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Alter Ego Employers

A purchaser is not considered bona fide if there is substantial continuity of ownership and control in the business. In a double breasting situation, an employer operates two businesses. The only distinction between them is the absence of a collective bargaining agreement in one of them.

The key to an alter ego theory is to establish that the union-represented half of the business has transferred equipment to its twin (a sale to itself). If this theory is successfully pursued, the contract is extended to cover the alter ego.

Single entity theory

Under the single entity theory, the union attempts to establish that the workers of the double-breasted entity are in fact part of the same bargaining unit as the represented workers of the primary employer. If this theory is pursued, it may be necessary, depending on the size of the combined unit, for the union to establish bargaining rights through a representation election.

A single bargaining unit would be considered appropriate if the union can establish the following:

	Common ownership
	Common control of labor relations policy
	Common management or supervision
	Interrelations of operations
	Interchange of equipment