Labor Relations and Collective Bargaining
Labor relations governs the relationship between employers, employees, and labor unions. The Organization domain of the SHRM exam covers the legal framework for union organizing, the collective bargaining process, unfair labor practices, and the administration of collective bargaining agreements. Even HR professionals working in non-union environments must understand these concepts, as labor law defines the boundaries of permissible employer conduct in responding to any form of collective employee activity.
The National Labor Relations Act (NLRA)
The NLRA (also known as the Wagner Act, 1935) is the foundational federal law governing labor-management relations in the private sector. It established three core employee rights:
- Right to organize: Employees have the right to form, join, or assist labor organizations.
- Right to bargain collectively: Employees may designate a union to negotiate on their behalf regarding wages, hours, and working conditions (mandatory subjects of bargaining).
- Right to engage in concerted activity: Employees may act together to improve their working conditions, even without a union. This includes discussing wages with coworkers, filing group complaints, and engaging in lawful work stoppages.
The NLRA also protects employees' right to refrain from any of these activities. The law is administered and enforced by the National Labor Relations Board (NLRB).
Key Amendments to the NLRA
- Taft-Hartley Act (1947): Amended the NLRA to define unfair labor practices by unions (not just employers), established the right of employees to decertify unions, prohibited closed shops, and authorized states to pass right-to-work laws prohibiting union security agreements.
- Landrum-Griffin Act (1959): Also known as the Labor-Management Reporting and Disclosure Act, it established a bill of rights for union members, required financial transparency from unions, and regulated internal union elections.
The Union Organizing Process
Union organizing typically follows a predictable sequence that HR professionals must understand:
- Authorization cards: Union organizers collect signed cards from employees indicating their interest in union representation. If at least 30% of eligible employees sign, the union can petition the NLRB for an election.
- NLRB petition and election: The NLRB determines the appropriate bargaining unit (which employees are eligible to vote), conducts a hearing if there are disputes, and schedules a secret ballot election. A simple majority of those who vote determines the outcome.
- Certification: If the union wins, the NLRB certifies it as the exclusive bargaining representative for all employees in the bargaining unit, and the employer must bargain in good faith.
- Voluntary recognition: Alternatively, an employer may voluntarily recognize the union without an election if a majority of employees have signed authorization cards, though this approach is less common.
Employer Conduct During Organizing
The TIPS framework summarizes what employers may not do during a union organizing campaign:
- Threaten: Employers cannot threaten employees with adverse consequences (job loss, plant closure, reduced benefits) for supporting the union.
- Interrogate: Employers cannot question employees about their union sympathies, activities, or how they intend to vote.
- Promise: Employers cannot promise benefits, wage increases, or improved conditions to discourage union support.
- Surveil: Employers cannot spy on union activities, attend union meetings, or monitor employees' union-related communications.
Conversely, under the FORE framework, employers may share Facts about unionization, express Opinions about unions, explain Rules regarding solicitation and distribution, and provide Examples of union-related experiences at other organizations.
Collective Bargaining
Once a union is certified, the employer and union must bargain in good faith over mandatory subjects of bargaining. These subjects fall into three categories:
- Mandatory subjects: Wages, hours, and terms and conditions of employment. Both parties must bargain over these topics, and neither may make unilateral changes without bargaining to impasse. Examples include pay rates, overtime, benefits, seniority, grievance procedures, and safety.
- Permissive subjects: Topics that either party may raise but that neither is required to negotiate. Examples include internal union affairs, management structure, and the scope of the bargaining unit.
- Illegal subjects: Topics that cannot be included in a collective bargaining agreement because they violate law, such as closed shop provisions or agreements to discriminate.
Unfair Labor Practices (ULPs)
Both employers and unions can commit unfair labor practices. Common employer ULPs include interfering with employee organizing rights, discriminating against employees for union activity, refusing to bargain in good faith, and retaliating against employees who file NLRB charges. Common union ULPs include restraining or coercing employees in the exercise of their rights, causing an employer to discriminate against employees, and refusing to bargain in good faith. ULP charges are filed with the NLRB, which investigates, and, if merit is found, prosecutes the case before an administrative law judge.
Strikes and Lockouts
A strike is a work stoppage initiated by employees to pressure the employer. An economic strike seeks to obtain better terms during bargaining; a ULP strike protests employer unfair labor practices. ULP strikers have stronger reinstatement rights than economic strikers, who may be permanently replaced (though not discharged). A lockout is an employer-initiated work stoppage used as a bargaining tactic, which is lawful under certain conditions.
For related content on workplace policies and discipline, see Employee Relations and Engagement. Explore the Organization domain guide and test your knowledge with Organization mini exams. Review with the Organization Cheat Sheet. Sign up free to access all labor relations practice questions.