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					                                             WIMBERLY LAWSON
                                         SEALE WRIGHT & DAVES, PLLC
                                                                     ATTORNEYS & COUNSELORS        AT   LAW
           Knoxville Office                            Morristown Office                                 Nashville Office                  Cookeville Office
  Bank of America Building, Suite 601
          550 Main Avenue                           929 West First North Street                  3200 West End Avenue                  1420 Neal Street - Suite 201
            P. O. Box 2231                               P.O. Box 1066                                  Suite 500                             P.O. Box 655
   Knoxville, Tennessee 37901-2231              Morristown, Tennessee 37816-1066               Nashville, Tennessee 37203           Cookeville, Tennessee 38503-0655
Phone: 865-546-1000/Fax: 865-546-1001        Phone: 423-587-6870/Fax: 423-587-1479       Phone: 615-783-2190/Fax: 615-783-1606   Phone: 931-372-9123/Fax: 931-372-9181

            Affiliated Office                                                  Affiliated Office                                              Affiliated Office
 Wimberly, Lawson, Steckel, Nelson &                               Wimberly, Lawson, Suarez & Russell, LLC                         Wimberly Lawson Daniels & Brandon
            Schneider, PC                                                      Tampa, Florida                                          Greenville, South Carolina
          Atlanta, Georgia


                                                  THE EAGLE'S VIEW
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                                                                                                                                 April 2003     Volume 3, Issue 4
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                                                          Union Membership in Private Industry
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                                                                     rops
                                                                   D rops to 8.5%
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                                                 According to February                  into the 6% range in the     do” to keep the rate from
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                                             25 figures of the Labor                    next few years. “It’s tough  declining further, according
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                                             Department’s Bureau of                     for unions because they      to Professor Barry T.
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                                             Labor Statistics, union                    have to tax a smaller and    Hirsch.
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                                             membership          in                                                                   Four states
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                                             private industry is at                                                                had union
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                                             8.5% of all workers,                                                                  membership
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                                             down from 8.9% in                                                                     rates of more
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                                             2001. Among gov-                                                                      than 20% last
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  Inside.....                                ernment workers,                                                                      year, including
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                                             37.5% were union                                                                      New York
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  AFL-CIO Organizing                                                                                                               (25%), Hawaii
                                             members, up from
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  Summit Plans to
                                                                                                                                   (24%), Alaska
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  Reverse Losses................Page 2       37.2% in 2001.
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                                             Combining both                                                                        (24%) and
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  Looking Into Insurance                     private and public                                                                    Michigan
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  for Employment-                            sectors,       union                                                                  (21%). South
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  Related Claims................Page 3
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                                             membership declined                                                                   Carolina and
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                                             slightly last year to                                                                          North
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  Special Note
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  Unsubscribe notice.......Page 4            13.2% from 13.4% in                                                                       Carolina
                                                                                          Union membership in private
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                                             2001.                                                                                      remain
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                                                                                        industry is at 8.5% of all workers
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                                                According to the                                                                        the states
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                                             AFL-CIO, union                                                                             with the
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                                             membership tracks                                                                          lowest
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                                             changes in the U. S.                       smaller base [of current union          membership, at
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                                             workforce and the decline                  members] to finance the 4.9% and 3.2%, respectively.
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                                             should be placed in the                    organizing that they have to
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                                             context of the weak
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                                             economy. A professor of
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                                             economics at Trinity                            Visit our Website at http://www.wlswd.com
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                                             University attributed the
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                                             declining union member-                       Our web site includes com-
