NLRB Chairman Liebman and Acting General Counsel Solomon Submit Statements to House Committee Education & The Workforce

On February 11, 2011, the House Committee on Education and the Workforce held a hearing entitled "Emerging Trends at the National Labor Relations Board."  Witnesses at that hearing were highly critical of the recent activity of the Board.  That afternoon, NLRB Chairwoman Wilma Liebman issued a statement declaring that the agency was merely "coming back to life after a long period of dormancy."

Late last week, Chairman Liebman and Acting General Counsel Lafe Solomon submitted separate written statements for inclusion in the hearing record.  Acting GC Solomon's letter focuses on his numerous initiatives announced by GC Memoranda the past few months.

Chairman Liebman's statement takes exception to the testimony of the management attorneys on the panel, and continues her defense of the agency's direction thus:

What are the "emerging trends" at the Board?  I think there are three.

First, greater productivity in decision-making, reflecting the Board's new quorum and with it, the ability to decide cases and avoid deadlock.  Second, greater transparency and public participation in its decision-making -- perhaps at the price of greater controversy, but with a corresponding gain in the fairness and quality of the Board's decision-making process.  Third, a willingness to take carefully considered steps to keep the National Labor Relations Act vital, as exemplified in the Board's unanimous decision to begin awarding compound interest on backpay awards to employees victimized by unfair labor practices -- more than 20 years after the Board was first urged to adopt that remedial change.

FMCS Director George Cohen's Statement on Status of NFL-NFLPA Mediation

As mediation meetings broke Thursday evening for a long weekend, chief mediator and Director of the Federal Mediation and Conciliation Service George Cohen issued a statement providing a status update on the negotiations between the NFL and NFLPA.   From that statement:

Our time together has been devoted to establishing an atmosphere conducive to meaningful negotiations and, of course, matters of process and substance. I can report that throughout this extensive period the parties engaged in highly focused, constructive dialogue concerning a host of issues covering both economics and player-related conditions. The tenor of the across-the table discussions reflected a noteworthy level of mutual respect even in the face of strongly held competing positions. The parties met both in full committee and in subcommittees where discrete, technical issues lent themselves to smaller groups.

At bottom, some progress was made, but very strong differences remain on the all-important core issues that separate the parties. Nonetheless, I recommended and the parties have agreed to resume the mediation process in my office commencing next Tuesday (March 1). During the intervening weekend, the parties have been asked by us to assess their current positions on those outstanding issues.

The parties will also both be attending the league's scouting combine in Indianapolis this weekend, which should provide some opportunity for interaction and perhaps even some side conversations.  As I suggested to the Washington Post last week, we should have a sense once those talks resume next week whether the parties believe that, with the mediator's assistance, a deal is within reach -- or, whether a work stoppage is more likely soon after the CBA's March 3rd expiration.

NLRB States that GOP Budget Would Require 55-Day Shutdown

In a issued this afternoon, National Labor Relations Board Chairman Wilma B. Liebman and Acting General Counsel Lafe Solomon responded to the proposed cuts to the agency’s budget in H.R. 1, the Full-Year Continuing Appropriations Act  (page 303, lines 17-19). We noted earlier this week that a proposed amendment to defund the agency entirely was defeated. However, H.R. 1 nevertheless would cut the Board’s budget by $50 million (from $283 million to $233 million). Some conservatives have argued that such cuts are justified by the Board’s declining caseload over the last decade. Indeed, Redstate.com provides several charts illustrating the correlation between the Board’s year over year caseload and budget. And, of course, the Board has faced criticism of late for what some perceive as an “activist agenda.”

Chairman Liebman and Acting General Counsel Solomon take a different view, noting the Board’s “reinvigoration” as it “returns to health after more than two years of vacancies.” Moreover, they state that the proposed cuts would be especially difficult because they would have to be taken with only seven months remaining in the fiscal year.

Nearly all of the agency's budget is spent on salaries and rents; there are no programs to eliminate or postpone. The only way to meet this extreme and immediate reduction would be to furlough all of the NLRB's 1,665 employees for 55 workdays, or nearly three months, between now and the end of September. The great majority of these employees work far from Washington D.C., in 51 local offices, where every NLRB case begins. The economic impact of this cut would be felt by families and communities in 33 states.

If enacted, the House proposal could force the NLRB to curtail all agency operations, including investigating alleged illegal practices by private sector employers and unions, conducting workplace elections, and helping to settle election-related disputes. Regulation of a broad range of conduct, such as unlawful lockouts of workers, termination of union organizers, refusals to bargain with unions selected by workers, unilateral changes to contract provisions covering such things as health insurance and pensions, unlawful strikes, picket line violence, and secondary boycotts, would be stalled if this proposal were adopted.

