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Local 1330, United Steel Workers of America v. United States Steel Corporation

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Bloomberg Law

Citation. 631 F.2d 1264, 1980 U.S. App. 105 L.R.R.M. 2312; 89 Lab. Cas. (CCH) P12,220.

Brief Fact Summary. A steel plant closure led to the economic demise of a town.

Synopsis of Rule of Law. A court cannot require a corporation to continue operations when its officers and board of directors has decided to discontinue on the basis of unprofitability.


Facts. Local 13330 and 1307 of the United Steel Workers of America (Plaintiffs) are two labor organizations. Plaintiffs had a collective bargaining contract with the United States Steel Corporation for many years. Two steel plants operated by the United States Steel Corporation (Defendant) will be closing because of the age of the facilities and machinery involved and by changes in technology and marketing in steel making. The plants had been a dominant factor in the city and life of the employees. An economic blow will result to the town with the closing of the plants. Plaintiffs seek to keep the plants operating.

Issue. Can a court order a corporation to continue operations when its officers and board of directors decide to discontinue on the basis of unprofitability?

Content Type: Brief


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