The three employees assigned their claims to Springer, who brought this action against the corporation for the extra wages. Decision?
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The International Association of Machinists (the union) was the bargaining agent for the employees of Powder Power Tool Corporation. On August 24, the union and the corporation executed a collective bargaining agreement providing for retroactively increased wage rates for the corporation’s employees effective as of April 1. Three employees who were working for Powder before and for several months after April 1 but who were not employed by the corporation when the agreement was executed on August 24, were paid to the time their employment terminated at the old wage scale. The three employees assigned their claims to Springer, who brought this action against the corporation for the extra wages. Decision? |
Explanation
It is a valid assignment to receive the wages. The employees should get the due wages as they are the intended third-party beneficiary of the contract between the union and Corporation P. The employees were part of the corporation from the time the contract was considered effective. As a result, they are entitled to get their salaries back.
Verified Answer
The role is a legal assignment of the right to receive cash. Third-party beneficiaries of the deal between the union and Corporation P are supposed to be workers.
The three workers were working in Corporation P during the time covered by the contract. For this reason, they are expected recipients that are entitled to refund their salaries for the period starting from April 1 till the termination of their jobs.
