By: Richard H. Wessels, Esq.

There is a little twist of labor law that we are using with increasing frequency these days. The economic downturn has caused many union bargaining units to shrink in size, sometimes down to a one-person bargaining unit.

That situation creates an opportunity to oust a union. In one-person unit cases, an employer is free (even during the term of a union contract), to repudiate that contract unilaterally. This goes back to old case law, but the principle still holds true today. The lead case is Foreign Car Center which is a 1960 NLRB case. Here is the key wording from that 50 year old decision:

"We conclude that the Trial Examiner properly dismissed the complaint. The Board has held that it will not certify a one-man unit because the principle of collective bargaining presupposes that there is more than one eligible person who desires to bargain. The Act therefore does not empower the Board to certify a one-man unit. By parity of reasoning, the Act precludes the Board from directing an employer to bargain with respect to such a unit."

Let us know if you have such a situation and are interested in evaluating the possibilities. Keep in mind that there are some additional issues involved, particularly if the labor contract calls for contributions to union benefit funds. These cases require careful evaluation, but it certainly creates some interesting opportunities.

Contact any Wessels Sherman attorney to discuss questions regarding this subject.