New NLRB Issues Third Decision, First Involving Charges Against Employer
The newly-constituted Board issued its third decision yesterday in what appears to be a fairly unremarkable case involving Hospital San Carlos, Inc., 355 NLRB No. 26 (Apr. 28, 2010). The case -- which is the first decision by the new Board addressing unfair labor practice allegations against an employer -- involved a dispute over the amount of a Christmas bonus. Puerto Rico law requires certain employers to pay eligible employees a Christmas bonus pursuant to a statutory formula. The collective bargaining agreement at issue in the case included a provision for a bonus that “includes and is not in addition to the one established by law.” The only difference in the contractual bonus and the statutory entitlement was the maximum wage on which the statutory percentage was applied. The employer applied for and received a “partial exoneration” of the statutory bonus requirement from the Puerto Rico Department of Labor and Human Resources, which is authorized to waive or reduce the statutory obligation in certain circumstances. As a result of this, the employer paid only the reduced bonus and not the amount called for by the contractual formula. The Board ruled that the contract created obligations over and above the statutory requirement and that the employer had unlawfully made a change in terms and conditions of employment without bargaining with the union.
