@LRToday Morning Round-Up: May 23, 2013

Dems Push Board Nominees Through HELP CommitteeLaw360 ($$) reports that yesterday, the Senate Health, Education, Labor and Pension (HELP) Committee voted to send President Obama's nominations to the National Labor Relations Board to the full Senate for a vote. Interestingly, the vote was incredibly partisan, as Republican nominees Harry Johnson III and Philip Miscimarra sailed through the process, while Democrats Sharon Block and Richard Griffin each received nine "no" votes from Republicans on the Committee.

The Board has been in hot water since January's famous Noel Canning ruling out of the D.C. Circuit found President Obama's recess appointments to be invalid. Senate Democrats, commenting on the committee meetings, noted that the law is still uncertain and the Board should continue to function until the Supreme Court decides the issue.

“We can all have our opinions about this, but there’s a conflict and there’s going to be a decision. What we’re missing in this debate so far is whether this board is going to function,” said Sen. Robert P. Casey Jr., D-Pa. “Unless you believe the board should be shut down, we should all be working toward making sure there is a functioning board.”

UMass Nurses Set to Strike: Priyanka Dayal McCluskey of the Telegram writes that UMass Memorial Medical Center management and representatives for the more than 1,000 nurses at UMass worked through the night last night in an effort to avoid a planned strike by the nurses, set to begin at 6:00AM this morning. The major disagreement between the two sides continues to involve staffing levels.

UMass has taken steps to respond to the potential strike, hiring temporary replacements and rescheduling elective surgeries and other voluntary procedures. We will keep you posted as the negotiations near a conclusion.

Labor Officials Allege ULPs by Maine Manufacturer: Matt Hongoltz-Hetling of the Morning Sentinel reports that labor leaders have accused ALCOM, a Maine-based manufacturer, of illegally firing five workers who began discussions about organizing a union. A spokesman for the AFL-CIO railed against the firings, saying they were clearly in violation of the National Labor Relations Act.

"This is a clear example of an employer firing people for union activity and trying to create a climate of fear in the workplace when workers are trying to organize," [the official] said.

ALCOM, through a spokesman, issued a strong denial, stating that the company supports the right of workers to choose. We will keep you posted as the matter moves through the investigative process.

@LRToday Morning Round-Up: May 17, 2013

Board Chair: We Have a Duty to Keep WorkingBen James of Law360 ($$) reports that yesterday, the Senate Health, Education, Labor and Pensions Committee (HELP) held a hearing concerning pending nominations to the National Labor Relations Board. Senator Tom Harkin (D-IA) stated that an executive committee meeting would be held on May 22 in order to determine whether the nominees should be sent to the full Senate for a confirmation vote. Chair Mark Gaston Pearce lamented that, in the interim, the Board owes the public a duty to keep working.

"Historically, the NLRB has functioned in the wake of constitutional challenges," he said. "We were born of controversy. In 1935 through 1937, our legitimacy was challenged in the courts. We continued to function, and when the Supreme Court finally decided the issue, we still had managed to serve the public. But most importantly, we owe it to the public to continue to work."

The Board's legitimacy is under attack from several angles, with some Senators and House Members attempting to introduce legislation to shut the Board down until a full quorum has been validly appointed. Further, the 3rd Circuit ruled yesterday that President Obama's recess appointments were constitutionally-invalid, joining the D.C. Circuit in finding that the Board did not have a quorum to act for quite some time. We will keep you posted as the nomination process moves towards a confirmation vote.

Right to Work Foundation Lobs ULP AllegationsChris Sikich of the Indianapolis Star writes that the National Right to Work Foundation has filed unfair labor practice charges against Domtar Paper Co., alleging that the company has violated Indiana's "right to work" law by forcing employees to pay union dues. Under the law, nonunion members cannot be forced to pay union dues. However, the Right to Work Foundation believes that that is exactly what is happening at Domtar.

“Teamster union officials are extracting full union dues from workers who want to exercise their rights under Indiana’s popular new right to work law,” said Patrick Semmens, vice president of the National Right to Work Foundation, in a prepared statement. “This illegal action must stop.”

Domtar could not immediately be reached for comment. Indiana's law is relatively new and only affects contracts signed after March 14, 2012. We will keep you posted on these pending charges.

Board Certifies Georgetown Adjuncts UnionPenny Hung of the Georgetown Hoya reports that this past Monday, the National Labor Relations Board certified the Service Employees International Union as the official representative of adjunct faculty at Georgetown University. The faculty voted May 3 on whether or not to be represented by the SEIU, with a large majority voting in favor of unionization. The SEIU will now meet with university officials in order to negotiate a new contract for the newly-unionized adjuncts.

