SW Legal studies in Business

Successor Employer Must Bargain with Unions
Description Appeals court held that a new company that was formed from existing companies, is a successor employer that must bargain with the unions that represented the employees when they worked for their previous employers.
Topic Labor Law
Key Words Unfair Labor Practice; Good Faith Bargaining; Successor Company
C A S E   S U M M A R Y
Facts DDE is a joint venture created by Dow Chemical and DuPont to make synthetic rubber products. As a successor to DuPont, DDE offered employment to DuPont's workers and set the terms of employment without bargaining with the unions that represented the DuPont workers. The unions filed a grievance with the National Labor Relations Board, contending that DDE was required to bargain with the union. The Board upheld the union's position and ordered the parties to bargain. DDE appealed.
Decision

Affirmed. The unions already representing the workforce at a factory have the right to bargain with a successor corporation. When a company is clearly a successor employer, it is obligated to bargain with unions before setting the terms and conditions of employment unless the union waives the right to bargain.

Citation DuPont Dow Elastromers v. NLRB, 296 F.3d 495 (6th Cir., 2002)

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