A vote on H.R. 1 may occur as early as today.

Bill Introduced to Reverse President Obama's Executive Order on Project Labor Agreements

On Wednesday, Rep. John Sullivan (R-OK) introduced a bill designed to reverse President Obama's Executive Order 13502.  That EO, one of four issued during the President's first month in office in 2009, allows federal executive agencies to require contractors on large-scale government construction projects to enter into a project labor agreement as a condition of being awarded a contractA “project labor agreement” (PLA) is a pre-hire collective-bargaining agreement – often involving multiple employers and multiple unions – designed to systemize labor relations at a construction site.

Rep. Sullivan's Government Neutrality in Contracting Act (H.R. 735) and a similar bill (S. 119) would largely invalidate the President's Order in the absence of special circumstances.  Section (a) of the bill states:

      (1) GENERAL RULE- The head of each executive agency that awards any construction contract after the date of enactment of this Act, or that obligates funds pursuant to such a contract, shall ensure that the agency, and any construction manager acting on behalf of the Federal Government with respect to such contract, in its bid specifications, project agreements, or other controlling documents does not--
        (A) require or prohibit a bidder, offeror, contractor, or subcontractor from entering into, or adhering to, agreements with 1 or more labor organizations, with respect to that construction project or another related construction project; or
        (B) otherwise discriminate against or give preference to a bidder, offeror, contractor, or subcontractor because such bidder, offeror, contractor, or subcontractor--
          (i) becomes a signatory, or otherwise adheres to, an agreement with 1 or more labor organizations with respect to that construction project or another related construction project; or
          (ii) refuses to become a signatory, or otherwise adhere to, an agreement with 1 or more labor organizations with respect to that construction project or another related construction project.

President Obama's EO 13502 encouraged federal agencies to use PLAs on any construction project worth more than $25 million, but did not require them.  It did also require the O.M.B. to investigate expansion of the use of PLAs on federal construction projects.  The White House's related statement of policy explained the goals of the EO as follows:

The use of a project labor agreement may prevent these problems from developing by providing structure and stability to large-scale construction projects, thereby promoting the efficient and expeditious completion of Federal construction contracts. Accordingly, it is the policy of the Federal Government to encourage executive agencies to consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in Federal procurement.

Law360 reports that Rep. Sullivan sent out a letter to his colleagues earlier this week describing the Executive Order as an “'anti-competitive and costly measure encouraging federal agencies to mandate union favoring” agreements that raise construction costs from 12 to 18 percent":

“In short, government-mandated PLAs are nothing more than schemes to repay big labor bosses for political support by steering lucrative federal construction contracts to unionized companies and their unionized workforces,” Sullivan said.

“Instead of pandering to special interests, Congress should be doing all it can to ensure fair and open competition on federal construction contracts, and help deliver to taxpayers the best possible construction project at the lowest possible price,” he said.

The House bill has 23 co-sponsors.  Committee hearings are expected on the bills soon.

More resources and commentary:

 

Amendment to Defund National Labor Relations Board Fails House Floor Vote

As we reported yesterday, Rep. Tom Price (R-GA) introduced an amendment to H.R. 1, the Full-Year Continuing Appropriations Act  to defund the National Labor Relations Board for the remainder of the 2011 Fiscal Year.  In response to an inquiry about this proposal, Rep. Price told Labor Relations Today:

The spending spree in Washington has put our nation on a perilous path to fiscal ruin.  House Republicans understand we need to cut spending immediately to help get our economy growing and more Americans back to work.  Every step we can take to responsibly rollback the cost of government is important.  By striking $233 million in funding for the National Labor Relations Board, we can save taxpayer dollars and help protect American job creators from an out-of-control agency bent on installing ‘card check’ (Secret Ballot Destruction Act) via regulations and circumventing the will of the American people.

The House Clerk's minutes of the Floor proceedings overnight indicate that following debate on the Amendment, the Chair announced approval by a voice vote.  Rep. George Miller (D-CA), Ranking Member of the Committee on Education & the Workforce, then demanded a voice vote, which resulted in postponement of further proceedings:

12:01 A.M. - Amendment offered by Mr. Price (GA).

An amendment numbered 410 printed in the Congressional Record to eliminate funding for the National Labor Relations Board.

DEBATE - The Committee of the Whole proceeded with debate on the Price (GA) amendment under the five-minute rule.  

12:15 A.M. - POSTPONED PROCEEDINGS - At the conclusion of debate on the Price (GA) amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the ayes had prevailed.  Mr. George Miller (CA) demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

It appears that late this morning, the House took a recorded roll call vote (No.75) and the amendment failed.

