Labor Law and Collective Bargaining
Peter Philips
Professor
Economics Department
BuC 2
philips@econmics.utah.edu (office)
585-6465 (office)
466-3159 (home)
585-5649 (FAX)
Class Meeting:
Tuesdays,
Overview of Course:
This course examines three basic topics: 1) the history of the American labor movement and the evolution of the labor market; 2) the history of labor market regulations and analysis of current regulations, and 3) the development of American labor relations law and the current practice of collective bargaining. The first two topics will be covered using readings and web resources while the third topic will rely on the text book: Harry C. Katz and Thomas Kochan, Collective Bargaining and Industrial Relations. There is one midterm just prior to the midterm break covering the first two topics in the course and a final exam that will cover the third topic—collective bargaining. Each exam is worth 33% of your grade. There is also a term paper accounting for the last 33% of your grade. The term paper is due half-way between the midterm break and the end of classes. The term paper will focus on a political economic analysis of a specific labor market regulation such as the minimum wage or the regulation of overtime or child labor laws, etc. A list of some federal labor market regulations may be found at: http://www.labor.gov/dol/topic/wages/index.htm .
I am in my office regularly.
You are welcome to come by at any time.
You may also make an appointment by phone, email or in class. I will hold regular office hours during the
day on Tuesdays
I will be out of town on occasion. I will make my whereabouts known through class announcements. Hopefully, if I can master the technology, I will be in touch by email when I am out of town.
First class—Tuesday, January 13
Last day to drop classes—Wednesday, January 21
Last day to add classes—Monday, January 26
Last day to elect credit/no credit—Monday, January 26
Last day to withdraw--Friday, March 5
Midterm—Tuesday, March 9
Term Paper Due—Tuesday,
April 6
Spring Break—March 15-19
Last class—Tuesday, April 27
Final Exam—Day, time and place to
be announced
This is a course on the history of the labor movement, the history of the American labor market, labor market regulations, labor law and collective bargaining. In short, this is a course on the historical, institutional and legal factors that shape labor market behavior and outcomes. In rough terms, the first half of the course will cover the history of the American labor market, labor movement and development of labor market regulations. The second half of the course will focus on labor laws that regulate collective bargaining and the practice of collective bargaining itself.
There will be both graduate and undergraduate students in this class, and the graduate students will have additional requirements over and above what is required of those registered at the undergraduate level.
At the undergraduate level, you will be required to take two
examinations--one covering the first half of the course and the second covering
the second half. Plus, you will write a term paper on a topic selected from
the first half of the course due in
For graduate students, an additional requirement will be to teach on a mutually agreed upon topic for an hour during one of the class periods. The timing and subject will be arranged between you and I prior to the end of the 3rd week of class.
In the first half of the course, the readings will come primarily from journal articles and newspaper articles. The second half will rely primarily upon the Katz and Kochan textbook. However, Chapters 2 and 3 of Katz and Kochan should be read associated with the first lecture introducing the history of the American labor movement and the development of American Labor law. You will be able to download the journal and newspaper articles from this reading list. You will have to have Adobe Acrobat to read the articles. You will also be able to download the powerpoint lectures if you have Microsoft Powerpoint on your computer.
You will receive a letter grade based on a 12 point system for each of your exams and your paper. These will be weighted equally. For graduate students with additional assignments, these assignments will also receive a letter grade and be weighted equally with your examinations and paper. You will not be graded on attendance. However, some of the material required on the exams may come from information that is provided through class lectures or guest speakers and not be in the reading material. So class attendance may help you receive a better grade. The final exam will be offered at the time scheduled by the University for this course, but other times may be arranged by students in consultation with the instructor.
If you miss an exam for whatever reason, please notify me at your convenience to arrange a make-up exam. Basically, if you find yourself falling behind in taking exams, doing the reading, preparing the term paper, attending class or any other class responsibility, let me know and I will work with you to help you catch up.
The University of Utah Economics Department seeks to provide equal access to its programs, services and activities for people with disabilities. If you will need accommodations in this class, reasonable prior notice needs to be given to the instructor and to the Center for Disability Services,
http://disability.utah.edu/ 162 Olpin Union Bldg, 581-5020 (V/TDD) to make arrangements for accommodations.
If you have any issue for which an accommodation would be helpful, please talk to me. This could include a variety of learning issues or personal scheduling issues or any other matter that you think is relevant. My job here is to help you learn, and I am pleased to go the extra mile to this end. This is a relatively small class. This allows for a wide range of personal accommodations where appropriate. Please talk to me in class, after class, or by phone, or email, if there is any way I can modify this course to meet your personal needs or interests.
