The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, November 7, 1995              TAG: 9511070277
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: BY LAURIE ASSEO, ASSOCIATED PRESS 
DATELINE: WASHINGTON                         LENGTH: Medium:   55 lines

SUPREME COURT AGREES TO REVIEW LABOR DISPUTE FROM TYSON FOODS

The Supreme Court agreed Monday to review a labor dispute stemming from Tyson Foods Inc.'s 1989 acquisition of rival poultry producer Holly Farms.

The justices let stand the bulk of a federal appeals court ruling that required Tyson to negotiate over new pay and working conditions with a union representing former Holly Farms drivers.

But the justices said they will review one aspect of the dispute - whether chicken catchers and haulers are ``agricultural workers'' not covered by federal labor law.

Tyson, based in Springdale, Ark., purchased Holly Farms, based in Memphis, Tenn., in July 1989. Earlier that year, units of the Chauffeurs, Teamsters and Helpers union were certified to represent 209 Holly drivers in North Carolina, Virginia and Texas.

Tyson said it would merge Holly's transportation unit with its own. It offered jobs to the Holly drivers under new pay and working conditions, and all but 47 accepted the offer.

Tyson withdrew recognition of the drivers' union, which then called a strike against Tyson.

Before the Tyson purchase, the union also had sought the right to represent another group of Holly Farms employees, who transported live chickens in North Carolina. A union-representation vote ended in a tie.

The union filed unfair-labor-practice charges against Tyson and Holly Farms. The National Labor Relations Board ruled that Tyson violated labor law by refusing to negotiate with the union over changes in pay and working conditions resulting from the transportation merger.

The board said Tyson unlawfully fired the 47 drivers who turned down job offers. They were entitled to reinstatement and back pay, the board ruled.

The labor board also ordered Tyson to bargain with the union as representative of the live-chicken haulers. An administrative law judge said unfair labor practices by the company made it unfeasible to hold a new representation election.

The 4th U.S. Circuit Court of Appeals upheld the board rulings. Tyson became obligated to bargain with the union when it took over Holly Farms, the appeals court said.

In the part of the appeal granted review Monday, lawyers for Holly Farms and Tyson said the live-chicken haulers should be considered agricultural workers exempt from the labor law.

Justice Department lawyers had urged the high court to reject the appeal, arguing that the 4th Circuit court ruling was correct.

The case is Holly Farms vs. NLRB, 95-210.

KEYWORDS: SUPREME COURT by CNB