In a decision issued on March 31, 2011, National Labor Relations Board Chairman Wilma Liebman suggested that she would like the Board to require employers to provide information about relocation decisions to unions in a broader range of cases. In Embarq Corp., 356 NLRB No. 125 (March 31, 2011), the Board unanimously concluded that the employer was not required to negotiate with a union over its decision to close a call center in Las Vegas and relocate the work to a call center in Florida.
In deciding whether an employer's relocation decision is a mandatory subject of bargaining, the Board applies standards set forth in Dubuque Packing Co., 303 NLRB 386 (1991). The General Counsel must first establish that the decision involves a relocation of unit work "unaccompanied by a basic change in the nature of the employer's operation." If this prima facie burden is met, there are a number of ways by which the employer may rebut the presumption that it must bargain over the move. One such way is if the employer can establish:
(1) that labor costs (direct and/or indirect) were not a factor in the decision or (2) that even if labor costs were a factor in the decision, the union could not have offered labor cost concessions that could have changed the employer’s decision to relocate.
In Embarq, the Board concluded that labor costs absolutely were a factor in the employer's decision, but that the employer had proven that "the Union could not have offered labor-cost concessions sufficient to alter the... decision to relocate." As a result, the employer did not have to bargain over its decision and the related complaint allegations were dismissed.
Chairman Liebman agreed with the conclusion, and noted that because the issue was not a mandatory subject of bargaining, under existing Board law the employer was not obligated to provide the union with information regarding the relocation. She wrote a separate concurring opinion, however, to highlight her view that:
neither the after-the-fact attempt to assess whether bargaining might have been successful, nor the attempt, years later, to restore the status quo in those cases where the Board finds a bargaining violation, are constructive for any of the parties concerned.
Instead Chairman Liebman would place the initial burden on employers at the time of the decision to justify the decision. The Chairman would require employers to timely notify unions whether or not a relocation plan turns on labor costs; to explain to the union the basis for any non-labor-cost move; and, to provide information to the union regarding any labor-cost savings. In the Embarq case, no party asked the Board to revisit any of these issues. Still, after explaining her thoughts, in concluding her opinion, the Chairman notes:
...in a future case, I would be open to modifying the Dubuque framework in connection with union requests for information.
Unionized employers contemplating a relocation of work any time soon would be well-served to give this concurring opinion careful thought.