Tutoring is available through the ASUU Tutoring Center in the Student Services Building,
Room 330. Cost is $6.00 per hour. Students are given a list of tutors to contact so that they may schedule a day, evening or weekend appointment. Students who qualify for a Pell Grant may also qualify for free tutoring. For more information call 581-5153 or check the following web site: www.sa.utah.edu/Tutoring/
There is also me, the teacher. If you feel you need tutoring or help with your term paper, I’m the first guy you should see. I will try to help you in any way I can. Come by my office—if office hours are inconvenient, come by at any time. Make an appointment or just drop by. If my hands are full with other stuff, I’ll talk to you briefly, and we’ll set up another time. If I can, I will drop what I am doing to help you. Email me. Call me at home or office (I am a very lonely person. I have no friends. I would love to talk to you.) The one problem is this: I am doing research this term that will pull me off campus from time to time. So sometimes I will just not be around. However, teaching is job #1, and I want to work with you. So don’t be a stranger. Communicate any problems, concerns or interests to me, please.
These sections come from the Policies and Procedures Manual (PPM). They tell you some of your rights relative to my responsibilities as an instructor:
PPM 8-12 Sec 4-b-1: Faculty members are expected to meet their regularly scheduled classes. Failure to meet scheduled classes without prior notice to students is excusable only for reasons beyond the control of faculty members. Alteration of schedules, cancellation or rescheduling of
classes may be done only for valid reasons and after adequate notice to students.
PPM 8-12 Sec 4-b-4: Faculty members must, at the beginning of a course, give reasonable notice to students of the general content of the course, what will be required of the students, and the criteria upon which their performance will be evaluated. Evaluations must be performed
promptly, conscientiously, without prejudice or favoritism, and consistently with the criteria stated at the beginning of the course. The criteria for evaluating student performance must relate to the legitimate academic purposes of the course. Grade appeals submitted by students are not
considered charges of misconduct under this code. [For appeals procedure, see the student code, PPM 8-10.2 Article III Section 3.04]
PPM 9-7 Sec 3-E: Course descriptions should clearly state the learning outcomes and classroom activities essential to credit being awarded. If attendance is essential to credit, the rationale should be made clear to students.
PPM 9-7 Sec 3-H: The learning outcomes and Description must be assessed appropriately.
PPM 9-7 Sec 3-I: Catalog, curriculum guide, and syllabi should accurately reflect the work load and the work load should be commensurate with the credit hours awarded.
PPM 9-7 Sec 7: Final examinations in university courses may be required at the instructor's discretion. When they are required, final examinations must be given at times officially set. A schedule for such examinations shall be prepared by the director of scheduling and
published by the university.
PPM 9-7 Sec 15: Excused Absences: Students absent from class to participate in officially sanctioned University activities (e.g., band, debate, student government, intercollegiate athletics) or religious obligations, or with instructor's approval, shall be permitted to make up both assignments and examinations. The University expects its departments and programs that take students away from class meetings to schedule such events in a way that will minimize hindrance of the student's orderly completion of course requirements. Such units must provide a written statement to the students describing the activity and stating as precisely as possible the dates of the required absence. The involved students must deliver this documentation to their instructors, preferable before the absence but in no event later than one week after the absence.
Introduction and History of the American Labor Movement
Read Kochan and Katz Chapters 2 and 3.
Two supplementary powerpoint slide shows on the history and legal development follow the Katz and Kochan chapters more closely:
Helen M. Haisch, “Do Child Labor Laws Prevent Youth Unemployment?” Journal of Negro Education, Spring 1964
Vanderveer Custis, The Adoption of Children by Labor Unions, Quarterly Journal of Economics, Aug, 1903
Clark Nardinelli, Child Labor and the Factory Acts, Journal of Economic History, Dec 1980
Richmond Mayo Smith, “Control of Immigration, Part 1,” Political Science Quarterly, Mar 1888
Lucy Sayler, “Captives of Law, Judicial Enforcement of Chinese Exclusion Laws,” 1891-1905, Journal of American History, June, 1989
*Samuel Orth, “The Alien Contract Labor Law,” The Political Science Quarterly, Mar, 1907
*Paul S. Taylor “Some Aspects of Mexican Immigration,” Journal of Political Economy, Oct., 1930
George Borjas, Richard Freeman and Lawrence Katz, “Searching for the Effects of Immigration on the Labor Market,” American Economic Review, May, 1996
A.J. Thieblot, “Prevailing Wage Laws and Black Employment in the Construction Industry,” Journal of Labor Research, Winter, 1999
Charles Brown,
“Minimum Wage Laws, Are They Overrated?,” Journal
of Economic Perspective, Summer, 1988
David Card, Alan B.
