Federal court backs engineers' union, orders Macy's to reinstate and compensate locked-out workers
A federal appeals court ruled Macy’s violated labor law by locking out union engineers after failed contract talks, underscoring HR’s responsibilities in labor disputes.
On October 20, 2025, the United States Court of Appeals for the Ninth Circuit upheld a National Labor Relations Board (NLRB) order against Macy’s Inc., concluding the company violated the National Labor Relations Act when it locked out members of the International Union of Operating Engineers, Stationary Engineers, Local 39. The dispute arose after Macy’s and the union, which represents building engineers and craftsmen at Macy’s stores in Northern California and Reno, Nevada, failed to reach a new collective bargaining agreement in 2020.
The conflict began as the COVID-19 pandemic forced Macy’s to close stores and furlough employees in early 2020. By mid-August, Macy’s recalled some union engineers as stores reopened. The existing collective bargaining agreement was set to expire on August 31, 2020. After nearly a dozen bargaining sessions, Macy’s presented its final offer regarding wages and pensions. On September 2, 2020, union members overwhelmingly rejected the offer and began a strike on September 4, picketing daily at Macy’s Union Square store in San Francisco.
After three months, on December 4, 2020, the union made an unconditional offer to return to work. Macy’s responded that it was not ready to have...
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