Rights, Not Interests: Resolving Value Clashes under the National Labor Relations Act
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About this ebook
This provocative book by the leading historian of the National Labor Relations Board offers a reexamination of the NLRB and the National Labor Relations Act (NLRA) by applying internationally accepted human rights principles as standards for judgment. These new standards challenge every orthodoxy in U.S. labor law and labor relations. James A. Gross argues that the NLRA was and remains at its core a workers’ rights statute.
Gross shows how value clashes and choices between those who interpret the NLRA as a workers’ rights statute and those who contend that the NLRA seeks only a "balance" between the economic interests of labor and management have been major influences in the evolution of the board and the law. Gross contends, contrary to many who would write its obituary, that the NLRA is not dead. Instead he concludes with a call for visionary thinking, which would include, for example, considering the U.S. Constitution as a source of workers’ rights. Rights, Not Interests will appeal to labor activists and those who are trying to reform our labor laws as well as scholars and students of management, human resources, and industrial relations.
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Rights, Not Interests - James A. Gross
Rights, Not Interests
Resolving Value Clashes under the National Labor Relations Act
James A. Gross
ILR Press
an imprint of
Cornell University Press
Ithaca and London
To Cletus Daniel,
Who, despite his lifelong commitment to economic and social
justice and workers’ rights, was convinced that ultimately his
salvation and the salvation of others from all that oppressed them
was up to the oppressed themselves.
Contents
Introduction
1. From Wagner to Taft-Hartley: From Rights to Interests
2. Conflicting Statutory Purposes: Conflicting Values
3. The Gould Board: Conflicting Agendas
4. Gould Board Decisions and Workers’ Rights
5. The Battista Board: Individual Not Collective Rights
6. The Liebman Board: The NLRA, at Its Heart a Human Rights Law
Concluding Comments
Notes
Index
Introduction
In 1935, Congress passed the Wagner Act (National Labor Relations Act, NLRA) which was intended to democratize a vast number of American workplaces to enable workers to participate in the employment decisions that most directly affected their lives. What was commonly termed industrial democracy
was, through the statutory encouragement and protection of worker organization and collective bargaining and other forms of collective action, to replace industrial autocracy—employers’ unilateral determination of wages, hours, and working conditions. Today the Wagner Act, although battered by amendment and interpretation, is still in effect and is still a vibrant source of workers’ rights.
For over forty years my research has concentrated on the National Labor Relations Board (NLRB), the administrative agency created by Congress to interpret and apply the Wagner Act. Rather than focus on the procedures and case doctrines of the NLRB, most of my prior NLRB-related publications, including three volumes dealing exclusively with the NLRB, have analyzed how the NLRB’s making of labor policy has been influenced by the president, the Congress, and the United States Supreme Court as well as by the manipulation of public opinion, intense resistance by employers, the political and economic strategies of organized labor, and the ideological dispositions of NLRB appointees.
For example, in the first volume, The Making of the National Labor Relations Board: A Study in Economics, Politics, and the Law, 1933–1937 (1974), I demonstrate that the major provisions of the Wagner Act were crafted out of the practical lessons learned by people who served on the pre–Wagner Act National Labor Board (NLB) and the old
NLRB in conflicts with employers and unions: majority rule, and exclusive representation; the specifications of employer unfair labor practices; the right of employees to organize; and the obligation of employers to bargain with the representative of those employees. Equally important for the making of national labor policy was the transformation of what began in 1933 as a tripartite NLB created to settle strikes through mediation and voluntary cooperation into an independent quasi-judicial NLRB with enforcement power, deciding cases by setting forth binding principles of law.
The second volume, The Reshaping of the NLRB: National Labor Policy in Transition (1981), covers the period from 1937 when the United States Supreme Court upheld the constitutionality of the Wagner Act to the 1947 enactment of the Taft-Hartley Act amendments to the NLRA. In that book I analyze the NLRB’s vigorous and uncompromising enforcement of the Wagner Act after constitutionality, and the intense hostile political pressure to which the Board was subjected as a consequence. More specifically, that volume reveals the direct connection between the work of a hostile congressional investigating committee (the Smith Committee) and an alliance of the American Federation of Labor (AFL), business, and Republicans with conservative southern Democrats in Congress and enactment of Taft-Hartley Act.
