National Labor Relations Board v. Action Automotive, Inc. (469 U.S. 490)

U.S. Supreme Court · decided February 19, 1985 · Supreme Court Database (Spaeth)

Citation
469 U.S. 490 · 105 S. Ct. 984
Decided
February 19, 1985
Term
October Term 1984
Vote
6–3
Majority author
Justice Burger
Issue area
Unions
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Chief Justice Burger delivered the opinion of the Court. We granted certiorari to decide whether the National Labor Relations Board may exclude from a collective-bargaining unit employees who are relatives of the owners of a closely held corporation that employs them, without a finding that the employees receive special job-related benefits. I Respondent Action Automotive, Inc., is a retail automobile parts and gasoline dealer with stores in a number of Michigan cities. Action Automotive is a closely held corporation owned equally by three brothers, Richard, Robert, and James Sabo. The Sabo brothers are actively involved in the daily operations of the business. They serve as the corporation’s officers, make all policy decisions, and retain ultimate authority for the supervision of every department. In March 1981, the Retail Store Employees Union, Local 40 (the Union), filed with the Board a petition requesting that a representation election be held among Action Automotive’s employees. Action Automotive and the Union agreed to elections in two bargaining units — one consisting of employees at the company’s nine retail stores, and the other comprising clerical employees at the company’s headquarters. The elections were held on May 29, 1981, and the Union received a plurality of votes in each unit; enough ballots were challenged by each side, however, to place the outcome of the…

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