How were the yellowdog contracts and labor injunctions used
How were the yellow-dog contracts and labor injunctions used to limit activities of union organizers or slow union growth?
Solution
A yellow-dog contract (a yellow-dog clause of a contract, or an ironclad oath) is an agreement between an employer and an employee in which the employee agrees, as a condition of employment, not to be a member of a labor union.
Operating a business during a lawful strike is difficult. Even if management is able to operate the business with a
sufficient number of trained employees, the union uses picketing to restrict the movement of
employees, product
and customers. The union’s picketing tactics can create significant and immediate economic harm to the extent
that an employer’s right to continue operations during a strike or lockout becomes illusory.
These challenges are often magni
fied for the employer’s human resources and legal staff because they may
experience picketing only
rarely
, and may therefore be unfamiliar with the employer’s legal rights and the
processes for enforcing them
In India most companies keep people on contract instead of direct payroll to avoid labour issues or people through a staffing agent instead of direct hire to keep costs down and labour issues at bay

