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CHAPTER 3: PUBLIC SECTOR LABOR RELATIONS: HISTORY AND LAW
LABOR NEWS: THOUSANDS PROTEST UNIVERSTY OF CALIFORNIA BUDGET CUTS
CHAPTER 3: OUTLINE
I. Memphis Sanitation Strike – 1968
A. Publicity of this public sector union action caused organizing to skyrocket
B. Figure 3-1 gives a chronology of strike events
II. Defining the Public Sector
A. The public sector consists of a myriad of levels and jurisdictions of governmental units
providing basic government services.
B. The three levels of government are federal, state, and local.
C. The United States has a federal system of government with a national government and
subnational entities officially called states.
D. Local governments include cities, counties, towns, and villages, and such entities as local
school boards and public utilities.
E. All three levels of government have two roles as it relates to collective bargaining:
2. In the public sector as employer
F. The Federal Government is divided into three main branches:
2. The judicial
4. These branches have the same basic shape and perform the same basic roles
defined for them when the Constitution was written in 1787.
G. A State Government is the governing body of 1 of the 50 states. State governments and
the federal government are legally dual sovereigns.
2. State governments share power with the federal government and under the U.S.
3. All states have a written constitution and a three-branch government modeled on
the U.S. federal government.
4. The executive branch of every state is headed by an elected governor, and the
6. States rely primarily on sales and/or property taxes, but also on grants from the
federal government for administering programs such as retirement,
H. Local Governments: A municipal corporation is the legal term for a local government.
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1. A municipal corporation is a political creation of a state that is composed of the
2. In many local government structures, the legislative body also serves as an
executive body, directing the day to day operation of its activities.
4. The governing members of the local government are elected by voters who live
within the voting boundaries of the municipality.
5. The local body has the power to pass ordinances, or local laws.
III. History of Public Sector Labor Relations
A. Pendleton Act: Such was not always the case. In the early 1800s, citizens were
scandalized by the use of party patronage in federal, state, and local governments.
2. In 1883, Congress passed the Pendleton Act, which provided for a bipartisan
B. Early Public Sector Unions
1. Two early federal employee organizations, the New York Letter Carriers (1863)
2. In 1895, the Postmaster General prohibited postal employees from visiting
Washington to influence legislation.
3. President Theodore Roosevelt followed in 1902 with his infamous “gag order,”
4. In reaction, Congress enacted the Lloyd-LaFollette Act of 1912 with the intention
of conferring job protection rights on federal employees and a restriction on the
authority of the executive branch of government to discharge a federal employee
for talking to Congress.
C. The Push for Public-Sector Collective Bargaining
2. Unionization grew later and more slowly than the public sector for a number of
reasons.
a. Unions held less attraction for many public employees because they
already enjoyed some of the protections sought by private employees—
job protection through the civil service system, benefits such as sick and
D. Hatch Act (1993 Amendment): In 1993, President Bill Clinton signed a bill amending the
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IV. Public Sector Labor Laws
A. The Sovereignty Doctrine
1. In the public sector, governments, backed by judicial decisions, were able to
2. Sovereignty is defined as “the supreme, absolute, and uncontrollable power by
which an independent state is governed.”
B. Federal Employees
1. President John F. Kennedy signed Executive Order (E.O.) 10988, which
3. Postal Reorganization Act of 1970: Another initiative of the Nixon
4. The Civil Service Reform Act of 1978, Title VII, also known as the Federal
Labor Relations Act, and Reorganization Plan No. 2 of 1978, govern federal
employee labor relations.
a. The act is modeled after the National Labor Relations Act; it gives
federal employees the right to join or not join unions and to engage in
5. National Security Personnel System
a. In 2002, President George W. Bush, in the wake of the September 11,
2001, terrorist attacks, created the Department of Homeland Security
(DHS).
C. The National Defense Authorization Act for Fiscal Year 2010 repealed the statutory
authority for the NSPS and directed the Secretary of Defense to provide for the
conversion of all NSPS employees and positions back to their original status by January
1, 2012.
D. State and local government laws
1. Federal Labor Relations Act doesn’t cover state and local employees.
2. State legislature usually covers wages, hours, terms of employment and working
conditions, unfair labor practices, and right to strike.
a. 42 states passed laws covering some aspect of union recognition
b. fall into three categories:
3. National League of Cities v. Usery, confirms state has sovereignty over own
employees.
V. Public Sector Unions
A. Public Sector unions today fall roughly into three categories: associations or fraternities,
public sector–only unions, and mixed unions.
VI. Contrasting Public and Private Sector Labor Relations
A. Federal and state statutes covering public sector collective bargaining may be modeled
after the NLRA, there are still laws or practices that differ greatly from the act and from
one another.
B. Bargaining differences in the public sector:
1. Multilateral bargaining Generally refers to negotiations in the public sector
2. Open negotiations
a) Sunshine laws may require that collective bargaining sessions be open to
the public, often thwarting the parties’ ability to compromise.
final agreement to be negotiated is subject to an open session.
C. Supervisors in bargaining units
1. Under the NLRA and the Federal Labor Relations Act concerning federal
employees, “supervisors” are not given collective bargaining rights.
2. In the private sector and, presumably in the federal government, a supervisor is
D. Size of public sector bargaining units
2. The public employer may encourage a larger unit, hoping the diverse interests
3. Larger units prevent or reduce the possibility that multi-union negotiation will be
E. The Right to Strike
1. Usually denied in public sector
2. Arguments for allowing public employees to strike
a. Probably do it anyway, focus on strike, not problems.
