Labour Regulations

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Labour Regulations

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Table of Contents

1. Constitutional Provisions ................................................................................................................. 5

2. Regulatory Efforts in India............................................................................................................... 9
3. Workmen's Compensation Act, 1923 ............................................................................................. 14
4. Unorganised Workers' Social Security Act, 2008. .......................................................................... 20
5. Maternity Benefit Act, 1961........................................................................................................... 24
6. Industrial Disputes Act, 1947......................................................................................................... 29
7. Payment of Wages Act, 1936 ......................................................................................................... 41
8. Minimum Wages Act, 1948 ........................................................................................................... 43
9. Payment of Bonus Act, 1965.......................................................................................................... 47
10. Equal Remuneration Act, 1976 ...................................................................................................... 50
11. Payment of Gratuity Act, 1972....................................................................................................... 52
12. Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 ............................................. 55
13. Industrial Employment (Standing Orders) Act, 1946 ...................................................................... 61
14. Trade Union Act, 1926 .................................................................................................................. 63
15. Factories Act, 1948........................................................................................................................ 68
16. Employees' State Insurance Act, 1948............................................................................................ 76
17. Child Labour (Prohibition and Regulation) Act, 1986..................................................................... 82
18. Contract Labour (Regulation and Abolition) Act, 1970 .................................................................. 86
19. Building and Other Construction Workers Act, 1996...................................................................... 88
20. Mines Act, 1952 ............................................................................................................................ 97
21. Labour Plantation Act, 1951 .......................................................................................................... 97
22. Motor Transport Workers Act, 1961 .............................................................................................. 98
23. International Labour Organization.................................................................................................. 98
24. Labour Welfare Regulations in UK and USA ............................................................................... 102

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1. Constitutional Provisions

The Constitution of India not only guarantees some of the fundamental rights to its citizens but also has
embodied Directive Principle of the state policy for the attainment of a social order based on Justice,
Liberty, Equality and Fraternity. Therefore the Constitution maintains a list of fundamental rights and
Directive Principle of the state policy which refers generally to the upliftment and promotion of the
welfare of the people.

Article 14 of the Indian Constitution explains the concept of Equality before law. The concept of equality
does not mean absolute equality among human beings which is physically not possible to achieve. It is a
concept implying absence of any special privilege by reason of birth, creed or the like in favour of any
individual, and also the equal subject of all individuals and classes to the ordinary law of the land. The
Supreme Court has held that although the principle of 'equal pay for equal work' is not expressly declared
by our Constitution to be a fundamental right, but it is certainly a constitutional goal under Article 14 of
the Constitution. This right can, therefore, be enforced in cases of unequal scales of pay based on
irrational classification.

Article 19 speaks about the Fundamental right of citizen to form an associations and unions. Under clause
(4) of Article 19, however, the State may by law impose reasonable restrictions on this right in the interest
of public order or morality or the sovereignty and integrity of India. The right of association pre-supposes
organization. It as an organization or permanent relationship between its members in matters of common
concern. It thus includes the right to form companies, societies, partnership, trade union, and political
parties.

Right to life, includes right to the means of livelihood which make it possible for a person to live—The
sweep of the right to life, conferred by Article 21 is wide and far reaching. 'Life' means something more
than mere animal existence. It does not mean merely that life cannot be extinguished or taken away as, for
example, by the imposition and execution of the death sentence, except according to procedure
established by law. That is but one aspect of the right to life. An equally important facet of that right is the
right to livelihood because, no person can live without the means of living, that is, the means of
livelihood. If the right to livelihood is not treated as a part of the constitutional right to life, the easiest
way of depriving a person of his right to life would be to deprive him of his means of livelihood to the
point of abrogation. Such deprivation would not only denude the life of its effective content and
meaningfulness but it would make life impossible to live. There is thus a close nexus between life and the
means of livelihood and as such that, which alone makes it possible to live, leave aside what makes life
livable, must be deemed to be an integral component of the right of life.

