National Labor Relations Board v. Erie Resistor Corp.

1963-05-13

Headline: Employer policy granting a 20-year seniority bonus to strike replacements and returnees is declared unlawful by the Court, limiting companies’ ability to reward replacements and weakening incentives to break strikes.

Holding: The Court held that granting a 20-year seniority boost to replacements and returning strikers during a strike can be an unlawful unfair labor practice even without specific proof of discriminatory intent.

Real World Impact:

Stops employers from using large seniority bonuses to break strikes.
Protects striking workers from long-term seniority dilution.
Leaves reinstatement and back-pay remedies available after Board findings.

Topics: labor strikes, union rights, seniority rules, employer conduct

Summary

Background

Erie Resistor, a factory employer, and Local 613, the union representing about 478 workers, entered a strike after their contract expired in 1959. The company kept some production going, began hiring replacements, and announced on May 28 that it would give replacements and returning strikers a 20-year seniority credit usable against future layoffs. Many workers returned, the strike collapsed, and the union filed a charge with the National Labor Relations Board claiming the super-seniority plan was an unfair labor practice.

Reasoning

The central question was whether giving large extra seniority to replacements and returning strikers during a strike violates the National Labor Relations Act even without direct proof the employer intended to discriminate. The Board found the plan inherently discriminatory because it hurt all strikers, diluted older workers’ seniority, undermined the strike, and interfered with collective bargaining. The Court agreed, holding that the conduct itself could show the necessary intent and that Mackay’s rule allowing replacements did not authorize this broader, lasting seniority award. The Court reversed the Court of Appeals and sent the case back for remaining questions, including remedy issues.

Real world impact

The decision protects striking workers from company tactics that offer large seniority bonuses to break strikes and create long-term divisions among employees. Employers cannot rely solely on a claimed business necessity to justify such a plan; the Board may find it unlawful based on its foreseeable and damaging effects. The case was remanded so courts and the Board can decide appropriate remedies like reinstatement and back pay.

Dissents or concurrances

Justice Harlan joined the judgment but cautioned that the ruling may not automatically outlaw much smaller seniority awards in different circumstances.