Opinion ID: 397942
Heading Depth: 1
Heading Rank: 2

Heading: The Right to Withdraw from Multi-Employer Associations

Text: 11 The applicable rules governing multi-employer bargaining have developed on a case-by-case basis with little Congressional interference. 10 As enunciated by the Board in its seminal opinion in Retail Associates, Inc., 120 N.L.R.B. 388 (1958), once negotiations between a multi-employer association and a union have begun, none of the parties may withdraw from such bargaining without the consent of the opposing party, absent unusual circumstances. This formulation has been widely adopted by the circuits which have considered the question, 11 and is clearly the law in the Tenth Circuit. NLRB v. Tulsa Sheet Metal Works, Inc., 367 F.2d 55, 57 (10th Cir. 1966). Thus, the central issue in this case is whether unusual circumstances justified the Company's withdrawal, and whether the Board's finding to the contrary is supported by substantial evidence. 12 The Courts of Appeal of the various circuits have recognized three situations which constitute unusual circumstances sufficient to justify an employer's withdrawal from a multi-employer association after bargaining has begun: (1) extreme financial hardship threatening the existence of the employer as a viable business entity, 12 (2) fragmentation of the multi-employer bargaining unit, 13 and (3) bargaining impasse. 14 13