The principles contained in Articles 39(a) and 41 must be regarded as equally fundamental in the
understanding and interpretation of the meaning and content of fundamental rights. If there is an
obligation upon the State to secure to the citizens an adequate means of livelihood and the right to work, it
would be sheer pedantry to exclude the right to livelihood from the content of the right to life. The State
may not, by affirmative action, be compellable to provide adequate means of livelihood or work to the
citizens. But, any person, who is deprived of his right to livelihood except according to just and fair

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The Industrial Employment (Standing Orders) Act, 1946

The Industrial Disputes Act, 1947

Similarly the other two codes i.e. ‘Labour Code on Social Security & Welfare’ and ‘Labour Code on
Safety and Working Condition’ will rationalize, amalgamate and simplify the provisions of other various
labour laws.

DRAFT SMALL FACTORY BILL

The draft Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014 was floated
by the labour ministry in October 2014, based on the recommendation of the Second National
Commission on Labour in 2000. The proposed Bill seeks to bring all small factories under a common
regulation and exempt these units from 14 central labour laws. It envisages rules for wages, overtime
hours, social security and appointment of factory inspectors in units employing fewer than 40.

EASE OF COMPLIANCE TO MAINTAIN REGISTERS UNDER VARIOUS LABOUR LAWS

RULES 2017

In 2017, The Ministry of Labour and Employment has replaced 56 Registers/Forms under “9 Central
Labour Laws” and Rules with “5 common Registers/Forms”. This was done to improve “EASE OF
DOING BUSINESS”

The List of 9 Central Labour Laws is:

(i) Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996 (27 of 1996);
(ii) Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970);
(iii) Equal Remuneration Act, 1976 (25 of 1976);
(iv) Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act,
1979 (30 of 1979);
(v) Mines Act, 1952 (35 of 1952)
(vi) Minimum Wages Act, 1948 (11 of 1948);
(vii) Payment of Wages Act, 1936 (4 of 1936);
(viii) Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 1976); and
(ix) Working Journalists and Other Newspaper Employees (Conditions of Service) and
Miscellaneous Provisions Act, 1955 (45 of 1955);

3. Workmen's Compensation Act, 1923

The Workmen’s Compensation Act, 1923 provides for payment of compensation to workmen and their
dependants in case of injury and accident (including certain occupational disease) arising out of and in the
course of employment and resulting in disablement or death. The Act applies to railway servants and
persons employed in any such capacity as is specified in Schedule II of the Act. The schedule II includes
persons employed in factories, mines, plantations, mechanically propelled vehicles, construction works
and certain other hazardous occupations.

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The amount of compensation to be paid depends on the nature of the injury and the average monthly
wages and age of workmen. The minimum and maximum rates of compensation payable for death (in
such cases it is paid to the dependents of workmen) and for disability have been fixed and is subject to
revision from time to time.

A Social Security Division has been set up under the Ministry of Labour and Employment , which deals
with framing of social security policy for the workers and implementation of the various social security
schemes. It is also responsible for enforcing this Act. The Act is administered by the State Governments
through Commissioners for Workmen's Compensation.

DEFINITIONS
Commissioner means a Commissioner for Workmen’s Compensation Act.

Dependent means any of the following relatives of a deceased workman namely:-

(i) a widow a minor legitimate or adopted son an unmarried legitimate or adopted daughter or a
widowed mother;
(ii) if wholly dependant on the earnings of the workman at the time of his death a son or a
daughter who has attained the age of 18 years
(iii) if wholly or in part dependant on the earnings of the workman at the time of his death- (a) a
widower (b) a parent other than a widowed mother (c) a minor illegitimate son an unmarried
illegitimate daughter or a daughter legitimate or illegitimate or adopted if married and a minor or
if widowed and minor (d) a minor brother or an unmarried sister or a widowed sister if a minor
(e) a widowed daughter-in-law (f) a minor child of a pre-deceased son (g) a minor child of a pre-
deceased daughter where no parent of the child is alive or (h) a paternal grandparent if no parent
of the workman is alive;

Minor means a person who has not attained the age of 18 years.

