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Court Rules Wage Hike Must Go Through Unions
The U S Supreme Court ruled 5 to 3 that an employer may not seek wage increases for workers without bargaining with a certified union the company did not recognize. The decision upheld the Wagner act standard and involved the Famous Barr Co St Louis department store with 4500 employees and a War Labor Board wage raise of 2 a week affecting 40 stewards and a union. Justice Reed wrote the majority opinion joined by Burton Black Douglas and Murphy noting the action interfered with self organization and collective bargaining. Dissenters led by Justice Rutledge argued the wage move fell within the employer s legal rights under the Wagner act and First Amendment. The ruling also touched the estate tax matter on community property rights in federal law.