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Employer Unlawfully Reduced Pension Contributions

September 22, 2020

Via: SHRM

The 9th U.S. Circuit Court of Appeals ruled that an employer committed an unfair labor practice when it decreased its contribution rate to the pension fund without first notifying or bargaining with the union.

Section 8(a)(5) of the National Labor Relations Act makes it unlawful “for an employer … to refuse to bargain collectively with the representatives of his employees.” When a collective bargaining agreement (CBA) expires, its terms remain in effect, defining the status quo as to wages and working conditions. An employer must maintain the status quo until the parties agree on a new contract or reach a good-faith impasse.

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