Champions Of Labor For More Than 40 Years

Supreme Court ruling: Unions liable for economic harm to employers

On Behalf of | Jul 10, 2023 | Union Representation |

A recent landmark ruling by the United States Supreme Court holds that labor unions may be liable for intentionally causing economic harm to employers. This decision establishes that the National Labor Relations Act (NLRA) does not necessarily shield unions from liability for foreseeable actions resulting in property damage or financial losses during strike activity.

The case at the center of this landmark ruling is Glacier Northwest, Inc. v. International Brotherhood of Teamsters. In this case, a union representing truck drivers went on strike as cement trucks were getting loaded with ready-mix concrete. When a collective bargaining agreement between the drivers and the company expired, the union directed the workers to ignore a company directive to complete concrete deliveries in progress to prevent damage caused by hardening concrete.

Allegedly, the union deliberately allowed the concrete to harden, leading to potential damage to the trucks and lost property. The employer filed a lawsuit against the union, seeking compensation for intentional property damage caused during the strike.

The NLRA provides limited immunity from lawsuits

The primary legal issue at stake in the case is whether the NLRA shields the union from being sued for damages resulting from their strike-related actions. The union argued that the NLRA protected them from such lawsuits for damage incidental to the strike. However, the employer maintained that the union should be held accountable for the intentional property damage caused and that the NLRA did not provide immunity from such claims.

In a majority ruling, the Supreme Court determined that the union had a legal duty to take reasonable precautions to prevent foreseeable harm to property resulting from the strike.

Does the ruling change anything?

This Supreme Court ruling may have notable implications regarding the scope of union conduct during labor disputes and the destruction of company property. While ceasing work collectively is generally protected concerted activity, the concrete’s potential damage to the company’s trucks influenced the Court’s decision.

Therefore, seeking informed legal guidance and understanding the dynamic legal landscape is key to protecting your interests, especially if you intend to go on strike. Doing so can help to safeguard your union from legal and financial liability down the road.