Why Was the Wagner Act Created?

The Wagner Act was created during the Great Depression of the United States, a period of time that was economically difficult for a majority of the people in the nation.

Very serious and grave problems were being faced in the national economy and by individual families and the standard of living for Americans plummeted dramatically. The Wagner Act was created because workers in the United States were being mistreated and scared away from unions by their employers.

The National Labor Relations Board (NLRB) was established upon the passing of the act, which was created with the purpose of investigating claims of harmful labor practices and attempted to make the working lives of United States citizens fair and positive.

Economic Practices Before the Wagner Act

Before the Wagner Act labor practices in the United States were unethical and unfair. Sweatshops, outrageously long hours and unaddressed worker injuries are some of the occurrences that characterized the working world of the period.

A growing awareness of workplace injustices, company standards and worker abuse contributed to a labor movement that had been moving forward for decades. Much legislation prior to the Wagner Act were often harmful to worker’s rights and would benefit large companies rather than individuals.

With the Wagner Act, the newly-established NLRB was given very extensive powers to speak for and assist workers who had little power in their respective work environments.

Wagner Act Showed a Shift in Mentality

Attempts to create a governmental organization to do so had been made in the past, but the Wagner Act reflects a dramatic shift in the mentality of United States citizens and the government, particularly Congress. In the past, an organization with the same name had been organized but the United States Supreme Court ruled it as unconstitutional and had it disbanded.

NLRB Standards: Five Unfair Labor Practices

The NLRB defined five unfair labor practices that companies could be charged with, and these standards are used to judge companies in the United States today. The practices are:

Interfering with, restraining or coercing employees
Assisting a labor organization
Discriminating against employees involved in labor organizations
Discriminating against employees who testify against the company or file charges against it
Refusing to bargain collectively with representatives of the employees

Not All Workers Covered by the Wagner Act

Many people in the business world labeled these standards as “socialist,” and saw the Wagner Act as a threat to American democracy. Many employers attempted to comply with the new standards and attempted to foil the functioning of the organization. However, many workers in the United States were not covered under this Act and continued to be discriminated against by employers.

For example, railway workers weren’t covered as they had a separate act that accounted for their rights, and agricultural and domestic employees weren’t covered as well as supervisors, governmental workers or independent contractors.

Wagner Act Negative: Offshore Labor

Although the lives of many American workers changed for the better with the Wagner Act, heavy legislation often entices large companies to move overseas where citizens don’t enjoy the protections that workers in the United States do. This unfortunate occurrence saves the company money and saves them from having to follow the standards of the United States workers in their labor practices.

The Wagner Act symbolizes a shift in mind-set of both the American people and the government. Enacted to create the National Labor Relations Board, it began a process that significantly changed labor relations of the rights of workers in the country.