NLRB Prepares Complaint Against Apparel Firm Guess

Federal officials have prepared a complaint accusing beleaguered Guess Inc. of a host of unfair labor practices, among them illegally firing nearly 20 workers to thwart a union-organizing campaign.

The case by the National Labor Relations Board against Los Angeles-based Guess, which could be issued as soon as today, marks a major victory for the garment industry union UNITE.

The union brought the alleged unfair labor practices to the NLRB’s attention in connection with a drive it launched last summer to organize Guess’ estimated 600 production workers, along with laborers at its local subcontractors’ sewing shops, in Los Angeles.

A lawyer for Guess, Allen Gross, said the company disputes all of the allegations. He also said that the company will try to settle the case with the NLRB today to stop the agency from formally issuing the complaint, but other sources said such a settlement is unlikely.

In the complaint prepared by the NLRB, Guess is accused of violating a variety of federal statutes intended to protect workers’ rights to join unions.

The most serious charge by federal officials is that the company illegally fired 17 or 18 union supporters who were on the company’s payroll. The complaint also accuses Guess President Paul Marciano of delivering an address to employees in which he threatened to fire anyone who signed a union card and to move the company’s production abroad if the union campaign succeeded.

Guess in addition is being accused of conducting illegal surveillance of union meetings to intimidate workers from participating in the labor campaign.

The NLRB, as is its standard practice in such cases, is seeking to reinstate the fired employees and to recover back pay for them. The case would be brought by the NLRB to an administrative law judge for a decision if no settlement is reached.

Sources said the NLRB is also considering seeking an injunction requiring Guess to immediately reinstate the workers, a legal maneuver for unfair labor practices that are considered “egregious.”

In a separate lawsuit, UNITE has accused the company and its contractors of cheating workers out of wages and condoning illegal child labor. In addition, the Department of Labor is reviewing Guess’ status on the government’s list of “good guy” apparel manufacturers judged to be taking extra steps to avoid doing business with sweatshops.