Lecture10 - From NIRA to NLRB: The Logic of Regulatory...

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Unformatted text preview: From NIRA to NLRB: The Logic of Regulatory Unionism The Wagner Act of 1935 and the America's Second New Deal The National Labor Relations Act (The Wagner Act) Landmark legislation Federal power placed in service of labor unions and collective bargaining process Frequency of U.S. Labor Strikes, 1920-1940 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1923 1925 1928 1929 1931 1933 1935 1937 1920 1921 1922 1924 1926 1927 1930 1932 1934 1936 1938 1939 1940 Total Number of Strikes Year Changing Purpose of U.S. Labor Strikes, 1920-1940 0.7 0.6 Percent of All Strikes 0.5 0.4 0.3 Wages and Hours Strikes Unionization Strikes 0.2 0.1 0 1920 1921 1923 1924 1931 1933 1934 1935 1937 1938 1939 1940 1922 1925 1926 1927 1928 1929 1930 1932 1936 Year Unionization Rates in the Nonagricultural Employment Sector 40 35 30 25 20 15 10 5 0 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 The Wagner Act--Key Provisions Section 7 defines employee rights The Wagner Act--Key Provisions Section 7 defines employee rights To form/join/assist labor organizations The Wagner Act--Key Provisions Section 7 defines employee rights To form/join/assist labor organizations To bargain collectively w/ employers through representatives of own choosing The Wagner Act--Key Provisions Section 7 defines employee rights To form/join/assist labor organizations To bargain collectively w/ employers through representatives of own choosing To engage in concerted activities for purpose of collective bargaining (i.e., strikes, boycotts) The Wagner Act--Key Provisions Section 8 defines unfair labor practices The Wagner Act--Key Provisions Section 8 defines unfair labor practices Formation of company unions The Wagner Act--Key Provisions Section 8 defines unfair labor practices Formation of company unions To discriminate in hiring/firing b/c of unionrelated activity The Wagner Act--Key Provisions Section 8 defines unfair labor practices Formation of company unions To discriminate in hiring/firing b/c of unionrelated activity To discriminate against employees for testifying/bringing unfair labor practice charges before the NLRB The Wagner Act--Key Provisions Section 8 defines unfair labor practices Formation of company unions To discriminate in hiring/firing b/c of unionrelated activity To discriminate against employees for testifying/bringing unfair labor practice charges before the NLRB Employers who do not bargain in good faith The Wagner Act--Key Provisions Section 9 Procedures for determining appropriate bargaining units The Wagner Act--Key Provisions Section 9 Procedures for determining appropriate bargaining units 30% workers must indicate interest in election before NLRB organizes one The Wagner Act--Key Provisions Section 9 Procedures for determining appropriate bargaining units 30% workers must indicate interest in election before NLRB organizes one Secret ballot/majority rule election The Wagner Act--Key Provisions Section 9 Procedures for determining appropriate bargaining units 30% workers must indicate interest in election before NLRB organizes one Secret ballot/majority rule election One union for entire bargaining unit Minority cannot choose different union The Wagner Act--Key Provisions Section 9 Procedures for determining appropriate bargaining units 30% workers must indicate interest in election before NLRB organizes one Secret ballot/majority rule election One union for entire bargaining unit Minority cannot choose different union Employer-union agreements binding on entire workplace Not just those who voted for union The National Labor Relations Board (NLRB) The National Labor Relations Board (NLRB) Compare with NIRA's National Labor Board Fact-finding board Mediation board Moral suasion board The National Labor Relations Board (NLRB) Classic independent regulatory agency The National Labor Relations Board (NLRB) Classic independent regulatory agency Legislative functions Defining unfair labor practices The National Labor Relations Board (NLRB) Classic independent regulatory agency Legislative functions Defining unfair labor practices Executive functions Administering/Enforcing provisions Conducting worksite elections Investigate allegations of unfair labor practices Issuing cease and desist orders unfair labor practices found The National Labor Relations Board (NLRB) Classic independent regulatory agency Legislative functions Defining unfair labor practices Executive functions Administering/Enforcing provisions Conducting worksite elections Investigate allegations of unfair labor practices Issuing cease and desist orders unfair labor practices found Judicial Functions Hears disputes arising under the Wagner Act Taft-Hartley Act of 1947 Wagner Act places no restrictions on union activity Taft-Hartley Act of 1947 Wagner Act places no restrictions on union activity Taft-Hartley changes this Taft-Hartley Act of 1947 Wagner Act places no restrictions on union activity Taft-Hartley changes this #1 Defines a set of unfair labor practices committed by unions and makes them illegal Strikes undertaken to force employers to fire workers who refuse to join union Secondary (or sympathy) strikes and boycotts Hat Maker Retail Store Hat maker: Primary strike over wages, hours, benefits, working conditions Hat Maker Retail Store Hat maker: Primary strike over wages, hours, benefits, working conditions Hat Maker Retail Store Hat maker: Hires replacement workers to continue making hats Hat maker: Primary strike over wages, hours, benefits, working