Question: Our business has been doing very well lately, and employees are doing a great job. As a reward, we want to give them an additional paid holiday for this year. Most of our employees are represented by a union, and this holiday is not included in the collective bargaining agreement (CBA). Is it okay to give the employees an extra holiday this year?
Answer: Not without first informing the union and giving them an opportunity to bargain over it. Under the National Labor Relations Act (NLRA), the union, as the sole bargaining representative of the employees, has a right to demand to bargain over a change in a mandatory subject of bargaining. Mandatory subjects of bargaining are wages, hours of work, and other terms and conditions of employment. A paid holiday is a mandatory subject of bargaining because it would impact wages, hours of work, or a term or condition of employment (it only needs to meet one of the criteria to be considered a mandatory subject of bargaining). Since you want to add a paid holiday and it is not addressed in the CBA, the union has a right to demand to bargain over the impacts and likely the decision to grant the additional paid holiday.
That means before informing employees or granting the paid holiday, you must first give written notice to the union stating what the company wants to do, including basic information such as the date of the holiday, how it will impact employees who are on approved leave, which represented employees will receive the additional paid holiday, and a date by which the union should notify you if it has questions. The written notice should be given far enough in advance to give you and the union an opportunity to discuss any questions. By giving the union the details up front, it lessens the likelihood the union will have additional questions or want to bargain over the additional holiday.
Just because you are required to give notice and allow the union to bargain over the change to a mandatory subject of bargaining, doesn’t mean they will accept. But by complying with the process for providing notice and an opportunity to respond, you are following the law and are less likely to commit an unfair labor practice.
Compliance with labor law and its obligations can be tricky. Before you give your represented employees something extra such as a wage increase, change in work hours, gift cards for a job well done, or other benefits that fall under mandatory subjects of bargaining, first consult your CBA to see if it allows it. If it doesn’t, then give the union notice and an opportunity to ask questions. Vigilant members, call your Vigilant Law Group employment attorney before you proceed if you have questions.
