Legal Question in Employment Law in Florida

Worker rights under a corporate merger

I am a 65 year old worker with IMC Global. Recently, IMC and Cargill (phosphate manufacturing giants) agreed to merge with Cargill owning 66 % of the new company being formed. We are covered by a union contract untill Sept. 2004. I wanted to keep working for a short period and draw my Social Security at the same time. Since this is a merger and not a takeover, I was told by human resources (IMC)

that they cannot legally fire me. Yet, Cargill is known to let people go that is over their specified age limit (50)I understand that they may offer me a package deal amounting to a weeks pay for every year served. (I have 20) I really didn't want to retire at this time and feel like that is entirely unexceptable. What options do I have, if any, after our contract expires? Also, if I turn down the package, I may not get another offering and have to leave without any incentive at all later.


Asked on 3/02/04, 6:35 pm

2 Answers from Attorneys

Keith Stern Shavitz Law Group

Re: Worker rights under a corporate merger

You have described a complex situation which--as you point out--may have some inherent pit falls. Technically, if and when the CBA expires, you will not have any express rights. However, the ER (regardless of name) may be bound to continue to operate under the terms of the expired CBA. More prudently, though, absent express contractual protection, you will become an at-will employee who can be terminate at any time for any reason. That being said, I think further flushing out would help you. As such, please feel free to contact me at (305) 755-9441 for further assistance.

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Answered on 3/02/04, 8:36 pm

Re: Worker rights under a corporate merger

First, an employer may not discharge people just because they are over 50. That is age discrimination. Certainly they can offer an early out and have layoffs, but they can not lay people off based on age.

Second, even if the contract expires, the company will still have to bargain with the union and may not start firing people at will. They can lock everyone out until the employees accept a contract, or the union might strike, and there could be layoffs, but the employer does not have free reign just because the contract expires. Bargaining continues as does access to the grievance process (though not arbitration until a new contract is reached).

Third, the company still has to operate even after the contract expires, so there is no reason to believe there will be wholesale terminations.

If worse comes to worse and you are fired, then you could grieve, bring an unfair labor practice charge at the NLRB, or perhaps file an age discrimination complaint with the EEOC.

However, this is all just speculation. You will have to wait and see what happens before you can plan what to do. Should you need help in the future, after the contract expires or after some action is taken which affects you, please contact me for a free consultation.

Good luck.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

17804 St. Lucia Isle Drive

Tampa, FL 33647

813.986.7580

(f) 813.986.7489

(Admitted in Fl., MD, D.C., and Pa.)

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

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Answered on 3/03/04, 12:21 am


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