Georgia Congressman Introduces Amendment to Defund National Labor Relations Board

The House continues its consideration of H.R. 1, the Full-Year Continuing Appropriations Act for FY2011.  This bill, if passed, will make appropriations for the continuing operation of the various federal government agencies through September 30, 2011.  As reported by The Hill several hundred additional amendments have recently been introduced, which are taking up considerable time in the debate.

Among the amendments introduced is C.R. 578, introduced by Rep. Tom Price (R-GA), to defund the National Labor Relations Board, as follows:

At the end of the bill (before the short title), insert the following:

Sec. __. None of the funds made available by this Act may be used to pay the salaries and expenses of personnel to carry out and implement the National Labor Relations Act (29 U.S.C. 151 et seq.)

Indeed, there are several hundred similar proposals to defund this or that amongst the offered amendments to H.R. 1, and many will fall victim to political horse-trading and debate as the Republicans and Democrats work to finalize a bill to continue funding Department of Defense appropriations, among other things.  Yet on the heels of last Friday's House Committee hearing on the new "aggressive" tone of the National Labor Relations Board, and the Board Chairman's assertive response, this would seem to provide a harbinger of things to come with respect to Congressional oversight of the agency.

NFL Files Unfair Labor Practice Charge Against NFLPA

The National Football League today filed an unfair labor practice (ULP) charge against the NFL Players Association, alleging that the union has failed to bargain in good faith with the league in violation of Section 8(b)(3) of the National Labor Relations Act.   The text of the charge, filed at the Regional Office for Region 2 in New York City, accuses the union of engaging in unlawful "surface bargaining and an anticipatory refusal to bargain."

More specifically, the charge describes the union's alleged unlawful conduct to include failure to schedule sessions, failure to respond to management proposals in a timely and meaningful manner, insisting upon the disclosure of financial data as a condition to negotiations, and additional conduct  indicating a lack of "intent to reach agreement through good faith collective bargaining."

The charge continues, to spell out the heart of the NFL's concern -- the NFLPA's long apparent strategy of coordinating a decertification in order to obtain a strategic advantage:

These tactics have been and are integral to -- indeed, they are in preparation for -- the NFLPA's announced strategy to run out the clock and, after the CBA expires on March 3, purport to "disclaim interest" as the representative of the NFL players, a strategy utilized by the Union in a prior negotiation and one that the NFLPA often has threatened to resort to in this negotiation should it be deemed more advantageous to the players than the collective bargaining process that the Union is obligated by law to follow.  On the false premise that the bargaining relationship would effectively be terminated as a result of its sham dislaimer, the NFLPA has made plain that it will then seek (i) to enjoin, as a supposed antitrust violation, any effort by the League/Clubs in support of their bargaining demands to exercise their rights under federal labor law lawfully to lock out the players, and (ii) once again to achieve a favorable agreement with the NFLMC through the threat, commencement and subsequent settlement of antitrust litigation, rather than through the give and take of good faith collective bargaining contemplated by the Act and enforced by the National Labor Relations Board.

As evidence, the NFL suggests the Board view the NFLPA's statements and conduct over the course of the last 20 months. 

One of the interesting results of this filing is that, pursuant to the NLRB's "blocking charge" rule, the agency will likely not process a decertification petition filed by the players now, until after it has fully investigated this charge.  As a result, if the NFLPA intends to continue with its antitrust leverage strategy, the union itself will have to "disclaim interest" in representing the employees -- essentially, it must walk away from the players.  It is the union's ability to properly do this that the league is attacking in this charge.  According to Chapter 8 of the NLRB's Outline of Law and Procedure in Representation Cases:

To be effective, [a disclaimer] must be clear and unequivocal and made in good faith. Retail Associates, 120 NLRB 388, 391–392 (1958); Rochelle’s Restaurant, 152 NLRB 1401 (1965); and Gazette Printing Co., 175 NLRB 1103 (1969).  In International Paper, 325 NLRB 689 (1998), the Board characterized the request as being one of “sincere of abandonment with relative permanency.”

Thus, a union’s bare statement is not sufficient to establish that it has abandoned its claim to representation if the surrounding circumstances justify an inference to the contrary. 3 Beall Bros. 3, 110 NLRB 685, 687 (1955).  Its conduct, judged in its entirety, must not be inconsistent with its alleged disclaimer H. A.  Rider & Sons, 117 NLRB 517, 518 (1957).  McClintock Market, 244 NLRB 555 (1979), and Ogden Enterprises, 248 NLRB 290 (1980).  Windee’s Metal Industries, 309 NLRB 1074 (1992).