Partial disablement means where the disablement is of a temporary nature such disablement as reduces
the earning capacity of a workman in any employment in which he was engaged at the time of the
accident resulting in the disablement and where the disablement is of a permanent nature such
disablement as reduces his earning capacity in every employment which he was capable of undertaking at
that time :
Provided that every injury specified in Part II of Schedule shall be deemed to result in permanent
partial disablement.

Seaman means any person forming part of the crew of any ship but does not include the master of the
ship.

Total disablement means such disablement whether of a temporary or permanent nature as incapacitates
a workman for all work which he was capable of performing at the time of the accident resulting in such
disablement :

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Provided that permanent total disablement shall be deemed to result from every injury specified
in Part I of Schedule I or from any combination of injuries specified in Part II thereof where the
aggregate percentage of the loss of earning capacity as specified in the said Part II against those
injuries amount to 100% per cent or more;

Wages includes any privilege or benefit which is capable of being estimated in money other than a
traveling allowance or the value of any traveling concession or a contribution paid by the employer of a
workman towards any pension or provident fund or a sum paid to a workman to cover any special
expenses entailed on him by the nature of his employment;

EMPLOYER’S LIABILITY
The employer shall not be so liable to pay compensation if -
(a) If injury does not result in the total or partial disablement for a period exceeding 3 days;
(b) If injury caused by an accident which is directly attributable to:
 Workman having been at the time thereof under the influence of drink or drugs
 Wilful disobedience of the workman to an order expressly given or to a rule
expressly framed for the purpose of securing the safety of workmen.
 Wilful removal or disregard by the workman of any safety guard.

AMOUNT OF COMPENSATION
where “death” results from the injury
an amount equal to 50% of the monthly wages multiplied by the relevant factor; or an amount of
Rs 120000, whichever is more;

where “permanent total disablement” results from the injury

an amount equal to 60% of the monthly wages multiplied by the relevant factor; or an amount of
Rs 140000 whichever is more.
Relevant factor is specified in the Schedule IV and depends upon number of years in service and
age of the workman.

If the monthly wages of a workman exceed Rs 8000 his monthly wages for the purposes
calculation shall be deemed to be Rs 8000 only.

where “permanent partial disablement” results from the injury

 If injury specified in Schedule I, amount is percentage of the compensation which would have
been payable in the case of “permanent total disablement” as is specified therein as being the
percentage of the loss of earning capacity caused by that injury.
 If injury not specified in Schedule I, amount is percentage of the compensation payable in the
case of “permanent total disablement” as is proportionate to the loss of earning capacity (as
assessed by the qualified medical practitioner).
Where more than one injuries are caused by the same accident, then amount of compensation
payable shall not exceed the amount which would have been payable if “permanent total
disablement” had resulted from the injuries.

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where “temporary disablement” whether total or partial, results from the injury
 a half monthly payment of the sum equivalent to 25% of monthly wages.
 Any payment received towards medical treatment shall not be deemed to be a compensation.
 while fixing the amount of compensation, for an accident occurred outside India, the
Commissioner shall take into account the amount of compensation, if any, awarded in accordance
with the law of the country, and shall reduce the amount fixed by him by the amount of
compensation awarded in that country.

If the injury results in his death, the employer shall in addition to the compensation, deposit with the
Commissioner a sum of Rs 5000 for payment of the same of the eldest surviving dependant of the
workman towards the expenditure of the funeral.

Where Employer is in default in paying the compensation, the Commissioner shall direct that the
employer to pay, in addition to the amount of the arrears, pay simple interest at the rate of 12 % per
annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank.
Further if he finds that there is no justification for the delay, direct that the employer shall, in addition to
the amount of the arrears and interest thereon, pay a further sum not exceeding 50%, of such amount by
way of penalty:

METHOD OF CALCULATING WAGES

“Monthly wage” is calculated as below:
 If working continuously for more than 12 months immediately preceding the accident, monthly
wage shall be one-twelfth of the total wages in the last 12 months.
 If working continuously for less than 1 month immediately preceding the accident, Monthly wage
shall be equal to monthly wage of any other employee doing same work with same or other
employer.
 If there is not necessary information to calculate the monthly wages, then the monthly wages
shall be 30 times the total wages earned in respect of the last continuous period of service,
divided by the number of days of employment.
 A period of service shall be deemed to be continuous which has not been interrupted by a period
of absence from work 14 days.

