Winning a government contract is often the result of months, if not years, of hard work, planning, and strategic bidding. But what happens when, after all that effort, you’re awarded the contract… and then you learn there’s a union representing the incumbent workforce?
What the heck? There was no mention of a union in the solicitation!
Sound far-fetched? This scenario is more common than you might think, and it raises serious legal and operational concerns for government contractors.
How so?
What’s the Risk, Exactly?
In an effort to keep operations running smoothly, some contractors might be tempted to recognize the incumbent union automatically, especially if the workforce is pressuring for it or the prior contractor had a collective bargaining agreement in place.
But here’s the caution: doing so can be a serious legal misstep.
Under the National Labor Relations Act (NLRA), employers cannot lawfully recognize or bargain with a union unless that union can prove it has majority support among your own employees.
If you recognize the union without that proof, you could be charged with an unfair labor practice.
What About “Successor” Obligations?
If you’re taking over a workforce and keeping much of it intact, the union may claim you’re a “successor employer” and required to bargain. That’s possible, but it’s not automatic.
Key factors include:
- Whether you’ve hired a majority of the prior workforce.
- Whether your operations are “substantially the same.”
- Whether the union has demonstrated continued majority support.
Even if you are deemed a successor, you may not be bound by the previous collective bargaining agreement, and you still have the right to assess whether the union truly represents your team.
Bottom Line: Don’t Rush to Recognize
Before you engage the union, make any commitments, or adopt prior agreements, take a step back to:
- Review your workforce hiring plans.
- Understand your obligations (or lack thereof) under labor law.
- Consult experienced labor counsel to assess your position.
Discovering a union post-award doesn’t have to derail your contract or put you in legal jeopardy, but it does require a careful, strategic response. Acting too quickly, even with good intentions, can trigger lasting liability and hinder your flexibility as a new contractor.
When in doubt, press pause and get advice. The stakes are too high not to.
Contact us today for a consultation, and we’ll bring the legal expertise and the reassurance you need to balance your people and profits.