Third Circuit Is Second Court to Invalidate NLRB Recess Appointments

The Third Circuit Court of Appeals joined the D.C. Circuit in invalidating President Obama's recess appointments to the National Labor Relations Board in a 2-1 decision issued today in NLRB v. New Vista Nursing and Rehabilitation, Case No. 11-3440. The Third Circuit majority held that "'the Recess of the Senate' in the Recess Appointments Clause refers to only intersession breaks," and thus Member Craig Becker did not hold a proper appointment because he was appointed during an intrasession break.

Significantly, the Third Circuit invalidated the Board's order despite the fact that the Board had a proper quorum of members to act under New Process Steel when the Board issued its decision on August 26, 2011, as there were still three properly confirmed members: Chairman Liebman, Member Pearce, and Member Hayes. Therefore, unlike the D.C. Circuit's decision in Noel Canning v. NLRB, which focused on the recess appointments of Members Sharon Block and Richard Griffin, the Third Circuit decided sua sponte that the critical issue in New Vista Nursing and Rehabilitation was whether the delegee group of the Board had jurisdiction:

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@LRToday Morning Round-Up: May 16, 2013

Charges Over Facebook Discipline Set to Continue, RDs SayBen James of Law360 ($$) writes that yesterday, a panel of National Labor Relations Board (NLRB) Regional Directors and private-sector management-side attorneys discussed current hot topics in labor relations at Cornell's School of Industrial and Labor Relations in Manhattan. In particular, the panel discussed the recent spike in Board charges dealing with issues over Facebook and other forms of social media. The Board's Regional Directors stressed that its recent interest in social-media cases was nothing new, even if a lot of the cases are cropping up in non-union environs.

“We've had jurisdiction since way back when over nonunion workforces,” [a Board Regional Director] said, pointing to the U.S. Supreme Court's 1962 decision in NLRB v. Washington Aluminum Co., which affirmed the labor board's ruling that firing nonunion workers who walked out of a machine shop because it was too cold violated the NLRA.

The panel further discussed the D.C. Circuit's recent Noel Canning ruling, which has thrown the Board's authority to act into doubt. Since the D.C. Circuit held that the Board had been improperly constituted back in January, 368 contested decisions have been issued. Clearly, we will keep you posted as to both the social media issue and the Noel Canning fallout.

HELP Committee Set to Consider Board NomineesSam Hananel of Yahoo!News reports that President Obama's nominees to the National Labor Relations Board will appear before a Senate committee confirmation hearing today. If no new nominees are confirmed, the Board will fall below a quorum to act in August, when current Chairman Mark Pearce's appointment expires.

Following today's hearing, the Senate's Health, Education, Labor, and Pensions Committee (HELP) is expected to vote on the nominees next week. The fight is expected to be quite partisan, as Republicans have been railing against what they believe to be an out-of-control Board. We will certainly keep you posted as the situation unfolds.

Nurses at San Jose Hospitals Set to StrikeSandy Kleffman of the Mercury News reports that several hundred nurses at two San Jose, California hospitals are set to strike at the end of this month. The strike comes in the midst of lengthy contract negotiations between the nurses, represented by the California Nurses Association, and the Hospital Corporation of America. The main sticking points between the parties involve wages, benefits, staffing levels, and pensions. We will keep you posted as the strike deadlines moves closer.

@LRToday Morning Round-Up: May 1, 2013

PLU Adjunct Faculty Looking to UnionizeGabriel Spitzer of NPR writes that adjunct professors and faculty at Pacific Lutheran University are seeking to be represented by the Service Employees Industrial Union (SEIU) for the purpose of collective-bargaining. While adjunct faculty teach approximately a third of the courses offered at PLU, they are paid significantly less than their tenure-track colleagues. Not surprisingly, the university is pushing back, arguing that it falls outside of the jurisdiction of the National Labor Relations Board because it is a religiously-affiliated university.

“It’s our responsibility to defend our first amendment rights, and I think it would be irresponsible not to challenge jurisdiction on that point,” [PLU Provost Steve Starkovich] said.

The Board has traditionally asserted its jurisdiction over religiously-affiliated groups, like PLU, that are not explicitly centered around the exercise of religion. However, the final decision rests with the current Board, which is on shaky legal ground as it is. It remains to be seen whether a Constitutionally-suspect NLRB will have the stomach for what could be a protracted battle in Federal court. We will certainly keep you posted.

Board Sides with Unite Here! Against SheratonChris Klint of KTUU.com reports that the National Labor Relations Board has affirmed an Administrative Law Judge's decision holding that the Sheraton Anchorage Hotel in Anchorage, Alaska committed a host of unfair labor practices in a long-running dispute with Unite Here! and its employees over their ability to form a union. In particular, the Board found that Sheraton made several unilateral changes to employees' terms and conditions of employment. The Board further held that Sheraton improperly disciplined nine employees for showing support for the union. While a Sheraton representative declined comment for the story, a spokesperson for Unite Here! expressed his satisfaction with the ruling, but also noted that the struggle for workers' rights at Sheraton was far from over.

