Think twice before shutting down one of several related businesses just to stop the spread of pro-union sentiment. It’s likely to prompt a lawsuit, and a court may well take organized labor’s side.
Recent case: When union organizers wanted to negotiate with San Luis Trucking to avoid a shutdown, the company closed the plant.
The National Labor Relations Board (NLRB) filed unfair labor practice charges, demanding that the company reopen the facility and bargain with the union. The NLRB concluded that the facility had been shuttered as a warning to employees at related companies that they too faced losing their jobs if they pushed union rights. The company appealed.
The 9th Circuit said the NLRB had the authority to issue its reopening order. The case was sent back to implement the order. (NLRB v. San Luis Trucking, et al., No. 10-73624, 9th Cir., 2012)
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