In the past few months, labor law witnessed significant action when the National Labor Relations Board (“Board”), in a 2-1 verdict, ruled a company’s closure as a violation of the National Labor Relations Act (“NLRA”). The case in question, Quickway Transportation, Inc., 372 NLRB No. 127, involved a company shutting down a terminal where its drivers were unionized.
The board held that Quickway Transportation contravened Sections 8(a)(3) and (5) of the NLRA by terminating unionized truck drivers. The company was accused of engaging in this action to suppress unionism at other locations. This decision was made despite the fact that the corporation was unaware of the union activities taking place in different locations at the time the drivers were fired.
This case sends a clear message to employers considering closing plants or outlets, especially those with unionized employees. It reminds us that the law is designed to protect not just individual workers, but also, broader facets of workplace democracy and collective bargaining rights. As such, employers should take all the necessary steps, including engaging legal counsel, before making decisions that could adversely impact their unionized staff.
As this case is a complex one, filled with several layers of legal interpretations, it is recommended that all employers, particularly those with unionized employees, carefully consider each aspect of their decision to avoid potential legal pitfalls.