Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Verdicts

By ALM Staff | Law Journal Newsletters |
January 28, 2009

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.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Supreme Court Hears Arguments In Corporate Trademark Infringement Remedy Calculation Case Image

The business-law issue of whether and when a corporate defendant is considered distinct from its affiliated entities emerged on December 11 at the U.S. Supreme Court, with the justices confronting whether a non-defendant’s affiliate’s revenue can be part of a judge’s calculation of the monetary remedy for the corporate defendant’s infringement of a trademark.

Navigating AI Risks: Best Practices for Compliance and Security Image

The most forward-thinking companies embrace AI with complete confidence because they have created governance programs that serve as guardrails for this incredible new technology. Effective governance ensures AI consistently aligns with an organization’s best interests, safeguarding against potential risks while unlocking its full potential.

What Will 2025 Bring for Legal Tech Image

It’s time for our annual poll of experts on what they expect 2025 to bring in legal tech, including generative AI (of course), e-discovery, and more.

AIAs: A Look At the Future of AI-Related Contracts Image

AI’s rapid market proliferation and regulatory expansion mirrors privacy’s, and businesses should model their contractual AI compliance on the successes of privacy law’s DPA and BAA.

The Death of SEO: How AI Is Impacting Search, PPC and Cookies Image

Traditional keyword strategies and ranking tactics are losing ground to a more dynamic approach in which optimizing for search now means optimizing for every platform and user interaction. This evolution is appropriately being called “Search Everywhere Optimization.” The redefined SEO reflects how AI is not just changing how people find information but also how businesses need to think about visibility in an increasingly connected digital ecosystem.