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 -----Original Message-----
From: 	"BNA Highlights" <bhighlig@bna.com>@ENRON  
Sent:	Monday, October 22, 2001 11:10 PM
To:	BNA Highlights
Subject:	Oct. 23 -- BNA, Inc. Daily Labor Report

______________________________

DAILY LABOR REPORT
Highlights & Table of Contents
October 23, 2001
______________________________

ISSN 1522-5968

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__________

HIGHLIGHTS
__________


FIRING CONTRACTOR, HIRING NONUNION CREW WAS ULP, SPLIT BOARD
DECIDES

A company that owns and manages a building in New York City
committed unfair labor practices when it abruptly ended its
relationship with a contractor that supplied the building's
cleaning crew and then refused to rehire those workers
because of their union affiliation, the National Labor
Relations Board rules in a 2-1 decision ("E.S. Sutton Realty
Co.,  "3367 N.L.R.B. No. 33,   9/28/01 [released 10/17/01].
).

Reversing an NLRB administrative law judge, Chairman Hurtgen
and Member Liebman rule that E.S. Sutton Realty Co.
unlawfully refused to hire five workers after it ended its
contract with Crisfield, their former employer. In addition,
Sutton was a successor employer obliged to recognize and
bargain with the workers' union, Local 32B-32J of the
Service Employees International Union, the board rules. The
majority criticizes the NLRB administrative law judge for
resolving in favor of Sutton various inconsistencies in
testimony by Sutton employees. But Member Walsh dissents,
rebuking the majority for second-guessing the ALJ's
credibility assessments. . . . Page AA-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8j8_


NINTH CIRCUIT: SUPERINTENDENTS NOT LIABLE FOR UNIONS'
INADEQUATE NOTICE

Public school superintendents in California who deducted
agency fees from the paychecks of nonmember teachers are not
liable for unions' failure to provide an adequate
explanation of the basis for the fee calculation, the Ninth
Circuit rules ("Foster v. Mahdesian, "9th Cir., No.
00-15028, 10/15/01). Reversing summary judgment granted to
four nonmember teachers, the appeals court holds "[a]ction
more serious than the routine collection of fees is
required" to trigger a public employer's duty to ensure that
its employees receive adequate financial disclosure. The
appeals court applies its 1997 decision in "Knight v. Kenai
Peninsula Borough School District", which held that a public
employer's duty to ensure proper notice arises when a union
takes action against a nonmember for failure to pay agency
fees.

The four teachers unions, locals of the California Teachers
Association, did not appeal a district court ruling that the
unions' financial disclosure was not adequate under the U.S.
Supreme Court's 1996 decision in "Chicago Teachers Union
Local 1 v. Hudson". . . . Page A-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m2m9_


ANTI-NEPOTISM POLICY BARRING HUSBAND, WIFE UPHELD BY SIXTH
CIRCUIT

A newly wed Tennessee woman, who was forced to leave her job
because of a public utility company's policy barring the
employment of married couples, loses her challenge to the
constitutionality of that policy before the Sixth Circuit
("Vaughn v. Lawrenceburg Power System, "6th Cir., No.
99-00012, 10/19/01).  However, the court holds that her
husband, who was also fired following an altercation about
the anti-nepotism policy, can proceed with a claim of
retaliatory discharge under the First Amendment.

 "The rule of exogamy in Lawrenceburg Power System's
anti-nepotism policy does not violate the fundamental right
of marriage" and "advances a legitimate governmental
interest," Judge Boggs writes for the appeals court, in
rejecting Jennifer and Keith Vaughn's argument that the
policy violated their First Amendment rights of association.
But he finds that Keith Vaughn's discharge--arguably because
he was speaking out against the policy--could be the basis
of a constitutional claim. . . . Page A-5,  Text E-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p2y6_

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_


JUDGE REFUSES TO AWARD INSURANCE BENEFITS  TO WIDOW OF
IMPROPER ENROLLEE

The widow of a deceased employee of Oce-USA Inc.  cannot
recover benefits under the group life insurance plan, the
U.S. District Court for the Northern District of Illinois
rules, finding the employee was not eligible for coverage
when he enrolled ("Ostler v. Oce-USA Inc., "N.D. Ill.,  No.
00 C 7753, 10/4/01).

