Define: Hot-Cargo Agreement

Hot-Cargo Agreement
Hot-Cargo Agreement
Quick Summary of Hot-Cargo Agreement

A hot-cargo agreement refers to an understanding between a union and an employer to cease any dealings with a third-party employer that the union is in conflict with. This entails refraining from utilizing, vending, or transporting any of the products from the said employer. Nevertheless, the majority of these agreements are currently prohibited due to the Landrum-Griffin Act, a legislation enacted to curb corruption in unions and preclude specific forms of boycotts.

Full Definition Of Hot-Cargo Agreement

A hot-cargo agreement is a voluntary agreement between a union and a neutral employer where the neutral employer agrees to cease any involvement with products from an employer that the union deems unfair. This is done to apply pressure on the employer with whom the union has a disagreement. For instance, if a union has a dispute with a company that manufactures a specific product, they may request a neutral employer, such as a transportation company, to halt the transportation of that product. This forces the company to address the dispute with the union. However, the Landrum-Griffin Act of 1959 prohibited most hot-cargo agreements as it aimed to prevent certain types of secondary boycotts and hot-cargo provisions in collective-bargaining agreements.

Hot-Cargo Agreement FAQ'S

A hot-cargo agreement is a contract between a labor union and an employer that prohibits the employer from using or handling goods produced by non-union workers or companies.

Hot-cargo agreements are generally considered illegal under the National Labor Relations Act (NLRA) as they can be seen as a form of secondary boycott, which is prohibited by the Act.

No, hot-cargo agreements cannot be enforced as they are considered illegal. Courts have consistently ruled against the enforcement of such agreements.

Entering into a hot-cargo agreement can have legal consequences for both the labor union and the employer. The employer may face legal action for unfair labor practices, while the labor union may be subject to fines or other penalties.

Yes, a hot-cargo agreement can be challenged in court. Employers who believe that a labor union is engaging in illegal secondary boycott activities can file a complaint with the National Labor Relations Board (NLRB) or seek legal action.

There are limited exceptions to the prohibition on hot-cargo agreements. For example, if the agreement is part of a lawful primary strike or if it falls under the protection of the First Amendment as a form of free speech, it may be considered legal.

No, using a hot-cargo agreement as a bargaining tool is generally not allowed. The NLRA prohibits labor unions from engaging in unfair labor practices, including using hot-cargo agreements to coerce or pressure employers.

Including a hot-cargo agreement in a collective bargaining agreement is generally not advisable, as it may render the entire agreement unenforceable. It is important to consult with legal counsel to ensure compliance with labor laws.

No, an employer cannot be forced to sign a hot-cargo agreement. Employers have the right to refuse to enter into any agreement that they believe to be illegal or against their best interests.

If faced with a demand for a hot-cargo agreement, an employer should seek legal advice immediately. It is important to understand the legal implications and potential consequences before making any decisions or taking any actions.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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