Manufacturing Handbook
University of Michigan OM
Professor R. Eugene Goodson

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SUBJECT: National Labor Relations Board

ALPHANUMERIC NUMBER:

BRIEF DESCRIPTION: National Labor Relations Board (NLRB) is an independent federal agency responsible for administering the National Labor Relations Act created by congress in 1935. This act is the primary law governing relations between unions and employers. The act gives employees the right to organize and to bargain collectively with employers. The NLRB regulates this right by conducting secret ballot elections and investigating unfair labor practices.

KEY WORDS: Unions, Workers, Labor, Regulatory, Employment

OVERVIEW:

The National Labor Relations Board acts in several important ways to fulfill the National Labor Relations Act. The first way is to ensure employees have freedom to choose whether to join organized labor or not. The board accomplishes this by conducting secret ballot elections at employees’ work sites. An agent from the NLRB conducts the elections and monitors the proceedings to ensure all rules are followed. In particular they are looking for signs of either unions or employers trying to influence worker’s votes through either threats to job security or promises of promotions and other benefits. Failure on the part of unions or employers to conduct fair elections can result in the election being disqualified. These secret elections are used in either establishing or disbanding a union.

The board also responds to complaints filed by employers or employees. These matters are investigated by an agent of the NLRB to determine the validity of the claim. Of the approximately 35,000 complaints filed each year roughly two-thirds are found to be unmerited. With the remaining cases the NLRB suggests a voluntary settlement between the two parties. Over 90% of valid claims are settled in this manner. The remaining claims are pushed into the court system where the case is reviewed by the United States Court of Appeals.

The NLRB also has the authority to petition a federal district court for an injunction to temporally stop labor practices that are pending review by the board. This powerful weapon does require the five-member board to reach a majority in a voting process. However, the board is required by law under certain circumstances such as "secondary boycotts" and "recognitional picketing" to seek a temporary court injunction.

While the board does protect numerous employee rights it does have a limited scope and jurisdiction. For example, the NLRB does not protect agricultural workers, independent contractors, or Federal, State and local government workers. The agency also does not enforce other acts of congress such as Equal Employment Statues, Workman’s Compensation, and Unemployment Compensation.

Like many other government agencies the NLRB is struggling to keep up with numerous requests in a period of declining government funding. Employees and Employers should be aware that it typically takes 6 weeks to get an election scheduled and that resolution of grievances can take up to 15 weeks to be resolved. The board has begun working to find solutions to this problem. They have instituted "Conversations with America" a seminar and conference schedule that gives employers and employees a chance to discuss concerns, problems and suggestions with the NLRB.

REFERENCES:

  • NLRB Office: www.nlrb.gov, (202) 273-1991
  • Harvard Business Review, William Fulmer, Step by Step Through a Union Campaign, 7-1-1981.
  • NLRB and Management Decision Making, Robert Swift, The Wharton School, 1974.

ACKNOWLEDGEMENT: This is a March 29, 1999 revision by Gene Goodson of an assignment for OM742 contributed by Richard Thornton.


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Copyright © 1999
R. E. Goodson
University of Michigan Business School