Question

write Issues, Rules, Analysis and conclusion on First National Maintenance Corp Vs NLRB

Answer 1

Petitioner: First National Maintenance (FNM) Corporation

Petitioner is a firm that provides housekeeping services to various firms in NY. One of the vendor of FNM was Greenpark Care Center, which was a nursing home.               In the agreement between these two parties, the cancellation of contract could be done by giving a 30 days notice.

The bone of contention between these two parties was a weekly management fee of USD 500 which was reduced to a lesser amount. This proved to be economically unviable for FNM and hence it wanted to terminate the contract, unless Greenpark would agree to bring the management fee to its original value.

March, 1977, Greenpark gave FNM a 30 days notice of cancellation because of "lack of efficiency”. This cancellation did not become effective, and FNM's work continued after the expiry of that 30-day.

March 31, 1977, a majority of the employees under FNM selected the union (District 1199, National Union of Hospital and Health Care Employees, Retail, Wholesale and Department Store Union, AFL-CIO) as their bargaining agent

June 30, by telephone, FNM asked that its weekly fee be restored at the $500 figure.

July 6, FNM informed Greenpark in writing that it would discontinue its operations there on August 1 unless the increase were granted

July 12, the Union wrote to FNM, notifying it of the union's right to bargain, and also requesting for a meeting

July 25, FNM gave final notice of termination

July 28, FNM notified its Greenpark employees that they would be discharged 3 days later. Union immediately called FNM to request a delay for the purpose of bargaining. FNM refused the offer to bargain

July 31, FNM discontinued its Greenpark operation and discharged the employees

After this, the union filed an unfair labor practice charge against FNM. After a hearing held upon the Regional Director's complaint, the Administrative Law Judge made findings in the union's favor saying that either FNM should reinstate the employees in Greenpark with lost salary compensated, or FNM has a responsibility to reinstate the employees in any other operation.

National Labor Relations Act clearly advocates the principle of collective bargain and since this did not happen in this case, FNM did not receive a favorable judgment.