#Perfectly clear successor free
In Burns, the Court held that a successor employer is generally free to unilaterally set the initial terms and conditions of employment, in order to encourage business growth. Burns Security Services marks the beginning of the “perfectly clear” successor doctrine. This decision upends several decades of Board precedent, as explained next. Had Ridgewood hired these four employees, it would have employed a majority of the predecessor workforce, triggering its obligation to bargain with the union.
However, the second prong, whether there is substantial continuity in the workforce, was not met, according to the Board, even though Ridgewood unlawfully discriminated against four of the predecessor employer’s union employees because of their union status. On appeal, the Board did not dispute that the business operations remained largely the same, which satisfied the first part of the Burns test. 272 (1972), the Administrative Law Judge determined that the entities were a single employer successor with bargaining obligations. Under the two-part test established by the United States Supreme Court in NLRB v. were required to recognize the United Steelworkers Union that had bargained with the predecessor employer.
In Ridgewood Health Care Center ( 367 NLRB No.110), the Board limited the circumstances in which a successor employer of a unionized workforce forfeits its right to set initial terms and conditions of employment for its employees.Īt the outset, the Board agreed with the administrative law judge that Ridgewood Health Care Center Inc. In a decision earlier this month, the National Labor Relations Board reversed precedent on successor employer bargaining obligations. Search Blog A Perfectly Clear Win for Successor Employers in Recent NLRB Decision
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