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Evaluating the Effectiveness of National Labor Relations Act Remedies: Analysis and Comparison with Other Workplace Penalty Policies

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  • Morris M. Kleiner
  • David Weil

Abstract

The goal of this paper is to examine the implied penalty policies underlying the remedies created by the National Labor Relations Act (NLRA) in terms of the policies' impact on employer and union behaviors. We present a simple model of deterrence as a means of evaluating workplace penalty policies in terms of their influence on employer behavior, particularly through deterrence effects. We also compare the remedies for violations embodied in the NLRA with penalty policies under other workplace legislation, such as the Fair Labor Standards Act and the Occupational Safety and Health Act. We then evaluate the size of financial costs for violations against individuals of specific provisions of the NLRA by firms and unions for the period 2000-2009. We show that the implied penalties are modest, particularly in terms of providing sufficient incentives to comply with the law in a timely manner. Given this finding, we examine other potential remedies available under the NLRA, in particular, methods to address the impact of delays (the length of time from the filing of the charge or the issuance of the charge to the time of its adjudication before an administrative law judge at the National Labor Relations Board or through the federal courts) on workplace representation through unionization.

Suggested Citation

  • Morris M. Kleiner & David Weil, 2010. "Evaluating the Effectiveness of National Labor Relations Act Remedies: Analysis and Comparison with Other Workplace Penalty Policies," NBER Working Papers 16626, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:16626
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    References listed on IDEAS

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    1. John W. Budd & Brian P. McCall, 1997. "The Effect of Unions on the Receipt of Unemployment Insurance Benefits," ILR Review, Cornell University, ILR School, vol. 50(3), pages 478-492, April.
    2. John-Paul Ferguson, 2008. "The Eyes of the Needles: A Sequential Model of Union Organizing Drives, 1999–2004," ILR Review, Cornell University, ILR School, vol. 62(1), pages 3-21, October.
    3. John S. Earle & Klara Sabirianova Peter, 2009. "Complementarity and Custom in Wage Contract Violation," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 832-849, November.
    4. Price V. Fishback & Shawn Everett Kantor, 2000. "A Prelude to the Welfare State: The Origins of Workers' Compensation," NBER Books, National Bureau of Economic Research, Inc, number fish00-1.
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    1. repec:wsi:serxxx:v:59:y:2014:i:04:n:s0217590814500295 is not listed on IDEAS

    More about this item

    JEL classification:

    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • J8 - Labor and Demographic Economics - - Labor Standards
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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