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National Labor Relations Act

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TheNational Labor Relations Act of 1935, also known as theWagner Act, is a federal law signed by PresidentFranklin D. Roosevelt (D) as part of the New Deal on July 5, 1935, that established the legal right for workers to join labor unions and enter into collective bargaining agreements with their employers. The Wagner Act also strengthened theNational Labor Relations Board (NLRB) to oversee collective bargaining activities, resolve labor disputes, ensure transparent union elections, and prohibit workplace discrimination against union members, among other provisions.[1][2]

Background

During the 1930s, President Roosevelt sought to mitigate the growing unrest between American workers and employers, which had resulted in strikes across the country. TheNational Industrial Recovery Act (NIRA) passed in 1933 and provided workers with the right to bargain collectively. However, the collective bargaining protections were weak, and other provisions of the law pertaining to industrial codes were struck down as unconstitutional in 1935. Employers subverted the remaining collective bargaining protections by breaking strikes and establishing non-independent company unions, which allowed employers to maintain their influence while ostensibly fulfilling the requirements of the law. Though theNational Labor Relations Board (NLRB) was established in 1934, it lacked the enforcement authority to ensure employer compliance with the NIRA's collective bargaining protections.[3][4]

The National Labor Relations Act, also known as the Wagner Act for its sponsor, U.S. Senator Robert F. Wagner (D-N.Y.), passed in 1935 and reestablished the legal right for workers to join labor unions and enter into collective bargaining agreements with their employers. The Wagner Act also created a stronger NLRB to oversee collective bargaining activities—allowing the board to arbitrate labor disputes, ensure transparent union elections, and prohibit workplace discrimination against union members, among other provisions. According to the Roosevelt Institute, the legislation also "defined and prohibited five unfair labor practices by employers, including interfering with, restraining, or coercing employees against their rights; interfering with the formation of a labor organization; discriminating against employees to encourage or discourage forming a union; discriminating against employees who file charges or testify; and refusing to bargain collectively with the employees’ representative."[4][5]

Upon signing the legislation on July 5, 1935, President Roosevelt stated:

A better relationship between labor and management is the high purpose of this Act. By assuring the employees the right of collective bargaining it fosters the development of the employment contract on a sound and equitable basis. By providing an orderly procedure for determining who is entitled to represent the employees, it aims to remove one of the chief causes of wasteful economic strife. By preventing practices which tend to destroy the independence of labor, it seeks, for every worker within its scope, that freedom of choice and action which is justly his.[3][6]


The Wagner Act applied to all employers engaged in interstate commerce, except for those involved in railroads, airlines, domestic work, agriculture, or government. Following the passage of the Wagner Act, union membership in the United States grew to an estimated 9 million workers by 1940, including roughly 800,000 women.[1][3][4]

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Enforcement

The Wagner Act strengthened theNational Labor Relations Board (NLRB) to serve in an enforcement capacity. The Act charged the NLRB with investigating and arbitrating labor disputes as well as certifying union elections to determine labor representatives.[7]

Collective bargaining

The Wagner Act guarantees employees the right to enter into collective bargaining agreements with their employers. Section 157 states:

Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 158(a)(3) of this title.[8][6]

Unfair labor practices

The Wagner Act prohibits certain activities by employers that the law defined as unfair labor practices (ULPs). The Taft-Hartley Act of 1947 amended the Wagner Act to include a series of ULPs by labor organizations.[9][10]

Unfair labor practices by employers

According to the Legal Information Institute, the Wagner Act established the following ULPs by employers:

  • Section 158(a)(1) prohibits an employer from interfering with employees as they engage in concerted activity.
  • Section 158(a)(2) prohibits an employer from dominating or assisting a labor union.
  • Section 158(a)(3) prohibits an employer from discriminating against any worker because of union activity.
  • Section 158(a)(4) prohibits an employer from punishing a work [sic] for filing charges with the Labor Board.
  • Section 158(a)(5) requires the employer to bargain collectivity in good faith with the union.[9][6]

Unfair labor practices by labor organizations

According to the Legal Information Institute, the Taft-Hartley Act of 1947 amended the Wagner Act to include the following ULPs by labor organizations:

