All Aboard! - Union Comes Along For the Ride When Unionized Employees Transferred to Non-Union Workplace
- Written by Carl Larson
An Automotive Dealership Group just outside Chicago is still dealing with the fallout of the 2008 crash and subsequent bankruptcy of Chrysler. As a result of the bankruptcy, the Burke Automotive Group (“Burke”) had to close down one of its dealerships. As part of the process, it offered to transfer six of the mechanics from the doomed dealership to a much larger non-union one in the next town over in lieu of losing their jobs. The problem for the dealership group was that these mechanics were represented by the Automobile Mechanics Local 701.
After the employees were transferred to the larger dealership, the transferred mechanics were upset that the new working arrangement had less favorable pay and benefits than provided by their prior collective bargaining agreement. The Union requested to bargain over matters and wages related to the expansion of the bargaining unit. The Union also asserted that Burke had a duty to bargain with the Union over the effects of the closure of the plant. Instead, Burke refused to recognize the Union and refused to bargain stating that it was barred from recognizing a union which represented only a minority of employees. The Union then filed unfair labor practice charges with the National Labor Relations Board (“NLRB”).
- Written by Carl Larson
In our E-blast last week we let you know about the process for giving the Department of Industrial Relations (“DIR”) the required notice when electing to make backpay payments under AB-1513. Please note, the only mandatory information required by AB-1513 when giving initial notice to the DIR that the employer is electing to participate in the affirmative defense provisions of the statute is:
1. The legal name of the employer; and
2. The employer’s address.
The DIR is also requesting additional information to evaluate the effectiveness and adoption rate of the AB-1513 program including the size of employer payroll, the total expected payment and the locations of where work was performed. PROVIDING INFORMATION OTHER THAN THE NAME AND ADDRESS OF THE EMPLOYER IS OPTIONAL. Farm labor contractors are NOT required to disclose their grower list.
Counsel To Management:
The deadline to give the required notice is July 1, 2016. However, the separate required notice to employees and the calculations will take significant time, so employers should begin compiling the necessary payroll data now. To determine whether making a backpay election pursuant to AB-1513 is right for you, or for help with making the required calculations, notice, or payment, contact the experts at the Saqui Law Group today.