labor relations law. The law varies in how each kind of strike is allowed to be conducted based on time, place, and manner.

Question 18

Collective Bargaining - Union Tactics - Labor Boycott

Answer 18

When employees conduct a labor boycott, they are trying to stop, or at least reduce, the company’s customers from purchasing its goods or services as a sign of support for the employees. For example, employees may try to convince customers not to purchase the model of vehicles produced at their plant. The idea is that the threat of loss of revenue will pressure the company to make concessions.

Question 19

Collective Bargaining - Union Tactics - Picketing

Answer 19

Picketing occurs when a group of employees gather outside the company to make the public aware of a strike or boycott. The idea is to try to create public awareness and support for the union’s position.

Question 20

Collective Bargaining - Employer Tactics - Strikebreaking

Answer 20

Strikebreaking is an attempt by a company to disrupt or end a strike undertaken by employees without reaching an agreement with them. For example, an employer can hire workers to replace union workers during the strike called strikebreakers, often derogatorily referred to as ‘scabs.’

Question 21

Collective Bargaining - Employer Tactics - Lockout

Answer 21

A lockout is an offensive measure in which the employer shuts down operations. You can think of a lockout as the equivalent of a company striking its employees. The idea is to pressure employees to make concessions at the bargaining table so that they can go back to work and earn a living.

Question 22

Collective Bargaining - Illegal Tactics

Answer 22

The law places limits on these tools. Not all strikes are legal. Boycotts may be directed towards the company, but not neutral third parties, such as the company’s suppliers. Picketing is generally permitted in small groups, but may not become violent. Companies cannot act violently towards striking employees.

Question 23

minimum wage

Answer 23

A minimum wage is the lowest wage per hour that a worker may be paid, as mandated by federal law. The minimum wage is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job.

Question 24

Unemployment Compensation

Answer 24

Unemployment compensation is paid by the state to unemployed workers who have lost their jobs due to layoffs or retrenchment. Unemployment compensation is meant to provide a source of income for jobless workers until they can find employment. In order to be eligible for it, certain criteria must be satisfied by an unemployed worker, such as having worked for a minimum stipulated period and actively looking for employment. Unemployment compensation provides partial income replacement only for a defined length of time or until the worker finds employment, whichever comes first. It’s also known as unemployment insurance or unemployment benefits.

Question 25

Describe the roles of state and federal governments in administering unemployment compensation.

Answer 25

The Federal Unemployment Tax Act (FUTA; 1939) establishes part of the funding for unemployment compensation. It is a form of payroll tax that is paid by employers. The tax is based upon wages paid to employees. States also levy a tax on employers for unemployment coverage. This tax is often referred to as the State Unemployment Tax Authority (SUTA). State tax rates are based upon the amount of benefits people received in the past years from the unemployment fund. The state taxes are also a form of a payroll tax that are not deducted from employee wages.

Question 26

Identify the general eligibility requirements for unemployment compensation.

Answer 26

Not all unemployed people are eligible for benefits. In order to be eligible for benefits, a person must have worked for a minimum amount of time and earned a minimum amount of wages. Additionally, an unemployed individual must not have voluntarily left employment without good cause and must not have been terminated for misconduct. Additional requirements usually include making a claim, registering for work, being capable of working, and taking reasonable actions to find work.

Question 27

Summarize the effects unemployment compensation can have on the economy.

Answer 27

Unemployment benefits have a stimulative effect on a struggling economy because the benefits permit people to purchase goods and services they would not otherwise be able to purchase. This helps sustain, and perhaps increase, demand. If demand for stuff is high enough, employers will have to hire to keep up. The cycle will continue until the economy pulls itself out of recession.

Question 28

Unemployment Compensation - Social Security Act

Answer 28

Unemployment compensation was established under the Social Security Act (1935). Keep in mind, however, that each state administers its own program pursuant to federal standards.