#PERFECTLY CLEAR SUCCESSOR FREE#

In such a case, the buyer will be deemed a perfectly clear successor, and the existing terms will continue to apply unless and until they are changed through bargaining with the union. This will be deemed the case if the buyer makes offers to hire (or consider for hire) the predecessorвЂ™s represented employees before it announces its intention to set new terms. Importantly, however, the right to set initial terms may be lost if the buyer misleads employees into believing that they will be retained without changes to their terms and conditions of employment.

#PERFECTLY CLEAR SUCCESSOR FREE#

Instead, normally, the buyer will be free to set its own initial terms and conditions of employment. A successor/buyer must recognize and bargain with the union representing the predecessorвЂ™s employees, but it need not adopt the predecessorвЂ™s collective bargaining agreement. Normally, the buyer of a unionized business becomes a labor law successor when it continues the predecessorвЂ™s business and hires a majority of its employees from among the predecessorвЂ™s represented employees.

Thus, it can have an important impact on the economics of the commercial transaction. The вЂњperfectly clearвЂќ doctrine affects the right of a labor law successor, which acquires a unionized business, to set new terms and conditions of employment. 2019), the court upheld the National Labor Relations BoardвЂ™s application of the вЂњperfectly clearвЂќ doctrine in First Student Inc. On September 3, 2019, in First Student, Inc.

Perfectly clear successor