First National Maintenance Corp. v. National Labor Relations Board

452 U.S. 666 (1981)

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First National Maintenance Corp. v. National Labor Relations Board

United States Supreme Court
452 U.S. 666 (1981)

  • Written by Rose VanHofwegen, JD
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Facts

First National Maintenance Corp. (FNM) (defendant) provided contract maintenance services for multiple commercial clients, including the Greenpark nursing home. When Greenpark reduced the fees it paid, FNM began losing money on the contract and gave Greenpark 30 days’ notice of cancellation. Meanwhile, a union won an election to represent the Greenpark employees and tried to delay the cancellation to allow bargaining. FNM advised the decision was purely financial and prohibitively expensive to delay, then closed the operation as scheduled, discharging about 35 employees. The union charged FNM with unfair labor practices for failing to bargain about the closure and its effects. The National Labor Relations Board (NLRB) and the appellate court applied a rebuttable presumption favoring mandatory bargaining of partial closures and concluded FNM violated the National Labor Relations Act (NLRA). The Supreme Court granted review.

Rule of Law

Issue

Holding and Reasoning (Blackmun, J.)

Dissent (Brennan, J.)

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