In May 1935 the U.S. Supreme Court declared the NIRA unconstitutional, due to its failure to define “fair competition.” The labor movement was not sorry to see it go, because of the act’s support for company unions and lack of enforcement authority.

But rules to resolve worker-employer conflict were still badly needed. On July 5, 1935—exactly one year after Bloody Thursday—President Roosevelt signed the National Labor Relations Act (NLRA), or Wagner Act. It authorized the creation of a National Labor Relations Board (NLRB) to protect workers’ self-organization activities. The board was empowered to oversee union representation elections in workplaces, make decisions in workplace disputes, and enforce them with penalties. A key provision outlawed company unions.

The board would function like the U.S. court system but would focus specifically on resolving differences between workers and employers. The act guaranteed workers the legal right to create and join unions of their choosing, and to picket, boycott, strike, and bargain collectively in pursuit of their economic goals.

Called “labor’s Magna Carta” by its author, the NLRA was not without problems. Intended to level the playing field between workers and bosses, it contained flaws not immediately apparent. Left outside its protections were public employees, agricultural laborers, and domestic workers. Over time, court decisions and unabated employer opposition undermined the original intent of the act, tilting the field decisively back to capital. But for a dozen years, until after World War II, it empowered and emboldened workers to act collectively in their common interests.