International Paper Co. v. National Labor Relations Board

The collective-bargaining agreement between International Paper Co. (IP) (defendant) and the unions representing IP’s production and maintenance employees at IP’s paper mill in Mobile, Alabama (the unions) (plaintiffs) expired. Following initial negotiations and tactics, the parties were unable to reach a new agreement. At one point, to prevent a coordinated strike at several other IP facilities, IP locked out 915 production and 285 maintenance employees at the Mobile mill. IP contracted with BE&K Construction Company (BE&K) for BE&K to provide temporary maintenance workers, and IP kept its Mobile mill open with BE&K workers performing maintenance. IP found that it was saving money using BE&K. BE&K submitted a proposal for a permanent subcontract of the mill’s maintenance work, which would result in $7.2 million in savings to IP per year. After fulfilling its bargaining obligations with the unions on the issue of a permanent subcontract, IP implemented the BE&K permanent subcontract while the lockout was still in effect. Many months later, IP canceled the permanent subcontract, and the lockout ended. The unions charged IP with violating the National Labor Relations Act by implementing a permanent subcontract for maintenance work during the lockout. The National Labor Relations Board (the board) found that IP had violated the act. The matter came before the court of appeals.