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From: 	"BNA Highlights" <bhighlig@bna.com>@ENRON [mailto:IMCEANOTES-+22BNA+20Highlights+22+20+3Cbhighlig+40bna+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Sunday, July 01, 2001 11:10 PM
To:	BNA Highlights
Subject:	July 2 -- BNA, Inc. Daily Labor Report

______________________________

DAILY LABOR REPORT
Highlights & Table of Contents
July 2, 2001
______________________________

ISSN 1522-5968

Registered Web subscribers can access the full text of these
articles by using the URL link supplied.

Information about becoming a subscriber or signing up for a
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BNA Customer Relations at 1-800-372-1033, Mon. - Fri. 8:30
am - 7:00 pm (ET).
__________

HIGHLIGHTS
__________


NLRB AGAIN RULES AGAINST LEE LUMBER BUT DECLINES BARGAINING
ORDER

Lee Lumber and Building Material Corp. illegally withdrew
recognition of an incumbent union before a reasonable time
for bargaining had passed, the National Labor Relations
Board rules in its third decision in the longrunning case,
but this time the board declines to impose an affirmative
bargaining order ("Lee Lumber and Building Material Corp.,
"334 N.L.R.B. No. 62, 6/28/01). On remand from the D.C.
Circuit, the board decides 4-0 "that when an employer has
unlawfully refused to recognize or bargain with an incumbent
union, a reasonable time for bargaining before the union's
majority status can be challenged will be no less than six
months, but no more than one year."

The board says the length of time that would be reasonable
depends on an analysis of several factors--whether the
parties are bargaining for an initial agreement, the
complexity of the issues being negotiated and the parties'
bargaining procedures, the amount of time spent bargaining
and the number of bargaining sessions, the amount of
progress made in negotiations and how near the parties are
to agreement, and the presence or absence of a bargaining
impasse. Applying these factors, the board decides Lee
Lumber did not bargain for a reasonable time before
withdrawing recognition from United Brotherhood of
Carpenters and Joiners Local 1027. . . . Page AA-1,  Text
E-22

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7h5j9_

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c7u1_


FULL SEVENTH CIRCUIT SAYS BARGAINING PACT IRRELEVANT TO
LIABILITY

The full Seventh Circuit rules 6-3 to affirm a district
court's decision that evidence regarding an employer's
duties under a collective bargaining agreement was
inadmissible to prove that the company reacted reasonably in
failing to respond promptly to the misdeeds of a "serial
harasser" ("EEOC v. Indiana Bell Tel. Co. Inc. d/b/a
Ameritech Indiana,  "7th Cir. (en banc), No. 99-1155,
6/27/01).

Judge Easterbrook, in a portion of the ruling joined by four
of the judges, rejects Ameritech Indiana's argument that the
evidence is relevant to the issue of liability in sexual
harassment cases brought under Title VII of the 1964 Civil
Rights Act and affirms $15,000 in compensatory damages to
three female Ameritech workers. However on a second issue,
Easterbrook, joined by a different line up of five judges,
reverses a $635,000 award in punitive damages against
Ameritech, finding that evidence regarding arbitration and
the collective bargaining agreement was admissible as to the
issue of punitive damages.

Judge Flaum dissents in part, criticizing the majority's
"sweeping dictate" that bargaining agreements are
inadmissible in Title VII cases on the issue of liability.
Judge Rovner dissents on the issue of punitive damages,
arguing that the trial court's refusal to admit the evidence
was harmless  error.  . . . Page A-10,  Text E-7

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7h3x6_

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6v2d9_


 JUSTICES WILL REVIEW ERISA PREEMPTION OF EXTERNAL REVIEW IN
HEALTH CARE

Amid heated debate in Congress over a patients' bill of
rights, the Supreme Court decides to rule next term on
whether the Employee Retirement Income Security Act preempts
statutes adopted in at least 37 states requiring external,
independent review of managed care organizations' medical
necessity decisions ("Rush Prudential HMO Inc. v. Moran,
"U.S., No. 00-1021, "cert. granted" 6/29/01).

The high court will review whether Illinois' external review
law is preempted by ERISA or whether it is "saved" from
ERISA preemption because it regulates insurance, an area
traditionally reserved for the states. The case arose after
Eileen Moran tried to recover $94,841 in surgical costs she
had paid after they were denied by Rush Prudential.

