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The Textile Workers Union of America v. Darlington Manufacturing Co., et al., 1964, was a landmark case in U.S labor law that addressed the legality of an employer's decision to close down a business due to union activities. The Supreme Court held that if a single-employer closed its entire business for anti-union reasons, it would not violate federal laws prohibiting unfair labor practices. However, if the closure is partial or discriminates against unionized employees within part of a larger corporate enterprise (multi-employer), then it could be considered an unfair labor practice under the National Labor Relations Act (NLRA). In this particular case, Deering Milliken Inc., which had substantial control over Darlington Manufacturing Company and several other corporations as part of their conglomerate structure, decided to shut down one plant after workers voted for union representation. The court ruled that such action constituted an unfair labor practice because it discriminated against unionized employees within their multi-facility operations.
In the dissenting opinion for Textile Workers Union of America v. Darlington Manufacturing Co., Justice Black argued that the majority's decision was a departure from established labor law principles, which could potentially allow employers to avoid unionization by threatening closure. He contended that an employer should not be allowed to close down part or all of its business solely because employees chose to exercise their statutory right to join a union. According to him, such action is inherently destructive and interferes with employee rights under the National Labor Relations Act (NLRA). Furthermore, he expressed concern about how this ruling might encourage other companies considering anti-union activities. He believed it would have been more appropriate if the case had been remanded back for further proceedings instead of being dismissed outright based on what he considered speculative evidence.