UpHolding the Wagner Act

 
 
 
 
1. In upholding the Wagner Act, the court defined "interstate commerce" as business which is transacted across state lines. Specifically, although Jones & Laughlin Steel Corporation was incorporated within the state of Pennsylvania, and although its manufacturing plants were located in Pittsburgh and Aliquippa, it received raw materials from outside Pennsylvania and shipped most of its product (approximately 75 percent) to locations outside of Pennsylvania.

The issue of whether or not Jones & Laughlin engaged in interstate commerce is critical to the issue because it determines whether or not the federal government has jurisdiction in the case. By using the reasoning that interstate commerce can take place by the interaction of one company with other companies located in other states, the court upheld the jurisdiction of the federal government to have an interest in the case.

This interpretation differs from the idea that interstate commerce must involve one company having direct operations in several states. Such an example would be that where a company has manufacturing facilities in several states, or where it is vertically integrated so that it owns perhaps a raw material processor, manufacturing plant and distribution facilities across several states. In this case, however, it was held that interstate commerce could indeed exist when a single company with operations in a single state interacts with other companies in other states.


     
 
 
 
    

 

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not apply in this case because it is not an issue of common law, but is instead a statutory issue. In this case, it is held that Jones & Laughlin have violated the Wagner Act, a statute, not common law. Thus the Seventh Amendment does not apply and the respondent does not have the remedy of seeking a trial by jury which might be more sympathetic to its cause. Instead, the company must take actions to remedy the situation it created when it dismissed employees who sought to bring a union into the workplace, provide them back wages, and refrain from using coercive and intimidation tactics in the future. Developing an aggressive human resource program that not only solves today's human resource issues but anticipates future needs is not an easy strategy for most companies. The problems of finding the right people for the right jobs are always challenging, but they can be particularly difficult at entry-level positions where the needs of the company and the needs of the individual may be in conflict. Such a situation can arise when a receptionist with a high school education wants to move up in the organization. Although the receptionist position is a critical one since the interaction that callers have with a receptionist ca

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