Philadelphia-based United Scrap Metal PA LLC was embroiled in a legal battle with the National Labor Relations Board (NLRB) over accusations that the company violated federal labor laws by retaliating against workers who supported unionization efforts. The dispute centers around the company’s refusal to bargain with Laborers’ International Union of North America, Local 57, which won a union election in November 2020. The NLRB claims United Scrap Metal engaged in numerous unfair labor practices to discourage pro-union activities, while the company has filed for a review of these findings.
In a ruling issued on July 18, 2023, the NLRB found that United Scrap Metal unlawfully changed employees’ work schedules and engaged in coercive tactics, including interrogating workers and confiscating union materials. The board also cited the company for permitting anti-union activities at its facility while barring pro-union efforts. According to the court filing, the company’s decision to cut hours following the union election was seen as a direct response to the workers’ vote in favor of unionization.
The company argued that the decision to reduce overtime and Saturday shifts was a result of the economic downturn caused by the COVID-19 pandemic. However, the NLRB was not convinced, ruling that the changes were retaliatory in nature and aimed at discouraging union activities. “Employees’ protected union activity was a motivating factor in the Respondent’s decision to change their schedule,” the NLRB ruling stated. The board found no evidence that the economic circumstances required such immediate action, noting that United Scrap had operated with a similar staffing model throughout the pandemic without incident.
Workers were hit hard by the schedule changes, which eliminated the overtime hours many relied on to make ends meet. Before the election, employees regularly worked 57-hour weeks, including Saturdays, with significant overtime pay. After the election, hours were cut without notice. “Workday before election: Monday to Friday 6 a.m. to 5 p.m., Saturday 6 a.m. to 3 p.m. After election: Monday to Friday 6 a.m. to 3 p.m., no work assigned on Saturdays,” the filing detailed. The sudden reduction in work hours not only affected workers’ paychecks but also fueled frustration and demoralization.
For many workers, overtime pay was a crucial part of their income, and its removal dealt a blow to their financial security. One employee testified that the cuts followed the union’s win in the election, and they were told that “they would cut hours because the majority voted for the Union”. The NLRB found this to be a violation of Section 8(a)(3) of the National Labor Relations Act, which prohibits employers from discriminating against employees for their union activities.
The broader impact on workers goes beyond the immediate financial strain. The NLRB highlighted how United Scrap Metal’s actions created a hostile environment, with management actively discouraging unionization while permitting anti-union meetings during work hours. According to the court filing, one of the company’s managers, Darin Haas, was observed confiscating union t-shirts from employees’ vehicles and discarding them in a dumpster. He later admitted that he “decided … to confiscate them and throw them away”. Additionally, employees reported being interrogated about how they planned to vote in the union election and told not to accept union materials.
The combination of reduced work hours and anti-union intimidation has caused significant harm to the workforce at United Scrap Metal. Workers not only lost critical income but were also subjected to a culture of fear and uncertainty. The NLRB ruling underscores the company’s retaliatory behavior, stating that the schedule changes were not a necessary business decision but a calculated move to weaken the union’s influence and dissuade future organizing efforts.
The harm to workers is both financial and psychological.
Employees who relied on overtime pay have been left scrambling to cover their expenses, while the broader message from management has been clear: union support will be punished. This has led to a decline in morale, with one manager admitting that morale had plummeted after the schedule cuts, noting that there was “no OT” and “[l]ow morale” following the union victory.
On September 16th 2024, the US Court of Appeals for the third district affirmed the NLRB’s findings, agreeing that USM’s actions constituted unfair labor practices and that the union election was conducted fairly.