National Labor Relations Act and Other Collective Bargaining Concerns

Authored by Kenneth Dolin Partner, Labor and Employment Department, as Seyfarth Shaw LLP

Buying a company brings with it not only financial but also legal considerations. One of these are considerations is how to deal with the current employees of a newly acquired business. This can be a complex task if they are working under a seller’s collective bargaining agreement (CBA). This chapter outlines eleven factors to consider when dealing with labor relations issues associated with purchasing a business:

1. Labor relations objectives
2. Form of the transaction
3. Determination of successorship: continuity of identity in the business enterprise
4. Timing of the successorship determination
5. Setting of initial terms and conditions of employment
6. Adoption of seller's collective bargaining agreement
7. Hiring
8. Elimination of the duty to bargain
9. Purchaser's liability for seller's unfair labor practices and other employment practices
10. Successors and assigns clauses
11. Seller's duty to bargain.