New Hostess Owners Back Away from Anti-Union CommentsSean Higgins of the Washington Examiner writes that the new owners of Hostess have issued a press release stating that the company would not discriminate against job applicants on the basis of their union membership. The press release comes in response to comments made last week by Hostess' CEO Dean Metropoulos, who stated that the company would be moving forward without a union presence.The company's statement also provided that Hostess respects employees' Section 7 rights and will not interfere with NLRB processes.

@LRToday Morning Round-Up: April 18, 2013

SEIU and CareOne Facing Off in New JerseyColleen Diskin of NorthJersey.com writes that a full year after employees at a CareOne nursing home in New Milford, NJ voted to be represented by the Service Employees International Union (SEIU), management officials and the recently-minted union just can't seem to get along. There have been a myriad of unfair labor practice charges filed against CareOne by the union, including allegations of unilateral changes; intimidation; and unlawful interrogation.

Moreover, the union has begun to engage in some unsavory tactics, including running advertisements questioning CareOne's ability to tend to its patients. Currently, a recent unfair labor practice finding is being appealed by CareOne. We will keep you posted, as this dispute will surely not resolve itself amicably anytime soon.

Aztar Workers to Vote on Deauthorization FridaySusan Orr of the Evansville Courier and Press reports that workers at Casino Aztar in Illinois will vote on whether employees will have the ability to withdraw from union membership before their current contract expires. If a majority of workers approve of the deauthorization vote, then individual employes can choose to no longer be represented by the United Auto Workers.

“The union has not represented me in any way since they came in here. I feel like I’ve paid dues for nothing,” [Gordon] Jones, [a casino worker,] said Wednesday.

Regardless of the outcome of the vote, the UAW will still be obligated to represent all employees in collective bargaining. We will keep you updated on the results of the deauthorization vote.

Garbage Hauler Prepared to Hire Strike ReplacementsJosephine Woolington of the Register-Guard writes that Sanipac, a Glenwood, OH-based garbage hauling company, is prepared to hire strike replacements if drivers and mechanics at the company decide to walk off the job. Yesterday, union and management officials met for almost six hours in an attempt to strike a deal for a new contract. Workers at Sanipac have been working without a contract since last June. We will certainly keep you posted as this dispute moves towards a resolution.

@LRToday Morning Round-Up: April 12, 2013

UAW Ups Ante at TN Volkswagen PlantDan Chapman of the Atlanta Journal-Constitution, in a story published by the Modesto Bee, writes that the United Auto Workers (UAW) are lobbying workers at a Volkswagen plant in Chattanooga, TN in the hopes of representing them in collective bargaining negotiations with management. Political officials have expressed varying levels of alarm at the UAW's efforts, with the Governor fearing that a unionized presence could "deter investment" from the state. Further, labor scholars have acknowledged that a unionized presence in the deep south could have a domino effect at other major operations.

"This is a game-changer. It is a very big deal that potentially begins to redefine labor-management relations," said Harley Shaiken, a professor at the University of California-Berkeley who specializes in labor issues.

As of now, all of the South's foreign auto plants are non-union. The UAW has already attempted to organize workers in both Mississippi and Tennessee and has failed at each attempt. We will keep you posted as this story moves forward.

NLRB Accuses Cablevision of Bargaining ViolationsSteven Greenhouse of the New York Times reports that the National Labor Relations Board (NLRB) will be issuing unfair labor practice charges against Cablevision, alleging that the company has bargained in bad faith. The fight between Cablevision and workers represented by the Communications Workers of America (CWA) has been both loud and long, with workers engaging in protests and the company filing lawsuits.

The represented employees have been working without a contract since they voted to be represented by the CWA in bargaining negotiations some 15 months ago. Not surprisingly, Cablevision is contesting the Board's assertions that it has been negotiating in bad faith.

“We have a complete package of contract proposals on the table in front of the communications workers, and we are awaiting a response,” [stated a company spokesman.]

As of now, the case will proceed to an administrative hearing to determine whether the Board's charges hold water. We will keep you posted with any updates to this story.

UMass Nurses Give Leaders Strike AuthorizationBoston.com reports that Nurses working at UMass Memorial Hospital have voted to give their union leaders the authority to call a one-day strike. The nurses, represented by the Massachusetts Nurses Association, are in the middle of negotiations with management over a new contract. The sticking points so far, namely staffing levels and benefits, have caused the negotiations to run for over a year now. A hospital spokesperson said that UMass Memorial was "disappointed" with the results of the strike authorization vote.

