Copeland v. Penske Logistics, LLC, No. 11-1955 (7th Cir. 2012)
Annotate this CasePenske provided transportation services for a newspaper, its only customer, 1999 to 2009, but lost the bid for the contract and informed the union that it would cease operations. The collective bargaining agreement expired two days after operations shut down. Penske and the union engaged in "effects bargaining." Penske agreed to give workers extended recall rights, preferential treatment should they apply for employment at other firms within the Penske group, pay for unused vacation time, severance pay of one week's wages, and assistance in preparing resumes and securing letters of recommendation. Employees filed claims they characterized as a "hybrid" breach of contract and Labor-Management Relations Act, 29 U.S.C. 185 suit. The Seventh Circuit agreed with the district court that the suit was "doomed" because the plaintiffs did not even contend that Penske failed to implement the collective bargaining agreement. The court also dismissed a claim that the union did not bargain hard enough.
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