Taft-Hartley Act
What Does Taft-Hartley Act Mean?
The Taft-Hartley Act, a federal law enacted in 1947, aimed to impose restrictions on the power of labor unions. Proponents argued it was necessary to curb union influence, which they believed was hindering business operations. Critics, however, contended that the act would harm workers and infringe on their freedom of speech.
Insuranceopedia Explains Taft-Hartley Act
The Taft-Hartley Act introduced several rules regulating union operations. It prohibited certain types of strikes, made it harder for unions to form and collect membership dues, and banned union contributions to political campaigns. Additionally, it ensured that workers could opt out of union participation if they chose to. For instance, the law prevented unions from forcing workers to engage in union activities or contribute to union-related causes.
The Act also established Taft-Hartley plans, which are retirement and health insurance plans offering greater protection for employers. These plans allow multiple employers to collaborate on a shared pension and/or health insurance program. If an employee moves to a different employer within the group, they can retain their pension and health insurance coverage.
