The sole stockholder of the Garwin Corporation, a New York apparel manufacturer, caused a similar manufacturing company to be incorporated in Florida. The Garwin Corporation then terminated its New York operations, discharged its employees, and resumed operations at the Florida location. The International Ladies' Garment Workers' Union, which represented a majority of the discharged employees, filed a complaint with the National Labor Relations Board, alleging that the Garwin Corporation had violated sections 8(a)(l), (3) and (5) of the National Labor Relations Act because the relocation was motivated by anti-union animus and because the discharged employees were deprived of their rights guaranteed by section 7 of the act. In addition, the union charged that the company had independently violated section 8(a)(5) by failing to bargain about the decision to move and about the effects of the relocation on the employees at the New York site. The Board found that the company had committed the alleged unfair labor practices and, as a remedy for the section 8(a)(l) and (3) violations, ordered the employer to cease and desist from the violations and to offer reinstatement with back pay to the New York employees at the old plant, if it were reopened, or at the new one, if the employer elected to remain there. To remedy the section 8(a)(5) violations, the Board ordered the employer to bargain "on request" with the union at the new site whether or not it represented a majority of the employees there. However, the Board stated that any collective bargaining agreement resulting from the order to bargain would bar a certification petition of another union for only one year unless the ILGWU could reestablish its majority within that time in Florida.
Michigan Law Review,
"Runaway Shop" Must Bargain With Union Upon Request at New Site Whether or Not Union Reacquires Its Majority Status--Garwin Corporation,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol64/iss4/12