8/17/2019 Unionised Downsizing

1/1

National Labor Relations Act is the main legal document that states regulations on

downsizing. NLRA ensures that downsizing labor practices do not restrict

employee’s rights and the process is not used to discriminate based on union

activities (Walsh, 2013, p. 681).

In general, unionized employers must bargain with their unions over the decision tolayof employees or economic reasons and the efects o those decisions.!

"mployers also need to consult the collective bargaining agreements o afected

unions beore implementing a RI#. In many cases, the collective bargaining

agreement may govern the procedures that employers must ollow when

implementing a layof, including seniority and bumping provisions.

"mployers cannot ma$e layof decisions based on the union activities o afected

employees. In a case decided earlier this year, %eit &ros. Inc.,' the National Labor

Relations &oard (NLR&) ound that the employer violated the National Labor

Relations Act when it conducted a mass layof o a group o drivers who had

recently voted in avor o union representation at their acility. *he employer arguedthat the layofs were necessary because o the recent economic downturn. *he

NLR& re+ected this argument, noting that the employer had never beore conducted

a mass layof at the acility. *he NLR& ound that the timing o the layofs soon ater

the employees had chosen union representation, combined with the employers

stated opposition to unionization and the unprecedented nature o the layofs,

warranted a -nding o antiunion animus. *he NLR& ordered the reinstatement, with

bac$ pay, o all drivers who had been laid of. *he %eit &ros. case is a cautionary

tale or employers and reveals that not even the worldwide recession was enough to

insulate the layof rom legal challenges. As the economy improves, economically

motivated RI#s will li$ely e/perience even greater scrutiny.

Avoiding Legal Ris$s in 0or$orce Reductions

1eorge 2. &arbatsuly, %3L 1ates LL2

http://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-

1281f2fc1ba4/Pesentation/Publication!ttachment/7a305f5b-e3a2-4"#7-b3cf-

152$fce3#bef/kl%gates%babatsul&%aticle.p#f .

http://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-1281f2fc1ba4/Presentation/PublicationAttachment/7a305f5b-e3a2-49d7-b3cf-1526fce3dbef/kl_gates_barbatsuly_article.pdfhttp://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-1281f2fc1ba4/Presentation/PublicationAttachment/7a305f5b-e3a2-49d7-b3cf-1526fce3dbef/kl_gates_barbatsuly_article.pdfhttp://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-1281f2fc1ba4/Presentation/PublicationAttachment/7a305f5b-e3a2-49d7-b3cf-1526fce3dbef/kl_gates_barbatsuly_article.pdfhttp://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-1281f2fc1ba4/Presentation/PublicationAttachment/7a305f5b-e3a2-49d7-b3cf-1526fce3dbef/kl_gates_barbatsuly_article.pdfhttp://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-1281f2fc1ba4/Presentation/PublicationAttachment/7a305f5b-e3a2-49d7-b3cf-1526fce3dbef/kl_gates_barbatsuly_article.pdfhttp://www.klgates.com/files/Publication/1b0aa05f-c732-445a-ac24-1281f2fc1ba4/Presentation/PublicationAttachment/7a305f5b-e3a2-49d7-b3cf-1526fce3dbef/kl_gates_barbatsuly_article.pdf