Union Busting Costs U-Haul Millions
In the latest chapter of the IAM battle to defend workers’ rights at U-Haul, the
rental company has been forced to pay over $2.1 million dollars to 49 former
employees who lost their jobs as part of a vicious union-busting campaign in
the Las Vegas area.
In 2003, the IAM successfully organized U-Haul employees at two repair
shops in the Las Vegas area. Rather than comply with the law and negotiate
with the IAM, U-Haul terminated all of the union’s supporters and closed one
of the two repair shops.
In response, the IAM filed two dozen unfair labor practice charges with the
National Labor Relations Board (NLRB). After two trials, including one that
lasted for 65 days over an 18-month period, U-Haul was ordered to pay full
back pay, with interest, to the terminated employees. U-Haul responded with
appeals to the NLRB headquarters in Washington, D.C. and to the federal appeals
courts.
Faced with ever-mounting interest penalties, U-Haul finally agreed to settle.
All affected employees have now received full back pay, with interest. In
addition,
each employee has been offered a choice of reinstatement or an additional
$10,000 severance payment.
“U-Haul has finally been forced to pay, and pay dearly, for its outrageous
conduct,”
said Western Territory GVP Lee Pearson. “While we are not satisfied
with this settlement or the excessive delay in obtaining it, we believe that it
is
the best possible result given the totally inadequate remedies available under
the current law. Nevertheless, the huge cost of this settlement will cause UHaul
and other anti-union employers, to think twice about brazenly violating
workers’ rights to organize in the future.”