A National Labor Relations Board judge has ruled that a Michigan electrical workers union unlawfully refused to accept a member’s resignation and fined him more than $6,000 for starting his own contracting business. The decision addresses a problem that matters to construction employers: what happens when a skilled tradesperson leaves a union and goes into business for himself. For contractors, the ruling is a reminder that a union’s internal rules cannot override a worker’s right to leave.
The Facts Behind the Ruling
According to the report of the decision, the union declined to process the member’s resignation and then imposed a fine after he began working as a contractor on his own. The judge concluded that these actions interfered with the member’s right to refrain from union activity. Members of a union generally have the right to resign, and a union that makes resignation difficult or punishes a member for leaving may violate the National Labor Relations Act.
Why Construction Employers Should Pay Attention
Many electricians and other trades workers move between employee and independent contractor roles over the course of a career. When a former employee forms a company that competes for work, disputes can arise with the union that represented him. An employer that works with union signatory labor, or that hires workers who have recently left a union, should understand that the union’s internal discipline may not reach a worker who has validly resigned.
What Contractors Should Do
- Confirm the union status of any worker before assuming his membership obligations continue
- Keep written records of resignation requests, dates, and how they were handled
- Avoid taking sides in internal union disputes unless a contract requires it
- Review subcontracting and signatory agreements for language on worker status and fines
- Consult counsel when a dispute between a worker and a union affects a job site
The judge’s decision does not resolve every question about union membership and internal discipline, and the ruling may still be reviewed. Still, it reflects a settled principle that union members can leave, and that unions cannot use fines or procedural hurdles to stop them. Contractors who understand that principle are better positioned to manage the friction that arises when a skilled worker becomes a competitor.
Contractors should also consider how resignation and dues issues affect payroll and job-site staffing. A worker who has left a union may still be subject to other contract terms, so employers should confirm each worker’s status in writing before making assignments. Clear records make it easier to resolve questions quickly if a union or worker raises a dispute.
For further details, please contact the lawyers at Tobia & Lovelace Esq., LLC at 201-638-0990.