In assessing the effectiveness of any disclaimer by the NFLPA, the NLRB will indeed study carefully the union’s conduct over the last several months in bargaining, and perhaps more importantly, how it conducts itself after the supposed disclaimer.  Any effort by the union and its current leadership to continue to drive the players' negotiating strategy will surely undermine its position on these allegations.

Georgia Rep Introduces Bill to Reverse NMB Rule on Union Elections

Last week, Rep. Phil Gingrey (R-GA) introduced legislation to reverse a controversial rule change implemented by the National Mediation Board (NMB) last year which made it easier to organize unions in the airline industry. The "Restoring Democracy in the Workplace Act" (H.R. 548) is intended to repeal a rule published by the NMB on May 11, 2010, and the related regulations.

The NMB rule at issue changed the manner in which the results are determined in union representation elections under the Railway Labor Act.  Previously, a decades-old rule provided that a union would only be certified as a bargaining representative of a group of employees if a majority of all eligible voters cast ballots in favor of unionization -- the "majority in unit" standard.  The new standard, the "majority of votes cast" standard, matches the standard applied by the National Labor Relations Board in elections under the NLRA -- a union is declared the representative of a unit of employees if a majority of the employees who cast valid ballots vote for union representation.  After a court challenge failed to halt the agency's promulgation, the new rule went into effect.

Rep.Gingrey's proposal is simple:

Effective January 1, 2011, the rule prescribed by the National Mediation Board relating to representation election procedures published on May 11, 2010 (95 Fed. Reg. 26062) and revising sections 1202 and 1206 of title 29, Code of Federal Regulations, shall have no force or effect.

While the House bill has currently has thirty-two co-sponsors, and is likely to pass a vote there, the Senate will remain a hurdle for the bill.  Last May, Senator Johnny Isakson (R-GA) introduced S.J. RES. 30, a Joint Resolution to express "congressional disapproval" of the NMB's administrative action.  The Senate voted 56 to 43 against the resolution.  Senators Lincoln (D-AR), Pryor (D-AR) and Nelson (D-NE) crossed the aisle to vote in support of the resolution.  All Republican Senators voted for the measure with the exception of Sen. Lisa Murkowski (R-AK) who did not vote.  A similar pattern, even if GOP pick-ups provide a majority, will still likely fall short of the numbers needed for a cloture vote.

More Recap of "Facebook Firing" Case

Our take on the American Medical Response, Inc. settlement, which continues to attract attention, should be no surprise to regular readers of this blog.  I spoke a bit last week to Business Insurance (subscription required) about some "take-aways":

"Though there was no decision in this case, I think employers need to recognize that the NLRB-issued complaint shows a change,” said Seth Borden, New York-based partner in McKenna Long & Aldridge L.L.P.'s labor practice. “Three or four years ago, it was very likely the board would not have filed this complaint, and it shows a marked change in direction in how it views social media,” he said.

Fellow labor attorneys Sara Begley and Eric B. Meyer provided helpful insights as well.

NLRB Chairman: Board "is coming back to life after a long period of dormancy"

Following this morning's House Committee hearings on the National Labor Relations Board's recent activity, NLRB Chairwoman Wilma Liebman has issued this statement:

This morning, a subcommittee of the House Education and The Workforce Committee held a hearing on "Emerging Trends at the National Labor Relations Board". In response to requests for comment, Chairman Wilma Liebman issued the following statement:

"The most significant ‘emerging trend’ at the NLRB is that the agency is coming back to life after a long period of dormancy. After more than two years without a quorum due to chronic vacancies, the Board now has four members and has been tackling many of the difficult cases that languished for years. We are actively seeking input from practitioners and from the public, by inviting briefs for important cases that are under review, and by using the process of federal rulemaking to seek comments on one potential rule change intended to inform American employees of their statutory workplace rights. 

 It is unfortunate that the work of the Board is often viewed through a partisan lens, but that has been the case for decades. We simply intend, to the best of our ability, to continue to apply the law and carry out the agency’s statutory mission fairly and openly.  I look forward to working with Congress in the months ahead to demonstrate our adherence to that goal, and I welcome a serious dialogue about these important issues."

Summarizing Today's House Hearings on Recent NLRB Activity

If you missed the hearings held this morning by the House Committee on Education and the Workforce, and weren't able to follow our live-Tweet stream of the proceedings, you can watch the archived webcast here.

In his opening statement, Chairman Rep. Phil Roe (R-TN) introduced the hearing thus:

That is why today’s discussion about the National Labor Relations Board is so important. The NLRB was created more than 75 years ago to perform two functions: first, to determine by free democratic choice whether workers desire union representation and if so, by which union; and second, to prevent and remedy unfair labor practices by employers and unions. 

