Labor Relations Law

This article explores the reasons and justifications for current American labor law and provides a history of the federal statutory schemes that have affected business and business-related labor relation practices. A survey of federal labor laws such as the Railway Labor Act and the Labor Management Reporting and Disclosure Act is included to give the reader a comprehensive overview of labor-relations law and the implications of present labor relations.

Keywords Labor; Unionization; Labor Disputes; Strikes; NLRA; National Labor Relations Act

Law > Labor Relations Law

Overview

Labor-relations laws exist to protect workers' labor-relations rights. Since the 1930s, a body of federal statutes has been implemented in the United States to promote successful and amicable labor-management relations. Modern US federal law regulating labor-management relations is largely a product of the New Deal era. While Congress has acted to raise the minimum wage and has considered labor-law reform affecting both private and public employees, no major statutes or revisions of labor laws have been enacted over the past several decades ("Federal Labor Laws," 1993). In light of this, it is important to understand the history and significance of these laws to gain a full understanding and appreciation of their present-day applications

Early Labor Laws

Labor laws began to be instituted in the United States shortly after the Civil War, the result of public pressure placed on the federal government to manage the growing country's labor force. During this period, the Industrial Revolution was in full swing, and it transformed the United States from a relatively agricultural society into an industrial one that was manned by laborers who were mostly immigrants with little to no rights or legal protections from unfair practice.

Railroads became the epitome of this early industrialized age. The railway system "expanded from about 30,000 miles of track before the Civil War to nearly 270,000 miles by 1900. The industrial labor force nearly tripled between 1880 and 1910 to about 8 million. Large factories, which had existed only in the textile industry before the Civil War, became commonplace in a variety of industries" (Illinois Labor History Society, 2000).

During this time, the population of the United States was growing at a staggering rate, from 31,443,321 in 1860 to 76,212,168 in 1900 and then 92,228,496 by 1910 (Illinois Labor History Society, 2000). "Labor was in high demand to run the new industries. Unfortunately, the continued high population growth spurred by immigration helped to keep the value of individual workers low as there was a ready supply of people to fill the positions" (Illinois Labor History Society, 2000).

This was an active and fascinating period in the United States' labor history. It was during this time that workers began to organize and resist when their health or their way of life was being threatened. These actions, coupled with worker organization, laid the groundwork for unions and union organization.

The events that led to the public's demand for labor legislation and laborer recognition can be viewed as separate and individually unique occurrences, but placed together, one can get a sense of the necessity and urgency for such laws. In the late nineteenth and early twentieth centuries, various events conspired to influence labor legislation.

Timeline of Labor-Related Events, 1878–1913

1878

Greenback Labor Party organized by a merger of the Workingmen's Party and Greenback Party.

1879

Knights of Labor elect Terrence Powderly as Grand Master Workman.

1881

Federation of Organized Trades and Labor Unions, forerunner of the American Federation of Labor, formed in Pittsburgh.

1882

First Labor Day celebration held in New York City.

1883

Brotherhood of Railroad Trainmen organized.

1885

Immigration of laborers on contract is outlawed by the Foran Act.

1885–6

Period of greatest influence by Knights of Labor.

1886

In Columbus, Ohio, the American Federation of Labor is formed with Samuel Gompers as the first president. Violence erupts following a mysterious explosion at Haymarket Square in Chicago during a rally in support of the 8-hour day.

1887

Seven accused in the Haymarket explosion are sentenced to death. Five are later executed.

1888

First federal labor relations law passed, but it only applies to rail companies.

1890

The AFL, at their annual convention, announce their support for women's suffrage. United Mine Workers of America formed.

1892

Homestead Strike in Pennsylvania. The Amalgamated Association of Iron, Steel, and Tin Workers lose the fight over Carnegie Steel's attempt to break the union.

1893

Business depression.

1894

Strike by the American Railway Union against the Pullman Palace Car Company near Chicago is defeated by the use of injunctions and federal troops.

1898

Erdman Act passed, which provides for mediation and voluntary arbitration on the railroads. This law replaces the 1888 law.

1900

International Ladies' Garment Workers' Union founded.

1901

United States Steel defeats the Amalgamated Association of Iron, Steel and Tin Workers after a strike which lasted three months. United Textile Workers of America founded.

1902

Coal miners in Pennsylvania end a five-month strike and agree to arbitration with a presidential committee.