COMMUTATION OF HALF-MONTHLY PAYMENTS

There is a provision, according to which, Half-monthly payments may be commuted into “payment of a
lump sum” of such amount as may be agreed to by the parties or determined by the Commissioner,
provided the payments have been continued for not less than 6 months.

DISTRIBUTION OF COMPENSATION
Compensation in case of (a) death of employee (b) compensation to a woman or (c) to a person under a
legal disability, shall be necessarily deposited with the Commissioner (not paid directly to the employee).
Although in case of death, employer may pay to any dependant, amount equal to 3 months wage as
advance.

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Any other sum amounting greater than Rs 10 may be deposited with the Commissioner on behalf of the
person entitled thereto.

The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation deposited
with him.

NOTICE AND CLAIM

The employee can claim compensation to a Commissioner within 2 years of the occurrence of the
accident or in case of death within 2 years from the date of death. If the accident is the contracting of a
disease, then accident shall be deemed to have occurred on the first of the days during which the
employee was continuously absent from work in consequence of the disablement.

Where a Commissioner receives information from any source that any employee has died as a result of an
accident, he may send a notice to the employer, to which employer has to reply within 30 days.

For "fatal accidents" and "serious bodily injuries", the employer shall, within 7 days of the death or
serious bodily injury, send a report to the Commissioner. "Serious bodily injury" means an injury which
involves, or in all probability will involve the permanent loss of the use of, or permanent injury to, any
limb, or the permanent loss of or injury to the sight or hearing, or the fracture of any limb, or the enforced
absence of the injured person from work for a period exceeding 20 days.

PENALTIES
There is provision of Penalty of up to Rs 5000, if employer:
(a) fails to maintain a notice-book of accidents.
(b) fails to send to the Commissioner a statement or a report or a return.

APPOINTMENT OF COMMISSIONERS
The State Government may, may appoint any person, as Commissioner, who is
 a member of a State Judicial Service for a period of not less than 5 years
 an advocate or a pleader for not less than 5 years
 Gazetted officer for not less than 5 years having educational qualifications and experience in
personnel management, human resource development and industrial relations

The Commissioner shall have all the powers of a Civil Court under the Code of Civil Procedure.

TIME LIMIT FOR DISPOSAL OF CASES RELATING TO COMPENSATION

The Commissioner shall dispose of the claims relating to compensation within 3 months from the date of
reference.

APPEALS
An appeal can be made to the High, against decision of Commissioner, namely:--
(a) an order awarding as compensation a lump sum or by way of redemption of a half-monthly
payment
(b) an order awarding interest or penalty.

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(c) an order refusing to allow redemption of a half-monthly payment.

(d) an order providing for the distribution of compensation among the dependants of a deceased
(e) an order allowing or disallowing any claim for the amount of an indemnity.
(f) an order refusing to register a memorandum of agreement.

No appeal can be made unless a substantial question of law is involved in the appeal, and or the amount in
dispute in the appeal is not less than Rs 300.

The appeal can be made within 60 days from order of the Commissioner.

LIST OF SCHEDULES
Schedule I- Part I : List of injuries deemed to result in permanent total disablement
Schedule I- Part II : List of injuries deemed to result in permanent partial disablement
Schedule II : List of persons who, are included in the definition of employees
Schedule III : List of occupational diseases
Schedule IV: Relevant factors for working out compensation amount in case of permanent disablement
and death.

