Citizens Financial Group Inc., which is based in Providence, Rhode Island and is the second-largest bank in New England, has lost its appeal of an NLRB ruling. A federal appeals court in Washington, DC found that the bank had illegally fired a Dreyfus Investment Services employee, Christopher Haywood, who had organized gatherings where attendees complained about their wages. Citizens had acquired Dreyfus in 2001, and fired Haywood in 2002.
The court stated that the bank had acted illegally by firing Haywood for promoting “concerted activities” to discuss compensation. The court denied the petition for review with the words, “there was substantial evidence to support the board’s finding that Hayward’s protected concerted activity was a motivating factor in the company’s decision to discharge him.” The court further affirmed that Haywood be reinstated, his termination be removed from his personnel records, and that he receive full compensation for time lost.
All corporations, whether dealing with blue collar or white collar employees, must have a labor relations action plan in place so that terminations will be successfully upheld and so that management can deal with labor relations problems before they arise.