In an eight-to-one decision issued on June 1, the U.S. Supreme Court issued a favorable decision in a labor preemption case in which AGC of America submitted an amicus brief. The case, Glacier Northwest v. International Brotherhood of Teamsters Local Union No. 174, presented the question of whether the National Labor Relations Act (NLRA) preempts an employer’s state tort claim against a union for intentionally destroying the employer’s property in the course of a labor dispute. Agreeing with arguments made in an AGC-supported coalition amicus brief, the Court affirmed the principle that strikers must take “reasonable precautions” to protect employer property from “foreseeable, imminent danger” and held that the union’s failure to do so in the case rendered its conduct outside the NLRA’s protections. Accordingly, preemption did not apply, and the employer in the case is free to pursue damages against the union in state court. For more background on the case, see AGC’s prior articles here and here.
The win is AGC’s third victory in the U.S. Supreme Court in four weeks and was made possible by AGC’s Construction Advocacy Fund financing. In the other cases, the Court decided with AGC on limiting federal permitting jurisdiction under the Clean Water Act’s definition of a Waters of the United States (WOTUS) and in protecting pre-bid communications between contractors and public owners.
For additional information about the latest case, contact Denise Gold, Corporate & Labor Senior Counsel, at denise.gold@agc.org or (703) 837-5326.