Citing the Supreme Court's decision in First National Maintenance v. NLRB, the court held that the employer did not violate the National Labor Relations Act when it closed one facility while workers were on strike, purchased another facility in another state and transferred the old plant's work to the new facility. The decision to shut down a facility and eliminate part of its business is not a mandatory subject of bargaining. Relocation and plant shutdown decisions require careful consultation with knowledgeable professionals. In this case, the employer faced the possibility of having to reopen a plant and pay back pay to employees, and the purchase of a facility in another state might have been wasted. Despite winning the case, the employer's court costs were likely substantial.
Careful planning can reduce the risks associated with closing plants and relocating work.
The parties had reached an impasse on that issue but not on all collective bargaining issues. Implementation would undercut the union, making it appear weak. Employers are free to implement their final proposals in collective bargaining negotiations once impasse is reached. Determining whether an impasse actually has been reached remains one of the more difficult challenges, even for bargaining professionals. A recent arbitration decision upheld the discharge of a worker who hid himself in a remote location and slept while on the job.