AMENDMENTS IN THE ACT IN 2010

Workmen's compensation Act has been amended on 9th January 2010. Given below are the synopsis of
the changes:
a) THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE
EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009 and wherever "workman" or
"workmen" is mentioned in the entire Act the same needs to be read as "Employee"
b) The compensation payable on death from the injury, is (i) minimum of Rs.80000 is increased to
Rs.120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.
c) The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of
Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied by
the relevant factor.
d) Definition of workmen replaced by "Definition of Employee"- also now includes CLERICAL
employees.

AMENDMENTS IN THE ACT IN 2017

The Employees’ Compensation (Amendment) Act was amended in 2017. The details of the amended bill
are as follows:
a) It is the employer’s responsibility and duty to inform an employee of his rights. Failure to do so
will make the employer liable to penalty. The Bill penalises an employer if he fails to inform his
employee of his right to compensation.
b) The penalty amount has been increased from a maximum of Rs. 5000 to a definite penalty of Rs.
50,000 which may be further extended to Rs. 1 lakh.
c) As per the amended act, appeals can be made against orders related to compensation, distribution
of compensation, award of penalty or interest, only if the amount in dispute is at least Rs 10,000.
The same has been revised from the earlier minimum amount of Rs 300.

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d) In a further amendment, the Act has scrapped the rule as per which the employer could
temporarily withhold any payments towards the employee in case the former had appealed
against a commissioner’s order.

4. Unorganised Workers' Social Security Act, 2008.

The Unorganised Workers' Social Security Act, 2008 is an Act to provide for the social security and
welfare of unorganised workers.

DEFINITIONS
Employer means a person or an association of persons, who has engaged or employed an unorganised
worker either directly or otherwise for remuneration;

Home-based worker means a person engaged in the production of goods or services for an employer in
his or her home or other premises of his or her choice other than the workplace of the employer, for
remuneration, irrespective of whether or not the employer provides the equipment, materials or other
inputs;

Identity card means a card, document or certificate issued to an unorganised worker by the District
Administration

National Board means the National Social Security Board for unorganised workers.

State Board means the (name of the State) State Social Security Board for unorganised workers

Self-employed worker means any person who is not employed by an employer, but engages himself or
herself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be
notified by the Central Government or the State Government from time to time or holds cultivable land
subject to such ceiling as may be notified by the State Government;

Unorganised sector means an enterprise owned by individuals or self-employed workers and engaged in
the production or sale of goods or providing service of any kind whatsoever, and where the enterprise
employs workers, the number of such workers is less than 10;

Unorganised worker means a home-based worker, self-employed worker or a wage worker in the
unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts in
Schedule-II.

Wage worker means a person employed for remuneration in the unorganised sector, directly by an
employer or through any contractor, irrespective of place of work, whether exclusively for one employer
or for one or more employers, whether in cash or in kind, whether as a home-based worker, or as a
temporary or casual worker, or as a migrant worker, or workers employed by households including
domestic workers, with a monthly wage of an amount as may be notified by the Central Government and
State Government, as the case may be.

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India is a founder member of the International Labour Organization, which came into existence in 1919.
At present the ILO has 175 Members. A unique feature of the ILO is its tripartite character. The
membership of the ILO ensures the growth of tripartite system in the Member countries. At every level in
the Organization, Governments are associated with the two other social partners, namely the workers and
employers. All the three groups are represented on almost all the deliberative organs of the ILO and share
responsibility in conducting its work.

The ILO has so far adopted 189 Conventions. Out of the 189 ILO Conventions, India has so far ratified 47
Conventions.
India has ratified "Fundamental Conventions": 6 of 8
India has ratified "Governance Conventions (Priority)": 3 of 4
India has ratified "Technical Conventions": 38 of 177

Following 3 "Technical Conventions" were abrogated by India in year 2017 by decision of the International
Labour Conference at its 106th Session (2017)
C004 - Night Work (Women) Convention, 1919 (No. 4)
C015 - Minimum Age (Trimmers and Stokers) Convention, 1921 (No. 15)
C041 - Night Work (Women) Convention (Revised), 1934 (No. 41)