The board serves as a quasi-judicial body. Its five members are chosen by the president, and the majority of members share the president’s views on labor policy. As a result, the board has generated a lot of debate over the years. However, that debate has recently been elevated to new heights since the board abandoned its traditional sense of fairness and neutrality and instead embraced a far-more activist approach. 

Numerous actions by the board suggest it’s eager to tilt the playing field in favor of powerful special interests against the interests of rank-and-file workers.

The statements of witnesses Philip Miscimarra of Morgan Lewis; G. Roger King of Jones Day; former General Counsel Arthur Rosenfeld; and NYU Professor Cynthia Estlund are available online.

As one can see from the witness statements and our live-Tweet transcript of the question and answer portion, there was much discussion at today's hearing about:

We will continue to follow and report on these trends and developments as they unfold.

House Education & The Workforce Committee Hearings: "Emerging Trends at the National Labor Relations Board"

In about an hour, the House Committee on Education and the Workforce will gavel in its hearing, "Emerging Trends at the National Labor Relations Board."  We will be "Tweeting" real-time updates from the hearing on our Twitter feed, @LRToday, and updating this blog feed regularly.

In advance of the hearing, here is some of the press coverage of today's proceedings:

 UPDATE:  Re-cap of the hearing can be found here.

House Committee to Hold Hearings on Recent NLRB Activity

The House Committee on Education and the Workforce has announced that on Friday, February 11 at 10:00 a.m., the Health, Employment, Labor, and Pensions Subcommittee will hold a hearing on "Emerging Trends at the National Labor Relations Board" in room 2175 of the Rayburn House Office Building. According to the Committee's press release:

Members will receive testimony that provides a broad overview of the board’s history and authority, as well as discusses recent actions taken by the board that suggest a more activist approach to its interpretation of the law governing relations between employers and union representatives.

Scheduled witnesses include Philip Miscimarra, partner at Morgan Lewis; G. Roger King, partner at Jones Day; Arthur Rosenfeld, former NLRB General Counsel; and Professor Cynthia Estlund, NYU Law School.  The hearing may be viewed live tomorrow here.

For more information on items certain to be on the Committee's agenda at the hearing, check out the posts in our "Bush Board Reversal," "NLRB Decisions," and "NLRB Rule-Making" tabs at right.

UPDATE:  Re-cap of the hearing can be found here.

Library of Congress Archiving Labor Relations Today Blog

Labor Relations Today is honored to announce that the United States Library of Congress has selected our blog for inclusion in its Legal Blawg Archive – a selective, historic collection of Internet materials related to legal blogs.   

According to the archive’s project manager, the Legal Blawg Archive is a way of capturing current events for historical and research purposes. The Law Library of Congress began harvesting legal blogs in 2007 and the collection has grown into more than one hundred items covering a broad cross section of legal topics.

Blawgs can be retrieved by keywords or browsed by subject, name or title. The archiving process for LRT began February 1 and will continue for the next 12 months. The Labor Relations Today blog will be available to the public on the Library's website in Spring 2012.

Of course, you can continue to receive up to date labor law news, resources and information straight from us on a more timely basis by subscribing to LRT in the box at top right or here.

NLRB Regional Director Discusses "Facebook Firing" Case With Morning Show

Further proof that all things "Facebook" capture the public's attention nowadays, the Regional Director for Region 34 of the National Labor Relations Board appeared on a rock radio station's morning program today to discuss the Board's settlement of the American Medical Response case.  Monday night, Regional Director Jonathan Kreisberg approved the case settlement which included a traditional required Notice posting, commitments from the employer to revise its "Blogging and Internet Posting Policy," and an non-admission of liability clause. 

Appearing on Springfield, Mass. station WAQV Rock 102's "Bax and O'Brien" show earlier, the Regional Director discussed the case and provided this takeaway for employers:

It doesn't really set a precedent because it's not a final decision, it's not an order.  But the policy and practices under the Act are that if a case comes to us with a rule such as this, that under the existing law it would likely be found to be overly-broad and bad.  We can't go out and police -- we don't police companies.  That's not our job, it's not our authority.  We can only react when someone comes to us and files a charge, and then we investigate and make a decision. 

As we indicated Monday night, we expect additional cases in Region 34 and elsewhere to further define the parameters of what the Board considers and overly-broad Social Media policy.  Chairman Liebman has long indicated that she believes the Board must take a more prohibitive view of employer policies that might potentially be construed to impact protected activity.  Employers would be well advised to review their policies now for compliance with the law.  With all the publicity that this case garnered in the mainstream media, employers can count on the fact that somewhere, someone else is already doing so.

