While management must negotiate the effects on workers of a decision to close a plant, the decision to close the plant itself is not a mandatory bargaining issue.

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According to the National Labor Relations Act (NLRA), the decision to close a plant is a management prerogative and not a mandatory bargaining issue. However, the effects on workers of the decision to close the plant (such as layoff procedures, severance pay, and retraining opportunities) are mandatory bargaining issues.

While Management Must Negotiate the Effects on Workers of a Decision