Solution for Labor Relations and Collective Bargaining: Private and Public Sectors 10th Edition Chapter 5, Problem 1

by Michael R. Carrell, Christina Heavrin, J.D.
475 Solutions 13 Chapters 57238 Studied ISBN: 9780132730013 Supply Chain Management 5 (1)

Chapter 5, Problem Case_Study_5.1_Questions_for_Discussion 1 : END CASE DISCUSSION Case Study 5.1:...


Case Study 5.1: Good-Faith Negotiations


The ALJ found that the company did not violate the National Labor Relations Act by refusing to sign the tentative agreement. The ALJ believed that the company’s administrator had made it clear to the union that the tentative agreement had to be approved by the president before it became effective. That step never took place. So the company was under no duty to sign the CBA.

On the issue of rescinding the wage increase, the ALJ did find that the company violated the National Labor Relations Act. The judge recognized that the company had made a mistake in implementing the wage increase and that it had the right to correct the mistake; however, it had to notify the union and bargain over how the mistake would be corrected.

Questions for Discussion

1.Do you believe that the company was or was not bound to sign the agreement? Explain.


Step-By-Step Solution

1 Was not: The union was on notice that the CBA was not final until the president returned and signed off on it. Had the company misled the union, it might have been an unfair labor practice.

Was: The union would reasonably believe that when the CBA pay increase was implemented, the CBA was approved. After all, while the president was out of the country, nothing would prevent the company’s negotiators from getting in touch with her by phone to approve the CBA.


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