In the third volume, Broken Promise: the Subversion of U.S. Labor Relations Policy, 1947–1994 (1995), I explain, among other things, how U.S. labor policy has been at cross-purposes with itself ever since Congress passed the Taft-Hartley Act amendments to the NLRA. Although the Wagner Act’s statement of purpose encouraging collective bargaining was carried over verbatim into Taft-Hartley, Taft-Hartley’s emphasis on the right of employees to reject collective bargaining, and the inclusion of union unfair labor practices in particular, led to claims that the purpose of the Act was no longer to encourage collective action but was rather to protect the rights of individual employees. This interpretation rejected the concept of the federal government as a promoter of collective bargaining; instead the federal government was perceived as a neutral guarantor of employee free choice between individual and collective bargaining, indifferent to the choice employees made. That volume concluded with the assertion that any reconstruction of national labor policy must start with a resolution of this fundamental disagreement about what the purpose of the law is.
In other research and publications between 1995 and 2015, I came to the view that workers’ rights must be viewed as human rights, not just rights set forth in statutes or collective bargaining agreements subject to shifting political and bargaining power. That shift in perspective is detailed in, among other writings, A Shameful Business: The Case For Human Rights in The American Workplace (2010).
This fourth volume, Rights Not Interests: Resolving Value Clashes under the National Labor Relations Act, applies that human rights framework of analysis to the work of the NLRB and to U.S. labor policy. This did require, of course, a review of my previous books but in a way that applied human rights standards to important events in NLRB history.
This fourth volume brings a new, and needed, perspective to the reexamination and assessment of U.S. domestic labor policy and the NLRB, in large part but not exclusively, by using internationally accepted human rights principles as standards for judgment. The application of the human rights standard is long overdue because at its core the Wagner Act was a historic human rights statute. Although not using the term human rights, the Wagner Act was far ahead of its time in applying human rights principles to U.S. workforces. As set forth in the Act’s Statement of Purpose, the law was intended to promote the fundamental human right of collective action to protect other vital human rights, specifically the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing, for the purpose of negotiating the terms and conditions of their employment or other mutual aid or protection.
Violations of the Wagner-Taft-Hartley Act were never considered to be violations of human rights, however, even though that statement of purpose has remained unchanged even following the enactment of the Taft-Hartley Act.
As Senator Robert Wagner put it, the exercise of the right to organize and bargain collectively is a matter of basic social justice. The right of people to participate in and influence the workplace decisions that affect their lives is one of the most fundamental human rights and principles of democracy. Wagner understood that worker participation in the economic, as well as political and social aspects of their lives, would not only help free them from servility at the workplace but also enable them to protect themselves against the arbitrary exercise of power by others or the alleged impersonal forces of the so-called free market. The law was intended to give workers the opportunity, protection, and support they needed to secure their own rights through participation in workplace decision making.¹
The values underlying many provisions of the Wagner Act, particularly its statement of purpose, are values most consistent with human rights values. The NLRA’s freedom of association meant not only collective action, labor organization, and collective bargaining but also the power to make the claims of workers’ human rights both known and effective. Wagner’s Act was intended to have workers stand before their employers as adult persons with rights, not as powerless children or servants dependent on the will and interests of their employers. His objective of having wages, hours, and working conditions determined by workers and their employers—through collective bargaining and not unilaterally by employers or an authoritarian state—recognized that servility is incompatible with human rights.
The NLRA also was intended to enable workers, by exercising their freedom of association, to change those workplace power relationships whereby most people are subjected to economic forces and economic power over which they have little or no control. In that most significant sense, the framers of the Wagner Act were far in advance of human rights activists in recognizing that it was not only the state that had the power to violate people’s rights. More specifically, the Wagner Act emphasized the importance of economic rights—for example, the identification of wages, hours, and working conditions as subjects of collective action and collective bargaining. Wagner asserted that true freedom could not exist without economic security and independence. As the drafters of the Universal Declaration of Human Rights would state thirteen years after the Wagner Act became law, conditions for a fully human life are created only when all people enjoy their economic, social, and cultural rights as well as their civil and political rights.
As discussed further in this book, the values of the Wagner Act, in part because of their potential for establishing workers’ rights as human rights, constituted a new vision and a new perspective on the traditional common-law values underlying labor-management relations, namely, property rights, freedom of contract, employment at will, management authority, limited government, and minimal regulations of the market.
These same core human rights principles of freedom of association and collective bargaining are also set forth in the most important international human rights declarations, covenants, and conventions. The International Bill of Human Rights, consisting of the Universal Declaration of Human Rights (UDHR), the International Covenant on Economic, Social, and Cultural Rights (ICESCR), and the International Covenant on Civil and Political Rights (ICCPR), contains many labor relations clauses covering freedom of association, organizing, and collective bargaining; prohibitions on forced labor and child labor; nondiscrimination, health, and safety in the workplace; and decent wages and benefits; among others. More specifically, the UDHR, for which the United States voted, calls on all nations to promote human rights and to take progressive measures, national and international, to secure their universal and effective recognition and observance.
