Powers of the President during crisesSmith, J. Malcolm (John Malcolm)
History
Powers of the President during crises
Smith, J. Malcolm (John Malcolm)
Constitutional history -- United States; Executive power -- United States
The National Industrial Recovery Act obviously conceived as emergency
legislation which it indubitably was, is the outstanding example of an
endeavor in part through the regulation of employer-employee relations,
to overcome an economic depression.[365] The objective of course was
to increase consumer income and purchasing power, which in turn was
to stimulate production, with related chain effects. Section 7 (a)
required that every code of fair competition established under the
Act guaranteed employees the right to bargain collectively, and to
join or refrain from joining a union. Company unions were outlawed.
Employers were to comply with the maximum hours or labor, minimum rates
of pay, and other conditions of employment, approved or prescribed
by the President. In Section 4 (b) the President was granted the
unprecedented power whenever he found “that destructive wage or price
cutting or other activities contrary to the policy of this title were
being practiced in any trade or industry or any subdivision thereof,”
to license business enterprises in order to make effective a code of
fair competition or an agreement that would carry out the policy of the
Act. Once a finding had been made, and publicly announced, no one could
carry on any business, if in interstate commerce, unless a license had
been obtained. Any order of the President suspending or revoking any
such license was to be final if in accordance with law.
Title II of the Act, pertaining to public works projects, closely
regulated employment practices on projects contracted under the Act:
Convict labor was prohibited; no one, except in an administrative
or executive position could work more than thirty hours a week;
all employees were to be paid just and reasonable wages sufficient
to provide a standard of living in decency and comfort; wherever
possible ex-servicemen with dependents were to be given preference
in employment; and human labor in preference to machinery was to be
used wherever practicable and consistent with sound economy and public
advantage.[366] In June 1934 Congress authorized the establishment
of labor boards to enforce the labor relations provisions of the
N.I.R.A.[367] As is well known these sweeping provisions were later
swept aside in the famed case of _Schechter Poultry Corporation_ v.
_United States_,[368] wherein Mr. Justice Cardozo, speaking for a
unanimous Court, said “this is delegation run rampant.”
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