After the passage of the National Recovery Act in 1933,companies developed "sham unions" that were actually company-supported organizations designed to keep legitimate unions out.

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One goal of the National Labor Relations Act was to outlaw "sham unions." Two years before passage of the NLRA,the National Recovery Act (1933) tried to give employees the right to organize and to bargain collectively.This triggered an increase in sham unions that were actually company-supported organizations aimed at keeping legitimate unions out.

After the Passage of the National Recovery Act in 1933,companies