Among the human rights in the Declaration are the right to freedom of association (Article 20) and the right to form and join unions (Article 23 [4]). The ICCPR, which the United States has signed and ratified with reservations, commits each state party to ensure the rights set forth in the covenant to all (Article 2), including the freedom of association, the right to form and join trade unions for the protection of [his or her] interests.
The ICESCR, which the United States has signed but not ratified, obliges each state party to take steps
to achieve the full realization
of rights recognized in the covenant, including the right of everyone to join trade unions for the promotion and protection of [his or her] economic and social rights
(Article 8).
The Declaration of Philadelphia, annexed to the Constitution of the International Labour Organization (ILO), recognizes the solemn obligation of the ILO (of which the United States is a member) to further among nations of the world, programs that would achieve, among other things, the effective recognition of the right to collective bargaining.
Even before that, over forty years before the UDHR, the ILO had incorporated into its constitution the right of freedom of association as a fundamental human right necessary for social justice. ILO Conventions nos. 87 and 98, which became effective in the 1960s, affirm the right to freedom of association and the right to bargain collectively. In 1998, the ILO issued a Declaration on Fundamental Principles and Rights at Work, which obligates all ILO members, whether or not they had ratified the relevant ILO Conventions, to promote and respect certain core rights, the first of which is freedom of association and the effective recognition of the right to collective bargaining.
The concept of human rights is certainly not new, but the notion of workers’ rights as human rights has emerged only in the past fifteen to twenty years. The human rights movement within the U.S. workforce is now growing and challenging long-held beliefs and practices in labor relations. The values underlying the Wagner Act, its conceptions of workers’ rights, and most (but not all) of its provisions are consistent with human rights values.
The inward assessment of U.S. labor relations law using internationally accepted human rights principles as standards for judgment made in this volume—much as Human Rights Watch did fifteen years ago²—constitutes new and creative thinking about the Act. It creates new perspectives on old issues and introduces new standards of judgment that challenge much orthodoxy and many accepted rules in U.S. labor law and labor relations.
Although the phrase human rights does not appear in the language of the NLRA, the theme of this book is the Wagner Act’s intention was to be at its core a workers’ rights statute. Senator Wagner was asserting more than an abstract philosophical position when he said that the achievement of social justice through collective bargaining at the workplace was the primary objective of his law. In this volume I explain how when the Wagner Act was passed, the dominant early New Deal objective of protecting the free flow of commerce to facilitate economic recovery had become at best a derivative or consequence of the promotion and protection of workers’ rights. Labor peace was not to be purchased at the price of workers’ rights.
Not only is the NLRA a workers’ rights statute but it also promoted and protected collective action by workers to secure their rights at their workplaces. That bottom-up
enforcement power was a radical idea then and remains a radical idea now. The NLRA is radical in other ways as well. It reversed the role of the state from one that consistently subordinated and permitted the subordination of the rights of workers to employer property rights and economic development to one that not only enabled workers to obtain sufficient power to make their rights both known and effective at their workplaces but also prohibited employers from using their economic power to prevent the exercise of those workers’ rights. The NLRA’s conception of the role of the state is identical to that set forth in Article II of ILO Conventions no. 87 on worker freedom of association and no. 98 on collective bargaining, which constitutes a detailed application of Article II. That article obliges a state to take all necessary measures to ensure worker freedom of association and to prevent any interference with the exercise of that right.
In addition, the New Deal, of which the NLRA was a part, radically transformed the government hands-off notion
requiring the protection of only civil and political rights into a vision of freedom and rights requiring the affirmative involvement of the government in securing economic rights, including decent work for all Americans. The NLRA reflected an understanding of the interrelatedness of political, civil, and economic rights—as do the ICCPR and the ICESCR. The NLRA part of the New Deal, however, left the economic rights of workers not to determination by the national government but to the employer-employee collective bargaining process. That was one of the Act’s unique strengths but at the same time one of its greatest weaknesses.
