SCOPE OF REPRESENTATION – Contracting Out
Single Topic for Decision 2443M
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1000.02026 – Contracting Out
Although a decision to subcontract work may constitute a managerial decision at the core of entrepreneurial control and be based on factors not amenable to negotiation, decisions to outsource which are based on labor costs, viz., overall enterprise costs, are within scope of representation because the union has control over some enterprise costs (labor costs) and may make concessions through the bargaining process that may substantially mitigate the concerns underlying the employer’s decision, thereby convincing the employer to rescind its decision. Outsourcing decisions based on enterprise (labor) costs are peculiarly suitable for resolution through the collective bargaining framework.