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COMPLIANCE
NLRB General Counsel Throws Dealers
a Lifeline
President Trump’s pick for Labor Board general counsel just swung the
pendulum back to an employer-friendly stance. Human resources expert
weighs in.
By Dave Druzynski, Director of Human Resources, Auto/Mate Dealership Systems
I’ve been telling dealers for years they need The NLRB is responsible for enforcing the The NLRB ruling stated that a reasonable
to update their employee handbooks in provisions of the National Labor Relations employee could interpret such a ban as
response to a series of rulings the National Act (NLRA) that offer workers protections encompassing his or her right to protest
Labor Relations Board (NLRB) made when they engage in protected, concerted working conditions, as such protests would
during the Obama administration. To many, activities for their mutual aid or protection. likely be viewed as disrespectful.
those rulings seemed to enable employee Basically, workers have a right to band
misconduct without consequence. together in an attempt to improve the terms In another case, the owner of Plaza Auto
and conditions of their employment, form Group and a salesman had a disagreement
Because of the presence of rules that prohibit unions and strike in opposition to working regarding commissions. In the course
such conduct could constitute an unfair conditions. of their argument, the salesman became
labor practice, I suggested that handbooks angry, in a raised voice, cursed at the
needed to reflect that fact. But now it seems The NLRB doesn’t have the dealer multiple times before pushing his
those days are over. Whether you’re a dealer power to change the law, but chair and leaving the room. Plaza fired the
or an employee at a dealership, this new salesperson as a result.
ruling affects you. Either way, it’s incredibly when they issue rulings on
interesting. new cases, it sets precedence Ultimately, the NLRB found that Plaza
for the interpretation of the violated the NLRA by firing the salesman,
Recently the Senate confirmed President in part, because the conversation involved
Trump’s pick for NLRB general counsel, law and the framework for terms and conditions of employment (his
Peter Robb. He’s a long-time management- how an analysis should be commissions) and that his belligerent and
side labor lawyer and he just took the first handled on similar cases menacing behavior didn’t rise to such a level
step to swing the pendulum back toward a as to cause him to lose protection under
management-friendly stance. moving forward. the NLRA (because, I mean, how can you
possibly have a productive conversation
Less than a month after his confirmation, During this timeframe, there were two related to your commissions without
Robb released a memo that could mark significant board decisions that went dropping F-bombs, cursing out your
the beginning of the end for some of the against car dealerships. The first involved manager’s mother, and throwing furniture
changes in precedent that sparked vigorous Knauz BMW, which terminated an across the room?). That’s how businesses
dissents from NLRB board members and employee for posting a series of posts on operate, right?
left dealers utterly confused after learning Facebook critical of the food the dealership
that their common handbook policies served customers during a sales event. When I present on this topic, dealers
prohibiting “disrespectful conduct” were He also posted pictures of an accident at are often in a state of shock when they
now considered unlawful. Knauz’s Land Rover dealership next door. learn that some fairly common handbook
They included a caption that mocked a policies prohibiting activities such as
In this memo, Robb stated that NLRB customer’s child for accidentally crashing a disrespectful behavior, lying, workplace
regional offices must submit cases for vehicle into a pond. While the termination recording, sharing confidential information
advice when they are related to issues where was upheld, the NLRB ruled that the and disparaging their dealership on social
longstanding precedent was overruled existence of a “Courtesy Rule” in the Knauz media are illegal if they lack sufficient
during the past eight years, as his office handbook that banned “disrespectful clarification or context.
might want to provide the board with an behavior” was an unfair labor practice. Continued on page 47
“alternative analysis.”
12 | GIADA Independent Auto Dealer MARCH 2018