Dubuque Packing

1
Dubuque Packing

• Focus of the Boards analysis must be on the
  decision, not on the effect on employees
• Work Relocation a type III FNM decision
• decisions focused on profitability that have a
  direct effect on employment
• neither clearly mandatory nor permissive
• Work Relocation closer to Fibreboard than FNM
• replacing of one group of ees doing work with
  another
• a decision to relocate is a decision of where,
  not whether, to be in business
• union may have influence or control over a
  relocation decision

2
Dubuque Packing (cont.)

• New standards
• Burden on GC to make prima facie case that
  decision a work relocation unaccompanied by a
  basic change in business
• Burden shifts to er to show
• new work at new location, or
• part basic change(combined production process),
  or
• labor costs not a factor, or
• union could not have offered sufficient
  concessions

3
Dubuque Packing (cont.)

• Application to Dubuque Packing
• Hog kill change a work relocation
• Discrete decision, no other changes in ers
  business accompanied relocation
• Did not meet any of criteria for permissiveness
• labor costs a factor, relocation occurred after
  er attempted to obtain concessions, long history
  of er attempts to obtain concessions
• would not have been made in any event, er said
  kill operation would remain in Dubuque with
  concessions
• differences between Rochelle and Dubuque plant
  not relied upon

4
Court Discomfort with Uncertainty

• Otis Elevator (1984) 3 opinions
• Labor Cost Criterion
• Decision based on factor over which union has
  control and relative burden to business as
  compared to benefit to CB
• Burden determined by size of capital commitment,
  extent of changes in operation, need for speed
  and flexibility
• Amenable to CB
• Court in Dubuque Packing give us one standard