1903

At the annual AFL convention, blue-collar and middle-class women unite to form the National Women's Trade Union League. This organization is created to help organize women. Mary Morton Kehew is elected president, while Jane Addams is elected vice-president. The Department of Commerce and Labor is formed. Mother Jones (Mary Harris Jones) leads the March of the Mill Children to President Roosevelt's home in New York. Many of the children are victims of industrial accidents.

1905

In Chicago, the Industrial Workers of the World founded. US Supreme Court in Lochner v. New York declares a New York maximum hours law unconstitutional under the due process clause of the 14th Amendment.

1906

Upton Sinclair publishes The Jungle, which exposes the unsafe and unclean aspects of the Chicago meatpacking industry. The International Typographical Union struck successfully for the 8-hour day, which helped pave the way for shorter hours in the printing trades.

1908

In Muller v. Oregon, the Supreme Court rules that female maximum hour laws are constitutional due to a woman's "physical structure and …maternal functions." Section 10 of the Erdman Act, which deals with "yellow dog" contracts and forbids a person from being fired for belonging to a union, was declared unconstitutional (US v. Adair).

1909

Two-month strike by the International Ladies Garment Workers' Union was settled by providing preferential union hiring, a board of grievances, and a board of arbitration.

1911

Supreme Court upheld an injunction ordering the AFL to eliminate the Bucks Stove and Range Co. from its unfair list and to cease to promote an unlawful boycott. (Gompers v. Bucks Stove and Range Co.) 146 workers, mostly women, die in the Triangle Shirtwaist Company fire in New York City. This leads to the establishment of the New York Factory Investigating Commission to monitor factory conditions.

1912

Massachusetts adopts the first minimum wage law for women and minors. Textile strike led by the Industrial Workers of the World in Massachusetts wins wage increase.

1913

US Department of Labor established. Secretary of Labor given power to "act as a mediator and to appoint commissioners of conciliation in labor disputes." (Illinois Labor History Society, 2000)

This series of events led Congress to pass a number of federal mandates for the purpose of addressing these issues in a comprehensive manner.

Early Labor Laws

The Clayton Act

The first of this series of early labor-relation laws was the Clayton Act of 1914. This legislation was a direct response to the growing public pressure on the federal government to clarify the position of labor under antitrust law. The Clayton Act "included several major provisions protective of organized labor" ("Federal labor laws," 1993). It stated, "The labor of a human being is not a commodity or article of commerce," and went on to assert that nothing in the federal antitrust laws "shall be construed to forbid the existence and operation of labor…organizations…nor shall such organizations, or the members thereof, be held or construed to be illegal combinations or conspiracies in restraint of trade, under the antitrust laws" (15 U.S.C. §17).

Railway Labor Act

In 1926, Congress passed the Railway Labor Act (RLA), which established procedures for collective bargaining and prohibited discrimination against emerging unions. The act originally only applied to interstate railroads and their related undertakings. In 1936, with the advent of the airline industry, the act "was amended to include airlines engaged in interstate commerce" ("Federal labor laws," 1993).

Davis-Bacon Act

The Davis-Bacon Act of 1931 required "that contracts for construction entered into by the Federal Government specify the minimum wages to be paid to persons employed under those contracts" ("Federal labor laws," 1993).

Reforms in Labor Law

Traditionally, labor law opposed concerted activities by workers, such as strikes, picketing, and refusals to deal, to obtain higher wages and better working conditions. At various times, such activities were found to constitute criminal conspiracy, tortuous conduct, and violations of antitrust law. As subjecting workers to criminal sanctions became publicly unpopular, employers began resorting to civil remedies in an attempt to halt unionization. The primary tool in this campaign was the injunction. Eventually, public opposition to such actions forced Congress to intervene.

Norris-LaGuardia Act

One of the most significant laws with regard to modern labor relations was the Norris-LaGuardia Act, passed in 1932. It "was the first in a series of laws passed by Congress in the 1930s which gave Federal sanction to the right of labor unions to organize and strike, and to use other forms of economic leverage in dealings with management" ("Federal labor laws," 1993). This was in direct response to the growing criticism of the use of injunctions in peaceful labor disputes. The act "specifically prohibited Federal courts from enforcing so-called 'yellow dog' contracts or agreements (under which workers promised not to join a union or promised to discontinue membership in one)" ("Federal labor laws," 1993). It also withdrew from the federal government the power to legally prevent, via injunction or restraining order, either labor unions or individuals from participating in or providing various forms of nonviolent aid to workers in a labor dispute.