@LRToday Morning Round-Up: April 10, 2013

NFL Argues CBA Governs Player Injury ClaimsDan Packel of Law360 ($$) reports that yesterday, attorneys representing the National Football League (NFL) in multidistrict litigation asked a federal judge to toss a collective action brought by former players that asserts that the League is liable for player head injuries. Yesterday's argument was the first time that the multidistrict litigation, which involves thousands of former players, had made its way into the courtroom. In oral argument, NFL attorneys emphasized the all-encompassing nature of the bargaining agreements between the former players and the League.

“As part of the collective bargaining agreement, you get certain extraordinary rights — for example, the players have almost unprecedented benefits, retirement, disability. But at the same time ... you don’t have the same rights to sue an employer that someone in a nonunion industry may have,” [an attorney for the NFL] said after the hearing.

Yesterday's oral argument involved a motion to dismiss, so expect a great deal more litigation before this matter is over. We will certainly keep you posted, as always.

Board Nominee Johnson Confirms Belief in "Free Enterprise System": Yesterday, President Obama's most recent nominee to the National Labor Relations Board (NLRB), Harry Johnson, gave a short interview to the Washington Examiner wherein he expressed his excitement at the nomination and his belief in the "free enterprise system." 

“I am extremely honored and thrilled to be nominated for this. I intend to serve the American people, if confirmed, and, at the end of day apply the (National Labor Relations) Act in such a way that we recognize that it is part of a free enterprise system,” Johnson said.

Interestingly, the interview also touched on current issues in labor law, including the oft-proposed "card-check" legislation. Johnson attempted to dodge the question, but hinted that he did not support the idea. While Johnson must still be confirmed by the full Senate, it will be interesting to watch what happens when the Board has a full complement of five members, including two Republicans. We will certainly be paying attention here at @LRToday and will keep you updated.

Teamsters Laud Board Nominations: The Herald Online ran a press release from the International Brotherhood of Teamsters yesterday, wherein current Teamsters General President James Hoffa praised President Obama's selections.  

"These bipartisan nominees clearly indicate President Obama wants to rise above petty political games," Hoffa said. "I call on the Senate to confirm these nominees quickly so the NLRB can concentrate on the important task of making sure workplaces are productive, fair and safe and workers' rights to organize and bargain collectively are safeguarded."

Again, it remains to be seen how quickly the Senate acts to confirm President Obama's nominees. A quicker confirmation process would bring some much-needed stability to the Board, whose legitimacy has been thrown into uncertainty as a result of the D.C. Circuit's Noel Canning ruling.

@LRToday Morning Round-Up: April 3, 2013

SEIU Sues Gov. Corbett Over Health Center ClosuresMatt Fair of Law360 ($$) reports that the Service Employees Industrial Union (SEIU) has filed a lawsuit against Pennsylvania Governor Tom Corbett in an effort to stop the shuttering of 26 community health centers in the state. SEIU claims that the planned closures will cause at least 73 workers to lose their jobs, while another 20 nurses would be subject to furloughs.

“Neither the governor, acting [DOH] Secretary [Michael] Wolf, the DOH, nor any other executive branch official has the legal authority to close state health centers, reduce the current number of state health centers, or reduce the level and scope of public health services,” the complaint said.

A spokesperson for the Governors office was unavailable for comment. Interestingly, several PA state Senators have signed their names to the lawsuit as well, making this situation somewhat reminiscent of the Executive/Legislative showdown we saw in the Noel Canning decision in January. We will keep you posted as this lawsuit moves forward.

Union Members Sue IAMAW Over FinesAlejandra Cancino of the Chicago Tribune reports that almost thirty workers have joined together to file charges with the National Labor Relations Board against their representative union, the International Association of Machinists and Aerospace Workers (IAMAW). The unfair labor practice charges allege that the union illegally fined the workers for crossing the pickets during a strike at Caterpillar, Inc. last summer. In a seemingly particularly egregious case, member Jon Butler is alleging that he was fined almost $15,000.00, despite only being paid a little less than $13.00 per hour.

"It made me lose more respect for the union," said Butler, 23, who returned to work almost three weeks after the strike began on May 1. "I could have stayed longer in the picket line and file for bankruptcy, but being young as I am I was not going to risk my wife's future over a contract like this."

A Union spokesperson was unavailable for comment. The workers, currently being represented by the National Right to Work Defense Fund, expect to file more charges against the Union in the coming weeks. We will certainly keep you posted.

Striking OH Teachers Start Fighting PR BattleCory Shaffer of the Cleveland Plain Dealer writes that striking teachers in Strongsville, Ohio have issued a press release arguing that their current salaries are nothing short of a "bargain" for Ohio taxpayers. The striking teachers, now off the job for the fifth week, stated that their salaries are the third-lowest out of ten schools in the region that received a rating of "Excellent with Distinction" from the Ohio Department of Education.

