Under the FNM decision, may an employer shut down part of its ...

[vicky]

Under the FNM decision, may an employer shut down part of its business in order to weaken a union's position at the employer's other operations by labeling the decision as purely economic?

Question 2

Did the Court conclude that the partial closing was a mandatory subject of bargaining?

[akpaschal]

Answer to Question 1

No. The Court is meticulous in pointing out that FNM's decision to shut down part of its business was for purely economic reasons. The Court points out that a union has direct protection against a partial closing decision that is motivated by an intent to harm the union, sometimes referred to as a partial closing motivated by antiunion animus..

Answer to Question 2

No. The Court concluded that the harm likely to be done to an employer's need to operate freely in deciding whether to shut down part of its business purely for economic reasons outweighs the incremental benefit that might be gained through the union's participation in making the decision. Thus the Court decided that a partial closing is not a mandatory subject of bargaining but rather is a permissive subject of bargaining.