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CHAPTER 2: PRIVATE SECTOR LABOR RELATIONS: HISTORY AND LAW
LABOR NEWS: HOLLYWOOD WRITERS GUILD STRIKE
CHAPTER 2: OUTLINE
I. Roots of American Labor Movement
A. Pre-Revolutionary America
1. Little division between employer and employee—most workers were self-
B. Post-Revolutionary America
1. Some skilled workers became shop owners.
a. Owners employed people to work for them.
2. Start of “industrialization” and creation of mass production laid foundation for
unskilled laborers unions.
C. Post Civil War
1. Factories and mills opened needing unskilled labor.
3. Monopolies developed with such legendary “Robber Barons” as Rockefeller
II. Growth of National Unions—Unions, People, Incidents
A. National Labor Union (NLU)
1. Formed in 1866, advocated an eight-hour workday, restrictions on
2. In the beginning, the NLU advocated women’s rights and the unionization of
B. “Molly Maguires”
1. A legendary group of union organizers in the coal mine fields in 1875. After a
failed strike, they were accused and convicted of murder and arson.
C. The Railway Strike of 1877
1. The railroad companies during this period were providing large dividends to
their wealthy stockholders while the railroad company was losing money. To
D. The Haymarket Square Riot
1. This took place in Chicago in 1886. Laborers were striking to demand an
E. Knights of Labor
1. The Noble Order of the Knights of Labor (KOL) was founded in 1869. Their
F. Homestead, Pennsylvania 1892
1. A strike against a Carnegie Steel Company lead to violence when the plant
2. “Old Beeswax” Taylor, a labor leader in Homestead who is credited with
G. The Pullman Strike of 1894
1. Railroad workers went on strike to demand wages be restored to previous
levels and rents lowered. Many other railroad workers went on strike in
sympathy. The strike was peaceful and well organized. The owners, with the
help of the federal government, added mail cars to the trains. Strikers were
H. Eugene Debs
1. Founder of the American Railway Union, Debs fulfilled the goal of earlier
unions by successfully organizing a national industrial union capable of
I. The American Federation of Labor (AFL)
J. Samuel Gompers—founder of AFL, believed the major emphasis for the labor
movement was on economic and industrial action in the workplace as opposed to
political action.
K. Bunker Hill and Sullivan Mining Incident, Coeur d’Alene, Idaho
1. Trade unionists gained strength in western mining country. In 1892, miners
2. At Coeur d’Alene mine had 12 years of trouble with WFM so that in 1899
L. Industrial Workers of the World (IWW)
1. Originated in the Colorado mine fields in reaction to the mine owners
breaking strikes by bringing in armed guards. IWW, known as “Wobblies,”
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2. Fannie Sellins, a woman labor organizer, was killed during a 1919 strike
by deputies working for mine owners.
M. Women’s Trade Union League
1. First national association dedicated to organizing women emerged after 1903
when the AFL failed to fully involve women within its ranks. WTUL was a
N. Ludlow, Colorado 1914 Massacre
1. United Mine Workers of America on strike and evicted from company owned
O. John L. Lewis
1. Post WWI workplaces had skilled laborers organized in AFL unions.
P. Congress of Industrial Organizations (CIO)
1. The CIO was formed in 1935 by John L. Lewis and advocated a workplace
III. Early Judicial Regulation
A. The Cordwainers Conspiracy Cases
2. During this period, U.S. judges chose to protect employer’s property rights
over employee’s job rights.
3. In the 1806 Philadelphia Cordwainers case, the court held the mere
4. Three years later in the New York Cordwainers case, the court dismissed the
idea that it was illegal to combine, but it denounced the combination of
1. A court order that prohibits an individual or group from performing any act
C. The Erdman Act (1898)
1. This act was limited to employees operating interstate trains. It gave certain
D. Unions Gain a Foothold
1. Courts are still using injunctions as the way to regulate union activity.
a. The United Mine Workers of America wanted to expand union mines.
They began organizing miners with the intent of shutting down the
2. In 1902, the United Mine Workers organized a strike. President Roosevelt
stepped in and offered to establish a President’s Commission to arbitrate.
4. Chronology of the most significant events in U.S. labor relations.
IV. Pro-Labor Legislation
A. The Clayton Act
2. The act stated that labor organizations were not prohibited by antitrust.
3. This act was not very effective. Courts continued to apply the Sherman
Antitrust Act.
B. The National War Labor Board
2. Disbanded after the war and unions suffered from the subsequent postwar
depression.
C. The Railway Labor Act
V. Creation of a National Labor Policy
A. The Norris-La Guardia Act (1932)
2. States that courts cannot restrict the formation of union activities.
B. The National Labor Relations Act (The Wagner Act) 1935
2. Defined unfair labor practices on the part of the employer.
a. Interfered with employee rights under the act.
3. The National Labor Relations Board (NLRB) was established to administer
and interpret provisions of the act.
