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UPDATE 1-Smithfield says suit against union to proceed

Tue Jan 29, 2008 9:13pm EST

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NEW YORK, Jan 29 (Reuters) - U.S. meat company Smithfield Foods Inc (SFD.N) said on Tuesday a federal court allowed its civil suit against the United Food and Commercial Workers union to proceed.

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The court denied the union's motion to dismiss the case, Smithfield said in a statement.

Smithfield sued the union in October, seeking relief under the U.S. Racketeer Influenced and Corrupt Organizations Act.

The union and Smithfield have been in a bitter dispute for more than 10 years over the union's campaign to unionize about 5,000 workers at the company's port processing plant in Tar Heel, North Carolina.

Smithfield had alleged in the complaint that the union started a "corporate pressure campaign" to force it to recognize the union as the sole representative for hourly employees at the plant.

Smithfield seeks compensatory and consequential damages to its business and property, damages resulting from the union's acts and omissions. It also seeks punitive damages for the union's "intentional and malicious misconduct," and seeks reimbursement for attorneys fees and costs.

A union representative could not be reached immediately for comment. (Reporting by Paritosh Bansal; editing by Carol Bishopric)



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