Unions: What Business Owners Should Know

The purpose of a labor union is to legally represent the individual worker through collective bargaining. These organizations negotiate wages and benefits, fight to improve workplace conditions, lobby the government and represent employees involved in contract disputes. While the labor scene in America has shifted drastically over the past few decades, all employers should know where they stand.

Where Did Unions Come From?

Unions are a product of the industrial revolution, when people worked in hazardous and often fatal conditions. The American Federation of 1886 initiated dozens of strikes in favor of workers, quickly garnering power at the federal level. Unions were a key topic of Roosevelt’s New Deal, and they drew in a lot of democratic support through the first part of the 20th century. The National Labor Relations Act (NLRA) of 1935 promotes collective bargaining between worker and employer. It protects rights and prohibits activities that threaten the welfare of businesses, employees and the economy.

Today

New Deal politics drove the nation until the 1960s, but have since lost momentum. Today, most labor unions in America belong to one of two parent organizations.

• American Federation of Labor–Congress of Industrial Organizations (AFL-CIO): This trade federation consists of 56 separate unions. Although membership peaked during the 1970s, the AFL-CIO still represents over 12 million workers. The main activities today include lobbying, grassroots organizing and fundraising for democratic government candidates.

• Change to Win Federation (CtW): This coalition split from the AFL-CIO in 2005. It currently supports the United Farm Workers (UFW), Service Employees International Union (SEIU) and the International Brotherhood of Teamsters (IBT).

Can Your Employees Unionize?

Unions have the power to shut down operations and force higher wages. Many business owners fear that they might lose control if their employees unionize. If you’re a small business owner, it’s probably unlikely that your workforce will start a union. However, it’s not impossible. Should it happen, the NLRA prohibits you from doing any of the following.

• Fire, lay off, reprimand, demote or threaten employees due to union activities

• Refuse to hire pro-union applicants

• Disallow members the opportunity to promote unions in the workplace

• Bribe employees into deciding against joining a union

• Cut or reduce benefits of union members

• Shut down one of your locations in an attempt to reduce union activity at another location

• Relocate employees to another location because of their membership

• Question employees about their union membership

• Refuse a request to collectively bargain

• Conduct meetings about unions in a manager’s office

• Refuse to reinstate strike workers, unless their conduct was unlawful

• Lock out employees because they are part of a union

Simply put, you cannot discriminate or treat union employees differently than you treat your nonunion staff. Here’s what you legally can do.

• Lock out employees as a defense to an unprotected strike, assuming your intent is not to interfere with union activity; for instance, workers are not allowed to strike without giving 48 hours’ notice

• Lock out employees to reduce economic pressure during a legal contract negotiation

• Lock out workers as a defense to a whipsaw strike: this is a strike against only one or a few employees or against one company within a multiemployer association

• Hire a temporary replacement during a strike

• Fire an employee who takes part in a prohibited or unprotected strike

• Fire or reprimand strikers whose actions are reasonably dangerous, destructive or physically threatening

• Close your business entirely

Future Outlook

Organized labor has lost speed since the industrial revolution because the economy is moving toward technology and information. Even still, unions remain powerful in heavy industries where manual laborers are exposed to hazards. If you run a digital marketing startup, you probably don’t have much to worry about. Nonetheless, all business owners should be aware of the labor laws that affect their industries.

Legal Disclaimer

The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.