conditions Retail Store: Secondary (sympathy) strike to stop retailer from selling hats made by replacement labor Hat Maker Retail Store Hat maker: Hires replacement workers to continue making hats Hat maker: Primary strike over wages, hours, benefits, working conditions Retail Store: Secondary (sympathy) strike to stop retailer from selling hats made by replacement labor Hat Maker Retail Store Hat maker: Hires replacement workers to continue making hats Retail Store: Force retailer to put economic pressure on hat maker to resolve dispute Hat maker: Primary strike over wages, hours, benefits, working conditions Retail Store: Secondary (sympathy) boycott to stop retailer from selling hats made by replacement labor Hat Maker Retail Store Hat maker: Hires replacement workers to continue making hats Hat maker: Primary strike over wages, hours, benefits, working conditions Retail Store: Secondary (sympathy) boycott to stop retailer from selling hats made by replacement labor Hat Maker Retail Store Hat maker: Hires replacement workers to continue making hats Retail Store: Force retailer to put economic pressure on hat maker to resolve dispute Taft-Hartley Act of 1947 #2 Bars direct union contributions to political candidates Leads to creation of first modern PAC AFL-CIO's Committee on Political Education (COPE) Taft-Hartley Act of 1947 #2 Bars direct union contributions to political candidates 3# Authorizes president to impose 60-day "cooling off" period on strikes w/ national security implications Taft-Hartley Act of 1947 #2 Bars direct union contributions to political candidates 3# Authorizes president to impose 60-day "cooling off" period on strikes w/ national security implications 4# Allows states to pass "open shop" (RTW) laws The Political Economy of the Wagner Act's "Regulatory Unionism" Industrial stability Underconsumption Industrial peace Regulatory Unionism Industrial stability Compare with NIRA Similar goals: restrain cutthroat competition and stabilize price levels Different mechanisms: NIRA: Govt-sponsored industrial cartels and trade agreements NIRA NLRA: Union organization and collective bargaining NLRA agreements Regulatory Unionism Industrial stability Compare with NIRA Similar goals: restrain cutthroat competition and stabilize price levels Different mechanisms: NIRA: Govt-sponsored industrial cartels and trade agreements NIRA NLRA: Union organization and collective bargaining NLRA agreements Problems with NIRA Complexity Manpower and expertise Unconstitutional delegation of legislative power Regulatory Unionism Wagner Act and regulatory unionism Requires much less administrative capacity Substitutes labor intervention for state intervention in economy Substitutes collective bargaining agreement for trade agreement Basic Elements of Regulatory Unionism Basic Elements of Regulatory Unionism Unionize industry Basic Elements of Regulatory Unionism Unionize industry Negotiate industry-wide wage and hours agreements through collective bargaining Basic Elements of Regulatory Unionism Unionize industry Negotiate industry-wide wage and hours agreements through collective bargaining Monitor/enforce agreements through labor action NLRB action; recourse to strike Basic Elements of Regulatory Unionism Unionize industry Negotiate industry-wide wage and hours agreements through collective bargaining Monitor/enforce agreements through labor action NLRB action; recourse to strike These three elements remove most critical component in cutthroat competition Flexible labor costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 Price FIRM 2 Price Labor Costs Total Costs Other Costs Labor Costs Total Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Total Costs Other Costs Other Costs Labor Costs Total Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Labor Costs Total Costs Other Costs Price Labor Costs Total Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Labor Costs Total Costs Other Costs Total Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Total Costs Labor Costs Total Costs Other Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Total Costs Other Costs Labor Costs Total Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Total Costs Other Costs Other Costs Labor Costs Total Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Labor Costs Total Costs Other Costs Price Labor Costs Total Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Labor Costs Other Costs Total Costs Other Costs Total Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 FIRM 2 Price Price Labor Costs Other Costs Total Costs Labor Costs Other Costs Total Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 Price FIRM 2 Price Price Floor Labor Costs Labor Costs Other Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 Price Fix Wage Rates Across Industry Labor Costs Labor Costs FIRM 2 Price Price Floor Other Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 Price Fix Wage Rates Across Industry Labor Costs Labor Costs FIRM 2 Price Price Floor Remove Labor Costs as Competitive Instrument Other Costs Other Costs Collective Bargaining Agreements Place a Floor Underneath Prices FIRM 1 Price Fix Wage Rates Across Industry Labor Costs Strike to Defend Wages Other Costs Labor Costs Strike to Defend Wages Other Costs FIRM 2 Price Price Floor Remove Labor Costs as Competitive Instrument Regulatory Unionism Underconsumption Regulatory Unionism Underconsumption Unions not important just because they fix a floor underneath wages Also important because unions raise employee wages Regulatory Unionism Underconsumption Unions not important just because they fix a floor