The following 8 Conventions of the ILO are classified as the “Core” or the “Fundamental Conventions”:
i. Convention No.29 concerning Forced Labour
ii. Convention No.87 concerning Freedom of Association and Protection of the Right to Organize
iii. Convention No.98 concerning Right to Organize and Collective Bargaining
iv. Convention No.100 concerning Equal Remuneration
v. Convention No.105 concerning Abolition of Forced Labour
vi. Convention No.111 concerning Discrimination (Employment and Occupation)
vii. Convention No.138 concerning Minimum Age
viii. Convention No.182 concerning Worst Forms of Child Labour

India has ratified 6 out of 8 core/fundamental International Labour Organisation (ILO) Conventions.
These are the
I. Forced Labour Convention, 1930 (No. 29), Ratified in Year 1954
II. Abolition of Forced Labour Convention, 1957 (No. 105), Ratified in Year 2000
III. Equal Remuneration Convention, 1951 (No. 100), Ratified in Year 1958
IV. Discrimination (Employment and Occupation) Convention, 1958 (No. 111), Ratified in
Year 1960
V. Minimum Age Convention, 1973 (No. 138). Ratified on 13 June 2017
VI. Worst Forms of Child Labour Convention, 1999 (No. 182). Ratified on 13 June 2017

India has not ratified 2 core/fundamental Conventions, namely

I. Freedom of Association and Protection of the Right to Organise Convention, 1948 (No.
87)

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II. Right to Organise and Collective Bargaining Convention, 1949 (No. 98).

India has also ratified 3 “priority conventions” ratified are Labour Inspection Convention (No.81),
Employment Policy Convention (No.122) and Tripartite Consultations (International Labour Standards)
(No.144).

The International Institute for Labour Studies (IILS) was established by the International Labour
Organization (ILO) in 1960 as a centre for advanced studies in the social and labour fields. It produces the
annual World of Work Report. The International Labour Review, a global multidisciplinary journal of
labour and social policies is also published under the aegis of the IILS. Established as an autonomous
facility of the International Labour Organization, the mandate of the Institute is to promote research,
public debate and knowledge sharing on emerging issues of concern to the ILO and its constituents -
government, business and labour.

24. Labour Welfare Regulations in UK and USA

LABOUR RELATIONS HISTORY IN USA

Labor relations is always critically shaped by the legal system, whether there are explicit labor laws or
not. It is important to recognize the struggle to balance property rights and labor rights. Labor relations
are affected by business law, labor law, and employment law.

Early attempts by workers to protest unfair treatment were viewed as conspiracies due to the nature of
their collective action. Judges issued injunctions to prevent this activity. Companies demanded yellow
dog contracts to suppress union activity.

A debate ensued over the Sherman Antitrust Act (1890) over whether unions were monopolies. Sherman
Antitrust Act, first legislation enacted by the United States Congress (1890) to curb concentrations of
power that interfere with trade and reduce economic competition. The Supreme Court of US ruled that the
act applied to labor unions.

The Clayton Act (1914) gave unions the legal right to exist but did not exempt them from antitrust law. A
legal view emerged that unions were legitimate but needed to be controlled by legal regulation to make
sure they were serving the public interest.

Then Norris-LaGuardia Act was enacted in 1932. The Act forbids federal courts from issuing injunctions
that interfere with strikes, payments of strike benefits, publicizing a dispute, peaceful picketing, and
workers joining unions. This marks the end of the common law and business law doctrines in U.S. labor
relations.

The NIRA (National Industrial Recovery Act) was passed in 1933, which contained a public works
program to create jobs and an ambitious framework for establishing industry codes of fair competition.

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Intense strikes demonstrated the ineffectiveness of the NIRA. In 1935, the Supreme Court ruled the NIRA
unconstitutional.

The Railway Labor Act was passed in 1926, with airlines added in 1936. The purpose was to avoid strikes
and other forms of labor-management conflict that would disrupt interstate commerce and weaken the
economy. The act was strengthened in 1934 by restricting company-dominated unions and by
establishing the National Mediation Board.

