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Will Your Labor Agreement Expire in 2008?

When many employers evaluate their business and its future, they realize that their labor agreement isn’t working for them.  They need a change.

In order to avoid being bound by the business-as-usual labor agreements negotiated by the associations and the unions, employers must timely withdraw their bargaining authority from the associations so they can negotiate independently and seek an agreement that fits their business.  Then the employer must timely terminate each labor agreement.  Look at the labor agreement, assumption agreement or association by-laws to determine what the time requirements are.  If you are the first party to give notice of termination of a labor agreement, you must also notify state and federal mediation agencies of the impending agreement termination.

If a labor agreement is an 8(f) -- or prehire -- agreement, termination of the agreement terminates the relationship with the union.  But, if an employer has a 9(a) agreement (look for 9(a) recognition language in your labor agreement), then the employer has a legal obligation to negotiate in good faith for a new agreement with the union.

The employer should prepare for negotiations with the union by developing a proposal for a new agreement and by preparing business justifications for the positions taken in that proposal.

The employer should also prepare for the possibility that the union may refuse to bargain and insist on the area agreement.  That may lead to the union striking the employer.  A key question for the employer is how the employer will operate during a strike.  If you don’t operate during a strike, all the union has to do is wait while other employers who do sign the union’s area agreement take all the work.

It is difficult to develop these plans overnight.  So, the wise employer will learn what the rules are, unite and train its management team, and, generally, plan ahead.  For assistance in that process or additional information, feel free to contact Jim Pease.

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This page is intended to provide general information about various legal issues and developments.  It is not intended to be a complete list of all recent legal developments.  This page does not constitute legal advice and should not be relied upon in dealing with specific factual or legal matters.