Deck 1: A First Look at Labor Markets

Question 1

Trace the evolution of the legal status of American unions. What activities were restricted by laws and courts? Did constraints increase or decline with time?

Answer 1

Sherman Act of Antitrust stands for an act that protects trade and commerce and prohibits the business entities to undertake anti-competitive policies and procedures. This act provides business enterprises set rules and guidelines to prevent indulging in those actions that prevents healthy competition in the market.
The Clayton Act of Antitrust (1914) is the amendment passed to further clarify and elaborate on the Sherman Act of Antitrust.
American unions had difficulty gaining legal status. Early cases found that collective actions in pursuit of personal interest contravened the public's interest and was hence a criminal conspiracy.
Courts were able to stop strikes and boycotts with injunctions. Despite these setbacks, collective action still occurred. Although the Clayton Act in 1914 removed unions from the Sherman Antitrust Act, courts still could find union activity an illegal restraint on trade.
In 1918 the National War Labor board was established to reduce strikes. Labor's right to organize and bargain collectively was recognized. By the 1930s, public policy toward unions shifted radically.
The Wagner Act of 1935 re-secured organizing rights and specified employer illegal activities that had been ruled unconstitutional when part of the National Industrial Recovery Act of 1933. It also established the concept of exclusive representation in the agency relationship between the union and the employees. Although there was some doubt about the constitutionality of the Wagner Act, the Supreme Court ruled in 1937 that it was constitutional under the Commerce Clause.

Question 2

What were the major contributing causes to the failure of uplift unionism?

Answer 2

Uplift unionism:
It is one of the categories of unions that aim to assure better educational facilities and enhanced economics status to workers. An organized labour management system is offered by this union.
The major causes that contributed to the failure of uplift unionism are as shown below:
• Lack of leadership and guidance to the workers to solve their problems rose as a cause to the downfall of the National Labour Union. This can be considered as a first attempt to the uplift unionism.
• The Knights of Labour was more willing to recognise the short-term legitimacy of capitalism when compared to NLU (National Labour Union). This context favoured the use of arbitration than strikes of the workers.
• Despite success, aligning leader ran for longer period of time than satisfying day-to-day grievances. This lead to the formation of unions as the American Federation of Labour that is result oriented, and gained popularity which Knights of Labour membership could not.

Question 3

What were the advantages and disadvantages of taking a "business union" approach as opposed to advocating a labor political party?

Answer 3

Business union:
The business union is formed to represent employee's interest, regulation of wages, working hours, and work place conditions. The union's agenda contributes to concern the immediate goals of the workers or employees.
The advantage and disadvantage of business union approach that oppose an advocating labour political party are as below:
• The advantage of the business union approach is its ability to satisfy the concerned members such as workers, and to obtain immediate desired results.
• The disadvantage of this approach is its limitation on the union's ability to sponsor social reforms, and lack in ideology.

Question 4

Who were the leading personalities in labor relations? Which ones contributed to the definition of labor relations in the United States?

Question 5

Who were the most effective union leaders during the 1930s and 1940s? What are your criteria for effectiveness? Would these same leaders be effective now?