NLRB, Parties Settle "Facebook Firing" Case

On the eve of trial, the National Labor Relations Board tonight announced a settlement in American Medical Response of Connecticut, Inc., 34-CA-12576 -- a/k/a/ the "Facebook firing" case.  The hearing in the case was postponed once before and scheduled to begin tomorrow, but per the Board's press release, the parties have resolved the matter:

Under the terms of the settlement approved today by Hartford Regional Director Jonathan Kreisberg, the company agreed to revise its overly-broad rules to ensure that they do not improperly restrict employees from discussing their wages, hours and working conditions with co-workers and others while not at work, and that they would not discipline or discharge employees for engaging in such discussions.

The company also promised that employee requests for union representation will not be denied in the future and that employees will not be threatened with discipline for requesting union representation. The allegations involving the employee’s discharge were resolved through a separate, private agreement between the employee and the company.

The termination of the employee for undeniably vulgar commentary about her supervisor, on the one hand, and the alleged Weingarten violation in the denial of union representation, on the other,  were the "grey" facts that muddied the analysis of this case.  It would seem for now that we have been denied a concrete sense of the Board's developing approach to social media cases.

But we might not have to wait for long.  On February 4, the CSEA/SEIU filed an unfair labor practice charge against a Connecticut bus company at the Regional Office for Region 34.  Unlike the AMR case and other charges filed by CSEA/SEIU earlier, the charge in Case No. 34-CA-12906 contains no specific allegations that the company improperly disciplined any particular employee.  Rather, this charge alleges that the employer violated Section 8(a)(1) of the National Labor Relations Act merely by "maintaining" policies in its employee handbook, including a policy against:

The use of electronic communication and/or social media in a manner that might target, offend, disparage, or harm customers, passengers or employees; or in a manner that might violate any other company policy.

Region 34 and the General Counsel's treatment of what appear to be simpler facts in this case should provide a good deal more guidance about how the NLRB will evaluate social media policies in the future.

NFL and NFLPA Issue Joint Statement About Today's CBA Meeting

Down in Dallas, a little over 24 hours before Super Bowl XLV, representatives of the NFL and the NFL Players Association have emerged from several hours of labor talks regarding the current CBA set to expire March 4th.  The parties issued a joint statement, reproduced here via the Tweets of NFLPA Assistant Executive Director of External Affairs George Atallah:

The NFL and NFLPA met for 2 hours today in a continuing effort to narrow the differences and reach a fair agreement that......will benefit the players, teams and fans. We plan to increase the number, length and intensity of bargaining sessions......so that we can reach agreement before the March 4 expiration of the current CBA. (end joint NFL and NFLPA statement).

And now, on to the big game... and back to the table, it would seem, soon after.

(h/t: Liz Mullen, SportsBusiness Journal)

Tags:

The Showdown on Super Bowl Saturday: NFL and NFLPA to Meet

A little over 48 hours before the kick-off of the biggest sporting event of the year, Super Bowl XLV, the Commissioner of the National Football League Roger Goodell addressed reporters on the state of the league.  With the earlier announcement that the owners and the union would sit down the day before the Super Bowl, the League's current labor dispute loomed large during this press conference.  In response to a question about a perceived March 4 deadline -- the date the current collective-bargaining agreement expires -- the Commissioner said:

"I frequently said that I think that March 4th is a very critical date because, again, a lot of different strategies will take place if we're not successful in getting an agreement by that time. We need to have intensive, round-the-clock negotiations to address the issues and find solutions. If we're committed to doing that, I think we can be successful. But we have to demonstrate that commitment and get to work."

As noted, the current collective-bargaining agreement between the NFL and the NFL Players' Association (NFLPA) now expires on March 4th of this year.  The CBA, signed following extensive negotiations in 2006, was originally set to expire in 2013, but it contained an opt-out provision.  In 2008, the owners exercised that option, moving the expiration date up to next month.  When the opt-out was triggered, the final year of the deal -- the 2010 season -- became an "uncapped" year, meaning there would be no limit on the salaries each team could commit to players.  In his excellent series on the ongoing negotiations, former NFL exec Andrew Brandt explains that the parties believed this would force the parties to resolve their issues:

The late Gene Upshaw – the head of the NFL Players Association at the time --had created the specter of an uncapped year ahead that would -- as he painted it -- change the way the NFL does business irrevocably and make football look like baseball. He had invoked the ominous phrase "Once the Salary Cap goes away, it’s not coming back!" that stoked fear then (it has not done so now), afraid their colleagues in that room would drive player spending to new heights without a Cap to apply the brakes.

Andrew has also well chronicled the various bargaining issues which appear to have the parties far apart.  Over the next few weeks, as developments continue to unfold, we will endeavor to explain the traditional labor law principles at issue in this dispute. 