In adding the dispute to its 2001-2002 docket, the Supreme
Court opts to rule in a case the Justice Department, in an
amicus brief, had urged the justices not to accept, on
grounds that external review currently is being debated in
Congress.  . . . Page B-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7f1m5_


BNA SURVEY NETS PREDICTIONS OF MODEST ECONOMIC REBOUND

The sharp downturn in the nation's economy during the first
half of 2001 is still not showing any signs of improvement,
yet most economists and policymakers remain confident that
growth will accelerate by the end of the year, according to
BNA's mid-year economic outlook survey.

Among the 24 economists participating in the survey, all but
one believe that growth will rebound by the end of the year
to exceed the first quarter's anemic growth rate of 1.2
percent . Prior to the fourth quarter, however, three of
those economists fully expect to see data showing that the
country had slipped into a mild recession during the second
and third quarters. . . . Page D-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7j3a8_


NO NEW TALKS SCHEDULED IN IBEW DISPUTE WITH CHICAGO ELECTRIC
UTILITY

Two days into a strike by Local 15 of the International
Brotherhood of Electrical Workers, Chicago-based Midwest
Generation Co. has "no timetable" for resuming negotiations
over a new contract covering 1,150 of the electric utility's
employees, a company spokesman says. The strike is "not
about money," he says, but rather language that the union
was attempting to insert in the contract that would restrict
the company's use of outside contractors for work beyond the
scope of normal power plant operations.

Maintaining that the company is misrepresenting its position
in the dispute, Local 15 says no contract language has been
proposed to impede or limit the use of outside contractors.
Midwest Generation, it insists, is refusing to bargain in
good faith. While, the company attributes the strike to a
"union failing to recognize that it no longer works in a
utility environment, but in a competitive marketplace." . .
. Page A-2

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7b3m3_


SUPREME COURT LETS STAND NATIONWIDE ORDER AGAINST BEVERLY
ENTERPRISES

The U.S. Supreme Court lets stand a corporatewide remedial
order imposed by the National Labor Relations Board against
nursing home operator Beverly Enterprises for its widespread
pattern of unfair labor practices ("Beverly Cal. Corp. v.
NLRB, "U.S., No. 00-1563, "cert. denied" 6/29/01). The
Supreme Court denies Beverly's request for review of a
Seventh Circuit ruling substantially upholding the board
decision. The board found the company committed more than
100 unfair labor practices involving 26 nursing homes
nationwide.

The board first issued a corporatewide cease-and-desist
order against Beverly in 1993, but the Second Circuit
overturned it, finding the evidence insufficient for such a
broad remedy. However, the Seventh Circuit in 2000 found
mounting evidence that Beverly "continues to violate the law
with regularity." The board was "entitled to conclude,
especially after specific remedies in [the Second Circuit
case] did not appear to stop the efforts from the company's
central management to stop unions in any way possible, that
the time was past for piecemeal relief," the Seventh Circuit
said. . . . Page B-2,  Text E-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6y7f6_

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8p7_


________________

ALSO IN THE NEWS
________________

COMPENSATION: Private industry employers paid their workers
an average of $20.81 an hour in March 2001, or about 4.8
percent more than the average in March 2000, according to
the Bureau of Labor Statistics. . . . Page D-16

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7g6w0_

SAFETY & HEALTH: The Labor Department is proposing to delay
two job safety provisions guiding the recording of hearing
loss and musculoskeletal disorders, saying it feared
employer "uncertainty" over when to log those types of
injuries. . . . Page A-3

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c5t2_

TEAMSTERS:  Labor Secretary Chao tells the International
Brotherhood of Teamsters' convention that the Bush
administration "won't always agree with you, but we'll
always listen to what you have to say." . . . Page C-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6c2c6_


____

TEXT
____

SUPREME COURT: Summaries of labor and employment law cases
in which Supreme Court denied review June 29, 2001. . . .
Page E-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8u2_

SEXUAL HARASSMENT: Seventh Circuit's decision in "EEOC v.
Indiana Bell Tel. Co. d/b/a Ameritech Indiana". . . . Page
E-7

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6v2d9_

UNFAIR LABOR PRACTICES: NLRB decision in " Lee Lumber and
Building Material Corp." . . . Page E-22

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c7u1_


_________________

TABLE OF CONTENTS
_________________

LEADING THE NEWS

UNFAIR LABOR PRACTICES
   NLRB rules Lee Lumber and Building Material Corp.
   illegally withdrew recognition of incumbent union before
   reasonable time for bargaining passed, but declines to
   impose affirmative bargaining order . . . Page AA-1,
   Text E-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7h5j9_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6v2d9_


