When a union has a collective agreement with an employer and the employer sells the business to another entity, which of the following is correct:
A) The collective agreement is terminated.
B) The purchaser is bound by the terms of the collective agreement.
C) The collective agreement is binding upon the purchaser if it approves the agreement.
D) The collective agreement continues to run for the remainder its term but the union's bargaining rights expire at the end of the agreement.
E) A vote is held among employees to determine if they want the union to continue to represent them.

Question

Quizplus · Accepted Answer

The purchaser of a business is typically bound by the terms of any existing collective agreement, as these agreements are considered to run with the business and not just with the original owner. This ensures continuity of workers' rights and obligations under the agreement.

When a Union Has a Collective Agreement with an Employer