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Guitar Center is accused of violating federal labor law

The Columbian
Published: August 1, 2015, 5:00pm

CHICAGO — Guitar Center is being accused of violating federal labor law by “discriminating” against employees at its flagship stores in Chicago, New York and Las Vegas, and failing to bargain in “good faith” with the workers’ union, according to a complaint issued last week by a regional director of the National Labor Relations Board.

Guitar Center, which is majority-owned by private equity firms Ares Management and Bain Capital, couldn’t immediately be reached for comment.

The musical instrument retailer with more than 260 stores allegedly threatened employees with reduced benefits “because of their union membership or affiliation,” denied them benefits offered to nonunion employees and bargained with no intention of reaching a labor agreement with the Retail, Wholesale and Department Store Union, according to the complaint issued July 24.

The NLRB’s general counsel is seeking an order requiring the company to bargain in good faith and to reimburse the union for its costs and expenses since July 2013.

“This is vindication of what we have been saying, that Guitar Center crossed the line,” said union President Stuart Appelbaum.

Guitar Center and the union have been in contract negotiations since 2013. Last year, talks ended in Las Vegas and New York after the company withdrew its recognition of the union. The union continues to negotiate on behalf of workers in Chicago. Negotiations could affect a total of 120 workers at those three stores, the union said.

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