Bosses Try to Legalize 'Company Unions'

By Daniel J.B. Mitchell and Ho-su Wu, 27 April 1999

During the past several years, there has been much controversy about Sec. 8a2 of the Wagner/Taft-Hartley Act which bans "company unions." Employer groups have complained that the section is being interpreted too strictly so as to void employee involvement committees. The Dunlop commission was somewhat split on the issue.

According to the April 14, 1999 Daily Labor Report, a complaint has been filed in Canada by an employer group under machinery set up under NAFTA. NAFTA contains a labor "side accord" which sets up a mechanism whereby any of the 3 NAFTA countries (U.S., Mexico, Canada) can complain about improper enforcement of labor law in one of the other partner countries. The filing, by LPA Inc. (formerly the Labor Policy Assn.) and EFCO - a firm which has run afoul of NLRB interpretations of 8a2 - complains that the US National Labor Relations Board is interfering with legitimate employee participation in its interpretation of 8a2.

Most labor complaints filed under NAFTA have been directed against Mexico but there have been several against the U.S. Generally, these end up in reports, ministerial consultations, etc.