A new owner inherits a collective bargaining agreement with a three-year successor clause. The clause binds the successor for how long?

A new owner inherits a collective bargaining agreement with a three-year successor clause. The clause binds the successor for how long?

• A. 1 year
• B. 2 years
• C. 3 years
• D. 4 years

Answer: (C)

A successor clause in a collective bargaining agreement creates a binding obligation on any new employer who takes over to honor the agreement for a specified period. If the clause specifies three years, the new owner must adhere to the contract’s terms—wages, benefits, grievance procedures, and working conditions—for three years after assuming control. This protects workers from losing negotiated protections due to ownership changes and prevents the new employer from unilaterally restructuring terms during that period. The three-year span ends after that duration, at which point the contract may be renegotiated or expire according to its terms. So, the successor is bound for three years.

A successor clause in a collective bargaining agreement creates a binding obligation on any new employer who takes over to honor the agreement for a specified period. If the clause specifies three years, the new owner must adhere to the contract’s terms—wages, benefits, grievance procedures, and working conditions—for three years after assuming control. This protects workers from losing negotiated protections due to ownership changes and prevents the new employer from unilaterally restructuring terms during that period. The three-year span ends after that duration, at which point the contract may be renegotiated or expire according to its terms. So, the successor is bound for three years.