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NLRB: Employer's Discontinuation of Christmas Bonuses Did Not Violate NLRA


Bob's Tire Co., Inc. - NLRB


Facts:  In 2015, a group of workers at Bob's Tire Co., Inc. ("Bob's") unionized.  Afterward, Bob's contracted with a staffing agency in which many workers that were provided to Bob's fell within the stipulated bargaining unit.  From 2008 through 2014, Bob's gave its employees a cash bonus at Christmas, ranging from $20 to $50 and then eventually $100.  However, a Christmas bonus was not paid in 2015.

An unfair labor practice charge was subsequently filed alleging that Bob's violated the National Labor Relations Act ("NLRA") because Bob's failed to notify the union of the discontinuance of the bonus or offer to bargain.  The Administrative Law Judge found a violation of the NLRA had occurred and stated the "bonus was paid with sufficient regularity that employees would have been justified in expecting to receive such a bonus as part of their wages."  The National Labor Relations Board ("NLRB") proceeded to take up the appeal.

Analysis:  At the outset, the NLRB pointed out that whether a bonus constitutes a term and condition of employment over which an employer must bargain with a union, both the regularity of the bonus and whether payment of the bonus was tied to employment related factors must be considered.  In this case, while there was testimony that Bob's paid its employees a cash bonus for seven years at Christmas, it was unclear what the amount paid per year was as well as whether the bonus was tied to any employment related factors.  Without additional evidence (or even more specific evidence), the NLRB found that there was no basis to find these Christmas payments were anything other than gifts in which Bob's would not be required to bargain.

Decision:  The NLRB ruled that an employer's failure to pay a Christmas bonus after a union was formed in the workplace was not a violation of the NLRA as there was insufficient evidence to establish both the regularity of the bonus and whether payment of the bonus was tied to employment related factors.

The Takeaway:  Bah humbug (for the employees that is.)  While I can certainly see why an unfair labor practice charge would be made against the employer here, I do think the NLRB was correct to find there simply was not enough evidence to establish a violation of the NLRA had occurred.  With a different set of facts, this is a matter that certainly could have gone the other way.

Date:  July 31, 2019

Order:  https://www.laborrelationsupdate.com/files/2019/08/Bobs-Tire-Co.-Inc.-368-NLRB-No.-33-July-31-2019.pdf
 

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