Initial Labor Law in the United States and How it Changed the U.S. Economy

In the 1950s in America, the nation experienced tremendous growth on an international scale. The ending of World War Two created the United States as a world leader and super power. Now world countries were eager to trade and do business with the United States. The United Nations replaced the old League of Nations and the U.N. was put in New York which was a donation by John D. Rockefeller. The North Atlantic Treaty Organization (NATO) was formed as well as the Southeast Asian Treaty Organization (SEATO) and the General Agreement on Tariffs and Trade (GATT). From 1953 to 1975 U.S. industrial output increased .6 percentages each year.

New technology made U.S. business more powerful and successful than ever and mass production increased profits significantly. The number of employees for big companies increased each year and more people were being hired and employment was at an all time low during this period. In the mid 1970s the labor force witnessed its highest growth. Unemployment was below 5 percent which is amazing.

This period also showed hidden signs that at the same time the U.S. economy was in some trouble. Exports out of the United States were decreasing, especially in agriculture.

In 1935 the Wagner Act was passed which allowed workers to collectively bargain with employees for more rights, better pay and benefits and better working conditions. The Wagner Act or the National Labor Relations Act also prohibited unfair labor practices by employers but it was unclear exactly what these practices were. A National Labor Relations Board was also created to settle disputes between employers and employees without the case going to court. The National Labor Relations Act also allowed employees to decide whether or not they wanted to form a union by going through a secret ballot.

A major consequence of this act was that more unions that had been formed were striking now more than ever before because they had the chance to use it as leverage against the employer to earn better pay, wages or benefits.

In 1947 Congress passed the Taft Harley act which was passed despite a presidential veto by President Truman. The Taft Harley Act prohibited government employees from striking or they would be fined or possibly jailed. The Taft Harley Act also gave more freedom to employees to reject going into a labor union. In 1958 Congress passed the Landrum-Griffin Acts which put strict regulations on unions. The goal of these acts passed by Congress was to restore the power balance in the workplace between the worker and employer. The Employee Free Choice Act was also passed which allowed workers the decision of whether or not they wanted a union representation. If a majority of the workers at a workplace did not favor the union representation, then no one would be represented through a union at that company.

In 1938 the Fair Labor Standards Act was passed in which the federal wage hour law established a minimum wage requirement that employers had to pay workers as a minimum amount per hour that an employee worked for the company. Overtime pay was also made a requirement. Child Labor was also prohibited. In 1997 the minimum wage was increased to $5.15. In New York, the minimum wage amount is currently higher than in most states, at a rate of $6.75 an hour. Between the years 1950 to 1981 the Fair Labor Standards Act was amended 13 times.