Hospital Menonita de Guayama, Inc. v. NLRB, No. 22-1163 (D.C. Cir. 2024)
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Hospital Menonita de Guayama, Inc. (Petitioner) purchased Hospital San Lucas Guayama (Hospital San Lucas) and became a successor employer. Hospital San Lucas had previously recognized five distinct bargaining units of employees represented by Unidad Laboral de Enfermeras (OS) y Empleados de la Salud (Union). However, after acquiring Hospital San Lucas, Petitioner first failed to bargain in good faith with the Union, then serially withdrew recognition from the Union as the collective bargaining agent for each of the five units. As a result, the National Labor Relations Board (Board) filed a complaint against the Petitioner, alleging violations of Sections 8(a)(5) and (1) of the National Labor Relations Act.
The United States Court of Appeals for the District of Columbia Circuit upheld the Board's decision. The court found that the Board had correctly applied the "successor bar" rule, which holds that an incumbent union enjoys an irrebuttable presumption of majority status for a reasonable period of time following the successor employer's voluntary recognition of the union. The court concluded that, on the facts presented, the Board’s application of the successor bar rule was consistent with established Board precedent, permissible, and reasonable. The Board's conclusion that Petitioner refused to bargain in good faith with the Union and engaged in multiple unfair labor practices followed directly from established Board precedent. The court also rejected Petitioner's request to overturn the successor bar rule.
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