Background
Rieth-Riley Construction Company and the International Union of Operating Engineers Local 324 had been negotiating a new collective bargaining agreement since 2018. The dispute involved a lockout, strikes, and multiple unfair labor practice charges. In 2021 and 2022, the company unilaterally raised wages without bargaining with the union. The company also refused to bargain after the Board affirmed the dismissal of decertification petitions, claiming it needed judicial review of those dismissal decisions. The National Labor Relations Board found the company violated the National Labor Relations Act by engaging in unfair labor practices.
The court’s reasoning
The Court reviewed the Board’s legal conclusions de novo and factual findings for substantial evidence. The Court found that wages are a mandatory subject of bargaining under the National Labor Relations Act. The Board’s finding that the company’s unilateral wage increases and refusal to bargain constituted unfair labor practices was supported by substantial evidence. The Court rejected the company’s argument that the union waived its right to bargain, noting that the company’s actions were taken while charges were pending and without a valid waiver.
We do not disturb the Board’s findings just because we may have reached a different conclusion in the first instance.
Frenchtown Acquisition Co. v. NLRB, 683 F.3d 298, 304 (6th Cir. 2012)
What it means going forward
The decision reinforces the National Labor Relations Board’s authority to enforce collective bargaining obligations and prevents employers from unilaterally changing terms of employment during ongoing labor disputes.