Evening star., 1947-10-16
Disfinery Union Seen
Having Damage Case
In Plant Shutdowns
Toft-HortIey Act Allows
Labor Groups to Examine
Reasons for Loyoffs
BY David La,crence

BY David Lawrence
A novel complication has arisen
under the Taft-Hartley law which
affects adversely the employers. 1t
Is the prospect that labor unions
will wish to examine carefully here
after the reasons for layoffs and If
the economic justification Is not
clear there is a chance Of suits for
damages as we'll as charges Of an
unfair labor practice"
The situation has been brought to
public attention by the Internation-
al Union of Distillery, Rectifying
and Wine Workers who have sent
word to the distillers that they will
insist on an enforcement of the
provisions of the Taft-Hartley law
with respect to the 6O-day shut
down of distilleries which starts
October rs in compliance with a
request from the Presidents Food
Committee in order to conserve
grain.
The union has, on its face, a case.
The employers are not shutting
down because of a lack of work.
They are suspending operations not
because of any provision of law but
simply as an act of good will toward
a governmental authority Of an in
formal nature-in fact, an indirect
authority.
Has No Legal Status.
For, while the Food Committee
was created by the President, it has
no legal status and acts more as a
medium for the expression of the
views of the Chief Executive. But
the President of the United States
while requesting an industry to
close down has no legal power to
enforce that request. Hence the
shutdown by the distillers is, legally
speaking, not an involuntary but a
voluntary act. This brings the Taft
Hartley law into the picture, for no
employer can arbitrarily shut out
all his workers without giving an
economic Justification and even so
he must give so days notice OF such
a lockout.
Under the new law, not only can
an injunction be issued by the Ma
tional Labor Relations Boards gen.,
eral counsel but the aggrieved par
ties-the unions-can seek damages
for the failure OF the employers to
give the requisite notice and for
failing to adjust the dispute by COL
lective bargaining processes.
It Is estimated that at least $4,000
workers will be laid off and some
estimates go much higher. Assuming
that $4,000 is minimum and that
the distillery workers average at
least $40 per week, there is a pay
roll of 100000 a week or $4,000, 900
for 10 weeks involved in the shut
down Of the Nations distilleries.
Who is going to pay that sum?
The distillers say they do not think
they should pay it. In fact, from a
tax viewpoint it might not be a de-
ductible expense for the companies
to be making grants to employees for
services not rendered. If the unions
file suits and get damages the dis
tillers might 60 into the United
States Court of Claims and try to re-
cover these amounts from the Gov
Prnment on the ground that the
shutdown was truly governmental
action and that the Government
should indemnify the employers.
May Set Precedents.
The whole episode may furnish
some interesting precedents. If an
employer hereafter shuts down in
order to comply with some govern
mental request or policy and cannot
show any economic reason for his
action, the unions will be able to use
the Taft-Hartley laws provisions
to obtain an adjustment. Up to now
no official request that could legally
protect the employers in the distil-
ling business has been made public
So far as the unions are concerned,
they regard the shutdown as no diff
ferent from any other voluntary
closing or layoff. Certainly it Is a
violation Of the Taft Hartley law,
no matter how meritorious the pur-
pose Of the closing may be. The
union has notified all distillers in
this language:
The proposed shutdown action
has been announced without prior
consultation or collective bargaining
with the legal and authorized COL
lective bargaining representatives of
the employees Of the industry. You
are hereby notified that any of the
above described layof1s will be con-
strued by this international union
as a unilateral violation and repudi-
alton Of our collective bargaining
agreement. The international union
will take such action as 1t deems
appropriate in the event of any such
action by any employer"
It will be interesting to see
whether the President of the United
States in the interest of food con-
servation will ask $4,000 workers to
give up so days pay as a contribu-
ton to the cause-a sacrifice no
other group Of citizens is being
asked to make.
Reproduction Rights Reserved.)
unnher Call o.,