February 26, 2021

Volume XI, Number 57

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Third Circuit Court Holds Company Can Reject Terms, Conditions of Expired CBA

Against the constant current of labor-friendly decisions, the Third Circuit Court of Appeals recently provided a win to employers. As most National Labor Relations Board (NLRB) watchers know, the NLRB requires employers to adhere to the terms and conditions of an expired collective bargaining agreement (CBA) either until a new agreement has been reached or the parties achieve impasse. However, the court’s recent decision in In re Trump Entertainment Resorts Inc., held that companies can reject a collective bargaining agreement if it can carry the following criterion:

  • the distressed company made a proposal to employees which includes modifications to employee benefits and protections which are necessary to permit reorganization;
  • the employees’ representative refused to accept said proposal without good cause; and
  • the balance of equities clearly favors rejection of the CBA.

This holding can be a powerful weapon for employers who are navigating the bankruptcy process, yet are impeded by high labor costs. A copy of the complete opinion can be found here.

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© 2020 BARNES & THORNBURG LLPNational Law Review, Volume VI, Number 46
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Kenneth J. Yerkes Employment lawyer Barnes Thornburg
Partner

Chair of the firm’s Labor and Employment Department for two decades, Ken Yerkes has spent over 30 years successfully fighting for his clients' rights and business objectives at the bargaining table, in arbitration and federal and state court, as well as in plants across the country through proactive training, counseling and union avoidance campaigns.

Ken's ability to transform complex scenarios into workable strategies has earned him not only his clients' trust, but also acclaim as one of the country’s recognized leaders in labor and employment law. He is a fellow...

317-231-7513
John Koenig, Barnes Thornburg Law Firm, Atlanta and Indianapolis, Labor and Employment Law Attorney
Partner

John T.L. Koenig is a partner in the Labor & Employment Department of Barnes & Thornburg LLP. He maintains a national, full-service practice representing management exclusively in all aspects of labor and employment law.

Traditional Labor

Mr. Koenig represents companies in the grievance and arbitration process, collective bargaining, strike preparation, union organizing and election matters, and in unfair labor practice and representational cases before the NLRB. He frequently trains supervisors on effective and...

404-264-4018
David B. Ritter Barnes Thornburg Law Firm Labor and Employment Law Attorney Chicago
Partner

David B. Ritter is a partner in the Chicago office of Barnes & Thornburg LLP. He is a member of the firm’s Labor & Employment Law Department and co-chairs the Logistics and Transportation Practice Group. He represents management nationwide in virtually all areas of labor and employment law, including employment discrimination and harassment claims, wage and hour disputes, non-compete, trade secret and restrictive covenants and employment torts.

With nearly 30 years of experience representing public and private companies, Mr. Ritter has...

312-214-4862
William A. Nolan Labor and Employment Law Attorney Barnes Thornburg Law Firm Columbus
Partner

William A. Nolan serves as the Managing Partner of Barnes & Thornburg LLP’s Columbus, Ohio, office, which he opened in 2009. He is a member of the firm’s Labor and Employment Law Department. Bill has extensive experience as a litigator, trial lawyer and counselor. His practice includes a broad range of issues that organizations face in our rapidly changing competitive, legal and workplace environments. In short, he works to help management structure organizations, practices and relationships to proactively minimize the business disruption of disputes, and to help clients prevail when...

614-628-1401
Mark Kittaka, Barnes Thornburg Law Firm, Fort Wayne and Columbus, Labor and Employment Law Attorney
Partner

Mark S. Kittaka is a partner and the administrator of the Labor and Employment Law Department of Barnes & Thornburg LLP’s Fort Wayne, Indiana office. Mr. Kittaka’s practice covers all areas of labor and employment law including federal and state litigation concerning discriminatory practices and retaliation claims, including, but not limited to: Title VII race, sex, color, and religious discrimination claims; the Americans with Disabilities Act (ADA) (disability discrimination, reasonable accommodation, interactive process); Age Discrimination in Employment Act (ADEA); the Family and...

260-425-4616
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