Textile Workers Union of America v. Scottex Corp., 72 Civ. 1357

• Court: United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
• Writing for the Court: Lieberman, Aronson & Rosenberg, by Marshall L. Rosenberg, New York City, for Local 155 I.L.G.W.U
• Citation: 344 F. Supp. 243
• Parties: TEXTILE WORKERS UNION OF AMERICA, AFL-CIO, CLC, Plaintiff, v. SCOTTEX CORPORATION, Defendant. KNITGOODS WORKERS' UNION, LOCAL 155, I.L.G.W.U., Plaintiff, v. SCOTTEX CORPORATION, Defendant.
• Docket Number: 72 Civ. 694.,No. 72 Civ. 1357,72 Civ. 1357
• Decision Date: 20 June 1972

344 F. Supp. 243

TEXTILE WORKERS UNION OF AMERICA, AFL-CIO, CLC, Plaintiff,
v.
SCOTTEX CORPORATION, Defendant.
KNITGOODS WORKERS' UNION, LOCAL 155, I.L.G.W.U., Plaintiff,
v.
SCOTTEX CORPORATION, Defendant.

Nos. 72 Civ. 1357, 72 Civ. 694.

United States District Court, S. D. New York.

June 20, 1972.

Lieberman, Aronson & Rosenberg, by Marshall L. Rosenberg, New York City, for Local 155 I.L.G.W.U.

Patricia E. Eames, and Joel Ronald Ax, New York City, for Textile Workers Union of America, AFL-CIO, CLC.

Levin, Rosmarin & Schwartz, by Arnold Levin, New York City, for Scottex Corp.

OPINION

TYLER, District Judge.

These two cases present another chapter in the recent labor difficulties of

344 F. Supp. 244

Scottex Corporation, a manufacturer of textile fabrics at plants in New York and Texas. In each case, the labor union representing Scottex's employees, respectively, at its New York and Texas plants petitions for an order enforcing an arbitration award

THE COMPLAINTS

Civil Action 72 Civ. 694 HRT is a petition by Knitgoods Workers' Union, Local 155, ILGWU ("Local 155") to enforce an arbitration award entered by George J. Mintzer, Esq., the so-called "impartial chairman" here in New York for the industry, on December 15, 1971. That arbitration was initiated in part or indirectly by a complaint of Local 155 that Scottex's establishment and maintenance of a knitting plant in Carrollton, Texas violated Article 24 of the collective bargaining agreement between the Local and Scottex. After hearings, the impartial chairman entered an award in which he agreed substantially with the Local 155; required that within 60 days from the date thereof Scottex would cease all knitting operations at its Carrollton plant; and that upon failure to comply with this direction, Scottex would be liable to Local 155 in damages at the rate of $2,000 per week for each week of continuing violation of his award.

As indicated by the petition or complaint in Civil Action 72 Civ. 1357 HRT, the award of Chairman Mintzer was only the beginning of Scottex's current problems. On March 22, 1972, arbitrator Joseph F. Wildebush filed an award which, by its terms, effectively directed Scottex not to comply with the Mintzer award. The Wildebush award arose from the fact that the plaintiff Textile Workers Union of America, AFL-CIO, CLC ("Textile Workers") had organized the employees of the Scottex plant in Texas; specifically as of February 8, 1971, Textile Workers and Scottex had executed a collective bargaining agreement to cover the employees of Scottex at the Carrollton plant. Thus, once Chairman Mintzer entered his award, it understandably followed that Textile Workers, under the broad arbitration clause of its contract,¹ presented to arbitrator Wildebush the question of whether or not Scottex could cease operations at its Carrollton plant. Textile Workers had petitioned for arbitration upon receipt of a letter dated February 11, 1972 from an attorney for Scottex informing Textile Workers that Scottex had no alternative, in light of the Mintzer award, but to close down its Texas operation. After hearings, arbitrator Wildebush found as a fact that Scottex, notwithstanding its clear preference to the contrary, was constrained by the Mintzer award to close down its Carrollton operation. Thereupon, Mr. Wildebush rendered an award enjoining Scottex from closing its Texas plant. Further, he provided that if Scottex disregards his award, Textile Workers may come before him again for the purposes of proof and assessment of damages.

OTHER RELEVANT FACTS AND PROCEEDINGS

Scottex is a publicly owned corporation with its shares traded on the American Stock Exchange. For some years it has been engaged in the production of what are called in the trade both "fancies" and "plains", meaning plain and fancy, single and double knit, circular knitted textile fabrics. Its fancies are fashion-oriented items which are made here in its Brooklyn plant or plants. In the opinion of the company, fashion-oriented items should be produced in the New York City market area. On the other hand, it is the view of Scottex that

344 F. Supp. 245

its plain goods can be produced at much lower rates in the South and Southwest where wage rates, with or without union contracts, are lower than those here in New York. Although Local 155 may have contended otherwise, there is evidence that in November, 1969, Scottex informed both Local 155 and Textile Workers Union that it planned to commence plant operations in Texas. At that time and today, both of Scottex's Brooklyn plants are in full operation with no lay-offs, and the same is true at the Carrollton plant. Indeed, Scottex claims without refutation here that it has added in Brooklyn a total of about 150 Local 155 employees as a result of the start up of its Texas...