Federal Court Orders Supermarket to Recognize Union
Judge Jose L. Linares of the United States District Court for the District of New Jersey enjoined a New Jersey grocery employer to apply the collective bargaining agreement of its closed alter ego store.
A few months after closing its unionized Cedar Knolls, New Jersey Foodtown grocery store, substantially the same principals opened a non-union Farmtastic supermarket three miles away in Whippany, New Jersey. The new supermarket opened with most of the same managers and supervisors and a substantial portion of the former employees. The Court found that the evidence in the case supported the NLRB's General Counsel's allegation that the new store is an alter ego of the closed store. The Court granted the NLRB's petition for 10(j) injunctive relief such that the collective-bargaining agreement must apply to the Farmtastic employees. The Administrative Law Judge is due to rule on the main case before the NLRB soon. The injunction puts a stop to the employer's union-avoidance strategy.