Staffing Company is Clear Successor Bound by Labor Rules
Creative Vision Resources, L.L.C., succeeded another company as the staffing provider for garbage trucks in New Orleans. It set its own initial terms and conditions of employment instead of bargaining with the union that was in place. The union filed a charge of unfair labor practices under the National Labor Relations Act (NLRA). The National Labor Relations Board (NLRB) found the staffing provider violated the NLRA by refusing to recognize and bargain with the union. It was a perfectly clear successor and had violated the NRLA by unilaterally imposing initial terms and conditions of employment on the workers. On appeal, the Fifth Circuit determined the staffing provider did not provide sufficient and timely notice of its intent to change the employees' terms and conditions of employment; thus it was a perfectly clear successor to the previous staffing company and had an obligation to recognize and bargain with the union that represented its predecessor's employees. Even more, the union was not required to issue a bargaining demand to trigger the staffing company's duty, as a perfectly clear successor, to not unilaterally set the initial terms of employment.