Labor Law–Bankruptcy–The Effect of the Bankruptcy of an Employer on the Employment Relationship and on Jurisdiction over Labor Disputes Involving the Employer

Litigation arising in connection with the recent bankruptcy of Turney Wood Products, Inc., has brought into issue the general problem of the operation of a bankrupt employer under the federal labor laws. The provisions of both the federal labor laws and the Bankruptcy Act are clear in purpose, but in areas of their interaction they have produced jurisdictional confusion. The situation presented to a single court by the cases arising from the Turney Wood Products bankruptcy provided an ideal vehicle to resolve much of that confusion; in fact, the parties involved viewed it as a test-case situation. But the resulting decisions did not achieve the desired clarification. This Note will attempt to delineate the rights and responsibilities of the trustee in bankruptcy in his roles as trustee and employer and to identify the remedies available to the parties to a labor dispute which involves a bankrupt employer.