When a business is purchased during the term of a labor agreement the new owner is not required to recognize the existing union as the representative for the bargaining unit.

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When a business is purchased during the term of a labor agreement, the new owner is typically required to recognize the existing union as the representative for the bargaining unit. This is often established through a successorship clause in the labor agreement or through the National Labor Relations Board's (NLRB) recognition of the union as the exclusive bargaining representative for the employees. However, there may be circumstances where the new owner can challenge the union's representation, particularly if there are significant changes in the business operations or the workforce.

When a Business Is Purchased During the Term of a Labor