ERB Finds Union Representative Had Apparent Authority

The Oregon Employment Relations Board (ERB) issued a decision finding that the union committed an unfair labor practice by repudiating a side agreement that the union president had entered into. The union defended the case by arguing that the President did not have actual authority to enter into the agreement, but rather had to obtain the approval of the Union Executive Board. ERB agreed that there was no actual authority, but ruled against the Union in any case. The ERB found that, from the perspective of the management representatives, the President had apparent authority and therefore it was unlawful to repudiate the deal.

This case is a cautionary tale. Frequently, the limits of a representative's authority are not clear. It is important that representatives have a clear understanding of what authority they have to bind the union. Once that is clear, then the best practice is for business agents or union leaders to explicitly notify the other side ahead of time if ratification of the "deal" will be necessary. Absent such a notification, there is a potential that the union will be held to the agreement, without the approval of the real decision makers.