Employees who crossed a picket line to work were given 20 years of extra seniority by Erie Resistor Corp. The National Labor Relations Board found this constituted an unfair labor practice. The corporation appealed.
Judgment
The policy gave non-striking employees an advantage in terms of job security and promotions over the striking employees, even after the strike was over. The striking employees argued that this policy was discriminatory and violated their rights under the National Labor Relations Act (NLRA).
The National Labor Relations Board (NLRB) agreed with the striking employees and found that Erie Resistor had violated Section 8(a)(3) of the NLRA. Erie Resistor appealed the decision to the Court of Appeals, which ruled in favor of the company and held that the policy served a legitimate business purpose.
However, the Supreme Court of the United States disagreed with the Court of Appeals and held that Erie Resistor's policy of super-seniority was indeed an unfair labor practice. The Supreme Court noted that a legitimate business purpose is not always a defense to an unfair labor practice charge and that the policy was discriminatory by its very nature, as it treated striking employees differently than non-striking employees.
The Supreme Court went on to state that the policy had a destructive impact on the strike and union activity, making it a clear violation of the NLRA. The court upheld the NLRB's determination that Erie Resistor had violated Section 8(a)(3) of the NLRA.
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