Month: June 2023

U.S. Supreme Court Rules Against Union in Labor Dispute

In a dispute about the pressure that organized labor can exert during a strike, the Supreme Court ruled Thursday against unionized drivers who walked off the job with their trucks full of wet concrete.

Justice Amy Coney Barrett, writing for the majority, said the union failed to take reasonable precautions to protect the company’s concrete when the drivers went on strike. Barrett wrote that the drivers for Washington state-based Glacier Northwest quit work suddenly, putting the company’s property in “foreseeable and imminent danger.”

“The Union’s actions not only resulted in the destruction of all the concrete Glacier had prepared that day; they also posed a risk of foreseeable, aggravated, and imminent harm to Glacier’s trucks,” Barrett wrote in a decision joined by four other justices. Three more justices agreed with the outcome in the case but did not join Barrett’s opinion.

This case stemmed from contract negotiations in 2017 between Glacier Northwest and the local Teamsters union, representing the drivers. When negotiations broke down, the union called for a strike. Drivers walked off the job while their trucks were full of concrete, which must be used quickly and can damage the trucks if it’s not.

Glacier says the union timed the strike to create chaos and inflict damage. Glacier not only had to dump the concrete but also pay for the wasted concrete to be broken up and hauled away. The company sued the union in state court for intentionally damaging its property; the lawsuit was initially dismissed.

The question for the Supreme Court was about how the case should proceed. Glacier said its lawsuit in state court should not have been dismissed at the outset. The union said Glacier’s lawsuit should only be allowed to go forward in state court if the federal National Labor Relations Board first found that the union’s actions were not protected by federal law.

Barrett wrote that because the union did not take reasonable precautions to protect Glacier’s property, the trial court was wrong to think federal law required dismissing the lawsuit. By “reporting for duty and pretending as if they would deliver the concrete, the drivers prompted the creation of the perishable product. Then, they waited to walk off the job until the concrete was mixed and poured in the trucks,” Barrett wrote.

 

Mortgage Demand Plummets as Interest Rates Rise

The Mortgage Bankers Association’s index of mortgage applications fell 4.6% last week to the lowest level since February, according to new data published Wednesday.

“Mortgage applications declined almost five percent last week as borrowers remained sensitive to higher rates,” said Joel Kan, MBA’s deputy chief economist. “Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications.”

Demand for refinancing also continued to plunge last week, sliding another 5%, according to the survey. Compared with the same time last year, refinance applications are down more than 40%.

The interest rate-sensitive housing market has cooled rapidly in the wake of the Federal Reserve’s aggressive tightening campaign. Policymakers already lifted the benchmark federal funds rate 10 consecutive times and have opened the door to another increase at their June meeting following a slew of stronger-than-expected economic data.

For months, higher mortgage rates have dampened consumer demand and brought down home prices. As rates have slowly fallen from a peak of 7%, the housing market has shown early signs of stirring back to life. However, the return to lower mortgage rates has not been smooth. In fact, rates moved significantly higher to start the week, according to a separate MBA survey, with rates surging to 6.91%.