AGC Seeks Supreme Court Review in Case on Adequacy of CBA Termination Notice

AGC of America joined three other employer associations in filing an amicus brief at the U.S. Supreme Court on April 24, 2023, in a case addressing what language is needed in a notice to terminate a collective bargaining agreement (CBA) to satisfy the termination procedure in a CBA containing an “evergreen clause.”

The brief supports a petition by two trucking companies for Supreme Court review of a decision by the U.S. Court of Appeals for the Seventh Circuit in Transervice Logistics, Inc. v. Central States, Southeast and Southwest Areas Pension Fund, which AGC previously reported on here. The circuit court imposed a strict standard for satisfying the termination requirements, creating a split among the circuits. This resulted in automatic renewal of CBAs that the employers believed had been terminated, obligating them to maintain contributions to the multiemployer pension fund designated in those CBAs even though they had already made contributions to a different pension fund under new CBAs for the same groups of workers and hours worked.

The amicus brief argues that Supreme Court review is necessary to establish a consistent national standard that comports with real-world labor practices and settled principles of law. The brief explains how the Seventh Circuit court’s decision is flawed and sets a dangerous precedent that alters the way in which employers and unions conduct labor negotiations. The other associations joining AGC on the brief were:  the Association of Food and Dairy Retailers, Wholesalers, and Manufacturers; American Bakers Association, and HR Policy Association.

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