Asset Sale and Union Obligations - If Only the Seller Is Unionized, Must I Recognize the Union?

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August 27, 2025

by a searcher in Chicago, IL, USA

I am in the process of purchasing a business in Illinois through an asset sale. The current owner is union-affiliated but will be leaving the company as part of the sale. The employees who will continue working with the company post-sale are not union members. Since this is an asset sale, am I correct that I would not be required to recognize or negotiate with the union representing the former owner, since none of the remaining employees are unionized? Are there any common issues or pitfalls buyers face in these situations? Any insights or real-world experiences would be helpful. Thank you!
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Reply by a searcher
from The University of Chicago in Nashville, TN, USA
If you don't have it already, you will definitely need to review the CBA. There are often geographical and/or job description restrictions in place that call it out. When you say that the owner is union affiliated, do you mean they have other union sites? or the owner themself is union? If it is the former, the CBA should call out the dividing line, if it is the latter that would be a very bizarre situation.
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Reply by a professional
from Northwestern University in Chicago, IL, USA
I’m happy to offer some insights and chat more. You can reach me at redacted
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