NATIONAL INDUSTRIAL RECOVERY ACT - PRESIDENT\u27S RE-EMPLOYMENT AGREEMENT - INJUNCTION BY LABOR UNION

Plaintiff, a Wisconsin labor union, was granted a temporary injunction restraining defendant shoe company, a party to the President\u27s Re-employment Agreement, from further interference with the right of its employes to organize into unions of their own free will and choice and from interfering with . . . the freedom of its employes in the designation of representatives of their own choice for the purpose of bargaining collectively with the company. The court decided that defendant had violated its agreement with the President to comply with section 7 (a) of the National Industrial Recovery Act. This last was based on a finding that defendant company had issued statements to the employees of the company to the effect that: (1) The company would be forced to close its plant indefinitely in the event of any interference from the union. (2) The company would only deal with the representatives chosen outside of the ranks of the company employees ( which the court holds is a direct violation of section 7 (a) of the NIRA). (3) The company discouraged joining the plaintiff union. The court held that the plaintiff had a right to an injunction restraining defendant from thus violating its contract with the President (specifically, sec. 7 (a) ) ; that the plaintiff was a third party beneficiary under the P RA ( President\u27s Re-employment Agreement) and, as such, could enforce the PRA since it was made for its benefit, though plaintiff was not a party thereto. Wisconsin State Federation of Labor v. Simplex Shoe Manufacturing Co., (C. C. Wis., Oct. 13, 1933) U.S. LAW WEEK, Oct. 31, 1933, index p. 137