Document Type

Article

Disciplines

International Law

Abstract

This paper reviews the American experience with respect to the rights of workers affected by such major employment developments as bankruptcy, sale or merger, enterprise or plant closings, relocations and mass layoffs. The labor movement in the United States has made only limited progress toward protecting workers and their employment rights in the event of such major developments in the workplace. Regarding solvency concerns, employee protection-where it exists at all-is found almost entirely in union representation and union collective bargaining agreements rather than in statutory or administrative regulation. Even in these limited cases, protection is spotty. First, only a minority of collective agreements restrict employer discretion in these areas. Second, the labor relations laws impose no general restriction on employer decision-making in such matters; and the laws only require that in cases where a union has been designated as the bargaining representative,' employers bargain over the effects of such decisions on employees.

In the absence of restrictions in isolated collective bargaining agreements or under the labor relations laws, employers are to a large extent free to make decisions without labor approval or even consultation. In the absence of a recognized union, employer freedom in this area is unrestricted, except in the case of certain regulated industries, primarily transportation, which for decades have been the subject of extensive federal legislation that includes labor matters.

In addition to the labor relations laws, other American statutes provide limited protection for workers in their employment relationships. In the case of insolvency, the bankruptcy laws contain special recognition of workers' interests in the liquidation or reorganization of a bankrupt concern. Similarly, the Employee Retirement Income Security Act (ERISA) contains extensive provisions for the protection of workers' and retirees' rights under employer-pension plans.

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