Labor law is an entire body of law unto itself, very different from the larger body of employment law. Although the term employment law refers to a wide range of issues related to the workplace, labor law focuses specifically on issues related to labor unions and collective bargaining agreements. Rather than each employee striking individual deals with the employer, the law permits employees to do so in an organized way, provided the workers have similar work interests and agree to allow a representative speak for them. This is called collective bargaining.
The theory behind collective bargaining is that it is in the employer’s and the employees’ best interest if the employer only has to deal with representatives of the workforce, as opposed to negotiating with each member separately.
Collective bargaining was not something employers initially welcomed. It was a right won by workers only after nearly 100 years of struggle on many fronts in the streets, in Congress, various state legislatures, and in the courts.
The Sherman Anti-Trust statute was frequently used by courts and the opponents of collective bargaining to find organizing efforts by workers to be illegal. That finally changed with the passage of the first of four important labor laws.
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