Wagner Act Essay, Research Paper
Wagner Act
What was the need for the Wagner Act? Before the WA, rights of workers
were protected by the National Industry Recovery Act of 1933. In 1935, the
Supreme Court declared the NIRA unconstitutional. By doing so, workers
lost their rights to join unions of their choice and to bargain collectively. In
1935 the unemployment rate was over 21% and more than 50% lived in
poverty as we measure it today. Large employers were said to have immense
control over their workers who had at best, one single place to work. Those
workers were paid less than their economic contribution measured by their
productivity. Before the WA, the federal government had refrained from
supporting collective bargaining over wages and working conditions and from
facilitating growth of trade unions. This new law marked a significant reversal
of this attitude. American Federation of Labor and CIO took advantage of
governmental encouragement by carrying out nationwide organizational
campaigns. What was the Wagner Act of 1935? The Wagner Act was
sponsored by Senator Robert f. Wagner, from New York. Passed in July
1935 with firm support from Franklin D. Roosevelt. The act is more
commonly known as the National Labor Relations Act. Some say the NLRA
is the single most important piece of labor legislation enacted in the 20th
century in the United States. The law governs the labor-management relations
of business firms engaged in interstate commerce. The general objective is to
guarantee employees 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 concerted activities for the purpose of
collective bargaining or other mutual aid and protection? -New Deal
legislation designed to protect workers? right to unionization -implements the
national labor policy of assuring free choice and encouraging collective
bargaining as a means of maintaining industrial peace -Primary law governing
relations between unions and employers in the private sector -Established the
federal government as the regulator and ultimate arbitrator of labor relations.
It set up a permanent, three member National Labor Relations Board with
the power to protect the right of most workers(except agricultural,airlines,
railroads, and government) to organize unions of their own choosing and to
encourage collective bargaining. -gave NLRB power to order elections
whereby workers could choose which union they wanted to represent them.
-recognized employee rights to collective bargaining,to associate as a group
about hours, wages, and working conditions -guaranteed the right of workers
to form unions by majority vote and bargain as a unified group -allows
employees of certain companies to pick which union or person will negotiate
for them -employees may request the NLRB to figure out an election
between workers to choose a representative -prohibits employees from
interfering with union effort to bring them into unions. -specifies unfair labor
practices for employers -requires employers to bargain in good faith over
mandatory issues -employers have the right to negotiate with representatives
elected by the workers -prohibited anti-union tactics used by employers
-employers said Wagner act gave employees too much power–argued it
only allowed unions to force a business to hire only union members(which is a
closed shop) -prohibited employers from refusing to bargain with any such
union that had been certified by the NLRB as being the choice of a majority
of employees -Prohibited employers from engaging in such unfair labor
practices such as setting up a company union (formation of
company-dominated unions) and fire or discriminate against workers who
organized or joined unions. National Labor Relations Board… What is it?
What does it do? The National Labor Relations Board is an independent
federal agency created by Congress in 1935 to administer the national labor
relations act, the primary law governing relations between unions and
employers in the private sectors. Throughout the years, Congress has
amended the Act and the Board and courts have developed a body of law
drawn from the statute. -has two primary functions 1) to determine, through
secret ballot elections, the free democratic choice by employees whether they
wish top be represented by a union in dealing with their employers and if so,
by which union 2) to prevent and remedy unlawful acts(unfair labor practices)
by either employers or unions -processes only those charges of unfair labor
practices and petitions for employee elections that are filed with the NLRB in
one of its 52 regional, subregional, or resident offices. -has two major
separate components 1) the Board itself has 5 members and primarily acts as
a quasi-judicial body in deciding cases on the basis of formal records in
administrative proceedings. members are appointed by the president to 5
year terms, with senate consent, the term of one member expiring each year.
2) the General Counsel is appointed by the president to a 4 year term with
senate consent, is independent from the board and is responsible for the
investigation and prosecution of unfair labor practice cases and for the
general supervision of the NLRB field offices in the processing of cases.