In the meantime, here are some additional resources:

And in addition to @LRToday, frequent Twitter commentary on the NFL labor situation can be found from @adbrandt, @SBJLizMullen, @DKaplanSBJ, @NFLCommish, @NFLLabor, @NFLPA

Tags:

NLRB Responds to Attorneys General on Secret Ballot Amendments

The Acting General Counsel of the National Labor Relations Board has responded to the joint letter by the Attorneys General of Arizona, South Carolina, South Dakota and Utah proclaiming their intent to defend their state constitutions against any NLRB litigation to invalidate recent secret ballot amendments.

On Friday, January 14, 2011, the Acting GC advised the Attorneys General of these four states that he believed the National Labor Relations Act preempted their states' constitutional amendments to require the use of secret ballots in union representation elections.  He requested a response from the states within two weeks, and threatened a federal lawsuit unless the states stipulated that their secret ballot provisions were unconstitutional.

Last week, the states sent a letter back rejecting the Board's assertion and refusing to "stipulate to the unconstitutionality" of the state amendments.  The AGs' letter defended the significance of secret ballots in union representation elections, and urged the Board to reconsider its threat to litigate.

By letter yesterday, the Acting GC advised the four states:

As you have unanimously expressed the opinion that the State Amendments can all be construed in a manner consistent with federal law, I believe your letter may provide a basis upon which this matter can be resolved without the necessity of costly litigation.  My staff will shortly be in contact with the staff members you have designated to explore this issue further.

Employers in all fifty states should continue to follow these developments.  The results of these discussions should reveal a bit more about the extent to which the Board will seek to elevate alternative methods of designating a union representative.

California Appellate Court Strikes Down State Law Protecting Labor Picketing on Private Property

Last week, the California Court of Appeal for the Fifth Appellate District reversed a lower court's ruling and declared two state statutes protecting labor handbilling and picketing on private property to be unconstitutional when similar protections are not allowed for other speech.  In Ralph's Grocery Company v. UFCW Local 8, F058716, Sup. Ct. No. 09CECG00349 (Jan. 27, 2011), the lower court had denied the employer's request to enjoin the union from informational picketing in front of one of its stores.  In denying Ralph's request, the lower court relied upon Section 527.3 of the California Code of Civil Procedure (the Moscone Act), which limits the jurisdiction of state courts in addressing "labor disputes," and California Labor Code Section 1138.1(a), which expressly and strictly limits the ability of a court to issue preliminary injunctions arising out of labor disputes.

In appealing the denial, the employer argued that these statutes constituted "impermissible content-based discrimination" prohibited by the First Amendment of the U.S. Constitution. 

In last week's decision, the Court of Appeal agreed:

The actual impact of the statutes is to discriminate:  to provide a forum on both public and private property . . . for speech related to labor disputes . . . while not providing the same forum (for example) for speech . . . relating to the right not to be discriminated against based on race, sex, ethnicity, or sexual orientation; or for speech relating to the collection of signatures to generate change through the initiative, referendum, and recall process; or for speech relating to the exercise of the freedom of religion, each of which is also of significant importance to the public discourse of a free society.  It is that issue that concerns us:  The statutes select which views the state is willing to have discussed or debated.

More commentary and resources:

 

Letter to President Obama From Senators Enzi and Hatch Regarding Becker Re-Nomination

Last night we noted the Daily Caller report that Senators Michael Enzi (R-WY) and Orrin Hatch (R-UT) had asked President Obama to withdraw the nomination of Craig Becker to continue serving as a Member of the National Labor Relations Board. 

Today, the Senators released a statement about the letter, which was signed by all forty-seven Republican Senators:

“I oppose the nomination of Craig Becker absolutely. Over the past ten months, Mr. Becker has made his intention and bias clear.  The NLRB is meant to be an impartial authority ensuring organizing freedom in the workplace, not a politicized institution bent on increasing unionization rates at the cost of American jobs. Last year, Mr. Becker was appointed against the will of the Senate. This year, I urge President Obama to work with Senators to identify a replacement nominee,” Senator Enzi said.   

“Last year, the Senate rejected Mr. Becker’s nomination because there were serious questions as to whether he could remain impartial while serving on the NLRB.  These questions have not been resolved and, if anything, it is more clear now that Mr. Becker is more interested in furthering a pro-union political agenda than in upholding our nation’s labor laws.  If the President, as he stated in the State of the Union, is serious about relieving pressure on the business community and ushering in a new era of bipartisanship, he should withdraw the Becker nomination and work with us to find someone that both parties can support,” Senator Hatch said.

The actual letter can be read in its entirety here.