underneath wages Also important because unions raise employee wages Organized labor provides necessary bargaining power to provide workers with rising disposable incomes Must be sensitive to relationship between wages and consumer demand Regulatory Unionism Businessman Edward Filene as exemplar of new consumptionist thinking Regulatory Unionism Industrial peace Depression conditions (social/political) Labor movement radicalized by economic crisis and promise of section 7A of NIRA Collapse of NRA Persistence of depression Radicalization of labor movement Constitutional Revolution: Toward a Federal Police Power Constitutional Revolution: Toward a Federal Police Power Case: Jones & Laughlin Steel Corp. v. U.S. Constitutional Revolution: Toward a Federal Police Power Case: Jones & Laughlin Steel Corp. v. U.S. 10,000 workers/multi-state operation Constitutional Revolution: Toward a Federal Police Power Case: Jones & Laughlin Steel Corp. v. U.S. 10,000 workers/multi-state operation J&L Steel Corp fires 10 employees for union activity Unfair labor practice under NLRA Constitutional Revolution: Toward a Federal Police Power Case: Jones & Laughlin Steel Corp. v. U.S. 10,000 workers/multi-state operation J&L Steel Corp fires 10 employees for union activity Unfair labor practice under NLRA NLRB orders reinstatement of fired workers Constitutional Revolution: Toward a Federal Police Power Case: Jones & Laughlin Steel Corp. v. U.S. 10,000 workers/multi-state operation J&L Steel Corp fires 10 employees for union activity Unfair labor practice under NLRA NLRB orders reinstatement of fired workers Lower federal court will not enforce NLRB order exceeds constitutional authority Constitutional Revolution: Toward a Federal Police Power In court, Feds stake out contentious constitutional ground Assert power to regulate any activity affecting interstate commerce Constitutional Revolution: Toward a Federal Police Power Issue is not: 1) nature of activity Commerce or police power 2) location of activity Interstate or intrastate Constitutional Revolution: Toward a Federal Police Power Issue is not: 1) nature of activity Commerce or police power 2) location of activity Interstate or intrastate But rather: impact of activity in question on interstate commerce Does activity in question facilitate or impede the flow of goods/services in interstate commerce? Constitutional Revolution: Toward a Federal Police Power How should Court have decided if applying principles of dual federalism? Remember EC Knight? Constitutional Revolution: Toward a Federal Police Power How should Court have decided if applying principles of dual federalism? Remember EC Knight? Congress can regulate interstate buying and selling of steel; transportation of steel Constitutional Revolution: Toward a Federal Police Power How should Court have decided if applying principles of dual federalism? Remember EC Knight? Congress can regulate interstate buying and selling of steel; transportation of steel But steel production units are located w/in boundaries of single state Regulation of industrial relations is subject to police powers of state in question Constitutional Revolution: Toward a Federal Police Power In Supreme Court, Feds argue that industrial disputes have potential to disturb the flow of interstate commerce Congress has authority to regulate industrial relations, even if production facilities are internal to particular states Constitutional Revolution: Toward a Federal Police Power J & L argues that discharge of 10 employees is miniscule Impact on interstate commerce would be imperceptible Constitutional Revolution: Toward a Federal Police Power Supreme Court upholds federal authority to regulate activities internal to production site Constitutional reformulation of Commerce Clause Goodbye Dual Federalism Hello de facto Federal Police Power Clause Allows fed govt to extend regulatory reach into new realms So long as Congress asserts some (any) relationship to interstate commerce Constitutional Revolution: Toward a Federal Police Power E.g., The Civil Rights Act of 1964 Roots Congress's authority to act in the Commerce Clause Federal Govt successfully sues Southern hotels (Heart of Atlanta Hotel v. U.S.) and restaurants (Katzenbach v. McClung) for racial discrimination Supreme Court upholds federal authority in part b/c Hotels accept out-of-state patrons Much of restaurant food originates from out of state Constitutional Revolution: Toward a Federal Police Power E.g., the "new social regulation" (1960s/70s) Constitutional Revolution: Toward a Federal Police Power E.g., the "new social regulation" (1960s/70s) Clean Air/Water Legislation Authority of Congress to legislate environmental protection laws grounded in Commerce Clause Constitutional Revolution: Toward a Federal Police Power E.g., the "new social regulation" (1960s/70s) Clean Air/Water Legislation Authority of Congress to legislate environmental protection laws grounded in Commerce Clause Workplace safety/heath laws Authority of Congress to legislate changes to organization of workplace to protect workers grounded in Commerce Clause Constitutional Revolution: Toward a Federal Police Power E.g., the Americans with Disabilities Act; the Violence Against Women Act; the Brady Act (handgun regulation) Congress' authority to legislate in each of these substantive areas also grounded in part in the Commerce Clause ...
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This note was uploaded on 04/02/2008 for the course POL SCI 147C taught by Professor James during the Winter '08 term at UCLA.

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