Business Law 101 / Handling Labor Disputes Not Covered By The Collective Agreement

 

By Albert L. Kelley

 

When dealing with unions, what happens when something comes up that is not addressed in the labor agreement?

 

Often management will say that since the issue wasn’t addressed in the collective bargaining agreement, it is reserved to management’s discretion. This is similar to the argument between states’ rights and federal rights. When our country was being founded, there was a major disagreement over who should have more control – the federal government or the state governments. The disagreement was so great that it almost destroyed the country before we started. A compromise was finally reached that the Constitution would set out the rules for the federal system and anything not specifically mentioned in the Constitution would be reserved for the states’ governments to control. In business, we call this the reserved rights doctrine: What isn’t specifically mentioned in the labor agreement is reserved for management to determine.

 

There are several terms in the area of union security that business owners should be familiar with:

  • Closed shop – A clause in the labor agreement that requires all workers in a business to be union members (This is not allowed in Florida).
  • Union shop – A non-union person may be hired, but must join the union after a short probationary period to keep employment. (Also not allowed in Florida).
  • Agency shop – The employee does not have to be a union member, but must pay a sum equal to union dues. This helps defray the costs of running the union and allows contribution for benefits.
  • Quasi-union shop – A provision found in labor agreements primarily in right-to-work states that says an employee must join the union as a condition of employment – usually stated in bold letters – and then contains a disclaimer in the footnotes or fine print that strikes that provision. Basically, it is an attempt to trick new employees into joining a union.
  • Open shop – A company that hires regardless of union membership or involvement. This applies to businesses in right-to-work states.
  • Contingency union shop – An open shop contract with a clause that says, if the state’s right-to-work law is repealed, the shop will convert to a union shop.
  • Union hiring hall – The union provides a list of applicants for management to choose from before outsiders get hired.

Florida is a right-to-work state. The employer and/or union cannot require an employee to be a union member in order to get a job. Supporters of right-to-work laws think employees have the right to choose whether to join the union. Right-to-work supporters say that, if union membership is voluntary, the members will be more supportive. If you are forced to be a member, it could be more difficult to believe the union is supporting you. Opponents of the right-to-work laws think this is just a ploy to hurt unions. Employees can still get jobs; they just have to sign up. They look at the shop as a community.

 

Currently, around 21 states have right-to-work laws and generally, the income in right-to-work states is lower than union states.

 

Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law and labor law at St. Leo University. He is also the author of “Basics of Business Law” and “Basics of Florida’s Small Claims Court” (Absolutely Amazing e-Books). This article is being offered as a public service and is not intended to provide specific legal advice. If you have any questions about legal issues, you should confer with a licensed Florida attorney.

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