Employment Law

Employer Settles Unfair Labor Practice Charges for $21.6 Million

An employer has reached a settlement with a union and the National Labor Relations Board (NLRB) in which it agrees to pay $21.6 million for unfair labor practices, the NLRB has announced.

union

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The charges date back to 2012 and alleged that the employer—VIUSA Inc.—violated the National Labor Relations Act by “refusing to hire Teamster-represented employees, recognizing the United Auto Workers as a minority union, refusing to recognize and bargain with Teamsters Local 89, and unilaterally establishing terms and conditions of employment for the employees that it did hire,” at its former vehicle processing operation at the Ford Motor Company’s Louisville Assembly Plant in Louisville, Kentucky, according to the NLRB press release.

About two-thirds of the money–$14.4 million—will be distributed as back pay to 257 former employees of VIUSA,  and other individuals VIUSA refused to hire. The remaining $7.2 million will be distributed to a union pension fund “as compensation for the Employer’s failure to make benefit contributions.”