American Ship Building Co. v. National Labor Relations Board Case Brief Summary | Law Case Explained
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American Ship Building Co. v. National Labor Relations Board | 380 U.S. 300 (1965)
A lockout occurs when an employer temporarily halts operations and lays off its workforce despite work being available. Lockouts for economic reasons are lawful. In American Ship Building versus National Labor Relations Board, the Supreme Court considered whether an employer may lock out its employees as a bargaining strategy.
The American Ship Building Company operated four shipyards, including one in Chicago. Over several years, American had entered five contracts with the unions representing its employees. Each time, the unions would strike before the parties reached agreement. Negotiations for a 6th contract reached an impasse.
American feared another strike. The Chicago shipyard had no work because it was American’s slow season and because customers feared a strike’s effects. Because of the lack of work and the impasse, American temporarily closed the Chicago yard and laid off all the employees.
The unions filed charges with the National Labor Relations Board, alleging that American’s lockout violated the National Labor Relations Act. The board ruled for the unions, finding that that the only reason for the lockout was to pressure the unions to accept American’s terms. The District of Columbia Circuit affirmed. The United States Supreme Court granted cert.
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