Senators Restate Opposition to Becker Re-Nomination

Last week, President Obama once again sent to the Senate the nomination of Craig Becker to sit as a Member of the National Labor Relations Board.  Becker's nomination failed a cloture vote last year, 52-33, after which the President named him to the Board by recess appointment.  In the absence of further action on his re-nomination, Member Becker will serve until the end of this year.

This evening, the Daily Caller is reporting that Senators Michael Enzi (R-WY) and Orrin Hatch (R-UT) likewise have sent a letter to the President, asking him to rescind the nomination.  Matthew Boyle reports:

In their letter, Enzi and Hatch wrote that Becker has abused his power since his recess appointment and urged the president to reconsider his nomination.

“He has led the Board to re-open and reverse settled decisions, made discrete cases a launching point for broad changes to current labor law, and used an 18 year-old petition to initiate a rulemaking proposal that likely exceeds the Board’s statutory authority,” the letter reads. “At the same time, the NLRB is threatening four states with lawsuits based on constitutional provisions protecting secret-ballot union elections that were adopted by the voters of those states. Yet, the Board has ignored provisions in other states that conflict with federal law but benefit unions over employers, including state laws that restrict employers’ free speech rights during the union organizing process.”

Hatch and Enzi also pointed out that Becker had said that he would recuse himself in cases that involved his previous employers, but that since he’s been on the board, he has only recused himself one time. Becker has been requested to recuse himself 13 times.

The "18 year-old petition" refers to the Board's recent Notice of Proposed Rule-Making to require all employers to post workplace notices advising employees of their right to organize a union -- a proposal initially submitted by Professor Charles Morris in 1993.  The reference to the NLRB's threatened lawsuit pertains to Acting General Counsel Lafe Solomon's recent correspondence with the Attorneys General of Arizona, South Carolina, South Dakota, and Senator Hatch's home state of Utah, regarding their constitutions' secret ballot amendments.

We will post a copy of the Senators' letter once it becomes available to the public.

National Labor Relations Board Broadly Expands Scope of Activity Protected by NLRA

On Friday, the National Labor Relations Board published a decision holding that an employer violated Section 8(a)(1) of the Act for terminating an employee before she engaged in protected "concerted activity."  In Paraxel Industries, LLC, 356 NLRB No. 82 (Jan. 28, 2011), the ALJ had concluded that there was no violation of the Act when the employer fired employee Theresa Neuschafer because she had not consulted with other employees about her workplace complaints, nor had any other employee encouraged her to speak up her issues.   The Board, however, reversed, holding that the employer's termination was a "pre-emptive strike to prevent her from engaging in activity protected by the Act.”

The Charging Party was an individual Licensed Practical Nurse (LPN).  She asked a co-worker, who had recently returned to work after having quit earlier, about her wages.  The co-worker lied, leading Neuschafer to believe that the co-worker and spouse who worked with them were paid a higher wage rate, in part because they were South African like certain key management personnel.  Neuschafer complained to her immediate supervisor about her wages, remarking that perhaps everyone should quit and come back with a raise.  Higher management later interviewed Neuschafer who reiterated her complaint, but indicated clearly that she had not discussed the issue with any co-workers.  She was subsequently terminated.

In concluding that her termination violated Section 8(a)(1) of the Act, the Board reasoned:

Neuschafer’s discharge had the obvious effect of restricting her own further protected discussions of wages and possible discrimination with other employees, thus interfering with her Section 7 rights. As discussed above, the discharge also had the effect of keeping other employees in the dark about these matters, thus preventing them from discussing, and possibly inquiring further or acting in response to, substandard wages or perceived wage discrimination. We therefore find that the Respondent’s discharge of Neuschafer violated Section 8(a)(1) of the Act.

The Board expressly declined to determine whether or not her behavior constituted "protected, concerted activity."  But in this holding, the Board has clearly and broadly expanded the range of conduct protected by the National Labor Relations Act.  Nearly any individual complaint by an employee might possibly, maybe, potentially one day provide the basis for concerted behavior if enough employees subsequently become aware of it so that perhaps one more employee discovers -- or subsequently decides -- he or she may share a similar concern.

To be sure, there were troubling facts alleged in this case with regard to activity protected by other federal employment statutes -- most notably, Title VII's anti-retaliation provisions.  But now an employer who terminates an employee who has in the past complained about a particular individual work issue may also face 8(a)(1) exposure -- notwithstanding the fact that the employee never took any concerted action regarding the issue.

Other resources and commentary:

"I note that finding a Sec. 8(a)(1) motivational discharge violation in the absence of any actual concerted activity is unprecedented, and, at the very least, in tension with Meyers Industries, supra. I have serious reservations about this finding and the potential breadth of its application in future cases."