Question

In: Economics

The year is 1947 and the U.S. Senate and House of Representatives are considering legislation to...

The year is 1947 and the U.S. Senate and House of Representatives are considering legislation to deal with an unsettled labor–management situation affecting the U.S. economy. Since the end of World War II, organized labor and employers have experienced a host of problems. Strikes in the oil, automobile, steel, and coal industries have occurred, causing President Harry Truman to call a national labor–management conference to find a formula for industrial peace. Still, this unsettled labor–management situation greatly strengthened opposition to the Wagner Act Congress passed in 1935.

Since the passage of the Wagner Act, labor unions had insisted on the legality of the closed shop (which demanded that workers be members of a labor union before obtaining a job). Senator Robert Taft of Ohio and Congressman Fred Hartley of New Jersey argued that the equity between organized labor and management intended by the Wagner Act was out of balance. Together they proposed the Labor Management Relations Act to counter what was perceived as the growing power of labor unions. Organized labor vigorously opposed the legislation and President Truman promised to veto the bill. However, on June 23, 1947, after overriding a presidential veto, the Taft-Hartley Act became law.

The concept of reaching a balance between labor and management led to provisions in the bill that dealt with “unfair labor practices” that applied to unions and management. Practices such as refusing to bargain in good faith, engaging in secondary boycotts, stopping work over jurisdictional or interunion disputes, and charging excessive initiation fees to keep members out of a union were considered unfair labor practices. Special rules that allowed the president to call for a “cooling-off” period or waiting period were also written into the law for handling controversies or strikes that could threaten national health or safety. The Taft-Hartley Act also made the closed shop illegal.

Organized labor denounced the entire Taft-Hartley Act as a “slave labor” law. However, unions were particularly troubled with Section 14(b) of the legislation. Section 14(b) enabled states to pass right-to-work laws that would permit limitations on union shop and union security agreements. Labor “affectionately” called the provision “right-to-wreck” laws and promised to fight such legislation in states where it was proposed. To date, 22 states have passed legislation authorizing the open shop agreement in the workplace. Oklahoma was the last state to pass right-to-work legislation in 2001.

A major question that’s been debated since passage of the Taft-Hartley Act is, “Does passage of right-to-work laws make a difference in a state’s economy?” Former Governor Frank Keating of Oklahoma, who supported the right-to-work legislation in his state, says Oklahoma experienced “a blizzard of interest after passage of the right-to-work law.” A study by the Mackinac Center for Public Policy in Michigan states, “right-to-work laws increase labor productivity by requiring labor unions to earn the support of each worker since workers are able to decide for themselves whether or not to pay dues.” Dennis Donovan, a corporate-location consultant in Edison, New Jersey, says that among manufacturers choosing facilities among numerous states, having a right-to-work law is a precondition for about one-third of the companies. Labor unions take an opposite view and claim that workers in right-to-work states earn on average less than union employees and work under less worker-friendly conditions. Unions claim the real purpose of right-to-work laws is to roll back the achievements earned by organized labor. This issue promises to still be strongly debated in this century.

  1. If given a choice, would you elect to join a labor union or not join? What are the reasons for your decision?
  2. What are today’s protections under the law available to workers?
  3. Do you believe that unions have outlived their usefulness? Explain your answer.
  4. Oklahoma is a “right-to-work state”. Explain what that means.
  5. What is a “right-to-work state”?
  6. How do you feel about economic development and growth in Oklahoma or your state?
  7. If Oklahoma or your state were not a right-to-work state, would you support a right-to-work law if it were put to a popular vote? Why or why not?

Solutions

Expert Solution

1) Labour Legislations Law in US are generally framed in order to ensure safety and smooth environment of peace working conditions for the Labourers. As stated above Taft-Hartley Act should not penalize the Labourers who are joined or willing to join in Labour Union. I prefer to join as a member in the labor union. I may be pinpoint the reasons for my willingness to join in Labour Union. Many unfair practice like Labour-Wage inequality ratio, Fixing lower rate of minimum wage can be identified and I can also be aware of Labour Protection law enacted by the Government. I can save my Labour Rights If i found something returns to me without any benefits.

2) The following protections are provided to the workers under the Law. They are a) Eradicating the inequality between Bargainning of Cheap wages between employees and employers. b) Ensuring Safety environment to the Employees in the work place. c) Protecting the Rights of Reservation of Differently Abled Person and the Women in the Workplace. c) Providing provisions to ensure maximum Sick Leave, Privilege Leave, Maternity and Paternity Leave, etc. d) Wiping out Gender and Age Discrimination and e) Following the General Statutory Regulations of Labour Law - National Labor Relations Act - 1935 enacted by the Government in order to fulfill the basic requirements for the Labourers.

3) No. Though All Unions are created in order to achieve the full freedome of rights in the workplace as well as in outside the country, But all are not achieved in the long-run. Reasons are explained briefly here. As stated above Right-to-Work law laid some restrictions Bilateral Agreement between unions and the management of the firms. All policy holders of both Government and the Board Directors of the Management thought that the Demands for the Unions will hinders the Work-flow of the Production Units and also it effects the the quantity of production. This is due to irrational thinking. i.e. If firms are not welcome the demands of the unions, then all the labourers will undergo strike without concentrating on the Production related activities. Indifferent Political views of Framing the Labour Laws are also one of the main reason of failure in satisfying the Unions Demand. Presidents- Bush, Clinton, Obama and Trump have their own perspective of Unions.

4) Oklahoma is the 'Right-to-Work-State'. Right 14(b) of the Labor Management Relations Act of 1947 (Taft-Hartley Labor Act) crticially framed the legislation to adopt Right-to-Work-State. In May 5, 1964, Okhaloma is the only County picked the choice of Right to Work policy. The Federal Government arranged for the Voting to adopt this policy. Nearly 42 counties do not vote for the Right to Work policy. Atlast the only State Oklahoma prominently adhrered to this policy. The Central and Western Counties of Oklahoma preferred Right to Work State policy.  

5. The Right to Work policy restricts the workers to join in Labour Union and also the workers need to pay any Due or Subscription to join in any Labour Union. And it also put ban on Hiring of Employees through Labour Union. It also clearly stated that without any proper intimation to the Federal Government None of the unions can collect or bargain the subscription fee from employees. The Existing Unions of other States across the boundary are also dont have rights to force the employees to join with them.

6. At present scenario, The existing companies provides job opportunities for nearly 80%. It has the large share of General Domestic Product (GDP) with approximately $185.6 million in the US. Special feature of Economic development in Oklahoma is formation of Oklahoma Economic Development Trust makes research on the major business ventured projects which can suits the need of Economic upliftment of the State. If the trust select any worth proposal then the municipal Governors adopt the policy of taking over the project. This will turn the provide employment Opportunities to all the people in the State. The GSP growth rate was 4.2% in 2015.

7) I will not prefer to vote the Right to Work State Policy in Oklahoma State because it restricts the advantage of getting mertis through Labour unions.  


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