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In: Operations Management

The Taft-Hartley Act outlawed the "closed shop," a term describing an employer who agrees to hire...

The Taft-Hartley Act outlawed the "closed shop," a term describing an employer who agrees to hire only those employees who are already union members. The purpose of the Taft-Hartley Act was to balance the rights and duties of both unions and employers. Explain to a 12-year-old what the terms "closed shop" and "yellow-dog contracts" mean. Give an example

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Closed Shop:

A trade union is an assosoation of employees of a firm who forms a legal unit and act as an agent and legal representative for a group of employees for every matters of law and right araising in the administration of a collective agreement. Therefore, a union is a group or a unit which is formed to secure the safety, work and wellness of employees is the union. It protects the employees from exploitation. A closed shop is a form of agreement which is made between the employer and the union in which the employer agrees to hire only union members as their employees. Therefore, the employees are required to remain the member of the union in order to be employed. For example, if you got hired in company X, you have to become the member of the union and should be continued till the time you require the job. Closed shop can be exploited because, the union will support only its members to get employed (favouratism) and if their comes a person with more effeciency and who doesnot what be the part of union, the company will loose a useful resource. Thus the International Labour Organisation has not address the legality of closed shop provision, leaving it to each individual nations. Therefore, the legal status of closed shop varies from nation to nation.

Yellow dog contract:

It is the contract made by the employer and the employee in which the employee as a part of employment should agree not to be a member of any union. For example, if you are hired as an employee in company X, you should agree not to be part of any union. These employees can act as a scab(strikebreaker), who is willing to break the line. This was used to prevent the formation of unions. If there is no unions, there will be no laws or rights to look after the safety and security of the employees. There will be no one to ask for the abuse made against the employees by the organisation.


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