(unfair labor practices… examples of… acts of interfernece,restraint, or
coercion upon employees with respect to \ right to organize and bargain
collectively; domination of or interference with the formation or administration
of any labor organization, or the contribution of financial or other support
thereto; discrimination in regard to hiring or dismissal of employees in order
to encourage or discourage membership in any labor organizations; refusal to
bargain collectively with the representative chosen by a majority of
employees in a bargaining unit deemed appropriate by the NLRB) How are
unfair labor practice cases processed? when a charge is filed, the appropriate
office conducts an investigation see whether there is reasonable cause that the
Act has been violated. It will be dismissed if the regional director thinks the
charge is lacking. A dismissal may be appealed to the General Counsel?s
office. if the regional director finds reasonable cause that a violation of the
Act has been committed, the region seeks a voluntary settlement to remedy
the violations. If this attempt fails, a formal complaint is filed and the case is
heard before an NLRB Administrative Law Judge. the judge issues a written
decision that is sent to the 5 member board for a final determination. The
board?s decision is subject to review in a US Court of Appeals.The General
Counsel?s goal is to complete investigations and, where further proceedings
are warranted, issue complaints if settlement is not reached within 7 to 15
weeks from the filing of the charge. Of the approximately 35,000 charges
filed each year, about one third are found to have merit of which over 90%
are settled. How has the Wagner Act helped or hurt? Current/future plans?
-number of organized workers rose from 3.5 million in 1935 to 15 million in
1947. -in 1995, over 600 lawyers working to pursue legal actions which
have the net effect of reducing job opportunities and raising unemployment
for American workers… these attorneys work for the NLRB, an increasingly
activist body that intervenes in labor disputes, often promoting cost-increasing
settlement that reduce employer incentives to hire workers. – live in a different
world today… in no year in the past half century has the unemployment rate
been half of what it was when the Wagner act was passes. poverty rate is
two thirds lower… proportions of Americans working in factory jobs has
fallen sharply. The share of labor force that was working in giant Fortune 500
corporations today is barely half of what it was 25 years ago. -with modern
transportation and new communication modes, everyone is very aware of
abundant job opportunities… most people do not work in a town where one
company dictates wages. -the whole rationale behind the Wagner act is
irrelevant in today?s world. the proportion of labor force in unions has fallen
from almost one-third in 1945 to under 15 percent today. The private sector
is even lower, but around half of union workers now are associated with the
government in some form. -the ?Law of Demand?… higher prices for labor
means employers will buy less of it. employers will substitute machines for
workers, reduce business volume, or switch productions to overseas to avoid
the higher labor costs. the Wagner act was designed to raise wages… it led to
a decline in the quantity of labor demanded, aggravating unemployment and
reducing job opportunities, while its impact on costs tended to raise prices to
consumers. -current Clinton administration is apparently trying to increase
union power by appointing activists to the NLRB, pressuring employers not
to hire replacement workers in strikes. the Clinton administration defends the
depression-era legislation that hinders job opportunities for Americans…
instead of adapting American labor law to meet the economic realities and
changing environment for the coming millennium. the time has come to repeal
the Wagner Act… Problems with the NLRA… small businesses are very
vulnerable when hit with frivolous charges of unfair labor. Often times it is the
result of a union organizing drive trying to financially squeeze the employer
into bowing into union demands. In such cases like this, the NLRB is no
longer the neutral arbitrator, but a union accomplice. (Congress is trying to
restore the desperately needed balance and fairness to the proceedings of the
NLRB, mainly for the benefit of small businesses. Some people were saying
that the NLRB was allowing its procedures to be abused by the unions to
inflict economic harm on small businesses and their employers. The acts were
the Truth in Employment Act– which would amend the NLRA to make clear
that an employer is not required to hire any person who seeks a job in order
to promote interests related to those of the employer, the Fair Access to
Indemnity and Reimbursement (FAIR) Act– amends the NLRA to
reimburse a small business or labor organization prevailing against an NLRB
action the attorney?s fees and expenses used to defend themselves (since
small employers cannot afford the qualified legal representation needed to
defend themselves), the Fair Hearing Act– , Justice on Time Act– would
shorten the often long delays in the processing of cases by the NLRB, would
be required to issue a decision within one year on all unfair labor practice
complaints in cases where it is alleged that an employer has discharged an
employee in an attempt to discourage or encourage union membership(at time
of passing, median time for processing of such cases is 546 days) The NLRA
is in major need of reevaluation and amending. It has not been amended in
over 40 years and unions are not as popular as they once were in the
1930?s… after W.W.II nearly 40% of the American workforce was
unionized and 90% of construction workers belonged to a trade union.
