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Successorship Clauses In Collective Bargaining Agreements



Question: Our union wants an inheritance clause to be included in our union contract, so that the buyer, if we ever sell the business, will be obliged to resume our collective agreement. Should we be worried? Wouldn`t the union contract be the buyer`s problem, not ours? Answer: These types of succession clauses are a common union claim, and if you accept one, you should be prepared to take them seriously if you ever decide to sell your business. A recently educated legal process shows that the union and the courts will take the clause seriously and force you to comply with it. In this case, the employer had accepted a clause providing that any sale or transfer of the business would be subject to the purchaser`s approval of the sellers` collective agreement. The company`s parent company unders restructuring that eliminated the company and merged its operations and employees into the parent company. During the restructuring, the company made no effort to reach an agreement from the parent company on the implementation of the succession clause. The union filed a complaint and the court ordered the company to comply with the estate clause on the grounds that it had to comply with it because it had negotiated and accepted the clause (Equitable Resources, Inc. v. United Steel, 6th Cir, Sept. 2010). Do you need help responding to union demands? Talk to your Vigilant spokesperson. Submit a topic, and we can discuss it in a future blog post.

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