This will be deemed the case if the buyer makes offers to hire (or consider for hire) the predecessor’s represented employees before it announces its intention to set new terms. Importantly, however, the right to set initial terms may be lost if the buyer misleads employees into believing that they will be retained without changes to their terms and conditions of employment.
PERFECTLY CLEAR FREE
Instead, normally, the buyer will be free to set its own initial terms and conditions of employment.
A successor/buyer must recognize and bargain with the union representing the predecessor’s employees, but it need not adopt the predecessor’s collective bargaining agreement. Normally, the buyer of a unionized business becomes a labor law successor when it continues the predecessor’s business and hires a majority of its employees from among the predecessor’s represented employees. Thus, it can have an important impact on the economics of the commercial transaction. The “perfectly clear” doctrine affects the right of a labor law successor, which acquires a unionized business, to set new terms and conditions of employment. 2019), the court upheld the National Labor Relations Board’s application of the “perfectly clear” doctrine in First Student Inc. On September 3, 2019, in First Student, Inc.
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