"The Strongsville teachers clearly go the extra mile for their students and give residents bang for their buck," said SEA President Tracy Linscott in the release. "The time has come to debunk the myth that Strongsville teachers are overpaid, when in fact the truth may be just the opposite."

Both sides are expected to meet this morning in an attempt to resolve their differences and get the strikers back to work. We have been following this story since the strike began and will certainly keep the updates coming.
 

@LRToday Morning Round-Up: March 28, 2013

Pilots' Group Throwing Wrench into Merger PlansJake Simpson of Law360 ($$) writes that a group of plaintiffs ostensibly representing former American West Airlines Inc. pilots has filed suit in an attempt to put a stop to the merger between AMR Corp. and US Airways Group Inc. The crux of the pilots' allegations is that the U.S. Airline Pilots Association (USAPA) has been refusing to implement and make use of the correct seniority list. The seniority list, stemming from an award by Arbitrator Nicolau (the "Nicolau Award") should take precedence over competing seniority lists, say the pilots.

"USAPA has never had an objectively legitimate purpose for repudiating its duty to order seniority according to the Nicolau Award," the plaintiffs said. "Indeed, there is strong legal authority to reject those reasons as a matter of law. It is highly likely that this litigation will result in judgment that USAPA has no objectively legitimate purpose for repudiating the Nicolau award."

An injunction against the merger would cause more problems for struggling AMR, which is currently in the middle of a court-assisted reorganization in New York under Chapter 11. We will keep you updated as this process moves towards a resolution.

Nurses, Deaconess Hospital Reach Settlement on ULP ChargesJodi Hausen of the Bozeman Daily Chronicle reports that nurses at Bozeman Deaconess Hospital have settled their unfair labor practice allegations with their employer. Under the terms of the settlement, the hospital has agreed to bargain in good faith with the nurses' union. Furthermore, the Hospital has agreed to change several of its internal policies, and in particular will now allow union representatives to accompany nurses to any potentially-disciplinary meetings. The Montana Nurses Association, the union representing the local nurses' union, was pleased with the settlement.

“The association believes we reached a fair and balanced resolution to our differences with Bozeman Deaconess Hospital,” Hauschild said in an email. “We look forward to moving forward and partnering with the hospital in whatever ways we can.”

The ULP charges were brought by the nurses in January of this year, not long after negotiations had broken down between the two sides. The settlement was most likely facilitated by the signing of a new collective-bargaining agreement in late February.

WADA and NFLPA Spar Over HGH Testing: The Boston Herald is carrying a story written by Graham Dunbar of the Associated Press, who explains that the National Football League Players' Association (NFLPA), the union representing current NFL players, has again questioned the validity of the Word Anti-Doping Agency's (WADA) HGH test. WADA Director General David Howman was less than impressed with the NFLPA's protestations.

"I would expect the players association to take a stance which is extremist," Howman told The Associated Press in a telephone interview. "What we've got to do is get to reality and not to a position that is an extremist position."

Interestingly, the NFL is also pushing hard to implement HGH testing, which was agreed to in principal by the NFLPA in the parties' most recent collective-bargaining agreement. However, implementation protocols have yet to be worked out. We will keep you posted.

Department of Justice Responds to Noel Canning While Employers Continue to Challenge the Board's Authority to Act

As noted earlier this month, the National Labor Relations Board announced that it, in consultation with the Department of Justice, intends to file a petition of certiorari with the United States Supreme Court in Noel Canning v. NLRB rather than seek an en banc rehearing with the D.C. Circuit Court of Appeals. In Noel Canning, the D.C. Circuit determined that President Obama’s recess appointments of Sharon Block, Terrence Flynn, and Richard Griffin to the Board were not valid, and thus the Board lacked a quorum to act. The petition for certiorari must be filed by April 25, 2013.

The Department of Justice formally articulated its position regarding Noel Canning late last month when it submitted a letter brief to the Third Circuit Court of Appeals in NLRB v. New Vista Nursing & Rehabilitation. The Justice Department asserts that the Third Circuit should not follow the D.C. Circuit's interpretation of the word "the" before "Recess" in the Constitution because it is inconsistent with how "the" is used in other parts of the Constitution:

The court reasoned that the definite article “suggests specificity.” Ibid. But as the en banc Eleventh Circuit explained, the word “the” can also—as it does here—refer generically to a particular class of things, e.g., “the pen is mightier than the sword,” rather than a particular thing, e.g., “the pen is on the table.” Evans, 387 F.3d at 1224-25 (citing dictionary usages). And far from being a purely modern usage, the Constitution itself elsewhere uses “the” in precisely this manner. For example, the Adjournment Clause requires both the House and Senate to consent before adjourning for more than three days “during the Session of Congress.” Art. I, § 5, cl. 4 (emphasis added). Because there are always two or more enumerated sessions in any Congress, the reference to “the Session” cannot be limited to a single one. Similarly, the Constitution directs the Senate to choose a temporary President “in the Absence of the Vice President,” Art. I, § 3, cl. 5 (emphasis added), a directive that applies to all Vice Presidential absences rather than one in particular.

