NLRB Rejects Terex Severance Deals, Orders Reinstatement, Back Pay (1)

A.S.V. Inc., maker of Terex Corp., machinery, must reinstate 11 employees with back pay even though the company gave the workers substantial severance payments, the National Labor Relations Board ruled.

The Aug. 21 decision illustrates the potential tension between the NLRB’s desire to honor voluntary agreements between employers and employees and the board’s conviction that it should have the final word on remedying violations of the National Labor Relations Act.

NLRB Democrats Mark Gaston Pearce and Lauren McFerran and Republican Marvin E. Kaplan agreed with an administrative law judge that the company illegally laid off employees at a Minnesota facility ...