Erroneous Judgment of Administrative Law Judge
The ALJ’s judgment was legally erroneous since Francisco Foods was not permitted to tell its side of the story and contest the Union’s claims. An employer is required by the National Labor Relations Act (NLRA) to be provided with notice of a union’s request for recognition and the opportunity to argue its case on the suitability of the bargaining unit in a hearing before the National Labor Relations Board (NLRB). This chance was denied to Francisco Foods, and as a result, the National Labor Relations Act was not adhered to in this scenario. In addition, the ALJ did not consider Francisco Foods’ contention that the bargaining unit was unsuitable, which was a key component of establishing whether or not the employer had violated the NLRA. The ALJ’s judgment was flawed because it did not take into account this argument, and it was not based on an exhaustive analysis of the facts of the case. As a result, the conclusion made by the ALJ was legally erroneous.
The Two-Tier System
Yes, two-tier systems can breach the duty of fair representation. A legal principle known as the duty of fair representation mandates that labor unions represent all of their members impartially and fairly. The obligation of fair representation in two-tier systems calls for the Union to serve each member consistently and equally. In particular, regardless of when members were hired, the Union must bargain for the same base pay, benefits, and other employment terms for all of its members. In other words, a two-tier structure where incumbent employees receive better pay and benefits than new hires is not acceptable to the Union. Two-tier systems have the drawback of frequently leading to a situation in which current employees are treated differently than new personnel (Velte, 2019). Due to the inconsistent and unequal treatment of all members, two-tier systems may be viewed as violating the obligation of fair representation. Unions must prevent setting up two-tier systems or other situations that give their members a sense of unfairness.
References
Velte, P. (2019). Does CEO power moderate the link between ESG performance and financial performance? A focus on the German two-tier system. Management Research Review, 45(8), 103–110.