According to the employer unfair labor practices under the Wagner and Taft-Hartley Acts,the employer may not create a company-sponsored union and bargain with it.

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The Wagner Act (National Labor Relations Act of 1935) and the Taft-Hartley Act (Labor Management Relations Act of 1947) prohibit employers from interfering with workers' rights to organize and bargain collectively. This includes the prohibition against creating a company-sponsored (or "company union") and bargaining with it, as it undermines genuine independent union representation.

According to the Employer Unfair Labor Practices Under the Wagner