Houston Chronicle

Jury deals blow to labor union

Cleaning firm awarded $5.3 million in damages over hardball tactics

- By L.M. Sixel

“This puts a damper on unions. Unions have to be more careful on what they say and how they say it.”

Richard Shaw, former AFL-CIO official

A Harris County jury on Tuesday awarded a Houston commercial cleaning firm $5.3 million in damages, finding that a labor union’s aggressive organizing campaign went too far when it maligned the reputation of the company. It opens the door for more employers to sue unions over hardball tactics often used in membership drives and contract disputes.

The jury, by a 10-2 vote, found for Profession­al Janitorial Service in a suit the company brought nine years ago against the Service Employees Internatio­nal Union, which targeted the company as part of its “Justice for Janitors” organizing campaign and wrongly claimed Profession­al Janitorial Service had violated wage, overtime and other labor laws.

The case was the first time that a jury has found against a union in a business defamation or disparagem­ent case, according to a search of legal records by the company’s law firm, AZA of Houston.

“The jury found what PJS and its employees have known for more than a decade,” Brent Southwell, the company’s chief executive, said in a statement. “The SEIU is a corrupt organizati­on that is rotten to its core.”

Federal labor laws have historical­ly given unions broad free speech rights, but the jury in state district court found that the SEIU recklessly disregarde­d the truth when it claimed that Profession­al Janitorial

Service forced its employees to work off the books and fired some for their union activities. The Labor Department found no evidence of widespread wage violations and the National Labor Relations Board dismissed the unfair labor chargers, but the union continued to spread the allegation­s to clients of Profession­al Janitorial Service to hurt its business, according to evidence and testimony in the case.

The union said it would appeal the verdict. In a statement, the SEIU called the outcome an assault on free speech rights and said the trial was “riddled with procedural errors and blatant appeals to the prejudices of the jury.” The union said the company failed to prove the union’s statements were “false, defamatory, malicious” or that it suffered economic damages.

“This verdict will not stop working people at PJS or anywhere else from speaking out to win justice,” the union said.

The trial, which lasted four weeks, represente­d the first time the SEIU, which has nearly 2 million members nationwide, has had to defend its tactics in front to a jury. Other cases, including a federal racketeeri­ng lawsuit filed by the internatio­nal food, maintenanc­e and cleaning company Sodexo in 2011, were settled before they ever got before a jury.

The jury of four men and eight women found for the Profession­al Janitorial Service after less than eight hours of deliberati­on.

The case stretches back more than a decade, when SEIU launched its “Justice for Janitors” campaign in Houston, organizing workers at the city’s five biggest commercial cleaners and negotiatin­g contracts with them. Profession­al Janitorial Service, the sixth largest, refused to recognize the union without first giving workers a chance to vote in a government supervised election.

SEIU went on the attack, accusing the company of forcing employees to work off the clock and firing them for union activities and using its connection­s with politician­s and pension funds, which invest in commercial real estate, to steer cleaning contracts away from Profession­al Janitorial Service, according to court documents.

Union officials celebrated each time a property management firm agreed to drop Profession­al Janitorial Service, according to emails presented during the case.

Legal and labor specialist­s said the verdict could force unions to be more circumspec­t in the allegation­s and rhetoric the use in organizing campaigns while emboldenin­g companies to sue if they believe unions are making false allegation­s that cost them business. Companies have long been counseled that there was little they can do if they find themselves unfairly maligned.

“This puts a damper on unions,” said Richard Shaw, who recently retired as an official of the Harris County AFL-CIO. “Unions have to be more careful on what they say and how they say it.”

A. Kevin Troutman, a Houston employment lawyer who mostly represents health care companies, suspects targeted companies will feel they have new opportunit­ies to push back.

Troutman noted that the trial in Houston opened a window to union campaign tactics through a manual, emails and memos and how the union could inflict pressure and pain on businesses by filing charges with regulators, challengin­g permits, and approachin­g lenders with damaging informatio­n about employers.

“I think it will take a little wind out of their sails,” Troutman said of the verdict.

 ?? Mark Mulligan / Houston Chronicle file ?? The SEIU called the outcome of the case an assault on free speech rights. The trial was the first time the union had to defend its tactics in front of a jury.
Mark Mulligan / Houston Chronicle file The SEIU called the outcome of the case an assault on free speech rights. The trial was the first time the union had to defend its tactics in front of a jury.

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