Kruger, “Time Series Minimum Wage Studies: A Meta-Analysis,” American
Economic Review, May, 1995
HAMID AZARI-RAD, PETER PHILIPS, AND MARK PRUS, "Making Hay When It Rains," Journal of Education Finance, Spring, 2002
George Gunton, “A Review of The Eight Hour Day,” (a book by Sidney Web), Political Science Quarterly, Dec, 1891
Robert Whaples, “Winning the Eight Hour Day, 1909-1919,” Journal of Economic History, June, 1990
*Andrew J. Selzer, “The Political Economy of the Fair Labor Standards Act of 1938,” Journal of Political Economy, Dec, 1995
See http://www.dol.gov/dol/esa/fmla.htm for basic information on the Family and Medical Leave Act.
Sidney Webb, “The Alleged Differences in the Wages Paid to Men and Women for Similar Work,” Economic Journal, Dec, 1891
C.E. Person, “Women’s work and Wages in the United States,” Quarterly Journal of Economics, Feb, 1915
Augustin Quasi Fasu, “Occupational Gains of Black Women Since the 1965 Civil Rights Act, Term or Episodic?” American Economic Review, May 1997
William Franklin Willoughby, “Insurance Against Unemployment,” Political Science Quarterly, Sep, 1897
Joseph Becker, “Twenty-Five Years of Unemployment Insurance: an Experiment in Competitive Collectivism,” Political Science Quarterly, Dec, 1960
Thomas I. Parkinson, “Problems with Workers’ Compensation Legislation,” American Economic Review, April, 1911
Price Fishback, “Did workers Pay for Workers’ Compensation Laws?,” Quarterly Journal of Economics, Aug, 1995
Bruce D. Meyer, Kip Viscusi, and Davis Durban, “Workers’ Compensation and Injury Duration,” American Economic Review, Jun, 1995
(These last two articles are technically a bit difficult. Just read them for general viewpoint and you do not have to comprehend the econometrics and math.)
Paul Douglas, "The United States Social Security Act", Economic Journal, Mar 1936
Sumner Slichter et al "Economic Aspects of an Integrated Social Security System" American Economic Review, March 1936
Peter Diamond, "Proposals to Restructure Social Security," Journal of Economic Perspective, Summer 1996
(Read for general viewpoint. You do not have to comprehend the econometrics.)
Edward Gramlich, “Different Approaches for Dealing with Social Security,” Journal of Economic Perspectives, Summer, 1996.
Term
Paper Due First Class After Break, March 22
Framework for analyzing collective bargaining.
Read Katz and Kochan Chapters 1 and 4
Strategy and Structure
Read Katz and Kochan Chapters 5 and 6
Union Organizing
Read Katz and Kochan, Chapter 7
Negotiations and Strikes
Read Katz and Kochan Chapter 8
Grievance and Arbitration
Read Katz and Kochan Chapter 11
Public Sector Unionism
Read Katz and Kochan Chapter 13
The midterm question will be selected from one of the following questions. The instructor reserves the right to modify the selected question somewhat based on how the course develops prior to the midterm. The first 20 questions focus on discrete weekly topics while the last five questions synthesize issues across topics. You will be given a choice of two questions, and through a process of majority class vote on March 1, one of these 25 questions will be eliminated.
1. Briefly describe the history of child labor laws, compulsory schooling laws and hour limitation laws. Why does organized labor have an interest in the passage of these categories of labor laws? Why might at least some sectors of management also have an interest in the passage of these laws? Why might some groups of workers oppose these laws? Why might some sectors of management oppose these laws?
2. Why have child labor laws and compulsory schooling laws become more widespread and more restrictive compared to laws regulating and restricting hours of work?
3. Discuss how the development of labor markets and product markets affect the structure of the family. Many labor laws relate to and have an effect on the family. Discuss how child labor laws, compulsory schooling laws, laws restricting hours of work relate to and affect the structure of the family. Do labor laws resist or complement trends in how the development of markets affects family structure. Explain.
4. Describe the development of the American labor movement and the coincident development of American labor law.
5. Discuss the relationship between immigration policy and racism.
6. In the abstract, many economists believe that the flow of capital (foreign investment) and the flow of labor (immigration) have basically the same effect—the equalization of wages across borders. Describe this viewpoint. Discuss how in the concrete, the flow of capital and the flow of labor can be quite different. How do the interests of labor and capital differ regarding restrictions on the flow of labor and capital?
7. Describe the role that pivotal strikes played in the development of the American labor movement.
8. Describe and critically evaluate the Bush Administration's proposed immigration policy reforms.
9.
