Administrative Law Keyed to Strauss
Association of Data Processing Service Organizations, Inc. v. Board of Governors of the Federal Reserve System
Allentown Mack Sales and Service, Inc. (Allentown Mack) bought a branch in Allentown, PA. The employees were represented by the AFL-CIO. Allentown Mack was led to believe by certain members that the Local Lodge of the AFL-CIO no longer supported it. Under NLRB rules, “an employer who believes that an incumbent union no longer enjoys the support of a majority of its employees has three options: to request a formal, Board supervised election, to withdraw recognition from the union and refuse to bargain, or to conduct an internal poll of employee support for the union.” In the present case, Allentown Mack rejected to recognize the Local Lodge. The union, after losing a poll, brought a claim of unfair-labor practice to the NLRB. The ALJ held that Allentown Mack was a successor entity, and so bound by previous obligations to recognize and bargain.
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