In the act, the term "labor dispute" is broadly defined to include any controversy concerning terms or conditions of employment or union representation, regardless of whether the parties had an employer-employee relationship or not. More significantly, the act made the statement, albeit indirectly, that under US law, labor was to have full freedom to form unions without employer interference. This set in motion the development of federal agencies that would enforce workers' rights and entitlements schemes, as well as government supports and mandates that would further protect the American workforce.

New Deal–Era Reforms

National Industrial Recovery Act

Congress passed the National Industrial Recovery Act (NIRA) in 1933. The NIRA "sought to provide codes of 'fair competition' and to fix wages and hours in industries subscribing to such codes" ("Federal labor laws," 1993). In other words, it essentially established the minimum wage.

Under title 1 of the NIRA, "all codes of fair competition approved under the Act should guarantee the right of employees to collective bargaining without interference or coercion of employees" ("Federal labor laws," 1993). In 1935, the US Supreme Court found this provision to be unconstitutional due to Tenth Amendment violations. Congress reconvened on the issue of collective bargaining and devised an act that would not violate constitutional rights.

National Labor Relations Act

"By far the most important labor legislation of the 1930s was the National Labor Relations Act (NLRA) of 1935, more popularly known as the Wagner Act, after its sponsor, Sen. Robert F. Wagner (NY-D). This law included reenactment of the previously invalidated labor sections of the N[I]RA as well as a number of additions.

"The NLRA was applicable to all firms and employees in activities affecting interstate commerce with the exception of agricultural laborers, government employees, and those persons subject to the Railway Labor Act. It guaranteed covered workers the right to organize and join labor movements, to choose representatives and bargain collectively, and to strike.

"The National Labor Relations Board (NLRB), originally consisting of three members appointed by the President, was established by the Act as an independent Federal agency. The NLRB was given power to determine whether a union should be certified to represent particular groups of employees, using such methods as it deemed suitable to reach such a determination, including the holding of a representation election among workers concerned.

"Employers were forbidden by the Act from engaging in any of the five categories of unfair labor practices. Violation of this prohibition could result in the filing of a complaint with the NLRB by a union or employees. After investigation, the NLRB could order the cessation of such practices, reinstatement of a person fired for union activities, the provision of back pay, restoration of seniority, benefits, etc. An NLRB order issued in response to an unfair labor practice complaint was made enforceable by the Federal courts.

"Among those unfair labor practices forbidden by the Act were:

"1. Dominating or otherwise interfering with the formation of a labor union, including the provision of any financial or other support.

"2. Interfering with or restraining employees engaged in the exercise of their rights to organize and bargain collectively.

"3. Imposing any special conditions of employment which tended either to encourage or discourage union membership. The law stated, however, that this provision should be construed to prohibit union contracts requiring union membership as a condition of employment in a company—a provision which, in effect, permitted the closed and union shops. (In the former, only pre-existing members of the union could be hired; in the latter, new employees were required to join the union.)

"4. Discharging or discriminating against an employee because he had given testimony or filed charges under the Act.

"5. Refusing to bargain collectively with unions representing a company's employees.

"The NLRA included no provisions defining or prohibiting as unfair any labor practices by unions. The Act served to spur growth of U.S. unionism—from 3,584,000 union members in 1935 to 10,201,000 by 1941, the eve of World War II. The 1941 figure represented more than 25 percent of the nonagricultural workforce in the U.S." ("Federal labor laws," 1993).

Anti-Strikebreaker Law

"The Byrnes Act of 1936, named for Sen. James F. Byrnes (SC-D) and amended in 1938, made it a felony to transport any person in interstate commerce who was employed for the purpose of using force of threats against non-violent picketing in a labor dispute or against organizing or bargaining efforts" ("Federal labor laws," 1993).

Walsh-Healy Act

"Passed in 1936, the Walsh-Healy Act stated that workers must be paid not less than the 'prevailing minimum wage' normally paid in a locality; restricted regular working hours to eight hours a day and 40 hours a week, with time-and-a-half pay for additional hours; prohibited the employment of convicts and children under 18; and established sanitation and safety standards" ("Federal labor laws," 1993).

