An oral agreement can modify the finding of a audit of a Trust Fund
August 12, 2024
1. Employers should note that the weekly emails that are being sent from H. Sanford Rudnick & Associates are current cases at the NLRB or audits by Trust Funds.
2. A Trust Fund audited an Employer for health and welfare payments.
3. The Trust Fund stated the Employer owed over $100,000.
4.The Employer stated there was an oral agreement between the Union and the Employer and that the Employer did not need to make benefit payments.
5. According to Central States, Southeast & Southwest Areas Pension Fund v. Kroger Co., 226 F.3d 903 (7th Cir. 2000) the court held:
In this case, the employer argued that the union orally agreed that certain contributions were not required. The court considered the issue of whether an oral agreement could override the written terms of a collective bargaining agreement (CBA). The court held that while oral agreements might be considered in some contexts, they cannot modify the explicit terms of a CBA unless there is a clear and mutual understanding between the parties.
6. Since the employer and the union had a specific oral agreement, the trust fund allowed the audit to be modified to reflect the oral Agreement.
7. If your Company is going through an Trust Audit and needs some defenses to the audit, please contact H. Sanford Rudnick & Associates at 1-800-326-3046.
Fundamentals of Labor Law
Sanford Rudnick has written a book called Fundamentals of Labor Law which helps Employers practice at the NLRB. He has used this book for over 40 years.
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The major problem in any election or an unfair labor practice charge, is how to resolve conflict between management and your employees. In fact, according to the NLRB there is an 16% increase in unfair labor practices charges being filed by employees or unions in 2023.
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H. Sanford Rudnick & Associates is a full-service Labor Relations firm with 40 years of experience in negotiating union contracts, NLRB matters and all human resource matters. In fact, Mr. Rudnick has written a book called "Fundamentals of Labor Law Regarding Unions" which includes a summary on the National Labor Relations Board and Unions which is at Harvard Law School Library and other law schools around the country. Call to purchase your copy at for $29.95 800.326.3046.
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H. Sanford Rudnick, J.D.
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