The counterrevolution against the Wagner Act began with its enactment, intensified when the NLRB enforced the new law in a literal way that maximized the realization of workers’ rights, and it continues to this day. Over the years, the counterrevolution has been led by employer organizations (often seeking, among other things, to eliminate the Act’s statement that it was the policy of the United States to encourage collective bargaining); Congress (often using congressional hearings as partisan devices to achieve predetermined objectives and with equalizing
amendments, such as Taft-Hartley, permitting and encouraging employer resistance to unionization while weakening unions); chief executives such as Ronald Reagan (whose appointments to the NLRB were hostile not only to the purposes of the Act but also to the entire system of government regulation); and, the judiciary (particularly through Supreme Court decisions that instead of moving toward the realization of the fullness of workers’ rights have back-tracked into the pre–Wagner Act values scheme promoting and protecting employer property, authority, and economic development).
Often ignored, but discussed in this volume, is the fact that a most effective obstacle to the realization of the workers’ rights set forth in the Act is the shift in control of the interpretation and application of the law from those who vigorously enforce workers’ rights to those who perceive the law as seeking workable, mutual accommodation and balance
between labor and management. Rights become transformed into interests, and labor law becomes merely a means to find some balance between employers’ attempting to do business without interference and labor’s pursuit of its economic self-interest.
This conflict-of-interest conception of the Act results in a fundamentally different labor policy far from a focus on workers’ rights—transforming the NLRA into a statute intended to change the labor-management relationship from an adversarial model into a cooperative, mutual-gains, high-productivity model that would enable U.S. firms to compete more successfully. This high-performance model allows for various forms of worker participation, mostly nonunion, with strong implications that unionization and collective bargaining are not compatible with the partnership model.
The promoters of the Taft-Hartley Act talked of balancing the interests of labor and management, which still inspires talk of a level playing field.
That approach also reflects the pluralistic notion in which all disputes are considered conflicts of interest—particularly economic interest—and in which everything is negotiable. Consideration of rights becomes an impractical, unrealistic impediment to compromise, the sine qua non of conflict resolution.
The rights-versus-interest clash of values continues and explains much of the so-called flip-flopping of NLRB case doctrine over the years. It also explains the strong emphasis on the employee free choice provisions in the Act by some Board members who stress employees’ right not to join a union while still approving workers’ cooperative efforts with their employers.
Values clashes and choices are major considerations in explaining the events discussed in this volume. One cannot judge or understand reality without reference to values and value choices underlying the decisions that help make that reality. Simply put, values are personal or societal conceptions of the way things ought to be. In varying degrees they influence the choices among conflicting alternatives or sets of principles,³ privilege some voices and stifle others,⁴ and create boundaries to thinking that make certain routes or directions rather than others seem right.⁵ Ultimately, the conscious and deliberate choices by legislators, judges, and governmental agencies among different value judgments about the worth of human life, about workers’ right to participate in the decisions that affect their workplace lives, and about the sources and extent of worker and employer rights underlie much of the decision making in regard to the clashes of rights at workplaces.⁶ At the same time, there is no escaping the reality of power in the protection and promotion of workers’ rights or the balancing of employer and union interests. The exercise of that power and the choices made as a result are value laden. There is no neutrality.
The NLRA commits the government to protecting and assisting workers so that they can gain sufficient power to organize and engage in collective bargaining and other concerted activity in order to make their rights both known and effective. How that can be and how is that periodically but imperfectly accomplished, often in the context of the contrary sets of values, is the main subject of this book. In regard to where we go from here, a number of other subjects are explored, beginning with a reassessment of obituary writers’ contention that the Act is dead. On the contrary, despite the pounding of hostile forces over its entire existence, the core provisions and values of the Act remain solid foundations for the promotion and protection of workers’ rights—not only as statutory rights but also as human rights.
The Act does need amending to eliminate impediments to the realization of workers’ rights and to realize those rights more effectively and broadly. During that process some old rules need to be reconsidered and some changed, but in the process, the old Wagner Act values have to be honored.
Many proposals for change have been around for a long time yet still have merit. This book ends with a call for creative and visionary thinking beyond precedent-bound confines because more is required than fine-tuning for marginal adjustments. More specifically the call is for creative and visionary thinking concerning employment at will and its effect on the decisions of employees to exercise their right of freedom of association; taking workers’ rights as human rights seriously and opening U.S. labor law in all its aspects to the challenges and consequences of applying international human rights standards and principles, including asking whether, if freedom of association is a human right, employers should be permitted to resist its exercise; understanding and using the wide latitude the NLRB still has through rule making, remedy powers, and doctrinal development to achieve the workers’ rights purpose of the Act more effectively; and exploring intellectually challenging and potentially transformative ideas on reconsidering the U.S. Constitution as a source for a national law of human rights, including the rights of labor.
