George Patterson | Bloomberg Law Intl. Union v. ZF Boge Elastmetall LLC, No. 10-2528, 2011 BL 215324 (7th Cir. Aug. 19, 2011) The Seventh Circuit held a "mid-term Agreement" that provided concessions from the International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, and its Local 2343 (Union) in exchange for the employer, ZF Boge Elastmetall LLC's (ZF Boge) decision to retain the unionized facility expired along with the parties' collective bargaining agreement (CBA). Despite the mid-term Agreement's express statement that ZF Boge would close a non-union facility rather than the union plant as part of a consolidation if the Union offered certain concessions, including a pension freeze, the court held that the mid-term Agreement did not prevent ZF Boge from closing the union plant once the CBA expired. In the court's view, the mid-term Agreement was "a term-by-term modification of the existing CBA that leaves all unaltered terms — including the duration clause — of the CBA intact."
Consolidation of Manufacturing Operations
Mid-term Agreement did not Survive Expiration of the CBA
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