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                                             ship last year to the large                   prehensive information about
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                                             number of layoffs,                            our lawyers and practice areas as
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                                             particularly in the more                      well as upcoming seminars,
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                                             heavily unionized manufac-                    conferences, publications
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                                             turing and airline sectors.                   available from our firm, and
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                                             This professor predicted                      information about the latest
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                                             that the percentage of                        labor and employment law
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                                             union membership in the                       developments on the newsletter
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                                             private sector could fall                     page. Check it out today!
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      THE EAGLE'S VIEW                            April 2003 - Volume 3, Issue 4                      PAGE 2
                  Organizing
          AFL-CIO Organizing Summit Plans to                                                    KNOW YOUR
                    Reverse Losses                                                               ATTORNEY
   Acknowledging that the      leaders offered their           organize some 1,000
labor movement will not        perspectives on the future      workers at Brylane, a
survive unless it finds new,   of union organizing.            catalogue company in
more successful organizing               Tom Woodruff,         Indianapolis, the parties
strategies, labor organizers   Executive Vice President        reached an agreement to
met in Washington during       of the Service Employees        allow workers at the
January to brainstorm new      International         Union     company’s distribution
ways to win organizing         (SEIU), the largest AFL-        centers to vote on
campaigns. The organizing      CIO union, said that prior      representation in a secret
summit was the first AFL-      to 1996, fewer than ten         mail-in         card/ballot
CIO sponsored conference       locals had active organizing    procedure. If the majority
in more than 40 years to       programs because they saw       sends in cards to a third
convene top organizers to      organizing as the job of the    party neutral, the company
discuss what they have         international union. That       will recognize the union,
been doing wrong and           has changed, and the locals     he said. Raynor said that        SUZANNE ROTEN
what needs to be changed,      have been asked to commit       the only way UNITE was
according to AFL-CIO           at least 20% of their           able to get this card-check         Suzanne is a senior
President John Sweeney.        revenues to organizing. In      recognition was because of     associate with Wimberly
  Although the AFL-CIO         2000, delegates to the          the pressure the union put     Lawson Seale Wright &
                                                 union’s       on Brylane, which is owned     Daves, PLLC and practices
                                                 convention    by a French conglomerate.      out of the Knoxville,
                                                approved       He said the union picketed     Tennessee office.       She
                                                the creation   the stores in the U.S. which   practices primarily in
                                               of a special    are owned by the same          employment law including
                                               fund into       conglomerate and recruited     discrimination claims,
                                               which locals    French unions to put           wage and hour matters,
                                              will pay $1.00   pressure on the company,       disability and family leave
                                              per member       published a “sweatshop”        matters and wrongful
                                              per month for    catalogue, and put on a        discharge. She represents
                                             organizing,       “sweatshop fashion show.”      management in a variety of
                                             and this year       Raynor said that unions      litigation settings and
                                            that fund will     need to allocate resources     counsels employers in
                                            generate almost    to organizing, knowing         preventive policies and
                                            $50 million.       that many projects never       procedures.       Suzanne
                                           The SEIU plans      will      be     financially   received a Bachelor of Arts
                                           to commit a         advantageous. He noted         degree (English and
                                          total of $150        that UNITE spent ten           American Literature, with
                                          million         to   years organizing a group of    honors)       from      the
                                          organizing in        100 workers in Atlanta.        University of California,
                                         2003 alone, he        Labor also has to figure out   San Diego. She received
                                         said. The union       how to be strategic, he        her Master of Library
began a “voice at work”        will have some 1,000 full-      said. Raynor said, “we         Science degree from the
campaign several years ago     time organizers and 5,000       have failed to make the        University of California,
to spotlight employer          member organizers.              right to organize a national   Berkeley; and received her
interference in organizing        Bruce Raynor, President      issue,” adding that unions     Doctor of Jurisprudence
campaigns that involved        of     the      Union      of   have to take on “large         from the University of
community activities,          Needletrades, Industrial        fights” with employers.        California, Los Angeles,
religious leaders and          and Textile Employees           Raynor’s union plans to        School of Law. She also
elected officials, Sweeney     (UNITE), said the union         spend 50% of its budget on     served as Managing Editor
said the labor movement        movement needs to find          organizing, so that            for the UCLA Law Review.
hasn’t been working hard       ways to pressure em-            “organizing will be the
enough to generate             ployers. As an example,         central theme of our union,”
community and political        Raynor said that after a        he said.
support. Different labor       sixteen-month fight to            Paul Booth, the executive
        THE EAGLE'S VIEW                             April 2003 - Volume 3, Issue 4                     PAGE 3
assistant to the president       reluctant to support each      organizing drives:               religious leaders, and
of another union, told the       other in campaigns, which         • Union members               organizations such as Jobs
summit that it is important      has to change, he said.        must be educated about           for Justice.
for organizers from different       One of several breakout     what employers do when               • Unions need to
unions to talk with each         sessions during the            workers try to form unions.      force politicians to support
other.     Unions have a         organizing conference             • Unions need to              the right to organize, to
strong      interest       as    developed the following        work with coalitions,            show up at rallies, and even
competitors and are              recommendations for            including community,             to be arrested with workers.