The Justice Department also argues that the past practice of recess appointments lends credence to the administration's interpretation:

The longstanding historical practice of the Executive Branch, in which the Legislative Branch has acquiesced, further reinforces the understanding that the Recess Appointments Clause permits intrasession recess appointments. “[T]raditional ways of conducting government give meaning to the Constitution,” and “[l]ong settled and established practice is a consideration of great weight in a proper interpretation of constitutional provisions.” Mistretta v. United States, 488 U.S. 361, 401 (1989); The Pocket Veto Case, 279 U.S. 655, 689 (1929).

Conspicuously, however, the Justice Department sets forth no argument refuting the claim made by the employer in Noel Canning that the Senate was not in recess when Members Block, Griffin, and Flynn were appointed. The D.C. Circuit's opinion did not decide whether the Senate, despite holding pro forma sessions, was in a intrasession recess when the NLRB members were appointed. Therefore, the alleged recess appointments could still be held unconstitutional even if the Department of Justice is correct in its assertion that recess appointments can occur during an intrasession recess.

Meanwhile, Laboratory Corp. of America Holdings filed suit in federal court last month against the NLRB claiming that the Board lacked authority to conduct a union election. In January, a union filed a petition with the NLRB seeking to represent LabCorp's patient service technicians and patient site coordinators in New Jersey. LabCorp moved to dismiss the petition because:

without a quorum of three properly appointed members, the Board lacks the statutory authority to direct or certify an election, as well as the authority to delegate any of those powers to the Regional Director.

The Regional Director denied the motion and issued a Decision and Direction of Election. LabCorp then filed suit seeking to enjoin the election on the following grounds:

15. Because the Board does not currently have sufficient members to constitute a quorum, it cannot legally take any action, including but not limited to ordering, conducting, or certifying the results of any representation election. See 29 U.S.C. § 153(b).

16. Ordinarily, the Board delegates responsibility to make initial determinations on these issues to its Regional Directors, but the source of that authority remains the Board. See 29 U.S.C. § 153(b). During periods when the Board is unable to act, including periods when it lacks the quorum required by law, delegations to Regional Directors are inoperative. See Laurel Baye, 564 F.3d at 473-475. Thus, the Regional Directors lack the authority to order or certify the result of any representation election.

17. Moreover, in connection with directing elections or certifying election results, actions taken by a Regional Director pursuant to a delegation of authority may be appealed to the Board. See 29 U.S.C. § 153(b). And because it lacks a quorum, the Board cannot rule upon any appeal of a Regional Director's decision.

LabCorp argues that it will suffer irreparable harm if the NLRB proceeds with the election including having to disclose "a sensitive 'Excelsior list' of employees' full names and home addresses to the union," devote "business resources to the election effort as opposed to its core business operations," and suffer a divided work force where "unlike a lawful election order, the divisions engendered by this order have no end date because the Board cannot certify the election results in favor of either party."

@LRToday Morning Round-Up: March 7, 2013

Lackawanna College Union Protests Claim of ImpasseSarah Hofius Hall of the Scranton Times-Tribune writes that Lackawanna College has imposed its last best offer on the Professors' union, sparking ire among Lackawanna faculty members. The faculty has been working without a contract since June of 2011 and has been engaged in negotiations with administrators for almost two years.

"This approach does not reflect an effort stemming from a high-mindedness that we espouse as one of this great college's mission criteria," union leaders wrote in a letter to their membership. "It is the epitome of a cruel irony that such a strategy would be exercised by a few individuals given great access to power over Lackawanna's operation, and thus its future."

The union plans to take its complaint to the National Labor Relations Board, but has stressed that it is still willing to engage in good-faith negotiations with the college. Lackawanna administrators  declined to comment on the story.

Kansas Legislature Ponders Trimming Teachers Unions' RightsBrad Cooper of the Kansas City Star reports that lawmakers in Kansas are in the process of debating several pieces of legislation that would have the effect of limiting the collective-bargaining rights of Kansas' Teachers Unions. Another bill being debated would bar teachers' unions from using voluntary paycheck deductions for political purposes.

“We are seeing a lot of things that appear to be a direct attack on teachers,” said Kansas National Education Association President Karen Godfrey.

Last weekend, more than 300 teachers and supporters showed up at a legislative forum in Wichita in order to protest Kansas' attempts to limit the teachers' bargaining rights. Furthermore, several school boards have come out against the law, saying it is not the right way to reform the educational system in Kansas. 

