The UAW-Automakers Labor Dispute and Taft-Hartley’s National Emergency Provisions

The UAW-Automakers Labor Dispute and Taft-Hartley’s National Emergency Provisions

October 2, 2023
The UAW-Automakers Labor Dispute and Taft-Hartley’s
National Emergency Provisions
Introduction
response to union demands. UAW leadership subsequently
On September 22, 2023, union workers at 38 General
rejected the Ford proposal.
Motors and Stellantis parts warehouses in 20 states walked
off their jobs and joined an ongoing strike against the two
On September 15, 2023, union workers at General Motors,
automakers and Ford Motor Company. One week earlier,
Ford, and Stellantis plants located in Michigan, Missouri,
workers at three factories began to strike after the
and Ohio began to strike. On September 22, the strike
International Union, United Automobile, Aerospace, and
expanded to 20 Stellantis parts distribution centers and 18
Agricultural Implement Workers of America (“United Auto
General Motors centers. On September 29, UAW
Workers” or “UAW”) collective bargaining agreements
announced additional walkouts at a Ford facility and a
with the automakers expired without reaching a new deal.
General Motors facility.
The Labor Management Relations Act, popularly known as
Legal Framework
the Taft-Hartley Act, establishes a framework for
The National Labor Relations Act (NLRA), enacted in
addressing serious labor disputes outside of the rail and air
1935, governs private sector labor-management relations in
industries. Although Congress has enacted legislation in the
the United States outside of the rail and air industries. The
past to resolve rail labor disputes that are governed by the
Taft-Hartley Act, enacted in 1947, amended the NLRA to
Railway Labor Act, it has never intervened in a labor
provide for the settlement of labor disputes. The act also
dispute subject to the Taft-Hartley Act’s national
established the Federal Mediation and Conciliation Service
emergency provisions. (For additional information on
(FMCS), an independent federal agency that attempts to
congressional intervention in rail labor disputes, see CRS
resolve disputes by providing mediation services to the
Legal Sidebar LSB10861, The Railway Labor Act and
parties, and allows for the involvement of the President if
Congressional Action.) This In Focus provides background
he makes certain determinations about the dispute.
on the dispute between the three automakers and the UAW
and explains legally available options for the executive and
Section 206 of the Taft-Hartley Act, found at 29 U.S.C.
legislative branches to intervene in labor disputes governed
§ 176, authorizes the President to get involved in a labor
by the Taft-Hartley Act.
dispute if he makes the following determination:
Background
• There is “a threatened or actual strike or lockout;”
UAW is a labor union representing approximately 400,000
active workers, including nearly 150,000 workers at the
• The strike or lockout affects all or a substantial part of
“Big Three” American car manufactures—Ford, General
an industry engaged in “trade, commerce, transportation,
Motors, and Stellantis. Prior collective bargaining
transmission, or communication among the several
agreements between UAW and the automakers were
States or with foreign nations;” and
ratified in 2019, with General Motors reaching an
agreement after a 40-day strike by approximately 48,000
• The strike or lockout, if permitted to occur or continue,
workers. In advance of the agreements expiring on
would “imperil the national health or safety.”
September 14, 2023, UAW proposed including in the
agreements general 40% wage increases over four years,
Upon making such a determination, the President may
cost-of-living adjustments to wages tied to inflation,
appoint a board of inquiry (BOI) that will examine the
enhanced profit sharing, a cap on the use of temporary
issues involved with the labor dispute and issue a written
workers, and the elimination of the two-tiered
report. Once the President receives the BOI’s report, he
compensation and benefit system. UAW argues that
may direct the Attorney General to petition any federal
workers gave up cost-of-living adjustments and accepted
district court having jurisdiction over the parties to enjoin
tiered wage and benefits structures in response to the 2008
any strike or lockout that may be occurring. The issuance of
financial crisis.
an injunction triggers an 80-day “cooling off” period.
During this period, the parties are required to “make every
On August 31, 2023, the UAW president announced that
effort to adjust and settle their differences” with the
the union had filed unfair labor practice charges against
assistance of the FMCS.
General Motors and Stellantis with the National Labor
Relations Board (NLRB), accusing the companies of
If there is no agreement within 60 days from the start of the
refusing to bargain in good faith. The union reportedly did
injunction, the BOI is to report the parties’ current positions
not include Ford in the complaint because the company had
and the employer’s last settlement offer to the President. In
participated in negotiations by submitting a proposal in
the succeeding 15 days, the NLRB is to conduct a secret
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The UAW-Automakers Labor Dispute and Taft-Hartley’s National Emergency Provisions
ballot to determine whether the employees want to accept
Supreme Court recognized Congress’s constitutional
the employer’s last offer. Within five days of the balloting,
authority to intervene in rail labor disputes that threaten to
the BOI is to certify the results to the Attorney General,
disrupt interstate commerce. Following a bargaining
who is to move for the injunction to be discharged. If the
impasse and strike threat that would have affected the entire