              Looking Into Insurance for Employment-Related Claims
   Over the years employ-        from        discriminatory     preclude coverage for            a homeowner’s policy.
ers have looked at their         treatment, but not             occurrences covered under
insurance policies to            evidenced by physical          workers' compensation or         EPLI Policies
determine if employment-         symptoms, does not meet        under separate employer’s            In recent years, EPLI
related claims are covered,      the      bodily       injury   liability policies, a number     coverage has greatly
and now employment               requirement.       Further,    of courts have excluded all      expanded in use. Such type
practices liability insurance    personal injury sometimes      employment-related               policies only started in the
(EPLI) has become a new          is defined by the policy to    claims.                          early 1990’s but now
form of protection. Some         expressly include or exclude       General liability insurers   probably 100 insurers offer
aspects of the various           harassment and discrim-        have included broad              various types of EPLI
types of coverage are            ination, while personal        employment-related               policy coverage.       EPLI
discussed below.                 injury generally is defined    practices exclusions in their    policies are intended to
                                 by the policy to include       policies in recent years that    cover various types of
General Liability In-            defamation, which can          exempt any bodily or             employment            cases,
surance                          often be claimed along         personal injury that arises      including violation of
   The first thought to an       with discrimination. Thus,     out of any “refusal to           employment discrimination
employer         when      an    if a discrimination com-       employ... termination .....      statutes; employment-
employment case is filed,        plaint also includes related   or [other] employment-           related torts, such as
might be to look at its          court causes of action,        related practices, policies,     invasion of privacy and
general liability insurance      such as defamation, for        acts or omissions, such as       defamation; and, to varying
policy. In addition to the       example, the insurer’s duty    ... harassment, humiliation      degrees, breach of contract
duty to pay any settlement       to defend the employer         or discrimination.” Policies     claims, whether implied or
or judgment on behalf of         with respect to the entire     with this exclusionary           express contracts.
the employer, the other          case may be triggered.         endorsement likely will be           Coverage has expanded
major feature of general            The bodily injury trigger   deemed not to provide            significantly in recent years
liability policies is the duty   of coverage must generally     coverage for discrimination      for EPLI policies. Many
to provide the employer’s        arise from an “occurrence”     claims.                          policies no longer incor-
legal defense.        General    however, which generally                                        porate exclusions for
liability policies usually       is defined as an “accident.”   Directors & Officers,            intentional acts, class
provide coverage for             The controversial issue is     and        Homeowners’           actions, or claims arising
damages resulting from           whether discriminatory         Policies                         from reductions in force,
“bodily injury” and “caused      treatment can ever qualify        Another type of policies      downsizing, and acts that
by an occurrence” or             as an accident. Even if a      that employers often review      occurred prior to the
“personal injury.” Bodily        discrimination suit claims     when suits are filed include     insured buying the policy.
injury generally is defined      bodily injury, a number of     a “directors and officers        Carriers often even include
in a policy as “bodily           exclusions might void          liability policy” which          coverage for punitive
injury, sickness or disease”     coverage. Bodily injury        might provide coverage for       damages where permitted
and is potentially triggered     typically is excluded if the   an officer or director who is    by state law.
when an employee claims          injury is suffered by an       sued in an employment-                  Whatever type of
to have suffered emotional       “employee” and arises “out     type case, but such policies     coverage        might     be
distress as a result of          of and in the course of        generally do not indemnify       applicable, policy holders
discrimination. However,         employment by the              the organization itself.         who fail to promptly notify
courts often rule that           insured.” Although this        Individual defendants may        insurance carriers of
emotional distress resulting     exclusion is intended to       even have coverage under         pending litigation place
          Wimberly Lawson                                                                                                                            PRSRT STD
     Seale Wright & Daves, PLLC                                                                                                                       US Postage
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      THE EAGLE'S VIEW                                                  April 2003 - Volume 3, Issue 4                                             PAGE 4
their coverage at risk.                                          some cases underwriters
                                             years, its costs have also                                                                  about settlement decisions,
Therefore, an early                                              may not offer an employer
                                             expanded significantly.                                                                     and how to handle and try
examination of policies                      EPLI premiums are   coverage at any cost if such                                            the case.
and potential coverage is                                        policies are not in place.
                                             generally based on the                                                                         Coverage of a particular
                                             number of a business’  Each employer needs to                                               EPLI policy may vary
                                             employees plus that make a decision in its own                                              widely, including the
                                                                 case about whether EPLI
                                             business’ claims history.                                                                   amount of premiums,
                                                                 coverage makes sense. In
                                             Discounts are given to                                                                      coverage limits, deduct-
                                                                 some companies, employ-
                                             employers who utilize risk                                                                  ibles, and co-insurance
                                                                 ers don’t really need the
                                             management materials such                                                                   rates. Usually, the range of
                                             as a sound employee coverage because they                                                   coverage may be expanded
                                                                 don’t have many claims.
                                             handbook, appropriate                                                                       by paying a higher premium.
                                             published harassmentThere are also certain                                                  For example, it is not
                                                                 downsides to EPLI
                                             policies, internal employ-                                                                  uncommon for an EPLI
                                                                 coverage and it is important
                                             ment related education                                                                      policy to have a $100,000
                                                                 for employers to make sure
                                             and efforts to maintain and                                                                 deductible, or even higher.
                                             document appropriatethey understand the                                                     Thus, even in the best of
                                                                            specifics of what                                            circumstances,         EPLI
       Discounts are given to employers who utilize risk management their policies
       materials such as a sound employee handbook, appropriate published                                                                coverage may not be a
       harassment policies, internal employment-related education and provide,            in-                                            complete solution to the
       efforts to maintain and document appropriate personnel records       cluding what it                                              problem of exposure to
                                                                            excludes, what                                               employment           claims,
                                                                            rights they have                                             although it may serve as
highly desirable.                 personnel records. Open to choose their lawyers,                                                       sort of a “peace of mind” to
    While EPLI coverage door complaint procedures what their rights are to                                                               catastrophic claims.
has broadened in recent are also desirable, and in have input into decisions


82003 Wimberly Lawson Seale Wright & Daves, PLLC. This publication is intended for general information purposes only and does not constitute legal advice. Readers may consult with
any of the attorneys at Wimberly Lawson Seale Wright & Daves to determine how laws, suggestions and illustrations apply to specific situations.

				
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