The Wagner Act was signed into law in 1935. The act built upon previous legislative attempts to promote
and protect workers’ abilities to unionize in the private sector. The act is rooted in the “Industrial
Relations” school of thought. The Wagner Act explicitly establishes exclusive representation. A union
may represent all employees, or none. The Wagner Act specified unfair labor practices. The Wagner Act
created the National Labor Relations Board (NLRB). Employers flaunted the new law until the Supreme
Court ruled on NLRB v. Jones and Laughlin Steel Corp., which declared the act constitutional once and
for all.

The Wagner Act continued to be controversial due to the increase in government intervention in
economic and social affairs. Many believed the Wagner Act went too far and gave unions too much
power. Then the Taft-Hartley Act came in 1947. As per this Act:
 Restricted union activities.
 Enhanced rights of individuals.
 Established explicit rights of employers.
 Revised dispute resolution procedures.
 Outlawed closed shop agreements.

Further it allowed union shops and agency shops, but the Supreme Court later ruled union shops
enforceable only as agency shops in which workers can be forced to pay the fraction of union dues that is
related to bargaining and administering union contracts.

The Taft-Hartley Act can be viewed as an effort to restore a needed balance between individuals, unions
and employers. It was an opportunistic effort by business and conservative politicians to roll-back labor’s
protections.

A congressional committee was formed in 1957 to investigate union corruption. The committee
concluded that rank and file union members lacked a voice, union leaders abused their power, and
violence was used to keep members in line. Thus the Landrum-Griffin Act was passed in 1959 creating a
Bill of Rights for union members, and increasing democracy within the union structure. The act also
required unions and their officers to disclose financial records, restricted the use of union trusteeships and
established fiduciary responsibility of union leaders.

The Civil Service Reform Act was passed in 1978 to solidify the federal sector bargaining system that
developed in the 1960s and 1970s. Many federal workers such as supervisors, the military, security
agencies, the Post Office and several other agencies are excluded. The Act parallels the NLRA

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framework, however strikes are prohibited, wage and benefits are excluded from bargaining, and unions
with minority but not majority support have consultation rights.

KEY TERMS ARE

Conspiracy doctrine The view that workers joining together and refusing to work unless
their terms are met is an illegal conspiracy because it was a collective
effort by workers that harmed the community and deprived others of
their rights.
Injunction Court ordered restraints on action to prevent irreparable harm or
damage to someone else. A popular method for preventing and ending
strikes before 1932.
Yellow dog contract A promise by a worker not to join or support a union; refusal to agree
to such conditions meant either termination or not being hired.
Danbury Hatters case After a failed strike, the United Hatters of North America initiated a
nationwide boycott of hats made by a Danbury, Connecticut, nonunion
company in 1902. The Supreme Court ruled that the union boycott
violated the Sherman Antitrust Act. It also determined that individual
union members were liable for damages.
Norris-LaGuardia Act This 1932 act seeks to protect unionization efforts by forbidding
federal courts from issuing injunctions that interfere with strikes,
payment of strike benefits, publicizing a dispute, peaceful picketing,
and workers joining unions.
Railway Labor Act The primary purpose of this 1926 act, still in effect today for the
railroad and airline industries, is to avoid strikes and other forms of
labor-management conflict that disrupt interstate commerce and
weaken the economy. The act protects the rights of employees to form
labor unions, provides for government mediation of bargaining
disputes, and established adjustment boards to solve grievances.
The Wagner Act Also know as the National Labor Relations Act. This 1935 act grants
employees the right to self-organization, to form, join, or assist labor
organizations, to bargain collectively through representatives of their
own choosing, and to engage in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection. This
is the most important law for private sector U.S. labor relations and
created employer unfair labor practices and the National Labor
Relations Board.

Exclusive A basic principle of U.S. labor relations such that with majority
representation support, a union is the only representative of that group of workers.
There cannot be another union, even a company union, representing
some of the employees in the group.
Unfair labor practices Major element of the Wagner Act in which employers are prohibited
from interfering, restraining, coercing, or discriminating against

104 Human Peritus, www.humanperitus.com