The case of the American Ship Building Company versus the National Labor Relations Board began in the District of Columbia Circuit Court. The petitioner, the employer of the American Ship Building Company, appealed the Circuit Court’s decision to the United States Court of Appeals. The decision of the Court of Appeals enforced the National Labor Relations Board’s (NLRB) order, which indicated the American Ship Building Company committed an unfair labor practice under Sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (NLRA). The violation in question was, Does an employer commit an unfair labor practice if he temporarily lays off employees during a labor dispute to bring economic pressure in support of his bargaining position? The question presented came from the case Labor Relations Board v. Truck Drivers Local Union. The American Ship Building Company argued that the purpose of the layoffs was to bring economic pressure to secure a settlement from the labor dispute, but the NLRB concluded that the layoffs violated the amended NLRA. The American Ship Building Company operated four shipyards on the Great Lakes: in Chicago, Illinois, and Buffalo, Toledo, and Lorain, Ohio. The company was …show more content…
The unions countered the employer’s offer and asked for increased fringe benefits and some unspecified wage increase. Several unsuccessful negotiation meetings were held in June and July which focused on the fringe benefit questions. At the last meeting, the parties decided to call in the Federal Mediation and Conciliation Service. During the mediation meeting on July 19, the unions asked for a 20-cents-an-hour wage increase and a six-month extension of the contract. The employer rejected the proposed extension as it would have led to the contract expiring during the busy