NLRA Helps Another Family Business Become Union-Free

After a three-month battle at the National Labor Relations Board (“NLRB”), Paramount Truck Body is union-free! The United Food and Commercial Workers International Union (“UFCW”) withdrew all Unfair Labor Practice Charges against Paramount on February 8, 2019. The Chicago Region of the NLRB found the charges lacked merit, and forced the withdrawal of the charges.

History

Paramount is a third-generation American success story. The company conducted business union-free for fifty years. The company’s founder voluntarily recognized the union as the representative of his employees about a decade ago.  The founder’s daughter assumed the reigns of the business upon her father’s passing. Her son has also joined the company. Paramount’s American success story enters its third generation union-free.

Over the years, the UFCW appeared to lose interest in its members at Paramount, and its actions demonstrated that was the case.  As a result, employees began to complain. They did not want to pay dues because they got nothing in return.  Company leadership also experienced the union’s apathy. It contacted the union to renegotiate its collective bargaining agreement due to skyrocketing health insurance rates. The union ignored Paramount’s request.

Employees Demand to be Union-Free

By early 2018, the employees wanted to be union-free. They researched how to make that happen, and as a result circulated a petition demanding Paramount withdraw recognition from the union.  Consequently, the employees presented Paramount with the petition, which was signed by every single employee.

The union’s lack of responsiveness over the rising cost of health insurance frustrated Paramount. It now had a petition signed by every one of its employees rejecting the UFCW and finally decided it must act.  Paramount formally notified the union in May 2018, that it was terminating the agreement and its relationship with the UFCW at the expiration of the current contract – August 31, 2018.  The union did not respond to the Company’s letter. 

Because Paramount wished to remain an employer of choice, it sought bids for health insurance. It presented the insurance options to the employees. In order to offset the cost of the new health insurance, the company provided wage increases. Each employee received a raise sufficient to cover the added cost of the policy they chose.

UFCW Attempts to Bully Paramount Despite Employees’ Demand to be Union-Free

Effective September 1, 2018, Paramount Truck Body of Chicago, Illinois began operation as a non-union company.  The union still had not responded to Paramount’s May letter.  It seems as though the union would want to respond, or at least acknowledge, to its members’ rejection in a timely manner.

Six months later, the union finally acknowledged the employees’ frustrations and company’s action by filing an Unfair Labor Practice Charge in early November 2018.  The union was trying to invalidate Paramount’s lawful withdrawal of recognition, and force the employees to remain dues-paying members of an organization that had long forgotten them.

The easy (and least expensive) way to resolve the charges leveled by the union would have been for Paramount to surrender its rights. The union hoped Paramount would acquiesce to its bullying tactics, recognize the union again, and return to the status quo. This was of course what the employees had soundly rejected in their petition.  Paramount did not choose the easy way.  It engaged National Labor Relations Advocates (“NLRA”) to protect its rights and took the fight to the bully!

Paramount Fights Back!

NLRA Managing Partner Jim Allen vigorously fought the union’s baseless claims.  NLRA presented documentary evidence, provided sworn statements, and filed legal arguments supporting Paramount’s, and its employees’, rights.  The NLRB took the additional step of taking sworn statements from each employee who signed the petition.

NLRB Decides Paramount and Its Employees are Union-Free!

The NLRB found no evidence supporting the union’s claim. Paramount acted lawfully.  All the evidence pointed to the fact that the employees properly rejected the UFCW. They had a right under the National Labor Relations Act to demand that Paramount do the same.  Paramount was free to withdraw its recognition of the UFCW. Due to the petition it received, Paramount was obligated to respond to its employees and withdraw recognition. Above all the voice of employees must be heard!

Does your company wish to be union-free? Reach out to NLRA today.  The process to become union-free must be done carefully and correctly. But, as the Paramount case demonstrates, it is not a pipe dream. When done correctly you will have the full force of the law behind you.  For this or any of your labor relations needs, click here or call 844-4-NO-UNION [844-466-8646].