  • Section 158(b)(1) prohibits a union from restraining or coercing employees as they exercise their Section 7 rights, such as the right to refrain from concerted activity.
  • Section 158(b)(2) makes it illegal for a union to cause an employer to discriminate in violation of Section 8(a)(3).
  • Section 158(b)(3) requires a union to bargain in good faith with the employer.[9][6]

Amending statutes

Below is a partial list of subsequent laws that amended provisions of the Wagner Act:[11]

  • Taft-Hartley Act of 1947 amended the Wagner Act to include unfair labor practices (ULPs) by labor organizations and prohibit secondary boycotts—situations in which a union puts pressure on an employer for conducting business with a separate entity engaged in a dispute with the union.[10]
  • Landrum-Griffin Act of 1959 amended the Wagner Act and the Taft-Hartley Act in response to what the NLRB describes as a time when "the labor movement was under intense Congressional scrutiny for corruption, racketeering, and other misconduct." Amendments included provisions to strengthen the ban on secondary boycotts and limit certain picketing activities, among other modifications.[12]

Noteworthy events

U.S. Supreme Court upholds employer arbitration agreements, declines to applyChevron deference

On Monday, May 21, 2018, the U.S. Supreme Court ruled 5-4 that arbitration agreements between employers and employees are enforceable under the Federal Arbitration Act (FAA). The Supreme Court ruling reversed and remanded a decision from the U.S. Court of Appeals for the Seventh Circuit, which had ruled that the agreement violated the National Labor Relations Act (NLRA) and was not enforceable under the FAA.

The case involved a dispute between Epic Systems Corporation and a group of its employees regarding an arbitration agreement for wage-and-hour claims. In writing for the majority, Justice Neil Gorsuch observed that the case did not qualify forChevron deference—a principle of judicial review in which a federal court defers to a federal agency’s interpretation of an ambiguous statute that the agency administers.Chevron did not apply, according to Gorsuch, because no ambiguity existed in the NLRA statute, which is administered by theNational Labor Relations Board (NLRB). Instead, Gorsuch wrote that the NLRB had sought to "interpret [the NLRA] in a way that limits the work of the Arbitration Act, which the agency does not administer."

Gorsuch further stated that Congress had put forth clear instructions for the enforcement of arbitration agreements in the NLRA and that any effort to change the policy must come from Congress itself. He wrote, "The policy may be debatable but the law is clear: Congress has instructed that arbitration agreements like those before us must be enforced as written. While Congress is of course always free to amend this judgment, we see nothing suggesting it did so in the NLRA—much less that it manifested a clear intention to displace the Arbitration Act.”[13][14]

See also

External links

Footnotes

  1. 1.01.1Encyclopedia Britannica, "Wagner Act," accessed January 22, 2018
  2. George Washington University, "National Labor Relations Act," accessed January 22, 2018
  3. 3.03.13.2FDR Presidential Library & Museum, "FDR and the Wagner Act," accessed January 22, 2018
  4. 4.04.14.2OurDocuments.gov, "National Labor Relations Act (1935)," accessed January 23, 2018
  5. Roosevelt Institute, "Wagner Act," accessed January 22, 2017
  6. 6.06.16.26.3Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  7. Legal Information Institute, "National Labor Relations Act (NLRA)," accessed January 23, 2018
  8. Legal Information Institute, "29 U.S. Code Subchapter II - NATIONAL LABOR RELATIONS," accessed January 23, 2018
  9. 9.09.19.2Legal Information Institute, "Unfair labor practices (ULPs)," accessed January 23, 2018
  10. 10.010.1The Gale Group Inc., "National Labor Relations Act (1935)," accessed January 23, 2018
  11. Steelworks Center of the West, "The National Labor Relations Act (The Wagner Act) of 1935," accessed January 22, 2018
  12. National Labor Relations Board, "1959 Landrum-Griffin Act," accessed January 23, 2018
  13. WAMU, "Supreme Court Decision Delivers Blow To Workers’ Rights," May 21, 2018
  14. Red State, "BREAKING. SCOTUS Overturns Arbitration Ruling By NLRB And Gives Congress Real Work To Do," May 21, 2018
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