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1 - National Labor Relations Board

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94 Thirty-fourth Annual Report of the <strong>National</strong> <strong>Labor</strong> <strong>Relations</strong> <strong>Board</strong><br />

union authorized a strike, and only after, not before, a bargaining<br />

impasse was reached.62<br />

8. Successor Employer and Plant Relocation<br />

Bargaining Obligation<br />

Three cases among those decided during the year involved<br />

the effect of a transfer of an employing company's stock or<br />

assets, or a relocation of its plant, upon its obligation to bargain<br />

with the union representing its employees. In Miller Trucking<br />

Service, 63 the sole stockholder of a corporation sold all his stock<br />

to another company which established the corporation as a separate<br />

organizational division, rehired most of the original company's<br />

former employees, and operated in substantially the same<br />

manner as before the stock transfer, using the same equipment,<br />

servicing the same customers, and employing the same number<br />

of employees at the same work and under the same general<br />

terms and conditions of employment. Pointing out that, while<br />

a corporate identity will sometimes be pierced in order to avoid<br />

its use to shield one who seeks to evade legal responsibility, it<br />

will not be pierced to sanction the corporation's wrongdoing,<br />

the <strong>Board</strong> held that the transfer of stock did not result in the<br />

substitution of the purchaser for the former stockholder as employer.<br />

It found that the original corporation, which was never<br />

dissolved and continued as a legal entity, remained the employer<br />

at all times and was obligated to remedy the former stockholder's<br />

refusal to bargain with the union prior to the ,transfer of stock,<br />

which the <strong>Board</strong> found violative of section (8) (a) (5) and (1) of<br />

the Act. In addition, the <strong>Board</strong> found that the employer's unilateral<br />

termination of its employees just before the transfer of<br />

stock violated section (8) (a) (5) and (1) of the Act. Had the<br />

employer honored the union's request for recognition, it might<br />

profitably have bargained with the union about such questions<br />

as whether mass terminations were necessary at all, and, if so,<br />

when the terminations should occur ; notice to employees of the<br />

impending termination ; and rights of employees with respect to<br />

rehiring. Such bargaining might well have affected the very terms<br />

62 Chairman McCulloch and Members Jenkins and Zagoria for the majority. Members<br />

Fanning and Brown, dissenting, were of the view that the parties had merely provided for<br />

the continuation of existing contract terms on a day-to-day basis, and that the statutory<br />

policy of maintaining industrial peace and stability during the term set by the contract did<br />

not require a holding that the no-strike clause remain in effect under these circumstances.<br />

Since the strike was supported by a majority of the bargaining unit, and had no objectives<br />

inconsistent with the union's contract demands, it was protected activity, notwithstanding<br />

the disapproval of the union leadership.<br />

" 176 NLRB No. 76.

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