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Article Index » labor law » successorship
Report Link Recent Successorship Decisions Complicate Matters for Employers.
Buchanan Ingersoll & Rooney PC - October 28, 2009
Two recent decisions highlight the risks employers face when hiring unionized employees as part of an acquisition or business transfer. In general, when a new employer continues a prior employer's operations and hires a majority of its employees from the prior employer's unionized workforce, the new employer is a labor law successor and, as such, must recognize and bargain with the union over any future changes in the terms and conditions of employment. Whether the new employer can unilaterally establish the initial terms and conditions of employment, however, or must continue the prior employer's terms and conditions until it bargains with the union and reaches a new agreement or an impasse, is more difficult to determine, especially in light of two recent cases that appear to provide diametrically opposed views.
Report Link NLRB Provides Guidance on Successor Employer's Refusal to Rehire Predecessor's Employees.
Jackson Lewis LLP - August 24, 2006
Whether an employer legally can avoid successorship obligations when purchasing or taking over a unionized operations can be vexing issue, and the National Labor Relations Board has issued a decision that provides guidance to employers contemplating their options. In clarifying the applicable standard in "successorship-avoidance" cases, the Board announced its intent to "resolve any conflict in our precedent and establish a clear standard to be applied in cases in which a refusal to hire occurs in a successorship context.

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