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Union Plant Must Stay Open; May Not Move South
Description Appeals court upheld NLRB request for injunctive relief to require Pennsylvania manufacturer to stay in operation rather than move to new plant in Georgia, pending appeal of decision by NLRB that plant was guilty of unfair labor practices during collective bargaining talks.
Topic Labor Law
Key Words Plant Closing; Unfair Labor Practices
C A S E   S U M M A R Y
Facts Dorsey employed 200 UAW workers. When the collective bargaining agreement expired, the parties failed to reach a new agreement and the workers went on strike. Dorsey then looked into moving operations from Pennsylvania to Georgia. Despite new union concessions, Dorsey closed the plant to move operations. The union filed various unfair labor practices complaints. An NLRB ALJ ruled for the unions and ordered the Pennsylvania plant be reopened. The NLRB moved in federal court "to prevent Dorsey from selling or alienating the plant" before the NLRB ruled on the merits of the unfair labor charges. The district court denied the request largely because the NLRB waited over a year to make the request and the matter was draining Dorsey's cash; the new plant in Georgia would have to be closed and most Pennsylvania workers had already found other employment. The NLRB appealed.
Decision Reversed. The NLRB is due injunctive relief; if Dorsey were allowed to sell the Pennsylvania plant, it would eliminate the remedy of forcing the company back into operation. The financial hardship on Dorsey was of its own making. The NLRB may have been slow to move, but that alone is not enough to allow denial of injunctive relief. Injunctive relief is to be granted.
Citation Hirsch v. Dorsey Trailers, Inc., 1998 WL 290221 (---F.3d.---, 3rd Cir.)

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