Employers Can Sue for Strike Damages

On June 1, 2023, the United States Supreme Court issued an opinion in Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union No. 174, holding that the National Labor Relations Act (NLRA) does not preempt Glacier’s state law tort claims since the Union failed to take reasonable precautions to protect Glacier’s property during a strike. Specifically, the issue in this case is whether the National Labor Relations Act preempts a state-court lawsuit against a union for destroying an employer’s property during a labor dispute. The Court’s response is no.

Summary of Glacier Northwest v. International Brotherhood

Employer Glacier Northwest is a corporation that uses ready-mix trucks to prevent concrete from hardening during transit to customers in Washington State. Glacier’s truck drivers are members of the International Brotherhood of Teamsters Local Union No. 174. After a collective bargaining agreement between Glacier and the Union expired, the Union called for a work stoppage at a time when it knew the company was mixing substantial amounts of concrete and loading it into its trucks to make deliveries. After the trucks were loaded, the Union directed drivers to ignore Glacier’s instructions to finish the deliveries in progress. This work stoppage, or strike, resulted in a minimum of sixteen drivers returning with fully loaded trucks. Although Glacier prevented significant damage to its trucks by implementing emergency maneuvers, all the concrete mixed that day hardened and became useless.

Glacier brought action against the Union in Washington State Court, alleging that the Union was liable for concrete product loss during a strike. The Union moved to dismiss Glacier’s tort claims for lack of subject-matter jurisdiction and failure to state a claim, arguing that the claims were all preempted by the NLRA. The trial court agreed with the Union. After the appellate court reversed, the Washington Supreme Court reinstated the trial court’s decision. The Washington Supreme Court held that “the NLRA preempts Glacier’s tort claims related to the loss of its concrete product because that loss was incidental to a strike arguably protected by federal law.” Glacier appealed to the United States Supreme Court.

The U.S. Supreme Court held that the NLRA did not preempt Glacier’s state-court tort claim since the Union’s decision to call a strike after its drivers had loaded a significant amount of wet concrete into Glacier’s delivery trucks strongly suggested they failed to take reasonable precautions to avoid foreseeable and imminent harm to Glacier’s property.

Impact

The Supreme Court’s decision in Glacier could significantly impact labor law by limiting the scope of the NLRB’s authority to adjudicate certain labor-related disputes. Employers are more likely to pursue damage claims against unions in state court for property damage caused by conduct during strikes if the union fails to take reasonable precautions to mitigate the risk of property damage during the strike.

See Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union No. 174, 598 U.S. (2023).