The Effect of the Sale of a Plant on the Duty to Bargain Unique problems arise when a union represented plant is sold to a new owner. The union will attempt to maintain the status quo subsequent to any sale by assuring that the same workers are employed at the same terms and conditions of employment. This is not always possible.
Management has the right to decide to sell a plant unilaterally.
However, the terms of any future sale may be a mandatory subject of bargaining, if the union attempts to negotiate successorship language into the collective bargaining agreement prior to an actual sale. There are two levels of concern for the union in attempting to survive a sale of the plant. In ideal circumstances, the union may be able to extend the terms of the collective bargaining agreement to the new owner. If this is not possible, the union will at least want the duty to bargain to be imposed on the new owner. A bona fide purchaser is a successor employer if there is substantial continuity of the business.