National Labor Relations Board v. Evison J. Dent and Doris L. Dent, Co-Partners, Dba Chico Convalescent Hospital

Up until June 1,1972, Chico Convalescent Hospital (hereinafter referred to as “CCH”) was part of a chain owned by Statewide Convalescent Hospitals. In the spring of 1972, the owners of the real property on which the hospital was situated cancelled Statewide’s lease because of defaults in its rental obligations. An agreement was reached whereby Statewide conveyed title to all personal property associated with the hospital operation to the landlords in satisfaction of the rents owing to them. Thereafter, the landlords leased the hospital to the Dents, who assumed control of the operation on June 1.

Although the hospital employees had been represented by the union for purposes of bargaining with Statewide, the Dents unilaterally reduced employee wages on June 15, two weeks after assuming control of CCH. On July 13, representatives of the Dents and the union met to negotiate a new contract for CCH employees. However, when the Dents refused to restore wages to their previous levels, the negotiations broke down, and, on July 29, the employees voted to strike over the unilateral wage cuts and the alleged failure of the company to bargain in good faith at the July 13 meeting.…