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Verdicts
One-Time Stock Award Was a Gift Not Subject to Mandatory Bargaining
Unite Here v. National Labor Relations Board, 06-4440-ag, 2nd Cir., Oct. 14, 2008.
A labor union sought review of the National Labor Relations Board's (NLRB) finding that a one-time stock award, given in equal shares to all company employees after an initial public stock offering, was a gift not subject to mandatory bargaining. Denying review, the appellate panel found that the NLRB's determination was not arbitrary and was supported by substantial evidence. Thus the panel, discussing NLRB v. Niles-Bement-Pond Co., held that the stock award was not a unilateral increase in wages, or an alteration of the terms and conditions of employment such that, absent bargaining, it violated ” 8(a)(1) and (5) of the National Labor Relations Act. Discussing Benchmark Indus. and Phelps Dodge Mining Co. v. NLRB, the panel rejected the union's argument that the determination of whether an award or bonus is subject to bargaining depended on whether the award was of “token value.” The panel also noted that nothing in the NLRB's test limited non-bargainable gifts to gifts given during a particular holiday or season.
One-Time Stock Award Was a Gift Not Subject to Mandatory Bargaining
Unite Here v. National Labor Relations Board, 06-4440-ag, 2nd Cir., Oct. 14, 2008.
A labor union sought review of the National Labor Relations Board's (NLRB) finding that a one-time stock award, given in equal shares to all company employees after an initial public stock offering, was a gift not subject to mandatory bargaining. Denying review, the appellate panel found that the NLRB's determination was not arbitrary and was supported by substantial evidence. Thus the panel, discussing NLRB v. Niles-Bement-Pond Co., held that the stock award was not a unilateral increase in wages, or an alteration of the terms and conditions of employment such that, absent bargaining, it violated ” 8(a)(1) and (5) of the National Labor Relations Act. Discussing Benchmark Indus. and Phelps Dodge Mining Co. v. NLRB, the panel rejected the union's argument that the determination of whether an award or bonus is subject to bargaining depended on whether the award was of “token value.” The panel also noted that nothing in the NLRB's test limited non-bargainable gifts to gifts given during a particular holiday or season.
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