A hot cargo clause is a collective bargaining agreement provision that prohibits an employer from conducting business with some other person. A hot cargo clause would typically require the bargaining employer to refuse to deal with another employer with whom the bargaining union has a labor dispute. A hat cargo clause can be seen as a form of boycott that a union can use to exert economic pressure on employers involved in a labor dispute with the union.
Hot cargo clauses are categorized as a type of illegal unfair labor practice under 29 U.S. Code § 158(e). Therefore, a hot cargo clause will be unenforceable and void unless 29 U.S. Code § 158(e) exceptions regarding the construction and garment industry apply.
[Last updated in February of 2023 by the Wex Definitions Team]
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