Thrifty Payless, Inc. v. NLRB, No. 22-1204 (D.C. Cir. 2023)
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Thrifty Payless, Inc., doing business as Rite Aid, seeks judicial review of the National Labor Relations Board’s decision that Rite Aid committed unfair labor practices. The Board has cross-applied for enforcement of its order. An Administrative Law Judge concluded that Rite Aid had committed unfair labor practices in violation of the National Labor Relations Act when it unilaterally implemented its proposal. The ALJ determined that Rite Aid violated its duty to bargain in good faith because it took unilateral action even though the parties had not yet reached an impasse. The main issue here is whether Rite Aid was entitled to implement its own proposal instead of continuing negotiations with the union.
The DC Circuit denied Rite Aid’s petition for review. The court denied the Board’s cross-application for enforcement and remanded the order. The court found that the record contains enough evidence to support the Board’s finding that the parties were not at an impasse. An impasse arises when neither side is open to compromise. Further, the court explained that any reasonable consideration of exigency must consider “an employer’s need to run its business” and the inherently uncertain task of making corporate decisions in the face of a potential crisis. Here, the Board acknowledged that it was “impossible” for Rite Aid “to predict what claims might come in and how that would impact the reserves.” Rite Aid asserts without contest that the reserves as of November 2019 could only cover a few weeks’ worth of healthcare coverage for Rite Aid employees. So Rite Aid’s concern that inaction could have had damaging consequences is understandable.
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