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.
In response to charges by
the union that the company
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Rf. f .fS
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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
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coordinator of the Camp, and
the guest director will once
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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.
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