The National Labor Relations Act (NLRA), also known as the Wagner Act, has long been a cornerstone of U.S. labor law. Passed in 1935, the NLRA aimed to remedy the stark imbalance of power between employers and workers during a time of deep economic instability and labor unrest. While it profoundly shaped labor relations in the mid-20th century, the Act’s effectiveness and relevance are continuously evolving in today’s complex labor landscape.
In this article, we will explore the historical context and impact of the NLRA, delve into modern labor challenges, and provide actionable insights. Drawing on authoritative sources, recent data, and research findings, this piece will offer a comprehensive understanding of the NLRA’s role in shaping labor rights, while also examining how the legislation could adapt to address the current realities of gig work, precarious employment, and union decline.
A Brief History of the National Labor Relations Act
When the NLRA was enacted in 1935, the United States was still reeling from the Great Depression, and workers’ rights were often disregarded in favor of corporate interests. The U.S. labor market at the time was characterized by low wages, long working hours, and poor working conditions. Labor organizing was frequently met with hostility, and violent suppression of strikes was not uncommon. Against this backdrop, the NLRA sought to codify the right of workers to organize, bargain collectively, and strike—a radical shift in the balance of power.
The National Labor Relations Board (NLRB), created by the NLRA, became an essential institution for enforcing labor law, ensuring workers could form unions without fear of retaliation. The Bureau of Labor Statistics (BLS) reports that union membership surged in the post-NLRA years, growing from 11% in 1935 to 35% by 1945 (source).
For further reading on the history of the NLRA, check out this detailed account on Wikipedia here.
The Role of Collective Bargaining: Worker Power in Action
One of the core functions of the NLRA was to institutionalize collective bargaining, which empowers workers to negotiate for better wages, benefits, and working conditions. As data from the Economic Policy Institute (EPI) shows, unionized workers earn on average 11.2% more than their non-union counterparts (source). Moreover, collective bargaining agreements often result in better health benefits and retirement packages.
From a legal standpoint, collective bargaining represents a form of workplace democracy, whereby workers have a voice in determining the conditions of their employment. This democratic process has led to higher wages, safer working environments, and the creation of the modern middle class. However, the decline in union membership—especially in the private sector—has coincided with the erosion of these gains.
For an academic perspective on the economic effects of collective bargaining, visit the Harvard Law Review here.
The Erosion of Worker Protections: The Taft-Hartley Act and Beyond
Despite the initial success of the NLRA, the rise of pro-business sentiment in post-war America culminated in the passage of the Taft-Hartley Act in 1947. This Act imposed significant restrictions on union activity, outlawing secondary strikes and allowing states to adopt right-to-work laws. According to data from the National Employment Law Project (NELP), states with right-to-work laws typically have lower union density and lower wages than those without these laws (source).
These developments signaled the beginning of a long period of labor decline in the United States. By 2022, union membership had dropped to 10.1% of the workforce, with only 6% in the private sector. The decline of unions has had a measurable impact on wage inequality. A study by economists Bruce Western and Jake Rosenfeld indicates that the weakening of unions accounts for about one-third of the rise in wage inequality between 1973 and 2007 (source).
For a breakdown of union membership trends, visit the Bureau of Labor Statistics (BLS) here.
Modern Challenges: The Gig Economy and Precarious Labor
As the economy evolves, so too do the challenges facing labor. In the 21st century, the rise of the gig economy—exemplified by companies like Uber, DoorDash, and Amazon—has fundamentally altered the nature of work. These companies classify their workers as independent contractors rather than employees, meaning they are not covered by the protections of the NLRA, including the right to unionize.
Gig workers often face precarious conditions: they lack access to health insurance, retirement plans, and paid leave, and they are typically paid per task, leaving them vulnerable to fluctuating demand. A 2019 study by the UC Berkeley Labor Center found that 74% of gig workers in California earned less than the state minimum wage after accounting for expenses (source).
