Kellogg Co. v. Nat'l Labor Relations Bd., No. 15-2183 (6th Cir. 2016)
Annotate this CaseKellogg and the Union have a Master Agreement, effective 2012-2015, and the supplemental Memphis Agreement, effective 2010-2013. The Master Agreement grants regular employees various benefits without defining regular employees. The Memphis Agreement distinguishes between regular and casual employees. Negotiations for a new Memphis Agreement stalled over Kellogg’s proposals that the casual program no longer simply provide relief to regular employees, but “include any employees hired by Kellogg to perform production or any other bargaining unit work covered by” the Memphis Agreement; casual employees would no longer “be limited in the scope of their work, duties, tasks, hours, or in any other terms or conditions of employment,” could “be employed on an indefinite basis,” and would have seniority rights, access to a grievance procedure, participation in the job bidding process, and priority if Kellogg established an alternative crewing schedule. Insisting that Kellogg was attempting to amend the Master Agreement, the Union concluded negotiations. Kellogg sent a “Last/Best Offer.” The Union did not respond, Kellogg locked out 200 bargaining-unit employees. An ALJ concluded that Kellogg’s proposals were not mid-term modifications of the Master Agreement, so Kellogg was entitled to impose a lockout. The National Labor Relations Board disagreed, finding that Kellogg’s proposal effectively modified the terms of the unexpired Master Agreement. The Sixth Circuit vacated, stating that the proposal did not modify the Master Agreement's express terms and that the “effective modification” theory has been disclaimed.
The court issued a subsequent related opinion or order on October 26, 2016.
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