Fair Labor Standards Act

"Known as the wage-hour law, this 1938 Act established minimum wages and maximum hours for all workers engaged in covered 'interstate commerce'" ("Federal labor laws," 1993).

Post–World War II Laws

Labor-Management Relations Act

"It was not until two years after the close of World War II that the first major modification of the National Labor Relations Act was enacted. In 1947, the Labor-Management Relations Act—also known as the Taft-Hartley Act, after its two sponsors, Sen. Robert A. Taft (OH-R) and Rep. Fred A. Hartley, Jr. (NJ-R)—was passed by Congress, vetoed by President Truman (on the basis that it was anti-labor), and then reapproved over his veto. This comprehensive measure:

• established procedures for delaying or averting so-called 'national emergency' strikes;

• excluded supervisory employees from coverage of the Wagner Act;

• prohibited the 'closed shop' altogether;

• banned closed-shop union hiring halls that discriminated against non-union members" ("Federal labor laws," 1993).

The Labor-Management Relations Act "retained the Wagner Act's basic guarantees of workers' rights to join unions, bargain collectively, and strike, and retained the same list of unfair labor practices forbidden to employers. The Act also added a list of unfair labor practices forbidden to unions" ("Federal labor laws," 1993). This was revolutionary, since until this point, union practices had not been formally regulated. The list of banned union practices included:

• the use of "restraint or coercion of workers exercising their rights to bargain through representatives of their choosing";

• the use of "coercion of an employer in his choice of persons to represent him in discussions with unions";

• "refusal of unions to bargain collectively";

• "barring a worker from employment because he had been denied union membership for any reason except non-payment of dues";

• "striking to force an employer or self-employed person to join a union";

• the use of "secondary boycotts";

• the use of "various types of strikes or boycotts involving interunion conflict or jurisdictional agreements";

• "levying of excessive union initiation fees";

• the use of "certain forms of 'featherbedding' (payment for work not actually performed)" ("Federal labor laws," 1993).

Other provisions of the Labor-Management Relations Act included:

• "authorization of suits against unions for violations of their economic contracts";

• "authorization of damage suits for economic losses caused by secondary boycotts and certain strikes";

• "relaxation of the Norris-LaGuardia Act to permit injunctions against specified categories of unfair labor practice";

• "establishment of a 60-day no-strike and no-lockout notice period for any party seeking to cancel an existing collective bargaining agreement";

• "a requirement that unions desiring status under the law and recourse to NLRB protection file specified financial reports and documents with the U.S. Department of Labor";

• "the abolition of the U.S. Conciliation Service and establishment of the Federal Mediation and Conciliation Service";

• "a prohibition against corporate or union contributions or expenditures with respect to elections to any Federal office";

• "a reorganization of the NLRB and a limitation on its power";

• "a prohibition on strikes against the government"; and

• "the banning of various types of employer payments to union officials" ("Federal labor laws," 1993).

The Labor-Management Reporting & Disclosure Act

"The Labor-Management Reporting and Disclosure Act of 1959, also known as the Landrum-Griffin Act, made major additions to the Taft-Hartley Act, including:

• definition of additional unfair labor practices;

• a ban on organizational or recognition picketing;

• provisions allowing State labor relations agencies and courts to assume jurisdiction over labor disputes the NLRB declined to consider, at the same time prohibiting the NLRB from broadening the categories of cases it would not handle" ("Federal labor laws," 1993).

Modern Labor-Relations Law

Beginning in the 1970s, the legal landscape surrounding labor-relations legislation began shifting its focus. Labor law no longer stood alone; instead, it became an arm of a new and emerging area called employment law, the purpose of which was to address not only labor issues but also unfair and discriminatory employment practices. This broader area of laws reflected society's demand to both protect the skilled worker and address discriminatory practices that affected all professions, including those not afforded the benefits of union representation. Some of the best known of these anti-discrimination laws are the Equal Pay Act of 1970, the Sex Discrimination Act of 1975, the Disability Discrimination Act of 1995, the Protection from Harassment Act of 1997, the Public Interest Disclosure Act of 1998, and the Employment Equality (Age) Regulations of 2006. These laws reflected a new outlook on employment and employment practices, at the same time making a clear statement to an American public that had become disheartened by legislative emphasis on labor unions and labor-union issues. These laws would address a larger societal issue: equity and equality in the American workforce.

