Michael Frenkel


One of the most difficult problems in labor law is that of plant removal, better known as the "runaway shop." Here the applicable law is changing and uncertain, yet the advisor must be prepared to answer vital questions. Certainly, one of the most drastic economic weapons in managements' arsenal in battles with labor unions is the runaway shop. This is the device whereby an employer either prevents unionization, or escapes bargaining with an established union, by ceasing operations at his original location and relocating in another, usually distant community. The purpose of this article is to outline the matters which must be looked at when there is a plant removal problem, and to state the applicable legal doctrines.