LA Mayoral Candidate Greul Gets Key Labor BackingSeema Mehta of the Los Angeles Times reports that yesterday, Los Angeles Mayoral candidate Wendy Greuel accepted the endorsement of the Service Employees International Union, Local 721 (SEIU). The SEIU represents over 10,000 city workers and has become a powerful influence in city politics.

“I am so grateful to the workers who every single day provide the services to our residents. Let’s not demonize them, let’s not divide our city. Let’s support our city,” Greuel said, ... “Let’s support our workers, let’s support business and let’s support a brighter future because each of us can make a difference. It means the world to me to stand here today with all of you because you make us proud.”

The announcement occurred at SEIU headquarters in downtown LA, where workers surrounded Greuel and held signs saying, "Wendy for Mayor." The runoff election is set to take place on May 21, 2013, and is expected to be a very tight race.

@LRToday Morning Round-Up: March 5, 2013

District Court Declares Convergys' Class-Action Waivers UnenforceableBill Donahue of Law360 ($$) reports that last Friday, a U.S. District Court Judge in Missouri invalidated Convergys Corporation's employee class-action waivers. Judge Carol Jackson, in finding the waivers to be unenforceable, wrote that enforcing the waivers would violate the National Labor Relations Act.

“Collective and class litigation, through which employees band together to challenge employers’ policies on wages and hours, is concerted activity engaged in for the purposes of mutual aid and protection within the meaning of the NLRA,” the judge wrote.

Interestingly, Convergys is engaged in parallel litigation with the National Labor Relations Board. Last fall, an Administrative Law Judge invalidated the company's class-action waivers and the employer appealed the ruling to the full Board, which has yet to make a decision.

Former Chairman Schaumber Says It's Time to Scrap NLRB: Roll Call is carrying an editorial from former National Labor Relations Board Chairman Peter Schaumber, wherein he calls on Congress to scrap the NLRB. In particular, Schaumber argues that the current Board is partisan, acts in defiance of Federal law, and does not act as a collective. Schaumber's solution? Transfer the Board's power to the judiciary.

Transferring the board’s authority to the federal judiciary will give business confidence in its balanced application and the public the assurance that the protection of employee free choice on the question of unionization will be the central focus of this important American labor law.

Schaumber's harsh words will most likely fall on deaf ears, however, particularly because current Chairman Mark Gaston Pearce has already stated that the Board will continue to operate until further notice, which is ostensibly in violation of the D.C. Circuit's recent Noel Canning decision. Schaumber's voice just adds to the growing Conservative consternation surrounding the Board's continued operations. We will keep you posted with any further developments.

Chaos Reigns As Strongsville Teachers Go On StrikePatrick O'Donnell of the Plain Dealer reports that teachers in Strongsville, OH made good on their threat to go on strike, hitting the picket lines yesterday. Students and parents stated that classrooms were packed to capacity as substitute teachers taught double or triple classes. By midday, the student parking lot was more or less completely empty, although approximately two-thirds of the student body had reported for school.

"There was some chaos in the beginning, lots of challenges," said school board President David Frazee, stressing that the district plans to hire more substitutes every day. "But we believe that every day it's going to get better and better."

Negotiations between the teachers' union and school board officials broke down earlier this month over the calculation of "step raises," although the union has already consented to a static wage scale. Teachers maintain that they deserve raises since the wage scale has not been increased since 2008. Currently, the average Strongsville teacher takes home approximately $65,000 per year.

@LRToday Morning Round-Up: February 11, 2013

Striking Bus Drivers Rally at City Hall: NY1 News reports that over 1,000 New York City school bus drivers and matrons assembled in front of City Hall yesterday afternoon, calling on Mayor Bloomberg's office to become involved in the now four-week old strike.

"We're here today for our job protection, our job security. This is what we need," said a member of ATU Local 1181. "We've been having it for 33 years. We need this. If not, we won't have a job."

Union members first began picketing almost a month ago to demand job protection language in any new labor deal. However, the city has maintained that such job protection language is illegal and has further called for the drivers to negotiate directly with the private companies that hire them.

Saginaw Police Negotiations at ImpasseMark Tower of MLive reports that negotiations between the city of Saginaw and the local Police Officer's union over a new contract have broken down. City staff have told local media that there are no new meetings scheduled between the two parties. However, leaders in neighboring cities have encouraged the parties to get back to the table.

"Get the unions involved," [Pontiac Mayor Leon] Jukowski said. "It's going to be much easier if this is something that is negotiated."

The talks began last year in an effort to close a $3.2 million budget shortfall before July, 2013. We will keep you posted as the situation develops further.