Efforts to reclassify gig workers as employees have faced significant resistance. In 2020, companies spent over $200 million lobbying for California’s Proposition 22, which exempted gig workers from employment classification laws (source).
For an in-depth look at gig workers’ legal rights, see the National Employment Law Project’s analysis here.
Labor Law Reform: What’s on the Horizon?
Given the challenges facing modern workers, labor advocates have called for reforming the NLRA to extend protections to gig workers and other precarious employees. One proposal is the PRO Act (Protecting the Right to Organize Act), which aims to strengthen workers’ ability to unionize and collectively bargain. Among other provisions, the PRO Act would override right-to-work laws, make it easier for workers to form unions, and protect striking workers from employer retaliation.
Although the PRO Act has been passed by the House of Representatives, its future remains uncertain in the Senate. President Biden has expressed support for the legislation, but intense opposition from business interests makes its passage a challenging prospect.
For more information on the PRO Act, visit the Congressional Research Service report here.
Practical Guidance: What Workers Can Do
In light of the challenges to worker rights under the NLRA, there are still steps that workers can take to protect themselves and advocate for better conditions:
- Know Your Rights: Workers should familiarize themselves with their rights under the NLRA and applicable state laws. The NLRB website provides detailed guidance on these rights (source).
- Unionize: While unionization rates have declined, recent efforts—such as those at Amazon warehouses—show that organizing is still possible. Workers interested in unionizing can contact labor organizations like the AFL-CIO (source) or the Service Employees International Union (SEIU) (source) for support.
- Engage in Advocacy: Workers can get involved in political efforts to pass labor reforms like the PRO Act by joining campaigns run by organizations like the Economic Policy Institute (EPI) or Labor Notes (source).
- Use Worker Centers: In sectors where unionization is difficult, workers can seek support from worker centers, which provide legal assistance, advocacy, and training for non-union workers. The National Day Laborer Organizing Network (NDLON) is one such example (source).
FAQs
Q1: What is the National Labor Relations Act (NLRA)?
A1: The NLRA, passed in 1935, is a law that protects workers’ rights to organize, engage in collective bargaining, and strike. It established the National Labor Relations Board (NLRB) to enforce labor laws.
Q2: How does the NLRA protect workers?
A2: The NLRA gives workers the right to form unions, bargain collectively, and engage in concerted activities like strikes. It also prohibits employers from engaging in unfair labor practices like retaliating against union organizers.
Q3: What are right-to-work laws, and how do they affect unions?
A3: Right-to-work laws allow workers in unionized workplaces to opt out of paying union dues, which weakens union funding and solidarity. These laws are associated with lower wages and reduced union membership.
Q4: How does the NLRA impact gig workers?
A4: Gig workers are generally not covered by the NLRA because they are classified as independent contractors rather than employees. This means they lack the protections of unionization and collective bargaining under the Act.
**Q5: What is the
PRO Act, and why is it important?**
A5: The PRO Act is proposed legislation that seeks to strengthen labor rights by making it easier for workers to unionize, overriding right-to-work laws, and expanding protections for striking workers.
Q6: How can workers learn more about their rights under the NLRA?
A6: Workers can visit the NLRB’s website (source) or contact labor organizations like the AFL-CIO (source) for more information about their rights.
Conclusion
The National Labor Relations Act has left an indelible mark on U.S. labor history, shaping the rights of workers and their ability to organize for nearly a century. While the Act’s core principles remain vital, modern labor dynamics—such as the rise of the gig economy—highlight its limitations. As workers face new challenges, the need for reform and adaptation has never been more urgent.
The future of labor rights in the U.S. will likely hinge on how effectively the principles of the NLRA can be modernized and expanded to address these evolving realities. Whether through legislative reform, increased unionization efforts, or new forms of worker organization, the fight for labor justice continues.
For further reading on the NLRA and its impact on contemporary labor rights, check out the resources provided by Cornell University’s ILR School here.
