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NLRB v. Mackay Radio & Telegraph Co.

Supreme Court of the United States
304 U.S. 333, 58 S. Ct. 904 (1938)
ELI5:

Rule of Law:

Under the National Labor Relations Act, an employer may hire permanent replacements for striking employees to continue business operations, but it commits an unfair labor practice if it discriminates against strikers based on their union activities when making decisions about reinstatement.


Facts:

  • Mackay Radio & Telegraph Co. employed radio operators in its San Francisco office who were members of Local No. 3 of the American Radio Telegraphists Association.
  • After negotiations over employment agreements failed, the national union called for a general strike, and on October 4, 1935, the San Francisco employees walked out.
  • To maintain service, Mackay transferred employees from other cities to San Francisco, promising them they could remain permanently if they wished.
  • The strike proved unsuccessful, and on October 7, most of the striking employees sought to return to work.
  • A Mackay supervisor informed the returning strikers that eleven of them, who were prominent in the union, would have to formally apply for reinstatement.
  • Ultimately, only five of the new replacement workers chose to stay in San Francisco, leaving vacant positions.
  • Mackay reinstated six of the eleven previously singled-out strikers but refused to reinstate the remaining five, who were key union leaders, telling them the quota of employees was full.

Procedural Posture:

  • The union secretary filed an unfair labor practice charge against Mackay Radio with the National Labor Relations Board (NLRB).
  • The NLRB issued a complaint, conducted a hearing, and found that Mackay had committed an unfair labor practice under sections 8(1) and 8(3) of the National Labor Relations Act.
  • The NLRB ordered Mackay to cease and desist from such practices and to offer reinstatement with back pay to the five discriminated-against employees.
  • The NLRB petitioned the U.S. Circuit Court of Appeals for enforcement of its order.
  • The Circuit Court of Appeals, after a rehearing, denied enforcement of the NLRB's order.
  • The NLRB was granted a writ of certiorari by the U.S. Supreme Court.

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Issue:

Does an employer commit an unfair labor practice under the National Labor Relations Act by refusing to reinstate certain employees following an economic strike solely because of their union activities, while reinstating other strikers?


Opinions:

Majority - Mr. Justice Roberts

Yes, an employer commits an unfair labor practice by refusing to reinstate employees solely because of their union activities. Under Section 2(3) of the National Labor Relations Act, individuals who cease work due to a current labor dispute remain 'employees' and are protected from unfair labor practices. While it is not an unfair labor practice for an employer to replace striking employees with others to carry on the business, nor is an employer bound to discharge those replacements to rehire the strikers, the employer is prohibited by Section 8 of the Act from discriminating against strikers in regard to reinstatement. The evidence supported the National Labor Relations Board's finding that Mackay refused to reinstate the five men not because their positions were filled, but as a discriminatory action against them for their union leadership.



Analysis:

This case establishes the influential 'Mackay Radio Doctrine,' which creates a critical balance of power during economic strikes. It affirms an employer's powerful right to permanently replace striking workers, thereby diminishing the leverage of a strike. However, it significantly limits this power by prohibiting employers from using the reinstatement process to punish or eliminate union activists. This decision has shaped labor-management relations for decades, defining the risks for striking workers and setting the legal boundaries for an employer's response to a strike.

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