Yuba City, Ca.-based Dispatch Transportation has settled an unfair labor practice charge with the Teamsters Local 137 and the National Labor Relations Board (NLRB).
Dispatch Transportation had taken over the facility from its long-time operator, Valley Aggregate Transport, shortly after Valley had signed a collective bargaining agreement with the Teamsters. Dispatch hired less than half of the incumbent drivers and refused to bargain with the Teamsters.
The Teamsters filed an unfair labor practice complaint with the NLRB alleging the new operator purposely refused to hire the previous drivers despite their experience only to prevent the Teamsters from representing the truckers.
Under the National Labor Relations Act (NLRA), new owner companies don’t have to bargain if they hire less than half of the previous owner’s employees in the bargaining unit. However, the employer must have a legitimate business reason for doing so—other than to get rid of the union.
Coupled with employer statements that it did not want to bargain with a union, the Teamsters made their case to the NLRB, which ordered Dispatch to bargain with the employees.
Additionally, Dispatch paid $262,000 in back pay to the displaced workers. The company and the Teamsters negotiated a new three-year collective bargaining agreement that requires the company to call drivers into work based on seniority, a practice Dispatch had abandoned.