employees have accepted the employer’s final offer, the
country, Congress enacted a law that established an eight-
dispute is resolved. If the offer has not been accepted,
hour workday and temporarily regulated the wages for rail
however, the parties may engage in self-help. After the
carrier employees engaged in interstate and foreign
injunction is discharged, the President is to submit a “full
commerce. The carriers challenged the law, arguing that
and comprehensive” report of the proceedings to Congress
Congress lacked the authority to enact it. The Court
with “such recommendations as he may see fit to make for
determined, however, that Congress’s authority over rail
consideration and appropriate action.”
carriers in interstate commerce was within its legislative
power to regulate commerce and “not subject to dispute.”
Since the enactment of Section 206, Presidents have
The Court maintained that Congress has the ability to
intervened in labor disputes on 37 occasions. However, not
“guard against the cessation of interstate commerce” by
all labor disputes have been found by the President to
responding legislatively to a failure of employers and
“imperil the national health or safety.” In 1997, President
employees to agree on working conditions, such as a wage
Bill Clinton did not intervene in a strike involving the
standard that was “an essential prerequisite to the
United Parcel Service, which reportedly handled 80% of all
uninterrupted flow of interstate commerce.”
packages moved by ground transportation in the country at
the time. President Clinton maintained that there must be
Although Congress has not enacted similar legislation to
“severe damage to the country” before he may intervene
resolve a non-rail-labor dispute, New arguably suggests that
under Section 206. In 1998, President Clinton also declined
this kind of legislation would be permissible if a strike
to intervene in a labor dispute involving the UAW and
could disrupt interstate commerce. An extended strike by
General Motors. Strikes at two General Motors parts plants
autoworkers, according to some observers, would
reportedly idled approximately 70,000 workers and 90% of
negatively impact the U.S. economy. Given the threat to
the company’s production. When asked about possible
interstate commerce, it seems that Congress may be able to
intervention, President Clinton expressed support for the
enact legislation establishing employment conditions for the
“collective bargaining system” and “encourage[d] the
relevant employees.
parties to work it out.”
Furthermore, while Congress has not intervened historically
In October 2002, President George W. Bush appointed a
in labor disputes involving BOIs, legislation that would
BOI after a labor dispute involving the Pacific Maritime
have amended the Taft-Hartley Act’s national emergency
Association (PMA) and the International Longshore and
provisions has been introduced in the past. For example,
Warehouse Union (ILWU) resulted in a lockout. The PMA
during the 114th Congress, some Members introduced the
represents cargo carriers and terminal operators on the West
Protecting Orderly and Responsible Transit of Shipments
Coast, and the ILWU represents longshore workers at
Act of 2015 (H.R. 3433/S. 1519) in response to work
various West Coast ports. The President determined that the
slowdowns and lockouts at U.S. ports. The Act would have
dispute “affect[ed] a substantial part of the maritime
allowed a state or territorial governor to appoint a BOI if
industry, an industry engaged in trade, commerce,
the President did not make such an appointment. The bill
transportation (including the transportation of military
would have also allowed for the appointment of a BOI if a
supplies), transmission, and communication among the
work slowdown occurred that affected “an entire industry
several States and with foreign nations[.]” President Bush
or a substantial part thereof engaged in trade, commerce,
found that the lockout, if permitted to continue, would have
transportation, transmission, or communication among the
imperiled the national health and safety. Following the
several States or with foreign nations.” Also introduced
issuance of the BOI’s report, the parties reached a tentative
during the 114th Congress, the Ensuring Continued
agreement in November 2002.
Operations and No Other Major Incidents, Closures, or
Slowdowns Act (H.R. 3932) would have directed the
A BOI has not been appointed since 2002. In 2015, there
President to appoint a BOI not later than 10 days after “the
was discussion in the Obama Administration about
U.S. Census Bureau reports that the monthly Import or
appointing a BOI after the 2014 expiration of a collective
Export Vessel Value decreased by 20 percent or more in
bargaining agreement between the ILWU and PMA and a
any one month from the previous month in any one of the
work slowdown at West Coast ports. The parties were able
four metric identification regions,” among other events.
to negotiate a new agreement with the involvement of then-
Thus, these pieces of legislation would have allowed a BOI
U.S. Secretary of Labor Thomas Perez without the
to be appointed even if there were no threatened or actual
President appointing a BOI.
strike or lockout.
Considerations for Congress
Jimmy Balser, Legislative Attorney
Article I, Section 8, Clause 3, of the U.S. Constitution states
Jon O. Shimabukuro, Legislative Attorney
that the Congress shall have power “[t]o regulate
Commerce with foreign Nations, and among the several
IF12506
States, and with the Indian Tribes[.]” In Wilson v. New, the

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The UAW-Automakers Labor Dispute and Taft-Hartley’s National Emergency Provisions

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