What happened?

On August 28, 2024, the Department of Justice Antitrust Division (DOJ), the Federal Trade Commission (FTC), the Department of Labor (DOL), and the National Labor Relations Board (NLRB) signed a Memorandum of Understanding (MOU) on Labor Issues in Merger (M&A) Investigations. This agreement enhances the antitrust agencies’ capacity to examine the potential impacts of mergers and acquisitions on labor markets.

Quick Summary:

• The federal agencies mentioned above are increasingly focused on the effects of M&A on the workforce and enhance collaboration requirements on labor issues related to merger investigations.

• Safeguard employees and ensure fair competition within the labor market, how the Labor Agencies can support/guide the Antitrust Agencies on potential labor concerns identified during their evaluations.

• Requires multi-agency training in Labor and Anti-Trust compliance.

What are the details?

Additional information found within the MOU

• The DOL and NLRB commit to promptly meeting with the DOJ or the FTC upon request, offering technical assistance and relevant data.

• MOU’s Appendix A outlines specific reports and data sets the antitrust agencies require from the labor agencies, such as wage statistics, employment counts, job dynamics, representation case activity, and unfair labor practice charges from the NLRB.

• This MOU builds on previous interagency agreements to expand scrutiny of mergers, aiming to identify and address potential anti-competitive impacts on workers.

• It ensures that all relevant information and expertise are used to assess the effects of M&A on labor markets.

• The collaboration includes information sharing, technical assistance, and regular meetings to promote fair competition and protect employees.

Under the MOU, Labor Agencies are required to:

• Train Antitrust Agency personnel on labor issues, such as the duty to bargain in good faith and unfair labor practices.

• Meet biannually with the Antitrust Agencies to discuss MOU implementation and coordination.

• Uphold and expand upon prior agreements between the Labor and Antitrust Agencies.

Business Considerations

• Conduct thorough internal reviews to ensure compliance with labor-related and fair competition laws.

• Prepare to provide relevant wage, employment, and job dynamics data as requested by antitrust agencies.

• Audit current compliance training programs and material to examine if content meets the training needs or explore potential compliance training partners like Vensure to support your needs.

Source References

• Memorandum of Understanding (MOU) on Labor Issues in M&A Investigations
• DOL MOU Press Release
• FTC MOU Press Release

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