2nd Circ. Rules Stock Gifts Not Negotiable

Law360, New York (October 15, 2008, 12:00 AM EDT) -- A federal appeals court on Tuesday ruled that a company's one-time stock award given in an equal amount to all employees should be considered a gift not subject to collective bargaining.

The decision by a three-judge panel of the U.S. Court of Appeals for the Second Circuit upheld a ruling by the National Labor Relations Board in January 2006 that said Westlake Chemical Corp.'s awarding of stock to employees to celebrate the company's successful initial public offering was not subject to collective bargaining.

Westlake is a...
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