Labor Law Discussion

Labor Law Discussion Case 6: Does the Duty to Bargain Preclude Unilateral Wage Increases?

Issue

In this case, Winn Dixie Stores, Inc, a multi chain of retail stores engaged in interstate commerce made a unilateral wage increase without the approval of their employees union, the United Food and Commercial Workers, after several failed attempts at collective bargaining. Prior to the wage increase, the employees have not had a raise in the last 18 to 24 months. The issue is, does the duty to bargain preclude unilateral wage increases?

Law

Under the National Labor Relations Act, section 8(d), to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement or any question arising thereunder, and the execution of a written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession: Provided, That where there is in effect a collective- bargaining contract covering employees in an industry affecting commerce, the duty to bargain collectively shall also mean that no party to such contract shall terminate or modify such contract, unless the party desiring such termination or modification-- offers to meet and confer with the other party for the purpose of negotiating a new contract or a contract containing the proposed modifications.

Analyze the facts in light of the Law

The company acted in “good faith” to the benefit of their employees. They notified the bargaining agent of their intent to increase their employees’ wages and they made several attempts to bargain and come to an agreement. The union believed that the decision made by the employer was a violation of the NLRA, section 8 (a)(5) and 8 (a)(1).

Conclusion

Due...