Guest JD698 Posted December 11, 2003 Posted December 11, 2003 A company, currently in Chapter 11 reorganization is in the process of being sold. The current collective bargaining agreement was extended until January prior to its expiration. The purchaser of this company is not assuming any contracts, including the CBA. The employer who signed the CBA is going to be starting up another company and will likely be hiring the employees from his former company. As he is the principal of the old company (that is being sold) as well as the principal for the new company, can this CBA be transferred to the new company or does a new CBA need to be drafted and signed?
mbozek Posted December 13, 2003 Posted December 13, 2003 What does the CBA agreement say about this? Normally the CBA is binding on the er who signs the agreement and its sucessors in interest. A principal owner of an incorporated entity is not the employer. A start up company not affiliated with the er who signed the CBA would have to negotiate a new CBA with the union. This issue needs to be reviewed by labor counsel. mjb
mal Posted December 13, 2003 Posted December 13, 2003 There are literally thousands of cases on this issue. You need to seek qualified counsel. However, if you want to do some investigative work on your own, start with "The Developing Labor Law" books. They should be in any county law library.
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