Sixth Circuit upholds unfair labor practice findings against construction firm

Rieth-Riley disagreed and kept pushing for multiemployer bargaining. When the union refused, a lockout followed on September 4, 2018, lasting more than three weeks. It took the personal intervention of then-Michigan Governor Rick Snyder to bring both sides back to the table. 

The court found the lockout was unlawful. Under federal labor law, the scope of a bargaining unit is not something either side can force the other to accept. By locking out workers to compel the union back into group bargaining, Rieth-Riley crossed a legal line. 

The wage and benefit issues added further trouble. After the prior collective-bargaining agreement expired, Rieth-Riley stopped making fringe-benefit contributions on behalf of employees and instead paid those amounts directly to workers. The company also rolled out a retroactive $2-per-hour raise without notifying or consulting the union. When the company later realized it was still legally required to contribute to benefit funds, it moved to claw back the money from employee paychecks – giving the union just four days’ notice and proceeding over its objections. 

The court rejected the company’s argument that an economic emergency justified the clawback. It noted that Rieth-Riley had known about its bargaining obligations for at least a month before acting and had effectively created the problem itself. 

A similar issue arose in 2020, when the company implemented another wage increase – $1 per hour – without union input. Rieth-Riley argued federal prevailing-wage rules required the raise, but the court found that did not excuse the company from its obligation to bargain, especially since it had consulted the union on similar increases in the past.