Opinion ID: 1838958
Heading Depth: 1
Heading Rank: 1

Heading: Effects of decision as a mandatory subject of collective bargaining.

Text: We now consider the question of whether the effects of the decision were bargainable. The decision and its effects are distinct issues. Several cases have held that while a particular business decision may be so clearly within management's prerogative as to be nonmandatory; nevertheless, the effects of that decision are within the scope of mandatory bargaining. In Transmarine Navigation Corp., supra, the employer decided solely on economic grounds to terminate its business and reinvest its capital in a different enterprise in another location. The court of appeals held that the decision itself was not a subject of mandatory bargaining, but then went on to say, at page 939: This is not to hold that the employer is absolved of all duty to bargain with a union when he makes such a managerial decision. Once such a decision is made the employer is still under an obligation to notify the union of its decision so that the union may be given the opportunity to bargain over the rights of the employees whose employment status will be altered by the managerial decision. N. L. R. B. v. Rapid Bindery, Inc., 293 F. 2d 170 (2d Cir. 1961); N. L. R. B. v. Royal Plating and Polishing Co., 350 F. 2d 191 (3rd Cir. 1965); N. L. R. B. v. Winn-Dixie Stores, Inc., 361 F. 2d 512 (5th Cir. 1966). See N. L. R. B. v. Lewis, 246 F. 2d 886 (9th Cir. 1957). Such bargaining over the `effects' of the decision on the displaced employees may cover such subjects as severance pay, vacation pay, seniority, and pensions, among others, which are necessarily of particular importance and relevance to the employees. Royal Plating and Polishing Co., supra, 350 F. 2d at 196. It is well established that where the employment relationship is threatened by a unilateral economic move by the employer, the federal courts and the National Labor Relations Board have found an enforceable duty to bargain over the impact of that decision on the employees. NLRB v. Thompson Transport Co., Inc. (10th Cir. 1969), 406 Fed. 2d 698, rehearing denied. See also: Ozark Trailers, Inc. (1966), 161 NLRB 561; Wittock Supply Co., supra; Morrison Cafeterias Consolidated, Inc. (1969), 177 NLRB No. 113, 71 LRRM 1449 (plant closings); Standard Handkerchief Co., Inc. (1965), 151 NLRB 15; McLoughlin Mfg. Corp. (1967), 164 NLRB 140; Cooper Thermometer Co. (1966), 160 NLRB 1902 (2d Cir. 1967), 376 Fed. 2d 684. We conclude that effects of the decision were bargainable.