NLRB Reverses Galloway School Lines re: Successor Employer Bargaining Obligations

A new ruling favorable to companies held that successor employers that discriminate in hiring to avoid bargaining duties are free to set their own initial terms of employment so long as they did not say they would keep all the predecessor’s workers or if their hiring scheme did not unlawfully target union workers. In that…
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NYC Successor Grocers Required to Retain Former Workforce or Join a Union

I serve as the labor counsel to the Ohio Grocer’s Association, so this NYC law is of great interest to Ohio grocers and me. The New York City Council passed a law that prohibits successor grocery employers from discharging certain grocery store employees without cause during a 90-day transition period following a “change in control.”…
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Successor Companies Mustn’t Forget About Six-Month Mandatory Bargaining Obligation

DCX-CHOL purchased the assets of Stuart Manufacturing. At the time of sale, DCX-CHOL acknowledged in a letter sent to the union representing the Stuart employees that DCX-CHOL was a successor to Stuart. This obligated DCX-CHOL and the union to negotiate a new collective bargaining agreement. A few weeks after the sale, though, employees signed a…
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Increased Merger and Acquisition Activity Means Time to Refresh on Union Successor Laws

As the economy improves, companies are becoming more active in the merger and acquisition space. I can personally attest that the M&A lawyers in my firm are busy. With all the other areas of concern to focus on, deal lawyers and business managers oftentimes forget to include labor attorneys on deals involving unionized companies. To…
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Another Established Labor Rule Bites the Dust

The law of whether successor employers violate the National Labor Relations Act when they do not hire a majority of the predecessor’s employees and do not recognize and bargain with the predecessor’s union has taken a turn for the worse. The law used to allow successor companies to forgo bargaining with the predecessor’s union if…
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San Francisco Codifying Successorship Liability for All Companies, Union and Non-Union Alike

An ordinance requiring some hotel and restaurant workers to be retained for at least 90 days following a change in control passed the San Francisco Board of Supervisors by an 11-0 vote. The effect of this ordinance is remarkably similar to what appears in some union collective bargaining agreements. For example, successor companies may not…
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