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Supreme Court Rules in Favor of New Process Steel
Jun. 21, 2010 The Supreme Court of the United States has handed down an opinion in the case of New Process Steel, L.P. v. National Labor Relations Board (NLRB) that resulted in a victory for Greenberg Traurig client, New Process Steel.
According to Greenberg Traurig, the Supreme Court's decision reversing the Seventh Circuit Court of Appeals has the potential to overturn about 600 cases previously decided by the NLRB over a two-year-period. Attorneys from Greenberg Traurig's Atlanta, Boston, and Washington D.C. offices worked together and with attorneys from Richie & Gueringer P.C. on the case.
The case came about when the union representing employees at the New Process Steel plant in Butler, Ind., failed to reach an agreement over a new contract with New Process Steel, L.P. The union wanted to cut the employees' pay, vacation, and benefits to obtain the contract. After the employees rejected the contract and also declined to strike, the union insisted that the employees' vote against the strike amounted to ratification.
Subsequently, the union filed unfair labor practices claims with the NLRB claiming that New Process Steel failed to honor its collective bargaining agreement to deal with the union as the exclusive representative of the plant's employees. New Process Steel disagreed and opposed the union to ensure the employees' pay and benefits were not taken away.
While a two-member panel of the NLRB agreed with the union, the Supreme Court of the United States ultimately ruled that NLRB's decision was invalid because 29 U.S.C. Section 153(b) of the National Labor Relations Act requires that three members of the five member National Labor Relations Board shall "at all times" constitute a quorum.