Unions Confronting Employer Spinoff and Joint Venture Transactions Need to Understand Pension Funding Ramifications
Regardless of whether spinoff transactions are vehicles for separating high-growth businesses or a method of taking out the trash, Jonathan Cerrito—a partner with Blitman & King—recently provided unions facing such transactions guidance in an article published by Bloomberg BNA. As Jonathan discusses, unions will want to maintain the security and predictability that existed pre-transaction in order to meaningful preserve pension funding and other collective bargaining obligations. Read More. To do so, unions should exercise its rights either under a successorship clause or effects bargaining to secure a Memorandum of Agreement addressing, among other things, pension funding.