____

NEWS
____

COMPENSATION
   California Industrial Welfare Commission cancels meeting
   for lack of quorum, directs staff to prepare report on
   controversial interpretation of state wage-and-hour law
   pertaining to exempt employees . . . Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7b8v8_

DISCRIMINATION
   Eighth Circuit throws out most of $2.4 million sex and
   race discrimination verdict against meat processor IBP
   Inc. and sends damages issues back to trial because time
   period jury used to assess damages was too long . . .
   Page A-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6g5t4_

   House Judiciary Committee approves bill (H.R. 7) that
   would allow religious organizations to compete for
   federal grants after narrowing ability of such
   organizations to discriminate in employment . . . Page
   A-10
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7f5x8_

HEALTH CARE
   Senate sets June 29 for end of debate and final vote to
   approve Patients' Bill of Rights (S. 1052) legislation
   before adjourning for July 4th recess . . . Page A-12
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7j8w1_

HOTEL EMPLOYEES
   Members of HERE Local 1 in Chicago elect international
   trustee Henry Tamarin president of local, one of two
   challengers expected to file post-election protests . . .
   Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6z5a5_

PENSIONS
   IRS issues final regulations (T.D. 8954) allowing defined
   contribution and combined defined contribution/defined
   benefit retirement plans to satisfy nondiscrimination
   requirements based on plan benefits, rather than
   contributions . . . Page A-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6g0j5_

   IRS to publish sample amendments retirement plan sponsors
   can adopt or use as models for individualized amendments
   to incorporate provisions of new tax law and operate in
   "good faith" reliance for 2002 plan year . . . Page A-8
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6g1f1_

   Wisconsin Supreme Court rules county government cannot
   deny pension benefits to discharged employees who meet
   minimum requirements of creditable service for deferred
   vested pension without first providing hearing to
   determine whether employee has been discharged for cause
   . . . Page A-9
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7d6w6_

POLITICS
   House Administration Committee reports out on party-line
   votes two competing versions of campaign finance reform
   legislation (H.R. 2360, H.R. 2356) that will be
   considered on floor starting July 12 . . . Page A-6
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6g1n4_

SAFETY & HEALTH
   General contractor pleads guilty to felony charge of
   making false statements to federal safety inspector in
   connection with November 1996 building collapse in
   Brooklyn, N.Y., that injured 10 workers, one fatally . .
   . Page A-9
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7d3n4_

   Labor Department proposes to delay implementation of new
   recordkeeping requirements for hearing loss and
   musculoskeletal disorders because of employer
   "uncertainty" over when injuries should be logged . . .
   Page A-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c5t2_

SEX DISCRIMINATION
   New Jersey Supreme Court rules male physician who claimed
   he was forced out by medical partners because of his sex
   did not waive right to sue under state law despite
   signing arbitration agreement . . . Page A-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j3k5d9_

SEXUAL HARASSMENT
   Full Seventh Circuit rules 6-3 that evidence regarding
   employer's duties under union contract was inadmissible
   to prove company reacted reasonably in failing to respond
   promptly to misdeeds of "serial harasser" . . . Page
   A-10,  Text E-22
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7h3x6_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c7u1_

TAXES
   CORRECTION In story appearing at 118 DLR C-1, 6/20/01,
   that described employment-related provisions of tax
   legislation signed into law June 7, the paragraph with
   heading "Highly compensated employees" should be
   disregarded . . . Page A-13
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6g3c5_

UTILITIES
   Chicago-based Midwest Generation Co. says it has "no
   timetable" for resuming negotiations with IBEW for new
   contract to cover 1,150 striking electric utility workers
   . . . Page A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7b3m3_


_____________

SUPREME COURT
_____________

ERISA
   U.S. Supreme Court agrees to rule next term on whether
   federal law preempts statutes adopted in at least 37
   states requiring external, independent review of managed
   care organizations' medical necessity decisions . . .
   Page B-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7f1m5_

UNFAIR LABOR PRACTICES
   U.S. Supreme Court lets stand corporatewide remedial
   order imposed by NLRB against nursing home operator
   Beverly Enterprises for widespread pattern of unfair
   labor practices . . . Page B-2,  Text E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6y7f6_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8u3_