Judge Kocoras finds that recovery of life insurance benefits
that would have been paid if Tim Ostler had been eligible
for coverage under the plan would not be "appropriate
equitable relief" under the Employee Retirement Income
Security Act. The court rejects the Second Circuit's
reasoning in a similar decision in "Strom v. Goldman Sachs &
Co." Judge Kocoras says he disagrees with the Second
Circuit's conclusion that Title VII "remedies can be
imported into an ERISA context, because the rationales
underlying the two statutes are simply too different."

While Ostler was on short-term disability leave, Oce-USA
offered a new group life insurance plan. Ostler elected to
participate in the plan, and Oce-USA began deducting plan
premiums from his paycheck. After Ostler's death his widow's
benefit claim was denied because Ostler was not a qualified
participant in that he did not fulfill the requirement that
he be an employee "active at work" at the time coverage
began. . . . Page A-3

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f7j9_


COURT AFFIRMS VERDICT FOR WORKER WITH BAD BACK; DENIES
PUNITIVE DAMAGES

An assembly line worker for a trucking parts firm who was
fired after three work-related back surgeries provided
sufficient evidence of disability discrimination under the
Americans with Disabilities Act and unlawful retaliation for
filing a workers' compensation claim to support a jury
verdict in his favor, the Eighth Circuit decides ("Webner v.
Titan Distrib. Inc.", 8th Cir., No. 00-2941, 10/9/01).
Affirming, for the most part, a judgment for plaintiff
Randall Webner, the appeals court rejects the argument by
Titan Distribution Inc. that Webner does not have a
disability covered by the ADA. "Viewing all the evidence ...
we conclude that a reasonable jury could have determined
that Webner's back injury had substantially limited his
ability to work, to twist, to bend, and to stand, in
addition to limiting his ability to lift," Judge Hansen
writes for the appeals court.

The court, however, vacates a punitive damages award.
Observing that a plaintiff seeking such damages under the
ADA must show that the defendant acted with "malice or
reckless indifference to the plaintiff's federally protected
rights," the court says Webner failed to prove Titan knew it
was violating the ADA or was indifferent to breaching that
law. . . . Page A-4

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w3z6g1_


______________

TODAY'S EVENTS
______________

EMPLOYMENT: Bureau of Labor Statistics to release September
figures on state and regional employment and unemployment,
10 a.m., Labor Department.

________________

ALSO IN THE NEWS
________________


LEADING INDICATORS: The index of leading economic indicators
declined 0.5 percent in September, the second straight
monthly drop, according to figures released by the
Conference Board, a New York-based business research
organization. The report adds to evidence of how weak the
U.S. economy was before the terrorist attacks. . . . Page
D-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k8a6_

AUTOS: Ford Motor Co. cancels a program launched in 2000
through which the company provided free personal computers
and printers to its employees, following third-quarter
losses of $692 million.  . . . Page A-2

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4h2b2_

MANUFACTURING: Hourly employees at the Georgia-Pacific paper
mill in Muskogee, Okla.,  decisively reject representation
by the Association of Western Pulp and Paper Workers by a
vote of 961-247. . . . Page A-6

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k1h5_

PENSIONS: Employers that offer both a defined benefit
pension plan and a tax code Section 401(k) or other employee
savings plan tend to have more generous savings plans than
employers that sponsor only a savings plan, a William M.
Mercer survey shows. . . . Page A-7

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4g8n2_


____

TEXT
____

DISCRIMINATION: Decision of Sixth Circuit in "Vaughn v.
Lawrenceburg Power System". . . . Page E-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_


_________________

TABLE OF CONTENTS
_________________

LEADING THE NEWS

UNFAIR LABOR PRACTICES
   Corporate owner-manager of New York City building
   committed unfair labor practices when it abruptly ended
   its relationship with cleaning contractor and refused to
   rehire workers because of their union affiliation, NLRB
   rules 2-1 . . . Page AA-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8j8_


____

NEWS
____

APPAREL
   New chairman of Fair Labor Association says group has
   conducted independent factory audits in 10 countries . .
   . Page A-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f0t7_

AUTOS
   Ford Motor Co. cancels program that provided employees
   with free personal computers and printers . . . Page A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4h2b2_

