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12 Lab. L.J. 1025 (1961)
Runaway Shops: The Problem and Treatment

handle is hein.journals/labljo12 and id is 1027 raw text is: Runaway Shops: The Problem and Treatment By WALTER L. DAYKIN The problem of runaway shops has plagued labor-management rela- tions for quite some time. Prior to the passage of the National Labor Relations Act, the primary tool used against runaway industry was the court injunction. Since 1935, however, foot-loose employers have been kept in check by the NLRB, the federal courts and by arbitrators enforc- ing collective agreements. Mr. Daykin is professor of labor and man- agement, College of Business Administration, State University of Iowa. IN THE INDUSTRIAL CONFLICT between the employers and the unions, each combatant has used techniques or weapons to effectuate its objectives. Labor unions have resorted to such con- certed activities as strikes, boycotts and picketing. The employers have relied upon lockouts, injunctions, damage suits and the removal of plants from areas of union strength. Obviously these concerted activities have changed with the times and have been subjected to legislative and judicial control. In recent years numerous legal and economic problems have been raised by the relocation of industries, particularly by the run- away shops. This movement has been stimulated by competition between communities to attract industries. This had led to the offering of reduced rents, tax exemptions, free or reduced power and water costs and cheap and unorganized labor to attract plants into areas. Organizations have sponsored right to work legislation for the same purpose. These attractions have appealed to some industries where no large capital outlay is involved, industries where the ratio of labor costs to total cost of production is high and industries that are antagonistic to labor unionism and wish to escape from areas where unions have become entrenched. Unions have attempted to counteract this relocation of plants- particularly in the garment and shoe manufacturing industries, where small capital investments are required for change-by collective bar- gaining activities. The resulting contracts take precautions against firms moving elsewhere, or reorganizing to avoid contractual obliga- tions or to defeat a labor union. For example, in these industries contract clauses are included in the collective bargaining agreements in which the employers agree, during the term of the contract, not to move a shop or a factory from its present location to any place beyond which the public carrier fare exceeds a specified amount unless Runaway Shops 1025

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