The Complications Of Successorship Decisions

Law360, New York (November 25, 2009, 3:21 PM EST) -- Two recent decisions highlight the risks employers face when hiring unionized employees as part of an acquisition or business transfer.

In general, when a new employer continues a prior employer's operations and hires a majority of its employees from the prior employer's unionized work force, the new employer is a labor law successor and, as such, must recognize and bargain with the union over any future changes in the terms and conditions of employment.

Whether the new employer can unilaterally establish the initial terms and conditions...
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