NLRA Background

In 1935, Congress passed the National Labor Relations Act (NLRA) to encourage collective bargaining and to strengthen the rights of workers. Congress also established the National Labor Relations Board (NLRB) to enforce the new law. In 1947, the NLRA was amended by the Taft-Hartley Act. Further amendments to the NLRA were made in 1959.

The NLRA, as amended, defines unfair labor practices and sets forth the rights and obligations of employees, employers, and labor unions. If the NLRB determines that an unfair labor practice has occurred, it may order the offender to stop its illegal activity. It may also provide affirmative relief, such as an order of rehire, to protect the employee or other party injured by the unfair labor practice.

Hot Cargo Agreements Overview

Hot cargo agreements, also known as "hot goods" agreements, are agreements between employers and labor unions. Under these types of agreements, employers promise labor unions that their employees will never have to handle goods coming from or going to an employer identified by the labor union as guilty of "unfair" practices. Essentially, hot cargo agreements exist anytime an employer agrees not to do business with another employer, at the request of the labor union. Contracts between labor unions and employers in the trucking and construction industries very commonly contained these hot cargo provisions prior to the 1959 amendment to the NLRA.

NLRA Hot Cargo Agreement Provisions

Pursuant to the 1959 amendment, the NLRA proscribes hot cargo agreements, categorizing them as unfair labor practices on the part of both employers and labor unions. Specifically, the NLRA forbids employers and unions from making agreements under which the employer agrees to stop doing business with any other employer. The NLRA makes void any hot cargo agreements that are made. As such, they are unenforceable.

Furthermore, the NLRB has ruled that any union activity, such as striking, or the threat of such activity, in an attempt to coerce an employee into a hot cargo agreement is also a violation of the NLRA.

Exceptions

In the construction industry, employers and unions may agree that employers may only subcontract work to employers that also have an agreement with the union. Unions may engage in strikes to obtain such provisions. They may not, however, engage in strikes to enforce these types of provisions.

Employers and unions in the garment industry may also agree that certain work may only be subcontracted to other employers that have an agreement with the union. Unions in the garment industry may seek to obtain or enforce these provisions with strikes and picketing.

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