Introduction
The National Labor Relations Act (NLRA), enacted in 1935, significantly transformed labor relations in the United States. One landmark case that solidified the NLRA’s reach was NLRB v. Jones & Laughlin Steel Corp., decided by the Supreme Court in 1937.

The Case and its Background
Jones & Laughlin Steel Corporation was a major steel producer with manufacturing facilities across the country. In 1937, the National Labor Relations Board (NLRB) accused the company of engaging in unfair labor practices by interfering with workers’ rights to organize and bargain collectively.
The Supreme Court’s Ruling
In a narrow 5-4 decision, the Supreme Court ruled in favor of the NLRB, upholding the NLRA’s constitutionality and expanding its applicability. The majority opinion, written by Justice Benjamin Cardozo, held that:
- The NLRA’s regulation of labor relations in industries affecting interstate commerce was a valid exercise of Congress’s commerce power.
- Jones & Laughlin’s activities, which included surveilling union organizers and coercing employees into renouncing union membership, constituted unfair labor practices under the NLRA.
Impact of the Ruling
The ruling in NLRB v. Jones & Laughlin Steel Corp. had a profound impact on labor law:
- Expanded NLRA’s Reach: It expanded the NLRA’s jurisdiction to include all industries engaged in interstate commerce, significantly increasing its reach.
- Protected Union Organization: It protected workers’ rights to organize and bargain collectively, fostering the growth of labor unions.
- Established NLRB’s Authority: It solidified the NLRB’s authority to investigate and remedy unfair labor practices, establishing it as a key player in industrial relations.
Key Provisions of the NLRA
The NLRA, as upheld in NLRB v. Jones & Laughlin Steel Corp., established several key provisions:
- Protection of Unionization Rights: Employers are prohibited from interfering with employees’ rights to join or form unions.
- Collective Bargaining: Employers have a duty to bargain in good faith with unions representing their employees.
- Unfair Labor Practices: The NLRA defines specific actions by employers and unions that constitute unfair labor practices.
- NLRB Enforcement: The NLRB is responsible for investigating and prosecuting unfair labor practices, and remedying violations.
Statistics on Labor Relations
According to the Bureau of Labor Statistics (BLS):
- In 2021, 14.3 million workers in the United States were members of unions, representing 10.3% of the employed workforce.
- The unionization rate in the private sector was 6.1% in 2021, down from 20.1% in 1983.
- The manufacturing sector has the highest unionization rate at 12.2%, while the education and health services sector has the lowest at 2.0%.
Modern-Day Applications
The principles established in NLRB v. Jones & Laughlin Steel Corp. continue to be applied in contemporary labor relations:
- Protection from Retaliation: Employees cannot be retaliated against for exercising their union rights, such as organizing or participating in union activities.
- Fair Representation: Unions are required to fairly represent all of their members in collective bargaining and grievance proceedings.
- Neutrality Agreements: Employers can voluntarily enter into neutrality agreements, where they agree to remain neutral during union organizing campaigns.
Conclusion
NLRB v. Jones & Laughlin Steel Corp. remains a foundational case in labor law history. It established the NLRA’s constitutionality, expanded its reach, and protected workers’ rights to organize and bargain collectively. The ruling’s principles continue to shape labor relations in the United States today.
Tables
Year | Unionization Rate in Private Sector |
---|---|
1983 | 20.1% |
2003 | 13.5% |
2013 | 11.3% |
2021 | 6.1% |
Industry | Unionization Rate 2021 |
---|---|
Manufacturing | 12.2% |
Construction | 14.7% |
Transportation and Utilities | 11.1% |
Education and Health Services | 2.0% |
Unfair Labor Practices | Examples |
---|---|
Interference with Union Activities | Surveilling union organizers, threatening employees |
Discrimination | Hiring or firing based on union membership |
Refusal to Bargain | Unwillingness to negotiate in good faith |
Modern-Day Applications of the NLRA | Examples |
---|---|
Protection from Retaliation | Employer cannot fire employee for joining a union |
Fair Representation | Union must represent all members fairly in collective bargaining |
Neutrality Agreements | Employer agrees to remain neutral during union organizing campaigns |