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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (July 4, 1963)
Q THURSDAY. JULY 4. 1963 MEDFORP MAIL TRIBUNE. MEDFORD, OREGON ' Ccirolimid Umiiomi Involved in Complex Legal Barae . . . . . .... . ... ,mnnv sn-ioDen and that the presidem By NEIL A. MARTIN United Pri International Washington - (UPD - In Sep tember, 1956, the employees of a small South Carolina tex tile firm decided by a seven vote margin to form a local chapter of the Textile Work ers Union of America. But before they could peti tion national headquarters for a local charter, the company closed down. It sold its land, equipment and physical assets at a public auction a few months later. For the 6,000 residents of Darlington, S. C, this repre sented a loss of the town's major industry and unemploy ment for hundreds of its citi zens. Six years later, the Issues raised by the company's ac tion are tangled in a complex legal battle involving the company, the union, a New York corporation, and the Na tional Labor Relations Board (N.L.R.B.). Did the company's action allegedly to avoid unioniza tion - represent "an unfair la bor practice" as contended by the NLRB? And does a pri vately owned company have the legal right to go out of business to avoid bargaining with a union? These were some of the aspects of the case considered recently by a special five Judge federal court in Alexan dria, Va. Important points regarding the future of labor-management relationships, private en terprise and union rights will be at stake in the court's decision. What started as a case of local significance for only the company and its employees has gradually mushroomed into national significance. As one attorney remarked: "This case has created con siderable interest among busi ness and labor circles. The very fact that five circuit court judges decided to hear the case, rather than the usual three-judge panel, indicates its importance." Each of the four parties in volved in the dispute could benefit significantly by a fa vorable ruling in their behalf. For the NLRB, a victory would mean greater bargain ing powers in future negotia tions, reinforced with a sound legal precedent. For the com pany and the New York cor poration, sums estimated as high as $7 million hang in the balance. The textile union, likewise, would have prece dent to stop companies from closing down to avoid union ization. The legal maneuverings be gan in 1956 after the stockholders of the textile plant announced their deci sion to close. The union filed a petition with the Labor Board and a hearing was scheduled in January, 1957. Another hearing and five years would pass before the board finally decided the mat ter on Oct. 18, 1962, by a 3 to 2 vote. Twice before it de clined to vote until the case had been studied further, but the deadlock was finally broken with a split-decision. 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Rf. f .fS spiciau. had engaged in "unfair labor practices," the NLRB order demanded that the company: -"Cease and desist from un fair labor practices" and "bar gain with the union." -Offer jobs to any workers still unemployed in other mills owned by the Deering Milliken Corp. of New York. -Make up any back pay of employes who were "unable to obtain substantially equiva lent employment." Conceivably, one NLRB at torney said, any employee who was on the payroll when the company dissolved on Oct. 13, 1956, and who, for legitimate reasons was unable to find employment, would be entit led to nearly seven years back pay. Since the South Carolina firm no longer exists, the board directed its order to the New York Corporation which had owned 44 per cent of the firm's stock, was run by the same president, and had sim ilar stockholders. Case Referred The NLRB does not have judicial authority, so the mat ter was referred to the federal courts for interpretation and decision. Board Attorney Nancy M. Sherman asked the court to affirm the board's designation of the two firms under a "single employers" classifica tion, which would make Deer ing Milliken liable for the back salaries and job offers. Thornton H. Brooks, lawyer for the Darlington Manufac turing Co., countered that the two corporations were "sep arate and distinct." And add ed that "the stockholders of the Darlington firm, were scattered all over the country and not connected with the New York firm." Brooks said the textile plant had the right to go out of business "for whatever rea sons it wanted." The NLRB contended that those reasons were "because the employes in the plant had chosen the union to represent them." The board also said it found management had "engaged in a systematic and extensive ef fort to procure the union's rejection." Cloture, Economic Brooks argued that the firm's reasons for closing Applications Being Taken for Camp Ashland - Applications are still being accepted for the seventh annual session of the Siskiyou Band Camp, which will be held on the Southern Oregon college campus July 14 through 26, according to Dr. Herbert Cecil, secretary of the Camp and chairman of the music department. Dr. Glenn Matthews, of the college music staff, is founder coordinator of the Camp, and the guest director will once again be Dr. Clarence Saw hill, director of bands at the University of California at Los Angeles and one of the nation's foremost authorities in band work. The Camp is open to Jun ior and senior high school stu dents, college students, and school band directors. The membership of the Camp will be divided into two bands, which will re hearse twice daily and, in addition, students will attend classes in music fundamentals and music listening and will take part in various small en sembles. The daily sessions will begin at 9 a.m. and con clude at 4 p.m. An organized recreation program will also be avail able for the students Dr. Cecil said. Anyone desiring additional information may write Siski you Band Camp, Southern Oregon college, Ashland, Ore. were principally "economic but he added: "The fact that the union held elections also entered into consideration. The board of directors had to consider all aspects of the issue before deciding to close." If the court declines to clas sify the two corporations as a "single employer" the board's only possible remedy would be against the few assets re maining from the extinct com pany. An NLRB attorney said that "there are still assets left" but "it's not a great sun)." Besides the board's cross petition to have its order en forced and the company's ap peal to have it set aside, the court will also decide the val idity of the union's conten tions. Attorneys for the textile union argued that the board's order was not strong enough. They said that it should have forced Darlington Co., to re open and that the president of the two corporations, Roger Milliken, should have been . held personally responsible in. v the litigation. The court's decision could come in the next few weeks. Whatever it is, it is probable it would wind up in the Su preme uouri. Old Wells spring at Bath, England, has in 150 years discharged enough solids to make an elevation six feet wide, three feet high, and nine miles long, yet its water seems clear. I $K1PPY I ITOPS IN QUALITYIi IJBEREkCi ! out iu noire I At Your Friendly MARK'S U.S.D.A. CHOICE Beef Short Ribs No Sale to ' Dealers 6th and Grape Thrifty, Green Stamps PLENTY FREE PARKING U.S.D.A. 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