Finding employer closed location for anti-union reasons, NLRB ordered it to reopen location, and reinstate, provide backpay and applicable moving expenses to illegally fired drivers

On August 25, 2023, the National Labor Relations Board issued Quickway Transportation, Inc., 372 NLRB No. 127 (Aug. 25, 2023). This case arises out of a Teamsters’ organizing drive of truck drivers at a Louisville terminal operated by Quickway. The terminal serviced a transportation contract with the Kroger Company. The Union won a Board election in June 2020. A series of unfair labor practice charges were settled two months later and approved by the Board.

Quickway and the Union held one bargaining session in November 2020. Just before the second session scheduled for the following month, drivers voted to authorize a strike if the union found it necessary. Days later, Quickway told the union it was ending its affiliate’s agreement with Kroger for the Louisville terminal. Quickway then closed the terminal and laid off the drivers.

The Board applied the standard established by the Supreme Court in Textile Workers Union of America v. Darlington Mfg. Co., 380 U.S. 263 (1965). In Darlington, The Supreme Court held that Employers do not violate the Act when they shut their entire business down for antiunion reasons. However, Employers may violate the Act when there is a partial closing of the business for antiunion reasons. The Court reasoned that a partial closing can be particularly motivated to chill union activity, where the rest of the business remains open.

To establish an unfair labor practice when an employer closes its operations, the General Counsel must meet the following elements:

1.      The employer closed the relevant part of its business for antiunion reasons;

2.      The employer has an interest in another business that means the employer could reap a benefit from the discouragement of unionization in that business;

3.      The employer acts to close their plant with the purpose of producing the result of discouraging union activity; and

4.      It was foreseeable by the employer that its employees in other parts of its business will fear that such business will also be closed down if they persist in organizational activities.

After applying the standard to the facts of the case, the Board found that the Employer violated Sections 8(a)(1) and 8(a)(3) of the Act by closing the terminal and terminating drivers for antiunion reasons. It also found that the Employer violated Section 8(a)(1) and (5) for failure to bargain with the union. The Board ordered Quickway to reopen the terminal, provide backpay to the illegally fired drivers, and reinstate them, providing moving expenses if necessary.

For questions regarding protected concerted activity or other related conduct, contact your labor law counsel.