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Deferiet Paper Co. v. National Labor Relations Board

The National Labor Relations Board failed to consider whether an historic bargaining unit in a company was still appropriate after the company had been bought and reorganized.

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Randolph, Circuit Judge: In June 1999, Deferiet Paper Company purchased the assets of a paper mill in Deferiet, New York, from Champion International. Champion had collective-bargaining agreements with two unions representing maintenance employees in the mill. Paper, Allied-Industrial, Chemical and Energy Workers, Locals 45 & 56, AFL-CIO (“PACE”) represented production workers and those maintenance department workers classified as welders, masons, oilers, tinsmiths, electricians and instrument mechanics. Local Lodge 1009, District Lodge 65 of the International Association of Machinists and Aerospace Workers, AFL-CIO (“IAM”) represented maintenance employees classified as millwrights, pipefitters, machinists and shift mechanics. Prior to the sale of the mill, there were 102 employees in Champion’s maintenance department. IAM represented 60 of these employees; PACE represented 42. Of the 82 maintenance workers who remained at the mill after the sale to Deferiet, 46 had been represented by IAM and 36 had been represented by PACE. Approximately 300 production employees, who work in the same area of the plant, are represented by PACE.

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