Nature of the Case
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Facts
DMI (D) is in the business of manufacturing rough commercial castings for major equipment manufacturing companies in the United States. DMI (D) and the Steelworkers Union (D) were parties to a collective bargaining agreement effective from December 26, 1977, until December 26, 1980, which covered the Foundry and D's Ironton Division. During the three years ending June 1979, the Foundry lost approximately $13 million. DMI (D) informed a union representative, that DMI (D) was planning on closing the plant. It is undisputed that DMI (D) was suffering severe financial trouble during the period of time in question. DMI (D) informed Union (D) that if these concessions were made, DMI (D) would make every effort to keep the plant open including making efforts to modernize the Foundry. Ds agreed to hold two meetings. Employees were informed of the company's financial plight. DMI (D) had only two options -- closing the plant or attempting to convert and modernize the plant. The latter option would have to be approved by the board of directors. It was stated that if a series of proposed modifications to the collective bargaining agreement were made such concessions would be 'critical to convince the Board of Directors to allow us to invest 8 to 10 million new dollars into this plant.' The Union (D) representative recommended that the concessions be approved. A question and answer session was held. The next day a secret ballot vote was conducted. Approximately 90% of the local union's membership turned out to vote. DMI's (D) proposed modifications of the collective bargaining agreement were approved by a vote of 426 to 19. The modifications were formalized in a written memorandum of agreement that expressly embodied the modifications to the collective bargaining agreement that had been approved. In August 1979 DMI's (D) Board of Directors voted an initial investment of $5 million to buy new equipment needed for the conversion to nodular iron production. In the fall of 1979, the financial condition of DMI (D) continued to deteriorate. In October of 1979, new equipment necessary for the conversion was purchased and installed. During this time discussions between company and union representatives concerning the effects of modernization were ongoing. By December of 1979, DMI (D) was forced to shut down for a period of time and lay off many employees. It continued to experience severe financial problems. Marketing forecasts suggested a continued decrease in demand for both malleable and nodular iron. DMI (D) concluded that the Columbus Foundry should be closed. On March 20, 1980, DMI (D) voted to shut down the Columbus plant as of May 31, 1980. In June 1980, Ps commenced this action against Ds. Ds have filed motions for summary judgment.
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