DISABILITIES
   Assembly line worker provided sufficient evidence of
   disability discrimination under Americans with
   Disabilities Act and unlawful retaliation for filing
   workers' compensation claim to support favorable jury
   verdict, Eighth Circuit decides . . . Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w3z6g1_

DISCRIMINATION
   Newly wed Tennessee woman loses constitutional challenge
   before Sixth Circuit to public utility company's ban on
   employment of married couples . . . Page A-5,  Text E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p2y6_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_

EMPLOYEE BENEFITS
   Widow of deceased employee who had life insurance
   premiums deducted from his paycheck, but was not
   qualified to enroll in employer's group insurance plan,
   cannot recover benefits under plan, federal district
   court in Illinois rules . . . Page A-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f7j9_

EQUAL PAY ACT
   Newly merged college in Minnesota did not violate Equal
   Pay Act, although it provided more attractive benefits to
   employees who previously had worked at all-male college
   than at women's college, federal judge holds . . . Page
   A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w2c4g4_

HEALTH CARE
   Economic stimulus legislation (H.R. 3090) that House is
   expected to consider this week is "extremely stingy" in
   proposed health insurance subsidies for laid-off workers,
   consumers group says . . . Page A-8
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p3b7_

HEALTH CARE EMPLOYEES
   More than 12,000 home health care workers in San Diego
   vote to certify United Domestic Workers of America as
   bargaining agent . . . Page A-9
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p3f5_

MANUFACTURING
   Hourly employees at Georgia-Pacific paper mill in
   Muskogee, Okla., decisively reject representation by
   Association of Western Pulp and Paper Workers . . . Page
   A-6
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k1h5_

PENSIONS
   Employers that offer both defined benefit pension plan
   and tax code Section 401(k) or other employee savings
   plan are found to have more generous plans than employers
   with savings plan alone . . . Page A-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4g8n2_

   IRS proposes regulations clarifying how employees age 50
   and older can, under recent tax cut legislation, make
   additional contributions to defined contribution
   retirement plans beyond established limits . . . Page A-8
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m6r8_

RAILROADS
   Newly elected officers of Brotherhood of Locomotive
   Engineers agree to conduct second vote on proposed
   BLE/United Transportation Union merger . . . Page A-10
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p9q8_

STEEL
   ITC finds surging steel imports in several product
   categories are seriously injuring or threatening injury
   to U.S. industry, spelling import relief as early as next
   year . . . Page A-10
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4q4k5_

TRUCKING
   Sen. Hatch (R-Utah) introduces bill to require criminal
   background checks on persons seeking licenses to
   transport hazardous materials . . . Page A-11
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4d0a1_

UNION DUES
   California public school superintendents who deducted
   agency fees from nonmember teachers' paychecks are not
   liable for unions' failure to provide adequate
   explanation of basis for fee calculation, Ninth Circuit
   rules . . . Page A-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m2m9_

WORKFORCE REDUCTIONS
   Merrill Lynch & Co. Inc. will offer voluntary severance
   package to vast majority of its employees over next few
   weeks . . . Page A-11
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m9r4_

   SBC Communications Inc., which provides local phone
   service in Southwest and Midwest, will cut several
   thousand jobs . . . Page A-12
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8a0_


_____________

ECONOMIC NEWS
_____________

LEADING INDICATORS
   Index of leading economic indicators declined 0.5 percent
   in September in second straight monthly drop, according
   to Conference Board . . . Page D-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4k8a6_


____

TEXT
____

DISCRIMINATION
   Decision of Sixth Circuit in "Vaughn v. Lawrenceburg
   Power System" . . . Page E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_


______________

TABLE OF CASES
______________

Arthur v. College of St. Benedict (D. Minn.) . . . Page A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w2c4g4_

E.S. Sutton Realty Co. (N.L.R.B.) . . . Page AA-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4n8j8_

Foster v. Mahdesian (9th Cir.) . . . Page A-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4m2m9_

Ostler v. Oce-USA Inc. (N.D. Ill.) . . . Page A-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4f7j9_

Vaughn v. Lawrenceburg Power  Sys. (6th Cir.) . . . Page
A-5,  Text E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p2y6_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w4p4h7_

Webner v. Titan Distrib. Inc. (8th Cir.) . . . Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4w3z6g1_

   __________
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