Question

4. What were the main purposes of the Sherman, Clayton and Federal Trade Commission Acts and how did they affect labor-management relations?

Answer 1

The main purposes of the Sherman, Clayton and Federal Trade Commission Acts:

These acts are part of anti-trust or competition law in United States. Its main objective is to promote competition in the economy. Competition in he market leads to lower prices, which eventually benefits consumers. And it also leads to higher variety of goods, hence higher choice. Competition also increases efficiency in companies and it helps them to compete from other economies. The Sherman Act was the first major anti-trust law in US. The aim of the act was to stop the focus of business in large organizations or trusts. So it prevented exclusive dealings, mergers, price discriminations etc. Clayton and Federal Trade Commission Acts came subsequently. It further strengthened anti-trust laws. These preserved the competitive spirit of the economy and protected the public against unfair practise by monopolies. It also encouraged free movement of inter-state goods and services.

How they affect labor-management relations:

The Clayton act allowed certain labour-union activities. This gave labour a voice, and prevented some injustice against them. It also stated that labour is not a commodity or article of commerce. The acts also encouraged labour to become skilled and productive as the competition increased. It also ensured that the wages were competitive. So it developed a healthy labor-management relations.