5. The major provisions of the Wagner Act.
C. The Fair Labor Standards Act (FLSA)
1. Walsh-Healy Act, passed in 1936, foreshadowed the Fair Labor Standards Act
2. Three main objectives of FLSA:
a. Federal minimum wage
D. The Labor-Management Relations Act (Taft-Hartley Amendments)
1. This act defined unfair labor practices on the part of the union.
2. This act prohibited secondary boycotts and strikes.
3. This act gave preference to state right-to-work laws over bargained collective
bargaining agreements.
5. Definition of a Scab, shows the emotion that can be involved in union
settings.
E. The Labor-Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act)
1. This act required controls on internal handling of union funds, established
F. Union Democracy and the Landrum-Griffin Act
1. Assures participation by the rank and file in union affairs.
3. Requires high standards of ethical conduct by union officials.
5. Bill of Rights of Members of Labor Organization enforced this act.
VI. The Employer Free Choice Act
A. EFCA introduced in the U.S. Congress in 2007 when it passed the House of
Representatives, but failed in the Republican controlled U.S. Senate.
B. During the 2008 Presidential race, Barack Obama pledged his support of the EPCA
and thus gained substantial union support. Thus far, however, President Obama has
not put forth the EFCA during his administration.
C. The EFCA contains three primary provisions
1. Card-check recognition
3. Increased penalties
CHAPTER 2: CASE DISCUSSION
Case 2.1 INJUNCTION
1. Remembering this is 1906, how do you think the appeal court ruled?
2. Do you think that the employer in this case expended its resources wisely by fighting
the union in the courts rather than recognizing the union and negotiating wages?
Yes, because what was involved was not only the expense of the litigation in
3. Was the union fair to the employees of this company who had accepted their jobs
under the conditions stated, that is, no unions?
Company’s standpoint: No, the union was not fair. When the employer hired the
Additional Discussion Questions:
1. The company sought to secure a “closed nonunion shop” through individual agreements with
employees and the union sought a “closed union shop” through a collective agreement with the
union. Why do you think the court upheld the right of the company against the right of the
union?
2. The union’s illegal activity was the threatened strike. The company also threatened economic
sanctions by only employing those who were not union members. Why was the union’s
activities considered coercive and the company’s not?
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3. An injunction is usually issued to prevent an injury that could not be adequately compensated
for after the fact. If the union had succeeded in organizing a strike that resulted in a loss of
profits for the company, why could the company not have recovered its damages?
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CHAPTER 2: END CASE DISCUSSION
Case Study 2.1: Interfering with the Employee’s Right to Unionize
Decision:
The judge determined that the union demonstrating union animus was a motivating factor in the
employer’s disciplinary actions and the issuance of an unfavorable performance evaluation against
Fortin. The burden therefore shifted to the employer to show that Fortin would have received the
Questions for Discussion
1. Do you believe Fortin was the victim of union animus by her employer? Why or why not?
Yes: Because the nexus between the disciplinary complaints and her very visible union
2. Fortin’s supervisor had no knowledge of her union activity but laid her off on the basis of her
poor performance evaluation. Give your reasons why a court should uphold or override the
supervisor’s decision.
3. Explain why you think employers still demonstrate union animus almost 60 years after the
passage of the National Labor Relations Act?
Unions today are not held in high esteem. Many of the gains unions made for employees have
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Case Study 2.2: Discriminating Against Union Members
Decision:
The employer committed unfair labor practice when it unilaterally changed work schedule and
absenteeism policies while bargaining, where the pronouncement was a change in working conditions
upon which there had been no discussions or bargaining. The new attendance policy touched upon and
concerned “hours and other terms and conditions of employment,” which is a mandatory subject of
bargaining, and made reference to automatic termination for failure to report or call, which implicates
Questions for Discussion
1. Active union members often have two jobs to do—as an employee and as a union member.
How far do you think an employer should be required to go to allow the member to do both
jobs?
2. The nonprofessional jobs at a nursing home are often hard to fill and there can be a lot of
employee turnover. Do you think a having a union at a nursing home helps or hinders in the
hiring and retention of employees?
Helps. The union can negotiate improvements in wages and working conditions so that the
3. Do you think the company has engaged in an unfair labor practice by instituting a light-duty
policy and requiring the union negotiating team to work part time on negotiating days?
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CHAPTER 2: REVIEW QUESTIONS
1. What factors in the 1800s contributed to the growth of the American labor movement?
2. Did the Great Depression have any impact on the U.S. labor movement? If so, what?
3. Why is Fannie Sellins called “Labor’s Martyr”?
Fannie Sellins was killed during a union strike. Deputies, hired by a coal company to “protect”
4. Describe the federal and court actions against union workers in the 1800s.
a. Criminal conspiracy charges were filed against workers who “combined” to raise their
wages. The courts found that the activities of such combinations to strike or boycott an
5. Why did the Wagner Act have a major impact on employees’ rights?
6. What circumstances prompted Congress to pass the Taft-Hartley Amendments?
The 12 years following passage of NLRA had given unions time to grow. Union strike
The Landrum-Griffin Act?
