National Labor Relations Board v. Pacific Greyhound Lines, Inc.

Background

A bus company (the respondent) helped create and continuously controlled a Drivers’ Association for its workers. The federal labor board found that the company interfered with the union’s internal affairs, paid for it, and used it to block employees from joining rival unions. After the board ordered the company to stop those unfair practices and to withdraw recognition of the company-controlled union, a federal appeals court overturned only the part ordering withdrawal of recognition.

Reasoning

The central question was whether the labor board may require an employer to withdraw recognition of a company-dominated union to protect employees’ free choice. The Court relied on the board’s factual findings that the company had dominated and used the association repeatedly to prevent independent organizing. The Court held that, because continued recognition would keep workers tied to a union chosen under employer pressure, the board could lawfully order withdrawal of recognition to carry out the goals of the National Labor Relations Act. The Court reversed the appeals court’s decision that had set aside the withdrawal order.

Real world impact

As a result, an employer that creates, controls, or finances a company union can be required to stop supporting it and to withdraw formal recognition so employees can freely choose their own representatives. The decision enforces the board’s power to take affirmative steps beyond merely stopping unlawful conduct. Two Justices did not participate in this case.