Bittersweet? NLRB Finds Hostess Failed To Bargain In Good Faith

The National Labor Relations Board (the Board) has found that Hostess Brands Corporation committed several unfair labor practices during negotiations with its bakers union before the company notoriously shut down its operation in November 2012. Hostess Brands Corporation, 01-CA-080461; +359 NLRB No. 26 (December 3, 2012). In response to unfair labor practices charges filed earlier this year by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (the Union), the Board ruled that Hostess violated the National Labor Relations Act by failing to furnish the Union with certain requested information, by unreasonably delaying in providing other information and by failing to bargain collectively and in good faith. As a result, the Board ordered Hostess to provide information the Union requested back in February 2012.

After lengthy negotiations, Hostess closed its plants upon the Union's rejection of the contract and subsequent strike. More than 18,000 workers were left unemployed. Since Hostess was a party to over 100 collective bargaining agreements with its employees, it is unlikely this decision will have an impact on the future of the company. This decision will, therefore, be seen by many as an empty verdict. The Board also ordered that Hostess post signs admitting it engaged in bad-faith bargaining. However, with every plant shut down and every employee let go, who will ever see the signs?

Additional Resources

Labor Relations > Unfair Labor Practices

Labor Relations > Collective Bargaining Process

What happens if an employer and union reach a deadlock in negotiations and cannot agree on all the terms of the collective bargaining agreement?

How to File an Unfair Labor Charge with the NLRB

Manage an Unfair Labor Practice Charge Filed by a Union


Topics:  Collective Bargaining, Hostess, NLRB, Unfair Labor Practices

Published In: Administrative Law Updates, Bankruptcy Updates, Labor & Employment Law Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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