Recently, a Minnesota District Court upheld attorney Greg Wiley’s argument that a Last Chance Agreement precluded a union employee from seeking arbitration to challenge his termination from employment.
Employers use Last Change Agreements (“LCAs”) to allow employees that have made mistakes or have had performance issues a second chance, and the agreements provide that the employees may stay employed so long as certain conditions are met. I feel that Last Chance Agreements can be a great labor relations tool in appropriate cases, and I have drafted and enforced many in my career.
This important decision validates an employer’s use of last chance agreements with a unionized workforce, and protects employers from the lengthy and expensive arbitration process in such cases.
If you have an employment situation in which you might want to use a Last Chance Agreement with your employee, whether that employee is a member of a union or not, please contact me. I am also available to train your labor relations professionals on drafting effective Last Chance Agreements.