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RICO

BY Gregory B. Robertson
April 27, 2009

On Oct. 27, 2008, Judge Robert E. Payne approved and filed under seal a settlement agreement that marked the end of Smithfield Foods' precedent-setting civil racketeering suit against the United Food and Commercial Workers' Union (UFCW) and several related defendants. The case, which was pending in the Eastern District of Virginia's “rocket docket,” would have been the first civil racketeering action of its kind to proceed to a jury trial. Despite settling literally on the eve of trial, the case spawned critically important legal precedent that blazes a new trail for employers who are in search of litigation options for responding to non-traditional union organizing methods.

The Nature of Union Corporate Campaigns

The case was born out of the UFCW's lengthy struggle to organize Smithfield's Tar Heel, NC, pork processing plant. After attempting for over a decade to organize the plant through traditional methods, the UFCW opted to pursue an aggressive, non-traditional organizing strategy: the corporate pressure campaign. This rapidly emerging union tactic is designed to circumvent the NLRB's secret-ballot election process, the traditionally accepted means of organizing employees. Union officials have made no secret of the fact that the corporate campaign is a coordinated, negative publicity effort intended to place unbearable financial, legal and social pressure on a targeted employer in order to convince that employer to forego its NLRB rights and agree to the union's organizing demands.

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