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NLRB May Order Wage Increase As Remedy for Unfair Labor Practice
Description Appeals court upheld various company tactics to be unfair labor practices, including not granting the usual across-the-board pay raise to employees and blaming it on the union attempting to organize the workers. The NLRB could order the company to grant the wage increase if economic conditions would have normally warranted it.
Topic Labor Law
Key Words Unfair Labor Practices
C A S E   S U M M A R Y
Facts Until 1988, the workers at ACE were represented by a union. When no collective bargaining agreement was reached, there was no union until 1994 when another union began an organizing drive. Attempts to hold a certifying election have been subject to years of wrangling between the union and ACE. The NLRB found ACE to have committed numerous unfair labor practices and ordered ACE to take various actions to remedy the practices. ACE appealed.
Decision Enforcement granted in part; remanded in part. The fact that ACE granted across-the-board wage increases to try to fend-off unionization, but then said it could not afford a raise due to the unionization threat was unfair labor practice. Employers cannot change their wage increase practice in direct response to the threat of unionization. NLRB may order the company to grant a wage increase to cover the period of unionization. It was an unfair labor practice for ACE to change its rules about employee solicitation on the premises in response to union activity. It was an unfair practice for ACE to pay for repairs to employee vehicles damaged by union supporters, when the only cars repaired were those of employees who were known to be anti-union. It was an unfair practice to tell employees to report any pressure to sign union authorization cards. It was not an unfair practice for ACE to state in its employee handbook its "intention to do everything possible to maintain our company's union-free status." Such a position is not related to illegal activities.
Citation NLRB v. Aluminum Casting & Engineering Co., 230 F.3d 286 (7th Cir., 2000)

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