These are vital and exciting challenges. All is far from lost. It is time, not for morose expressions of futility, but rather for optimism in knowing that political winds change. It is time to think big. Opponents of the NLRA’s focus on workers’ rights persistently have tried and have consistently failed to eliminate the Wagner Act’s core statement of purpose, which remains unchanged: that it is the policy of the U.S. government to encourage—and protect and promote—workers’ full freedom of association and collective action for negotiating the terms and conditions of their employment and for other mutual aid or protection.
Too often, however, workers have to risk their livelihood if they exercise their statutory and human right to organize and engage in other concerted activity. No worker should have to bear such risks in order to exercise his or her rights. The least that reform of the NLRA must do is to eliminate those risks.
1
From Wagner to Taft-Hartley: From Rights to Interests
The Transformation from Interests to Rights
The Wagner Act’s statement of purpose and text outlined the same worker human rights and freedom of association and collective bargaining that are now well established in international human rights documents. The Act also embraced other important legislative goals of economic growth and stabilization through wider distribution of wealth and industrial peace by reducing strikes. Wagner was clear, however, that committing the national government to safeguarding the rights of freedom of association and collective bargaining was the Act’s primary goal; its other goals of fostering industrial peace and increasing workers’ purchasing power were secondary.
¹
The best evidence of the intent to give first priority to workers’ rights is found in the evolution or transformation of the two pre–Wagner Act labor boards, the NLB (1933) and the old NLRB
(1934). These two boards evolved from agencies created to settle strikes through mediation by unpaid, high-ranking partisan representatives of labor and management, with a focus on compromises acceptable to the disputing parties, informal and friendly discussions, voluntary cooperation, and reliance on public sentiment, into independent quasi-judicial agencies with full-time paid neutrals and enforcement powers, deciding cases on the basis of evidence produced through a formal adversarial process, thereby developing a body of case law defining and developing the principles of workers’ rights.
There were more strikes in 1933 than in any year since 1921. President Franklin Delano Roosevelt issued a plan for industrial peace and created the National Labor Board (NLB), chaired by Senator Wagner and three industrial representatives selected by the National Recovery Administration’s (NRA’s) Industrial Advisory Board and three labor representatives chosen by the NRA’s Labor Advisory Board to settle differences arising out of the President’s Reemployment Agreement.² In part that assignment involved Section 7(a) of the National Industrial Recovery Act (NIRA), which provided that workers had the right to organize and bargain collectively free from employer interference, restraint, or coercion.³ The New Deal’s NRA, which administered the NIRA, had become committed to government-business cooperation and had decided that industry acceptance of its so-called codes of industrial self-government was essential. The NLB sought labor-management agreement through mediation. The NLB emphasized the importance of flexibility and informality in successful mediation and instructed its regional boards to make settlements even though you are told it violates all the laws of the land.
⁴ Should voluntary cooperation fail, however, the NLB’s legal powers were uncertain.
When employer challenges to the authority of the NLB became widespread, the NLB moved reluctantly and cautiously, and without formal authority, into a decision-making role of formulating principles rather than fashioning compromises. The mediation criteria of acceptability to the disputing parties, however, continued to guide the NLB so that many of its decisions
were susceptible to compromise according to the circumstances and the pressures of each case. When the NLB issued decisions that employers found unacceptable, however, entire industries supported by trade associations and leading employer organizations engaged in an organized campaign of noncompliance with those decisions.
The NLB had reached an impasse with employers by March 1934. By that time the NLB, in addition to promoting and conducting approximately forty representation elections, had begun to develop a common law of labor relations by ruling that
an employee discharged for union activity be reinstated with back pay from the date of his discharge, that the employees’ right to bargain collectively imposed a corresponding duty on the employer, that the parties approach negotiations with an open mind and exert every reasonable effort to reach an agreement, that self-organization and representation elections concerned employees exclusively and employers must keep hands off,
that strikers be given reinstatement priority over employees hired after the strike began, that all strikers be reinstated at the end of the strike when the board believed the strike was justified or when the strike was caused by an employer’s violation of the law, and that, in many cases involving representation elections in reinstatement, strikers were to be treated as employees.⁵
The NLB experience, moreover, had demonstrated the potential incompatibility of its two goals: strike settlements based on formulas mutually acceptable to employers and unions and the interpretation of Section 7(a) through decisions identifying and establishing rights and duties. Ironically, it was employer opposition to the NLB’s mediation