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    Question ID:   11442         Current Version: 1
Question: What is the case of National Labor Relations Board (NLRB) v. Jones & Laughlin Steel Corp. (1937)?
Category: Law & Ethics > Employment
Keywords: National Labor Relations Board, NLRB, v. Jones & Laughlin Steel Corp., 1937
Type: what
Rating:(0 ratings)    Views: 356    Discussions: 0   In Watch Lists: 1  

 
    Answer:
While Gibbons v. Ogden established the supremacy of Congress in regulating interstate commerce, NLRB v. Jones & Laughlin extended congressional authority from regulation of commerce itself to regulation of the business practices of industries that engage in interstate commerce.

Jones & Laughlin, one of the nation's largest steel producers, violated the National Labor Relations Act of 1935 by firing 10 employees for engaging in union activities. The act prohibited a variety of unfair labor practices and protected the rights of workers to form unions and to bargain collectively. The company refused to comply with an NLRB order to reinstate the workers. A Circuit Court of Appeals declined to enforce the board's order, and the Supreme Court reviewed the case.

At issue in this case was whether or not Congress had the authority to regulate the "local" activities of companies engaged in interstate commerce - that is, activities that take place within one state. Jones & Laughlin maintained that conditions in its factory did not affect interstate commerce and therefore were not under Congress's power to regulate. The Supreme Court disagreed, stating that "the stoppage of those [manufacturing] operations by industrial strife would have a most serious effect upon interstate commerce.... Experience has abundantly demonstrated that the recognition of the right of employees to self-organization and to have representatives of their own choosing for the purpose of collective bargaining is often an essential condition of industrial peace." By upholding the constitutionality of the National Labor Relations Act, the Supreme Court handed a victory to organized labor and set the stage for more far-reaching regulation of industry by the federal government.

Source: U.S. Department of State
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