The NLRB found that a successor employer committed an unfair labor practice by withdrawing recognition to a union. The employer had evidence that the union had lost majority support.
But NLRB precedent—the successor bar—prohibits any challenge to an incumbent union’s representation status for up to one year after a business changes ownership, even if the union lacks majority support.
The DC Circuit (2-1) denied enforcement of the order, concluding that the bar suspends the Act’s guarantees of employee freedom and majority rule in collective bargaining, and the Board lacks authority to impose such a rule.
Hospital Menonita de Guayama, Inc. v. NLRB [PDF].