The Legality Of Profit-Sharing Assistance In Labor Spats

Law360, New York (September 24, 2010, 6:52 PM EDT) -- The U.S. Court of Appeals for the Ninth Circuit recently held that a profit-sharing assistance agreement instituted by employers in anticipation of a whipsaw strike is not protected from antitrust scrutiny by the nonstatutory labor exemption to the antitrust laws, and in fact violated Section 1 of the Sherman Act. State of California v. Safeway, Inc., __ F. 3d __ , Nos. 08-55671, 08-55708 (August 17, 2010).

Three Southern California supermarket chains that were engaged in multi-employer bargaining entered into a Mutual Strike Assistance Agreement among...
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