Today fewer than 1 in 8 belong to a union and 1 in 5 construction workers
belong to a trade union. Most union members now are of the semiskilled and
government workers. -pros of NLRA… gave employees to chance to
increase their economic power, decrease the economic power the employer
held. -cons of NLRA… employee involvement becomes difficult, teamwork is
difficult… with a union everyone must be treated the same and there is no
opportunity to reward for true merit.DataBase
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Wagner Act
What was the need for the Wagner Act? Before the WA, rights of workers
were protected by the National Industry Recovery Act of 1933. In 1935, the
Supreme Court declared the NIRA unconstitutional. By doing so, workers
lost their rights to join unions of their choice and to bargain collectively. In
1935 the unemployment rate was over 21% and more than 50% lived in
poverty as we measure it today. Large employers were said to have immense
control over their workers who had at best, one single place to work. Those
workers were paid less than their economic contribution measured by their
productivity. Before the WA, the federal government had refrained from
supporting collective bargaining over wages and working conditions and from
facilitating growth of trade unions. This new law marked a significant reversal
of this attitude. American Federation of Labor and CIO took advantage of
governmental encouragement by carrying out nationwide organizational
campaigns. What was the Wagner Act of 1935? The Wagner Act was
sponsored by Senator Robert f. Wagner, from New York. Passed in July
1935 with firm support from Franklin D. Roosevelt. The act is more
commonly known as the National Labor Relations Act. Some say the NLRA
is the single most important piece of labor legislation enacted in the 20th
century in the United States. The law governs the labor-management relations
of business firms engaged in interstate commerce. The general objective is to
guarantee employees 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 concerted activities for the purpose of
collective bargaining or other mutual aid and protection? -New Deal
legislation designed to protect workers? right to unionization -implements the
national labor policy of assuring free choice and encouraging collective
bargaining as a means of maintaining industrial peace -Primary law governing
relations between unions and employers in the private sector -Established the
federal government as the regulator and ultimate arbitrator of labor relations.
It set up a permanent, three member National Labor Relations Board with
the power to protect the right of most workers(except agricultural,airlines,
railroads, and government) to organize unions of their own choosing and to
encourage collective bargaining. -gave NLRB power to order elections
whereby workers could choose which union they wanted to represent them.
-recognized employee rights to collective bargaining,to associate as a group
about hours, wages, and working conditions -guaranteed the right of workers
to form unions by majority vote and bargain as a unified group -allows
employees of certain companies to pick which union or person will negotiate
for them -employees may request the NLRB to figure out an election
between workers to choose a representative -prohibits employees from
interfering with union effort to bring them into unions. -specifies unfair labor
practices for employers -requires employers to bargain in good faith over
mandatory issues -employers have the right to negotiate with representatives
elected by the workers -prohibited anti-union tactics used by employers
-employers said Wagner act gave employees too much power–argued it
only allowed unions to force a business to hire only union members(which is a
closed shop) -prohibited employers from refusing to bargain with any such
union that had been certified by the NLRB as being the choice of a majority
of employees -Prohibited employers from engaging in such unfair labor
practices such as setting up a company union (formation of
company-dominated unions) and fire or discriminate against workers who
organized or joined unions. National Labor Relations Board… What is it?
What does it do? The National Labor Relations Board is an independent
federal agency created by Congress in 1935 to administer the national labor
relations act, the primary law governing relations between unions and
employers in the private sectors. Throughout the years, Congress has
amended the Act and the Board and courts have developed a body of law
drawn from the statute. -has two primary functions 1) to determine, through