Opinion ID: 393291
Heading Depth: 2
Heading Rank: 3

Heading: WEI as a Successor Employer.

Text: 28 A new owner of a business must recognize and bargain with a representative of employees covered by a collective bargaining agreement if found to be a successor employer. NLRB v. Burns International Security Services, Inc., 406 U.S. 272, 281, 92 S.Ct. 1571, 1579, 32 L.Ed.2d 61 (1972); Kallmann v. NLRB, 640 F.2d 1094, 1100 (9th Cir. 1981). A successor employer is one who conducts essentially the same business as the former employer, and a majority of whose work force are former employees, or would have been former employees absent an unlawful refusal to hire. Kallmann, supra. A successor employer commits an unfair labor practice by refusing to bargain with the previously recognized union unless it can show either that the union in fact no longer represents a majority of the members of the bargaining unit, or that there are circumstances affording a reasonable basis for good-faith doubt about the majority. NLRB v. Edjo, Inc., 631 F.2d 604, 607 (9th Cir. 1980). There is substantial evidence in the record supporting the Board's finding that WEI is Handlery's successor. It retained all of the bargaining unit employees. It continued to operate the Center's hotel facilities and its commercial leasing operations. The unit employees continued to work at the same location performing the same tasks. 29 A successor employer is ordinarily free to set initial terms and conditions of employment without first bargaining with the incumbent union. Where, however, it is perfectly clear that the successor plans to retain substantially all the employees, the successor must consult with the union before altering terms and conditions. Burns International Security Services, Inc. v. N. L. R. B., 406 U.S. at 294-95, 92 S.Ct. at 1585-86, 32 L.Ed.2d 61; Kallmann, 640 F.2d at 1102. When the successor does not evince an intention to modify the pre-existing terms before expressing willingness to rehire incumbents, the employer must consult with the union before altering employment terms. Bellingham Frozen Foods, Inc. v. NLRB, 626 F.2d 674, 678-79 (9th Cir. 1980), cert. denied, --- U.S. ----, 101 S.Ct. 941, 67 L.Ed.2d 110, 111 (1981). 30 Here it was perfectly clear that WEI intended to retain all of Handlery's engineers at their previous jobs. WEI was required to consult with the employees' bargaining representative before altering the terms of the pre-existing contract. WEI admittedly paid wages to the engineers which were lower than those prescribed by Handlery's contract. It also admittedly discontinued contributing to the employees' fringe benefit trusts. It took these steps without prior notice or bargaining with the Union. WEI violated sections 8(a) (5) and (1) of the Act by unilaterally altering terms and conditions of employment. 31