In: Operations Management
discuss the impact of the Wagner Act in terms of its influence on contemporary labor relations compared to 100 years ago.
Answer: Wagner Act which is also known as the National Labour Relations Act passed in 1935 was one of the biggest labor reforms of the 20th century. It gave the opportunity to create a union for the laborers engaged in the organized sector. This law did not include the agricultural and domestic workers in its scope). By organizing into the union's labors gained the collective bargaining power and they were in a better position to seek the reforms and compensation from the employers. Making Unions became the legal right of the laborers. The federal government of the USA became the regulator as well as the ultimate arbitrator for labor relation issues.
The major impact of this act was to preven the unfair labour practices which were going on for over 100 years. This law made it mandatory for employers to take part in negotiation with the labour unions. Even this was challenged in court as it was seen as encroachment of federal government in the contract between the employee and employers and the Supreme court upheld the act.