🗞️ Employer Can't Play Favorites: NLRB Voids Contract Signed During Union Competition

In Accurate Metal Fabricating, LLC, Administrative Law Judge Christal J. Key found multiple violations of the National Labor Relations Act when an employer consolidated two facilities—one represented by Teamsters Local 781 and another by Plastic Workers Union Local No. 18—into a single Cicero, Illinois location in 2022.

The NLRB Regional Director determined that the consolidation created a new merged bargaining unit of approximately 102 employees, effectively obliterating the two historical units. Critically, neither union could claim incumbency over this new unit. While a representation election was pending to determine which union (if any) would represent the merged workforce, the employer signed a new contract in May 2024 with the Plastic Workers covering only employees from their historical unit. This contract provided substantial wage increases ($1.00, $0.80, and $0.90 per hour over three years) exclusively to those employees, while Teamsters-represented employees received no raises since December 2022.

The ALJ applied the Midwest Piping doctrine, which requires employers to maintain strict neutrality between competing unions during a pending question concerning representation. The decision held that by recognizing one union over another and granting discriminatory wage increases, the employer violated Section 8(a)(2) (unlawful assistance to a labor organization) and Section 8(a)(3) (discrimination to encourage union membership) of the NLRA.

The remedy includes making Teamsters employees whole with backpay for lost wage increases, reimbursing dues collected under the unlawful contract for employees hired after its effective date, and conducting a third representation election. This decision reinforces that when facility consolidations create new bargaining units, neither predecessor union enjoys special status, and employers must remain neutral until employees select their representative through a Board-conducted election.

Key Points

• Facility consolidation obliterated historical units: When two facilities merged, the NLRB found this created an entirely new bargaining unit where neither the Teamsters nor Plastic Workers represented a majority
• Midwest Piping neutrality violated: Employers must maintain strict neutrality between competing unions during pending representation questions
• Discriminatory wage increases: Granting raises only to one historical group of employees to favor one union constitutes an 8(a)(3) violation
• No incumbency in merged units: Neither predecessor union can claim incumbent status in newly created consolidated bargaining units
• Third election ordered: The ALJ set aside the June 2024 election results and ordered a new election
• Make-whole remedy: Teamsters employees must receive retroactive wage increases equal to those given to Plastic Workers employees
• Section 10(b) defense rejected: The statute of limitations defense failed because the union learned of the contract within six months of filing charges

Primary Source Author: Administrative Law Judge Christal J. Key

Primary Source: Accurate Metal Fabricating, LLC, Cases 13-CA-344936, 13-RC-305160 (NLRB ALJ Jan. 5, 2026)

Primary Source Link: Available through NLRB case files at www.nlrb.gov/case/13-CA-344936

Supplemental Links

• Midwest Piping Doctrine - Cornell Law School Legal Information Institute
• National Labor Relations Act Full Text - NLRB
• Section 8(a)(3) Violations - NLRB
• Section 8(a)(1) and Employee Rights - NLRB
• Unfair Labor Practices Overview - Cornell LII
• Basic Guide to the National Labor Relations Act - NLRB (PDF)