Evening star., 1938-02-28
TWO RULINGS GIVE
INCREASED POWER
TO LABOR BOARD
Supreme Court Authorizes
DisestabIishment of
Company Unions.
LOWER BODY OVERRULED
IN MEAT MARKET CASE
Decision on Holding Companies
Constitutionality Is Not
Handed Down.
By JOHN H. CLINE.

Two important decisions enlarg1ng
the power of the National Labor Re-
lations Board to permit that agency
to order the disestablishment of COM
pany unions were announced today
by the Supreme Court.
The expected decision in the Elec-
trio Bond g. Share Co. challenge of
the Public Utility Holding Co. Act was
not handed down
The decisions, delivered by Associate
Justice Stone, affect the Pennsyl-
vania Greyhound Lines and the Pa
cific Greyhound Lines. In both cas-
the lower courts had ruled agains
the Labor Board, the Supreme Court
reversing those rulings
Associate Justices Cardozo and Rec
took no part in consideration of tll'
cases.
Lower Court Reversed.
In another important ruling affect
ing organized labor the justices lc-
versed lower court decision uphold.
ing an injunction which forbade pick
eting Of chain of meat markets II
Milwaukee. The lower courts mac
held the controversy between tn.
Amalgamated Meat Gutter and Butcher
Workmen and the E. G. Skinner &
Co.. Inc. did not involve a labor dis
pute within the meaning of the law
and that the picketing, therefore, was
illegal. The high court held that a
labor dispute did exist.
Justices Butler and McReynold5
dissented in the Wisconsin case.
The controversy involving the bus
lines was of extreme Importance to
the Labor Board, since representatives
of that agency believed the rulings
of the lower courts If upheld, would
have jeopardized enforcement of the
provisions of the act
After a hearing, the Labor Board
found that both bus lines had fos-
tered company unions. Orders were
Issued directing the companies to
withdraw all recognition from these
unions and also the dis-establishmen
of the organizations.
The lower courts held the board in
issuing such orders had exceeded its
authority, principally because there
had been no election held among the
employees to enable them to choose
their own bargaining agency.
Reversing this ruling, the Supreme
Court said:
BEFORE enactment of the National
Labor Relations Act, this court had
recognized that the maintenance of
company union, dominated by the
employer, may be a ready and effec-
tive means of obstructing self
organization of employees and their
choice of their own representatives
for the purpose of collective bargain
ing"
The opinion then pointed out that
the experience in administering the
Railway Labor Act had shown COM
pany unions to be stumbling block
to effective collective bargaining.
Congress, in enacting the Labor
Relations Act, had in mind the ex-
perience in the administration of the
Railway Labor Act" Justice Stone
continued, 'and declared that the
forRler was AN amplification and
further clarification OF the principles
of the latter. -
To secure to employees the benefits
OF self-organization and collective bar
gaining through representatives OF the
employees own choosing the board was
authorized to order the abandonment
of unfair labor practices and to take
affirmative action which would carry
out the policy of the act"
The court then held that orders di-
recting the disestablishment and non-
recognition of company unions con-
stituted such affirmative action.
Rulings adverse to the board had
been handed down by the Third and
Ninth Circuit Courts of Appeal.
Hold Labor Dispute Existed.
The evidence in the Milwaukee
case showed the Simmer Co. operated
five meat markets and employed about
35 persons, none of whom belonged
to the union. The union, however.
had sought to compel the company
to force the employees to become men,
bers of the union and to accept it as
their bargaining agent.
After the company had refused to
comply with these demands the union
began picketing its markets. curtailing
the business done by them.
Since the company's employees were
not members of the union. the lower
court held the controversy was not
labor dispute, but the high tribunal
refused to accept this finding, assert
ing that under the broad provisions
of the Wisconsin labor code labor
dispute did exist and that the lower