Sunday, June 12, 2016

Labor board limits employers' ability to replace striking workers



The National Labor Relations Board is limiting the circumstances when employers can replace striking workers.

The ruling will give labor unions added leverage over businesses by making it even harder for employers to push back against a strike while staying within the law.


The case involves a basic tension in federal labor law. On the one hand, workers cannot be fired for striking, which is a protected legal right. However, an employer can hire permanent replacements for them if necessary to keep the business going. Employers and unions have long wrangled over which was which during strikes.

Generally, striking workers could challenge their replacement only if there was clear evidence of an "independent unlawful purpose" to undermine their labor rights, such as an admission of that by the employer. Otherwise, management typically had the benefit of the doubt. That was a precedent set by the federal labor enforcement agency in a 1964 case called Hot Shoppes Inc.

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Under Tuesday's ruling, the board reinterpreted that decision and lowered the standard to say that intent to violate labor rights can be inferred from the employer's actions or the actions of the employer's representatives. "It is difficult to imagine that the [prior] board intended the phrase 'independent unlawful purpose' to exempt retaliation for exercising a fundamental [worker] right, and we decline to give it so strained a reading," the board said.

The ruling came in the case America Baptist Homes of the West and Service Employees International Union. It involved the permanent replacement of striking workers in 2010 by an assisted living facility. A three-member panel of the board voted 2-1 in the case that the employer's actions were illegal. Chairman Mark Gaston Pierce and Kent Hirozawa, both Democratic members, voted for the union.

The board's sole Republican member, Philip Miscimarra, filed a lengthy dissent saying the decision undermined the ability of employers to hire replacement workers.

"I disagree with my colleagues' decision because they effectively invalidate an economic weapon that the Supreme Court declared lawful more than 75 years ago," Miscimarra wrote.

"Under the majority's decision today, if the employer hires permanent replacements, it appears that any evidence of anti-strike animus will render unlawful the employer's actions, resulting in potentially debilitating back pay liability," Miscimarra added.

Legal observers have agreed. Benjamin Sachs, a professor of labor law at Harvard University, said the decision gives a whole new tool to challenge employers' actions.

"How big an impact will the new decision have? By reinvigorating the 'independent unlawful purpose' test, the case makes motive matter again. That's a big deal," Sachs wrote in the Onlabor.com, a blog he co-founded.

Joshua Parkhurst, a New York labor lawyer, said the ruling would force companies to think twice before hiring replacements. "The decision may be a significant change to employers who took advantage of the limited guidance provided by the board and court decisions, which allowed for nearly unfettered use of permanent replacements," he said.

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