COVID-19 issues for unionized employers

The COVID-19 pandemic has caused unprecedented disruption for U.S. businesses of every size and in every industry. As state and local governments have ordered companies to cease nonessential operations and directed consumers to quarantine, isolate, or otherwise “shelter in place,” the very survival of many companies depends on their abilities to develop new operational and business strategies for addressing changing consumer needs, altered distribution channels, and a depressed economic market.

Unionized employers face unique challenges in making necessary business changes while navigating restrictive collective bargaining agreement (CBA) provisions and meeting legal obligations under the National Labor Relations Act (NLRA) to bargain in good faith with incumbent unions. Below we provide guidance addressing various common issues unionized employers face as they prepare and implement COVID-19 prevention and response efforts.

Implementing new policies, procedures, and practices

Federal labor law imposes a duty on employers to bargain in good faith with their employees' collective bargaining representative on all mandatory subjects of bargaining, including wages, hours, terms, and other conditions of employment. Generally, unionized employers are required to follow the terms of negotiated CBAs and—even in times of business hardship—are prohibited from making unilateral changes regarding such mandatory terms without first negotiating to impasse with an incumbent union.