3. Arguments against allowing public employees to strike
a. Essential services can’t be held hostage to negotiations.
4. Some state and local governments allow workers to strike—Table 3-4.
5. The Professional Air Traffic Controllers (PATCO)
a. Air traffic controllers followed PATCO’s call for a strike and those who
F. Resolving Impasse in the Public Sector
G. Alternative Dispute Resolution Services
1. Legislation that allows public-sector collective bargaining but prohibits strikes
often details the procedures available to resolve an impasse.
3. Fact-finding and advisory arbitration can be far more successful in the public
sector than in the private because of political pressures.
H. Enforcement of Collective Bargaining Rights
1. The Federal Labor Relations Authority (FLRA) and many state created labor
VII. Current Private Sector Challenges
A. Privatization: Refers to a process in which governmental employees are replaced with
private sector workers through a contract with an outside employer for the purpose of
reducing overall costs.
1. Advocates of privatizing government services contend that contracting out public
services does the following:
a. Produces better management of programs by bringing sophisticated cost-
cutting techniques
b. Frees public administrators from managing day-to-day operations, allows
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motivated by opportunities for financial gain
f. Private firms can provide goods and services “better, faster, and cheaper”
than government.
2. Opponents of privatization cite the following downsides to contracting out public
services:
a. Savings are often illusory because the costs for government to bid,
administer, and monitor the results of outside contracts are not
considered.
f. Contracting out means losing in-house expertise required to carry out
governmental activities and makes oversight of contractors more
difficult, again, resulting in lower quality of services.
g. It’s a union-busting strategy intended to weaken unions by decreasing the
number of unionized government employees.
B. School Vouchers
1. Both the National Education Association (NEA) and the American Federation of
2. Critics of public schools have advocated tuition voucher programs, which
3. Advocates of school vouchers contend that giving families a choice will force
C. Taxpayer Revolt
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CHAPTER 3: CASE DISCUSSION
CASE 3-1 NEGOTIATING UNDER SUNSHINE LAWS
1. Do you think that a Sunshine Law like Florida’s, in which all bargaining sessions are open,
helps or hinders the negotiations process in the public sector?
Helps: Public sector employees usually do not have the right to strike. Their unions must be
able to generate support for their bargaining position from the public since it is the public
2. Do you think the reporter in this case shares some responsibility for the “violation” of the
state sunshine law since he had an opportunity to observe the “off the record” negotiations in
the hallway and failed to do so?
Case 3.2 UNILATERAL ACTION – LAST BEST OFFER
1. Explain why you agree or disagree with the court’s ruling.
Agree: The only issue here is whether the parties were at an “impasse” or not. If mediation,
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2. The impasse provision calls for mediation, fact-finding, and nonbinding arbitration. Explain
why you agree or disagree with the union’s position that these techniques do not resolve but
only prolong an impasse.
Agree: In the public sector, mediation, fact-finding, and advisory arbitration often rely upon
public opinion swaying the employer-government to change its negotiation stance. When that
CHAPTER 3: END CASE DISCUSSION
CASE STUDY 3.1: COLLECTING UNION PAC MONEY
Decision:
The question is whether the State’s ban is valid at the local level. Political subdivisions of States—
counties, cities, or whatever—never were and never have been considered as sovereign entities. They are
instead subordinate governmental instrumentalities created by the State to assist in the carrying out of
state governmental functions. State political subdivisions are merely departments of the State and the
State may withhold, grant or withdraw powers and privileges as it sees fit. Here the Idaho Legislature has
elected to withhold from all public employers the power to provide payroll deductions for political
activities. The ban on political payroll deductions furthers Idaho’s interest in separating the operation of
government from partisan politics. That interest extends to all public employers at whatever level of
government.
Both the District Court and the Court of Appeals found it significant that there is no subsidy by Idaho for
the payroll deduction systems of local governments. Given the relationship between the State and its
Questions for Discussion
1. The deduction of union dues and support for the political action activities of the union was a
negotiated provision of local government’s contract with its unions. Do you think that the State
should be allowed to dictate to local governments how they should negotiate with their
employees? Explain.
2. Why would taxpayers have a problem if they knew that the state or local governments were
collecting political action committee money for the unions?
3. What would be the basis for the Supreme Court to rule in the State’s favor? In the Union’s favor?
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CASE STUDY 3.2: RESOLVING IMPASSE BY BINDING ARBITRATION
Decision:
Having carefully considered the evidence and arguments presented by the parties in this case, we shall
resolve their impasse by ordering the adoption of the Union’s proposal but restrict its application only to
current bargaining unit employees. While we are sympathetic to the Employer’s expressed interest in
Questions for Discussion:
1. Which party has the most risk in turning this question over to a third party to resolve? Why?
2. How could the FSIP decide this issue and give something to both sides?
3. Do you think it is a valid concern of the Employer that agreeing to the Union proposal would
reflect badly upon it since the public looks to it for guidance on health matters?
Explain.
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CHAPTER 3: REVIEW QUESTIONS
1. How are public employees provided the right of collective bargaining?
Do state and local government employees have the same rights as federal employees?
2. Why did the federal government resist collective bargaining?
3. How do public employees’ rights and interests differ from those of private sector employees?
In general, public employees differ from employees in the private sector because of who they are
and what they do. Public employees provide education, police, fire, and sanitation services, plus
the maintenance of public improvements. The natures of the services provided are such that
More specific examples of different rights and interests include: