Boulewarism: Take-It-Or-Leave-It Offers in Collective Bargaining

Boulewarism, named for the General Electric vice president who pioneered this practice, involves management presenting take-it-or-leave-it offers directly to union members during collective bargaining. This practice was ruled illegal under the Wagner Act.

Boulewarism is a labor relations term that refers to a take-it-or-leave-it offer made by management to labor unions during collective bargaining. Named after Lemuel Boulware, a vice president of General Electric who pioneered the practice in the mid-20th century, Boulewarism entails the management’s strategy of presenting final offers directly to union members, aiming to bypass union leadership. This tactic was intended to weaken the union’s negotiating power and pressurize union members to accept the presented terms without further negotiations.

Historical Context

Boulewarism gained attention in the 1940s and 1950s at General Electric, where Boulware applied this negotiation strategy extensively. The practice was controversial because it undermined the collective bargaining process, a cornerstone of labor relations regulated by U.S. labor law.

Wagner Act (National Labor Relations Act) of 1935

The Wagner Act, officially known as the National Labor Relations Act (NLRA) of 1935, fundamentally changed labor relations in the United States by affirming the right of employees to organize and to bargain collectively through representatives of their own choosing. The Act also established the National Labor Relations Board (NLRB) to enforce labor laws and arbitrate disputes between employers and employees.

Boulewarism was challenged legally, primarily because it attempted to circumvent the union, which is recognized as the exclusive bargaining representative for employees under the NLRA. In multiple cases, federal courts deemed Boulewarism an unfair labor practice and an illegal violation of the Wagner Act.

  • The practice of direct dealing with employees was found to violate Section 8(a)(5) of the NLRA, which obligates employers to bargain in good faith with the union representing the employees.
  • The Kaplan v. Telephone & Telegraph Co. case and subsequent rulings reinforced the prohibition of Boulewarism, emphasizing the requirement for employers to engage with union representatives rather than individual members directly.
  • Collective Bargaining: Collective bargaining refers to the process through which employers and a group of employees negotiate the terms and conditions of employment. This process typically involves negotiation over wages, working hours, benefits, and other employment terms.
  • Unfair Labor Practice (ULP): An unfair labor practice is an action by an employer or union that violates the rights of employees under the labor relations regulations, such as the NLRA. Boulewarism is considered a ULP because it undermines collective bargaining by bypassing the union.
  • Wagner Act: The Wagner Act, also known as the NLRA, is the foundational statute for labor relations in the United States. It protects employees’ rights to form unions and engage in collective bargaining and prohibits certain unfair labor practices by employers.

FAQs

Is Boulewarism legal today?

No, Boulewarism is illegal under current U.S. labor law as it violates the principles of collective bargaining outlined in the Wagner Act.

Why was Boulewarism deemed unfair labor practice?

It bypassed union representatives and directly targeted employees with final offers, undermining the union’s role and violating the employer’s duty to bargain in good faith.

What are the consequences for employers practicing Boulewarism?

Employers found practicing Boulewarism can face penalties enforced by the NLRB, including orders to cease the practice and potentially, compensation for any damages to the employees or union.

Summary

Boulewarism, although an innovative approach to negotiation from a managerial perspective, ultimately failed the legal test under U.S. labor laws. Named after Lemuel Boulware from General Electric, the practice aimed to weaken union influence by negotiating directly with employees. However, federal courts consistently ruled it as an unfair labor practice under the Wagner Act, emphasizing the need for good faith bargaining through recognized union channels. Understanding the implications of Boulewarism underscores the importance of adhering to legal frameworks in labor relations.

References

  • National Labor Relations Act of 1935 (Wagner Act)
  • National Labor Relations Board rulings on Boulewarism
  • Cases such as Kaplan v. Telephone & Telegraph Co.

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