National Labor Relations Board v. MacKay Radio & Telegraph Co.

Background

A California communications company employed point-to-point radio and telegraph operators, many belonging to Local No. 3 of a national union. When national negotiations stalled, San Francisco operators struck on October 4, 1935. The company hired replacements and later invited strikers back, but singled out eleven men for special review; six of those returned immediately while five active union members were told to await applications and were not reinstated. The union charged discrimination with the National Labor Relations Board, which found the five were unlawfully excluded for union activity and ordered reinstatement, back pay, and notices.

Reasoning

The Court addressed whether the Board had power to order relief and whether the action violated the Constitution. It held the strikers remained "employees" under the Act while striking in a labor dispute. Replacing strikers was not automatically unlawful, but singling out and excluding certain men because of union activity was discrimination prohibited by the statute. The Board’s factual findings were supported by evidence, its remedial order was appropriate and not arbitrary, and the Fifth Amendment and hearing arguments did not defeat the order. The Court reversed the appeals court and remanded for further proceedings consistent with this decision.

Real world impact

The decision confirms that workers who strike in a labor dispute retain statutory protection and that employers may not lawfully deny reinstatement to particular strikers for union activity. The NLRB can fashion relief, including reinstatement and back pay, when it finds discriminatory treatment, even if replacements were hired to keep the business running.

Dissents or concurrances

The Court notes the Circuit Court of Appeals was divided below, and two Justices took no part in this case. The split opinions focused on whether strikers remained employees and on due-process objections.