The contract between a utility company and Union neither covers the effects of a change to the company's vehicle use policy nor waives the Union's right to effects bargaining regarding the change, according to a recent Second Circuit decision.

The employer unilaterally decided to discontinue a policy permitting certain employees to drive company vans to and from work and keep them at home during off-duty hours. While the policy was in effect, the company paid for the vehicles, maintenance and gasoline, and withheld taxes from each employee's pay corresponding to the value of the benefit. After learning of the policy change, the Union asserted that the discontinuation changed terms and conditions of employment without affording the Union an opportunity to bargain. The company asserted that bargaining was improper under contractual language granting it sole and exclusive judgment to regulate use of Company property and the exclusive right to terminate benefits and amend policies. On review, the Second Circuit held that these provisions were too vague to constitute a clear and unmistakable waiver of the right to bargain over the effects of a change under them. Read more.