Legal Question in Employment Law in California
Collective Bargaining Agreements
The company I work for has a contract with the state for services that is coming to an end. Our workforce is union and we have a collective bargaining agreement with the company. The company just lost out on a new contract with the state. The state wants to retain the same workforce with the new contractor. Does the new contractor have to honor our existing collective bargaining agreement if they hire more than half of the existing workforce?
1 Answer from Attorneys
Re: Collective Bargaining Agreements
That is the general rule. If an employer hires more than half of the existing work force, the employer must recognize and bargain with the union. If the Union contract is still effective, and it contains a valid successor clause the Union can assert that the contract should be applied to the new employer.
However, there is a line of NLRB cases that holds that a successor employer can refuse to be bound by the predecessor's contract. The basis of these decisions is that notwithstanding the successor clause, an employer can not be compelled to accept terms it did not negotiate and agree to be bound.
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