_________________

CONVENTION REPORT
_________________

TEAMSTERS
   Labor Secretary Chao tells IBT members at 26th union
   convention Bush administration "won't always agree with
   you, but we'll always listen to what you have to say" . .
   . Page C-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6c2c6_


_____________

ECONOMIC NEWS
_____________

COMPENSATION
   Labor Department's Bureau of Labor Statistics reports
   private industry employers paid workers average of $20.81
   per hour in March 2001, about 4.8 percent higher than
   average in March 2000 . . . Page D-16
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7g6w0_

ECONOMIC OUTLOOK
   Most economists and policymakers remain confident growth
   will accelerate by end of the year, despite sharp
   downturn in nation's economy during the first half of
   2001 that is not yet showing signs of improvement . . .
   Page D-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7j3a8_

GDP
   Commerce Department's Bureau of Economic Analysis reports
   U.S. gross domestic product adjusted for inflation rose
   by 1.2 percent annual rate during first quarter of 2001,
   down slightly from preliminary estimate of 1.3 percent .
   . . Page D-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6y7c0_


____

TEXT
____

SUPREME COURT
   Summaries of labor and employment law cases in which the
   U.S. Supreme Court denied review June 29, 2001 . . . Page
   E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j5yb3_

SEXUAL HARASSMENT
   Seventh Circuit's decision in "EEOC v. Indiana Bell Tel.
   Co. d/b/a/ Ameritech Indiana" . . . Page E-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6v2d9_

UNFAIR LABOR PRACTICES
   NLRB decision in "Lee Lumber and Building Material Corp."
   . . . Page E-22
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c7u1_


______________

TABLE OF CASES
______________

Arkansas Dep't of Educ. v. Jim C (U.S.) . . . Page E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8q7_

Augustus v. Surface Transp. Bd. (U.S.) . . . Page E-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8r7_

Beverly Cal. Corp. v. NLRB (U.S.) . . . Page B-2,  text E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6y7f6_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8u3_

Briley v. National Archives & Records Admin. (U.S.) . . .
Page E-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8y7_

Brown v. Dep't of Navy (U.S.) . . . Page E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8r2_

Dierking v. Industrial Comm'n of Ariz. (U.S.) . . . Page E-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8y2_

Dietelbach v. Ohio Edison Co. (U.S.) . . . Page E-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8u7_

EEOC v. Indiana Bell Tel. Co. Inc. d/b/a Ameritech Ind. (7th
Cir.) . . . Page A-10,  Text E-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7h3x6_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6v2d9_

Garfinkel v. Morristown Obstetrics & Gynecology Assocs.
(N.J.) . . . Page A-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j3k5d9_

Gentile v. Quaker Oats Co. (U.S.) . . . Page E-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8t7_

International Bhd. of Elec. Workers Local 134 v. Chathas
(U.S.) . . . Page E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8p7_

Juno Marine Agency Inc. v. Taibl (U.S.) . . . Page E-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8v2_

Lee Lumber and Bldg. Material Corp.  (334 N.L.R.B. No. 62) .
. . Page AA-1,  Text E-22
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7h5j9_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7c7u1_

Madison v. IBP Inc. (8th Cir.) . . . Page A-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6g5t4_

Milwaukee Dist. Council 48, Am. Fed'n of State, County, and
Mun. Employees, AFSCME, AFL-CIO v. Milwaukee County (Wis.) .
. . Page A-9
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7d6w6_

Moore v. AFTRA Health and Ret. Funds (U.S.) . . . Page E-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8t2_

Norfolk & W. Ry. Co. v. Dye (U.S.) . . . Page E-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8v7_

Parry v. Mohawk Motors of Mich. Inc. (U.S.) . . . Page E-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8x2_

Pastorek v. Trail (U.S.) . . . Page E-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8w2_

Relford v. Lexington-Fayette Urban County Gov't Civil Serv.
Comm'n (U.S.) . . . Page E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8q2_

Rush Prudential HMO Inc. v. Moran (U.S.) . . . Page B-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j7f1m5_

Turner v. Church of Jesus Christ of Latter-Day Saints (U.S.)
. . . Page E-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8w7_

Tuvell v. Microsoft Corp. (U.S.) . . . Page E-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8z7_

Umana v. Swidler & Berlin Chtd. (U.S.) . . . Page E-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8z2_

Wang v. New York City Dep't of Fin. (U.S.) . . . Page E-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4j6f8x7_

   __________
   Daily Labor Report (ISSN 1522-5968) Highlights are
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