Legal Definitions - major dispute

A major dispute, particularly in the context of U.S. labor law, refers to a significant disagreement between parties, typically management and a union, concerning the creation of new contractual rights or obligations, or a fundamental change to existing collective bargaining agreements. These disputes involve the establishment of new terms and conditions of employment rather than merely interpreting or applying existing ones. Such disagreements often involve broad policy issues and can lead to strikes or lockouts if not resolved through negotiation or mediation.

• Example 1: New Collective Bargaining Agreement Negotiations

  A national airline and its pilots' union are negotiating a new collective bargaining agreement. The union is demanding substantial increases in pay scales, a reduction in flight hours, and enhanced retirement benefits, while the airline is proposing a new two-tier wage system for new hires and increased flexibility in pilot scheduling. This is a major dispute because both parties are attempting to establish entirely new terms and conditions of employment that would fundamentally alter the existing relationship, rather than simply interpreting current rules.

• Example 2: Unilateral Change to Core Employment Terms

  A railway company announces its intention to unilaterally implement a new policy requiring all train engineers to work mandatory 12-hour shifts, despite the existing collective bargaining agreement explicitly stating an 8-hour workday. The union immediately objects, arguing that this constitutes a fundamental change to a core term of employment. This situation represents a major dispute because the company is attempting to create a new contractual obligation (longer shifts) without agreement, thereby fundamentally altering an established condition of employment.

• Example 3: Introduction of New Technology Impacting Job Roles

  A large port operator decides to automate a significant portion of its cargo handling operations, which would eliminate hundreds of unionized longshoreman positions and introduce new, highly technical roles. The union argues that this move fundamentally alters the scope of work, job security, and training requirements outlined in their current agreement, demanding negotiations for new job classifications, retraining programs, and severance packages for displaced workers. This is a major dispute because the company's actions necessitate the creation of new agreements or significant modifications to existing ones regarding job roles, compensation, and workforce management, rather than merely interpreting existing rules.