Charges of racketeering and corruption in some major unions caused Congress to investigate
What are the important provisions of these acts?
a. Wagner Act (NLRA)
2. Required employers to meet and bargain with their employees
4. Created the National Labor Relations Board
b. Taft-Hartley Amendments (LMRA)
1. Recognized employees’ right not to organize
2. Required unions to bargain in good faith
c. Landrum-Griffin Act (LMRDA)
1. Put controls on the power of union officials
7. What were common objectives of the early labor unions?
8. Why was April 20, 1914, “a day that will live in infamy” in labor history?
planned a celebration—it was Greek Easter.
9. Why was the relationship between unions and African Americans one of advances and defeats?
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10. In which industry did women enjoy the most organizing success in the early 1900s?
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CHAPTER 2: YOU BE THE ARBITRATOR!
MANAGEMENT RIGHTS
1. As arbitrator, what would be your award and opinion in this arbitration?
2. Explain why the relevant provisions of the CBA as applied to the facts of this case dictate the
award.
3. What actions might the employer and/or the union have taken to avoid this conflict?
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CHAPTER 2: EXTRA CASES
Union Discipline
Facts:
Local 100 of the CL & G Union represented employees at the Kaiser Cement Corporation. The CL &
G merged with the International Brotherhood of Boilermakers, and the Local became Local D-100 of
the Boilermakers. The local president, both before and after the merger, and three other union
members, had not favored the merger. They were also angered by how the Boilermakers had treated
some long-term local union representatives. The four union members began actively opposing the
Decision:
The court ruled in the favor of the Boilermakers’ Union stating that it had the right to
discipline the members and call for their dismissal if they failed to pay their dues.
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Questions for Discussion
1. As the judge in this case, would you agree with the four disciplined union members or the
union? Why?
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2. The efforts of the four union members to either switch union positions to nonunion positions
or vote the new union out were not supported by the employees. Do you think the union
should have ignored the four rather than disciplining them?
3. Do you think it is right for a union and an employer to agree in a collective bargaining
agreement that all of the workers subject to the collective bargaining agreement have to join
the union in order to keep their job?
Yes: Once a collective bargaining agreement is in place, it is easy for the workers to forget, or
The National Labor Relations Act
Facts:
The corporation manufactures and sells products made from rare metals and is clearly subject to the
commerce definition of the NLRA. A group of employees organized a union that the corporation
refused to recognize. The union organized a sit-down strike in which about 95 employees occupied
two essential buildings of the corporation’s facility. All work stopped. The corporation asked the
employees to leave—and when the employees refused—the company fired them. It obtained an
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Decision:
The U.S. Supreme Court upheld the finding of an employer unfair labor practice for refusing to
bargain with the union. It also pointed out that the employer’s discharge of the employees was proper
because the employees illegally took and held possession of the employer’s property while engaging in
the strike.
The Court was left to examine the authority of the NLRB to order the reinstatement of the
strikers. The NLRB’s reasoning was that because the strike was in response to an unfair labor practice,
the act provided that the employees retained their status despite discharge for illegal conduct or, that as
Questions for Discussion
1. How valid is the Court’s distinction on the Board’s authority to order the employee to take
affirmative action that “effectuates” the purpose of the Act?
2. This case was decided a few years after the Act was passed. Do you think the newness of
enforcement under the Act had a significant impact on the Court’s attitude? Why?
Yes: The Court may have been influenced by the “newness” of the law and proceeded to
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The Sherman Antitrust Act
Facts:
The Apex Hosiery Company manufactured hosiery that was often shipped in interstate commerce. The
company was not unionized and only 8 of its 2,500 employees were union members. William Leader,
a union official, demanded a closed-shop agreement that the company rejected. Leader and union
members from nearby industries staged a sit-down strike, seized and held the plant for over a month.
The strikers were forcibly ejected following a court injunction. As a result of the strike, the company’s
Decision:
The Supreme Court found sufficient evidence to support the contention that the union intended to
prevent shipment of the hosiery and that interstate commerce was affected. However, the Court had to
decide whether Sherman Antitrust should be applied to laborers seeking to enforce their demands
against the employer if their actions affect interstate commerce.
Questions for Discussion
1. Do you think the Court would have found the union in violation of the Sherman Antitrust Act
if the price of hosiery had been affected by the strike?
2. The dissenting judge felt the Court’s interpretation of the Sherman Antitrust was too narrow.
This case was decided after the National Labor Relations Act was passed. Do you think that
affected the outcome? Why?
CHAPTER 2: EXERCISE AND EXERCISE GUIDANCE
Sources of Labor Relations Information
This exercise is most effective if conducted individually, but may be assigned to groups. If there is a
local labor issue of interest to the community, you might focus the research toward issues related to it.
Purpose:
Task:
Choose a labor relations topic of interest to you (or you may be assigned one by your instructor) from
the following list. After choosing a topic, complete the following steps:
2. For each reference, indicate the title of the book, journal, and so on; the title of the journal article
3. Write a one-paragraph abstract for each source. (If your source is a book, review at least one
important chapter and write the abstract for that chapter.
TOPICS:
Airline industry/unions
Boycotts
Mediation
NHL 2004-05 season
NLRB certification/decertification elections
Outsourcing
Pension issues
Seniority systems
Sick leave provisions