Court Denies Overnite Appeal

After a U.S. Court of Appeals denied its request for a rehearing, less-than-truckload carrier Overnite Transportation will abide by the National Labor Relations Board's decision that it must negotiate with the Teamsters union at four Overnite terminals.

The five-year dispute is the result of union elections at Overnite terminals in Louisville, Ky., Lawrenceville (North Atlanta), Ga., Bridgeton, Mo., and Norfolk, Va. All voted against union representation in 1995. However, the NLRB later overturned the election results, finding that former managers at the company had committed serious unfair labor practices. The board found that the company's unfair tactics included offering raises and new benefits to workers at Overnite terminals who voted not to unionize. Overnite said the pay raises were needed to stay competitive for the best employees and had nothing to do with the union's organizing efforts.
"While we are disappointed with the Court of Appeal's decision not to re-hear the case, Overnite will not appeal the case to the Supreme Court and will immediately comply with all aspects of the NLRB order," said Overnite spokesman Ira Rosenfeld. Overnite still believes it was right to try to overturn the NLRB order, he said.
Earlier this year, the Bridgeton operation was folded into the nearby St. Louis Service Center, which is represented by the Teamsters. That leaves 242 employees at the three remaining service centers covered by the order, according to Rosenfeld. Although the Teamsters has been involved in an unfair labor practices strike since October 1999, he says, none of the employees in Norfolk or Louisville are on strike and only five are honoring the picket lines in North Atlanta.
Teamsters officials say the decision is good news; this case covers only four out of 11 terminals where union elections are under dispute and being contested in court, and they say it will serve as a precedent to get the remaining cases resolved in the union's favor.