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NLRB Case Declared in Violation of the NLRA

Published:  April 7, 2017

The National Labor Relations Board (NLRB) recently published a ruling on a 28 year old case that has important ramifications for businesses with unionized employees.  In Teamsters Local 75, affiliated with the International Brotherhood of Teamsters, AFL-CIO (Schreiber Foods), the NLRB ruled that a Teamsters Local had violated the National Labor Relations Act (NLRA) by failing to provide certain members with adequate information to exercise their Beck rights.  Beck rights provide union members the opportunity to opt-out of having their union dues used towards non-representational activities, such as political donations or lobbying.  Lackadaisical enforcement of these rights has allowed some unions to get away with skirting these requirements.

The NLRB ruled that the Teamsters Local violated the NLRA by failing to provide the objectors with adequate information concerning its expenditures and the expenditures of the affiliates with whom it shared money.  The NLRB’s remedy mandated that the Teamsters Local must provide the two objecting members with verified information on its expenditures for 1988 and 1989, including percentage breakdowns of each category, a detailed explanation of how it calculates its allocation of expenditures for those years, the name of its affiliates and other entities with which it shared money from dues and fees, the amount shared, and the same verified information about its affiliates.

Employers will want to be aware of any source of possible tension between employees. This could lead to a decrease in employee morale, and a corresponding decrease in productivity and work place safety.  All of these issues will have an impact on the business’ bottom line.

If you have any questions about the National Labor Relations Board ruling or the National Labor Relations Act, please contact any of the attorneys at Royal, P.C.