Currently, in the
10. Some economists argue that wage mandates reduce employment by raising wages above the equilibrium market wage. Some of these economists argue that the effect is not large because the elasticity of demand for labor is strongly inelastic. Other economists argue that the dynamic effects of growth are such that there is no measurable negative effect on employment from most wage mandates. Summarize and critically evaluate the viewpoints of these perspectives.
11. Compare and contrast the minimum wage to the prevailing wage to the living wage as three types of wage mandates. How are the wage levels determined? What groups of workers are affected? How can inflation differentially affect the impact of these three types of laws? How do the interest groups that support and oppose wage mandates vary across these three types of laws?
12. Are prevailing wage laws racist either in their original intent or their current effect? Professor Philips says no. Dr. Armond Thieblot says yes. Compare and contrast their arguments and show why Dr. Thieblot is correct.
13. Compare and contrast opposing views on the Bush Administration proposal to alter who will and who will not qualify for overtime payments. Critically evaluate these arguments, present and justify your own opinion on this issue.
14. Compare and contrast opposing views on the question of whether prevailing wage laws are a good or a bad set of labor market regulations. Critically evaluate these arguments, present and justify your own opinion on this issue.
15. What do minimum wage laws do? Are they a good set of regulations or not? Why?.
16.
From an economist’s perspective—what is discrimination?
From a legal perspective in the
17. Describe the basic set of labor market regulations that shape the American labor market. What is the basic effect of each? Select one regulation that you think should either be added to this set or taken out and explain why your selected regulation is needed or not needed.
18. Labor markets can have negative outcomes for individuals—on-the-job injuries, loss of jobs, inadequate earnings, etc. Discuss how insurance schemes have been proposed to mitigate these negative outcomes. Discuss the problems of moral hazard imbedded in these insurance programs. Are there areas other than unemployment, old age income and on-the-job safety where insurance schemes could effectively mitigate potential negative labor market outcomes?
19. Would labor markets work better and the economy be more efficient if all insurance policies regulating the labor market were eliminated? What would replace them? Why would the replacements be better or worse? Explain.
20. Should social security benefits be cut or the growth in social security benefits be cut in order to solve the problem of governmental deficits? Should young people be allowed to switch from traditional social security to an individual savings account approach? Would such a switch entail benefit cuts and if so for whom? These are some of the underlying issues surrounding the current controversy about Federal Reserve Chairman Allan Greenspan's recent remarks to Congress. Consider his remarks and these two editorials. 1) Briefly summarizes the defense of and the critique of Greenspan's position; 2) compare and contrast the two views, 3) tell which view is correct and why.
21. Broadly describe the nature and range of labor market regulations in the United States today. Describe the historical development of these laws. What labor laws have been eliminated over time either through repeal, judicial annulment or simply falling into disuse? What laws are likely to be eliminated? Why?
22. Consider all the regulations that affect the U.S. labor market (with the exception of those governing collective bargaining). Which among these regulations has the greatest effect on the labor market? Which among these laws is the most epiphenomenal? (That is—has the least real, independent or fundamental effect). Explain.
23. Compare the thinking of economists about Social Security in the 1930s with thier thinking in the 1990s. How have the issues changed? To what extent are they still the same? Explain the changes and the continuity.
24. We have seen that over the centuries, the development of labor markets has led to the development of labor market regulations. Why has this occurred? Is this a good thing or a bad thing? Explain.
25. How are prevailing wage laws similar to immigration laws? Why are we more likely to find prevailing wage regulations in an industry such as construction compared to an industry such as automobile production or mining? Why are immigration laws found at the level of national governments and common markets rather than at the level of industries within countries?
Your term paper topic should be an in-depth examination of one of the topics presented in the first half of the course. (Other topics are permissible with permission of the instructor.) Your paper should be 5 to 10 pages long, double spaced. This amounts to a 1500 to 3000 word essay. Please print the paper in 12 font and provide a word count in your abstract. Your paper should describe the development and impact of a specific type of labor market regulation. It should describe those who favor the regulation and why they favor it, as well as those who oppose the regulation and why they oppose it. Your paper should describe the evolution of thinking regarding this regulation over time as well the current international prevalence and outlook for this regulation.
Your paper needs to be clearly written with a 100 word abstract, an introduction, conclusion and bibliography. Your paper should demonstrate a reasonably extensive bibliographical search. The use of the Marriott Library electronic data bases found at http://www.lib.utah.edu/ResGuides/ is encouraged. You should also refer to the Employment Standards Administration of the Department of Labor for current information on federal labor regulations. http://www.dol.gov/esa/welcome.html .