Business & Finance: Ghost Union

August 2024 · 1 minute read

TIME

October 24, 1949 12:00 AM GMT-5

Lotion-maker Andrew Jergens, who relentlessly advertised the charm of soft hands, was no soft touch for labor unions. Though the A.F.L. Cosmetic Workers were certified in 1941 as bargaining agent for Jergens’ 150 employees in his Burbank, Calif, plant, Jergens refused to bargain even after the National War Labor Board ordered him to do so.

The local affiliated with the A.F.L. Teamsters and called a strike. Jergens knew when it was time to make a concession; he passed out a blanket 15% wage increase. The strike ended, and the workers quit the union. Nevertheless, an appeals court found Jergens guilty of unfair labor practices and ordered him to bargain with the union. Last week, the U.S. Supreme Court upheld that decision, thus requiring Jergens to sit down and bargain with the Teamsters even though the union may no longer represent any of his employees.

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