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Labor — termination

United States Court of Appeals For the Seventh Circuit


Labor — termination

Where a union has provided an unambiguous, timely notice to terminate the collective bargaining agreement, that agreement expires pursuant to its terms even if the employer’s payroll continues to reflect the payment of union wages and the deduction of union dues.

“The evergreen clause in Article 23 of the CBA expressly provided that the CBA would continue after March 31, 2007 ‘unless written notice of desire to cancel or terminate the Agreement is served by either party upon the other at least sixty (60) days prior to date of expiration.’ On November 16, 2006—well before 60 days prior to the expiration date of March 31, 2007—Local 705 served a notice which explicitly provided that it was a ‘notice to . . . terminate,’ and that ‘Local 705 does not desire to continue or extend the current CBA beyond its expiration date of March 31, 2007.’ We cannot imagine a ‘notice of desire to cancel or terminate the Agreement’ that is any more clear. Because the terms of the notice were unambiguous, it is unnecessary to turn to parol evidence, such as the fact that J&D continued deducting union dues or continued paying union wages.”


09-3706 Rutherford v. Judge & Dolph, Ltd.

Appeal from the United States District Court for the Northern District of Illinois, Leinenweber, J., Williams, J.

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