Conclusion

As American society looks toward the future, what will be the next steps to fulfill society's need to recognize and protect workers' rights? Are the labor laws established in the first part of the twentieth century going to be upheld in the twenty-first? Will unions and unionization continue to be as applicable as they were when those laws were first instituted? Laws and legal schemes are like many other aspects of society: they reflect public sentiment and the needs of the times. Perhaps society will see a resurgence of labor-relation laws, either in the United States or abroad. Whatever the case may be, those involved in business, whether national or international, will need to be aware of labor-relations law in the relevant countries and its implications for successful business practices.

Terms & Concepts

Collective Bargaining: A process in which an employer negotiates working conditions such as wages, hours, and fringe benefits with representatives of their organized employees.

Collective Bargaining Agreement: A contract between a labor union and an employer that outlines working conditions.

Labor Agreement: An agreement between an employer and a union that governs working conditions, wages, benefits, and grievances.

Labor Dispute: A controversy between an employer and his or her employees concerning the terms and conditions of employment, or concerning the association or representation of those who negotiate or seek to negotiate the terms or conditions of employment.

Labor-Management Relations: The broad spectrum of activities concerning the relationship between employers and employees, both union and nonunion.

Labor Relations: Discussions surrounding the issues of work stoppages, strikes, and negotiations for salaries and benefit packages.

Strike: An organized cessation or slowdown of work by employees to compel their employer to meet their demands.

Union: An organization that represents employees in negotiations with employers for salary, benefits, hours, and working conditions. Unions mostly represent skilled trades and craftsmen.

Bibliography

Bernhardt, A., Spiller, M. W., & Theodore, N. (2013). Employers gone rogue: Explaining industry variation in violations of workplace laws. Industrial & Labor Relations Review, 66, 808–832. Retrieved November 19, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=89798429&site=ehost-live

Brill, E. A., Fant, L. M., & Baddish, N. M. (2013). 2012–2013 US Supreme Court wrap-up: Hot topics in labor and employment law. Employee Relations Law Journal, 39, 3–8. Retrieved November 19, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=91640070&site=ehost-live

Carrell, M., & Heavrin, C. (2006). Labor relations and collective bargaining: Cases, practice, and law. New Jersey: Prentice Hall.

Cihon, P. J. & Castagnera, J. O. (2001). Employment and labor law. Mason, Ohio: South-Western Educational Publishing.

Federal labor laws. (1993). Congressional Digest, 72(6/7), 164–166. Retrieved November 18, 2013, from EBSCO Online Database Academic Search Complete. http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=9309290765&site=ehost-live

Illinois Labor History Society. (2000). A curriculum of United States labor history for teachers. Retrieved April 2, 2007, from http://www.kentlaw.edu/ilhs/curricul.htm

Katz, H. C. (2013). Is US public sector labor relations in the midst of a transformation? Industrial & Labor Relations Review, 66, 1031–1046. Retrieved November 19, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=91800210&site=ehost-live

Twomey, D. (2006). Labor and employment law: Text and cases. Boston, Massachusetts: Thompson.

Suggested Reading

Godin, K. & Palacios, M. (2006, May). Comparing labour relations laws in Canada and the United States. Fraser Forum, 5-7. Retrieved April 2, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20960955&site=ehost-live

Gross, J. A.(1999). A human rights perspective on U.S. labor relations law. LaborLaw Journal, 50, 197-203. Retrieved April 2, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=2393387&site=ehost-live

Koeniger, W., Leonardi, M., & Nunziata, L. (2007). Labor market institutions and wage inequality. Industrial & Labor Relations Review, 60, 340-356. Retrieved April 2, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=24257170&site=ehost-live

Marshall, S. & Mitchell, R. (2006). Enterprise bargaining, managerial prerogative and the protection of workers' rights: An argument on the role of law and regulatory strategy in Australia under the Workplace Relations Act of 1996. International Journal of Comparative Labor Law & Industrial Relations, 22, 299-327. Retrieved April 2, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22943034&site=ehost-live

Warner, K. (2013). The decline of unionization in the United States: Some lessons from Canada. Labor Studies Journal, 38, 110–138. Retrieved November 19, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=89066642&site=ehost-live [RT1]2.5 hrs—update bib