DEEP SOUTH FOREST PRODUCTS: MANAGEMENT UNFAIR LABOR PRACTICES DURING UNION DECERTIFICATION?

Journal of the International Academy for Case Studies, 2008 by Schnake, Mel, Williams, Robert J

CASE DESCRIPTION

This case examines the process by which the unionized employees of a firm take steps to decertify their labor union as their bargaining agent. Further, the case examines certain actions taken by the firm's management during the decertification process, and whether those actions are illegal as defined by the provisions of the National Labor Relations Act.

The case has a difficulty level of three, appropriate for junior level students. The case is designed to be taught in one class hour, and is expected to require one to two hours of outside preparation by students.

CASE SYNOPSIS

A firm and its employees' labor union(s) often share a tense and adversarial relationship. From time to time, employees may decide that the bargaining advantages provided by their union no longer secures them the wages and benefits they seek, and they may seek to have the union decertified as their bargaining agent. This case examines this scenario, and demonstrates how a firm's management can legally express its views to its employees regarding the pros and cons of a union decertification. This case is an effective teaching tool for students in a labor relations course, a human resources course, and can also be used in the introductory management principles course.

DEEP SOUTH FOREST PRODUCTS

Background

Deep South Forest Products, located in south Georgia, is a manufacturer of utility poles and other lumber products. The company was founded in 1934, and employs about 200 workers. The company is one of the largest employers in the area, and the firm's management has had a fairly good relationship with its employees over the years. Employees at Deep South Forest Products Company had been represented by the United Food and Commercial Workers Union, Local 1996, AFL-CIO for the past 30 years. The current labor agreement expires on November 21, 2003.

Beginning in July, 2003, Deep South Forest Products got employees to sign petition forms headed "We, the undersigned employees of Deep South Forest Products Co., no longer wish to be represented by the union." Additional employees signed individual cards or slips of paper rather than the petition. On August 26,2003, employee Wallace Henderson filed a decertification election petition with the NLRB based on this showing of interest.

August 28-30 Speech to Employees

During a three day period between August 28,2003 and August 30, 2003, General Manager, James Green held a number of meetings with employees during which he read the following prepared speech.

Good to see everyone. I hope everyone knows me. I'm Jim Green. I've been your general manager for the past 8 months. Let me get right to the point. We received word yesterday that employees here have filed a petition to get rid of the UFCW union. Quite frankly, I'm real proud of you for doing this. I'm glad that many of you feel like me that we're better off without a union here now.

Of course, most of you all know this union has been around here for a long time - as I understand it, for over thirty years. Heck, this union has been around here longer than I have been alive. I appreciate the fact, that over the years, several of our older employees have told me why this union came in here to begin with. We did some things in this company and around this part of the country to blacks I'm not proud of. It was wrong. I can understand why you all went after this union. Obviously, at 24 years of age, I wasn't around then - but my family was. We all take responsibility for the discrimination and the unfair treatment that took place. That certainly doesn 't change anything - but I want you to know exactly how I feel.

Secondly, I want you to know that I will not tolerate any discrimination now or in the future. All our older employees have made enormous contributions to our company over the years. You have worked long and hard in very difficult circumstances to make us successful. I pledge to you that I will never forget that. I consider this decertification petition as giving us a second chance. We can't change the past but we can do something about the future. It's a second chance for all of us as managers. As for me, I do not want to blow this chance.

Let me talk about this decertification petition and what it means. You may know that our contract expires at the close of business on November 21, 2003. We have notified the union that even though we have a bargaining session scheduled for October the 9th, that it is our intent to terminate the agreement on the 22nd of November. Normally the NLRB will conduct an election within 45 days after the decertification petition is filed. That would mean we would have an election around the first or second week of October. About 6 or 7 weeks from today. We'll have plenty of time between now and then to give you the exact time and place of the election.

In the meantime, we still have an obligation to bargain with the union over the contract that's in place. With a decertification petition filed there's a quirk in the law, that even though a decertification petition is filed, we still have to bargain with the union unless the company has been notified that more than 50% of the employees have signed the petition. If that occurs, then the company can withdraw from bargaining and withdraw recognition from the union. In other words, if you all give us more signatures so that you exceed the 50% mark, the union will be gone. If this doesn't occur, any contract that would be reached in bargaining before the current contract expires on November the 21st would be null and void if you all voted the union out.