Austin bus company to pay $655K to settle labor dispute — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Austin bus company to pay $655K to settle labor dispute

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in Compensation and Benefits,Human Resources

Travis Transit Management of Austin has agreed to pay 600 current and former employees $655,000 to settle charges it unilaterally changed employee health, retirement and other benefits when it began providing bus service for Austin’s Capital Metro in 2012.

The changes affected employees’ health care premiums, out-of-pocket medical expenses and retirement-plan contributions.

Amalgamated Transit Union Local 1091 filed a grievance with the National Labor Relations Board (NLRB) alleging Travis Transit’s actions violated the existing collective bargaining agreement because the company failed to consult with the union before making the changes.

The NLRB agreed with the union and the parties negotiated a settlement that was approved by an administrative law judge.

Note: Employers that operate under collective bargaining agreements generally cannot make unilateral changes to employee benefits. It’s an almost surefire way to provoke an unfair labor practices complaint.

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