Under which act are closed shops legal?

The correct answer is the Railway Labor Act. This act regulates labor relations in the railway and airline industries and allows for certain union security arrangements, including closed shops. In a closed shop arrangement, the employer agrees to hire only employees who are already members of a union, thereby ensuring union representation from the outset of employment.

The Railway Labor Act was designed to promote labor stability in these critical transportation sectors, which is essential for the economy and public interest, thus allowing closed shops as a means to maintain strong union organization among workers in these industries.

The other acts mentioned do not provide for the legality of closed shops in the same context. The National Labor Relations Act, while it acknowledges union security agreements, prohibits closed shops in favor of union shops or agency shops, which have different membership requirements. The Labor Management Reporting and Disclosure Act primarily addresses union governance and the rights of union members rather than employment relationships regarding union membership. The Employee Retirement Income Security Act focuses specifically on pension and health plans, and does not govern labor relations or union membership.