Executive Order 10988 enabled a majority union to bargain with a governmental agency over terms and conditions of employment but not wages. Such unions could not represent workers who advocated strikes or the right to strike. A grievance procedure was established, but final determination rested with the federal employer. This posture was modified by Executive Order 11491 (1970), which provided for a secret ballot to determine recognition, as well as a procedure through which an appropriate bargaining unit might be determined, compliance with Landrum-Griffin requirements, and also provided for arbitration as a final settlement procedure for grievances. Unfair labor practices were also delineated, an Impasse Panel was authorized to issue binding decisions when collective bargaining failed to produce a contract, and there was some relaxation of the posture. Executive Order 11616 (1971) allowed professional employees in an agency the option to affiliate with a bargaining unit, and offered a choice of grievance resolution procedures. There were other features, too. Civil Service Reform Act (1976) In addition to codifying the Executive Orders, the Civil Service Reform Act established the Federal Labor Relations Authority, the federal sector equivalent of the NLRB. LABOR IN CRISIS AND TRANSITION Rising Employer Militancy Hyperinflation The 1970s saw two major oil shocks in which petroleum shortages and price increases were major influences on the economy. Inflation became an increasing problem, with prices rising by more than 10 percent annually by the end of the decade. Unemployment increased as well. Reagan Administration A substantial income tax cut made after-tax consequences of employer expenses significantly more. Thus, there was a new-found aggressiveness in holding down business expenditures. interest rates rose above 15% in an effort to curb inflation. One byproduct was to drive unemployment rates up to 10%. Inefficient plants, especially in durable goods industries like autos and steel, were closed, leading to large cuts in the number of production workers, professionals, and managers. Striker Replacements
Executive Order 10988 enabled a majority union to bargain with a governmental agency over terms and conditions of employment but not wages. Such unions could not represent workers who advocated strikes or the right to strike. A grievance procedure was established, but final determination rested with the federal employer. This posture was modified by Executive Order 11491 (1970), which provided for a secret ballot to determine recognition, as well as a procedure through which an appropriate bargaining unit might be determined, compliance with Landrum-Griffin requirements, and also provided for arbitration as a final settlement procedure for grievances. Unfair labor practices were also delineated, an Impasse Panel was authorized to issue binding decisions when collective bargaining failed to produce a contract, and there was some relaxation of the posture. Executive Order 11616 (1971) allowed professional employees in an agency the option to affiliate with a bargaining unit, and offered a choice of grievance resolution procedures. There were other features, too. Civil Service Reform Act (1976) In addition to codifying the Executive Orders, the Civil Service Reform Act established the Federal Labor Relations Authority, the federal sector equivalent of the NLRB. LABOR IN CRISIS AND TRANSITION Rising Employer Militancy Hyperinflation The 1970s saw two major oil shocks in which petroleum shortages and price increases were major influences on the economy. Inflation became an increasing problem, with prices rising by more than 10 percent annually by the end of the decade. Unemployment increased as well. Reagan Administration A substantial income tax cut made after-tax consequences of employer expenses significantly more. Thus, there was a new-found aggressiveness in holding down business expenditures. interest rates rose above 15% in an effort to curb inflation. One byproduct was to drive unemployment rates up to 10%. Inefficient plants, especially in durable goods industries like autos and steel, were closed, leading to large cuts in the number of production workers, professionals, and managers. Striker Replacements