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Sung Ohr ex rel. National Labor Relations Board v. Nexeo Solutions, LLC

Citations: 871 F. Supp. 2d 794; 193 L.R.R.M. (BNA) 2971; 2012 U.S. Dist. LEXIS 90286; 2012 WL 2529198Docket: Case No. 12 C 1226

Court: District Court, N.D. Illinois; June 28, 2012; Federal District Court

Narrative Opinion Summary

In this case, the Regional Director of the National Labor Relations Board (NLRB) sought a temporary injunction against Nexeo Solutions, LLC under Section 10(j) of the National Labor Relations Act (NLRA) amid allegations of unfair labor practices. Nexeo had acquired certain assets from Ashland, Inc., and had engaged with Local 705, a union representing drivers. The petitioner claimed Nexeo violated Sections 8(a)(1) and (5) of the NLRA by unilaterally implementing new retirement and healthcare plans and altering employment terms without bargaining with the union. The case focused on the 'perfectly clear successor' doctrine, wherein Nexeo was not considered a perfectly clear successor as it communicated new employment conditions before acquisition, permitting it to set new terms. The court evaluated the petitioner's request for injunctive relief based on factors such as likelihood of success on the merits and irreparable harm. The court found that the petitioner did not sufficiently demonstrate irreparable harm to union support or that public interest would be adversely affected without the injunction. Consequently, the petition for preliminary injunction was denied, as the evidence did not support the need for such an extraordinary remedy.

Legal Issues Addressed

Application of Section 10(j) of the NLRA

Application: The court evaluated the petitioner's request for a temporary injunction under Section 10(j) of the NLRA but found the criteria for granting such relief unmet.

Reasoning: Section 10(j) of the National Labor Relations Act (NLRA) permits district courts to grant temporary injunctive relief during unfair labor practice proceedings if deemed 'just and proper.'

Irreparable Harm in Collective Bargaining

Application: The petitioner failed to demonstrate irreparable harm to union support or collective bargaining that would justify an injunction.

Reasoning: Unlike previous cases where successors disregarded union representation, there is no evidence that Local 705 has made efforts to resume negotiations with Nexeo.

Perfectly Clear Successor Doctrine

Application: Nexeo was deemed not a 'perfectly clear successor' as it communicated new employment conditions to employees before acquisition, allowing it to set new terms.

Reasoning: On February 17, 2011, Nexeo issued offer letters to Ashland’s Local 705 employees that clearly stated new employment conditions would apply. Consequently, Nexeo was not deemed a perfectly clear successor and was permitted to establish its own hiring terms.

Public Interest in Collective Bargaining

Application: The court determined that the petitioner's argument regarding the public interest in promoting collective bargaining was insufficient to warrant an injunction.

Reasoning: The Petitioner’s assertion of a significant public interest in promoting collective bargaining was deemed conclusory and insufficient to demonstrate potential harm to the public interest without the injunction.