During a membership drive in the Fansteel Metallurgical plants, the petitioner corporation was guilty of an unfair labor practice in that it hired espionage agents to spy upon the union. Lodge 66 attempted to bargain collectively with the petitioner and on its rejection of their offer, the union seized the key plants, effectively stopping production. The petitioner, on the union's refusal to vacate, made a blanket discharge of everyone within the plant, and secured an injunction against the union's possession. Compliance with the order was not obtained, and a writ of attachment for contempt was issued. On the second attempt to serve the writ, the sheriff was successful. The petitioner's damages by reason of the sit-down strike were approximately $50,000. Thirty-seven of the men were fined and imprisoned by reason of their contempt. The petitioner on reopening re-employed many who had been affiliated with the union and some who had participated in the strike. None of those sentenced for contempt were re-employed. On a complaint issued, the board ordered the company (1) to desist from interfering with the rights of its employees under section 7 of the NLRA; (2) to withdraw recognition from the "company" union; (3) to bargain collectively with Lodge 66; (4) to reinstate all men who were employees on the day the sit-down strike began. The court below set the entire order aside. Held, Justices Reed and Black dissenting, and Justice Frankfurter taking no part, the judgment of the circuit court of appeals should be affirmed in respect to setting aside that part of the board's order directing the employer to bargain collectively and reinstate former employees, but should be reversed as to setting aside the directions to cease interfering with employees' rights under section 7 and to withdraw recognition from the "company" union. National Labor Relations Board v. Fansteel Metallurgical Corp., (U. S. 1939) 6 U. S. Law Week 896, reviewing (C. C. A. 7th, 1938) 98 F. (2d) 375.
John C. Griffin,
LABOR LAW - RIGHT OF EMPLOYER GUILTY OF UNFAIR LABOR PRACTICES TO DISCHARGE FOR ILLEGAL ACTS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol37/iss5/17