More and More Unions Popping Up at Charter SchoolsAFT News writes that three new unions have won recognition at charter schools in New York State, Los Angeles, and Detroit. The Detroit election occurred on February 7, 2013, and was the first union victory since the National Labor Relations Board ruled that charter schools should be considered private-sector employers for the purpose of collective bargaining.

The ballot outcome of the Feb. 7 election was 88 for the union, 39 opposed. Said Becky Wilinski, a middle school social studies teacher at Chavez Academy, "We are reminding Gov. Snyder that workers in Michigan still have the right to say 'union, yes!'"

The New York and Los Angeles unions received voluntary recognition after administrators received union petitions at both schools. This recent spate of union victories at charter schools across the country may be a sign of things to come in the wake of the Board's December ruling. We at @LRToday will certainly keep you posted.

Labor Law in Flux: The Ripple Effect of Noel Canning

In the two weeks following the D.C. Circuit Court of Appeals’ monumental decision in Noel Canning v. NLRB, Case No. 12-1115 (D.C. Cir. Jan. 25, 2013), there have been a number of developments as employers, labor groups, and employees grapple with the practical implications of the court's holding that President Obama's recess appointments to the National Labor Relations Board are unconstitutional. However, none have provide much, if any, guidance.

Very shortly after the decision issued, NLRB Chairman Mark Pearce released a statement disagreeing with the D.C. Circuit's ruling and asserting that the Board believes that the recess appointments will ultimately be upheld. Accordingly, he stated that the Board will continue to perform its statutory duties and issue decisions despite the cloud over its authority.

Since then 38 Republican Senators have demanded that Members Block and Griffin resign. In addition, Republican Senators introduced three bills designed to limit the NLRB’s authority in the wake of Noel Canning: NLRB Freeze Act of 2013 (S. 180), Advice and Consent Restoration Act (S. 188), and Restoring the Constitutional Balance of Power Act of 2013 (S. 190). Given that both the Senate and the White House are controlled by Democrats, these bills have virtually no chance of becoming law and thus likely have no practical implications in the foreseeable future. 

As a result, all sides are looking for signals from the courts on how the recess appointments issue might ultimately be resolved. This week the focus was on U.S. Supreme Court Justices Ruth Bader Ginsburg and Antonin Scalia as they both turned down separate bids by HealthBridge Management LLC to appeal an order requiring it to reinstate striking nursing home center workers. HealthBridge sought a partial stay of a federal judge's December preliminary injunction under 10(j) of the NLRA based on the controversy over the NLRB recess appointments following Noel Canning and whether the Board would be able to issue a final order. Neither Justice Ginsburg nor Justice Scalia provided a reason for rejecting the applications, but given that there was no final order by the Board involved, this development likely provides no useful insight into how they might ultimately rule on the constitutionality of the recess appointments.

As such, two weeks to digest and react to Noel Canning has provided no clarity or certainty regarding its practical implications. Rather, employers, unions, and employees remain in a quandary as they try to determine the status of past Board decisions and election certifications and to navigate the NLRB processes going forward. Indeed, even the things we do know for certain today are likely to lead to more questions and uncertainty in the near future. Accordingly, 2013 will be a dynamic year for labor law with Noel Canning setting the stage as follows:

  1. The Board will continue to hear and process petitions and unfair labor practice charges. First and foremost, the D.C. Circuit's ruling has no effect on the NLRB's ability to receive and process petitions and investigate and prosecute unfair labor practice charges that do not require any intermediary rulings by the Board. This means that the Agency will continue to operate as normal with the Regional offices processing petitions, holding elections, and investigating unfair labor practice charges. Similarly, administrative law judges will continue to hold hearings and issue recommended decisions. Moreover, given Chairman Pearce's statement, the Board will continue to act and issue decisions under the presumption--correctly or incorrectly--that it has a quorum to act under New Process Steel. Thus, each new Board decision--especially precedent altering decisions--will only complicate matters further.
  2. The Board's 2012 (and 2013) decisions still remain Board law. Not only will the agency continue to operate as normal, but it will continue to apply all 2012 and 2013 decisions as governing Board law as the Board is not required to follow Noel Canning in other cases. This includes the flurry of late year decisions affecting dues checkoff, discretionary discipline, and confidential witness statements. As a result, expect the Regional offices, the Office of the General Counsel, the ALJs, and the Board to continue to rely upon those decisions in making their determinations despite any objection by the parties as to their validity.
  3. The D.C. Circuit is going to see a lot more cases, but they may not be decided any time soon. Given that the D.C. Circuit (at least for the time being) has provided a guaranteed mechanism for overturning any decision by the current Board, any party aggrieved by a Board order is likely to file with the D.C. Circuit (all petitions for review of final orders by the Board may be filed in the D.C. Circuit in addition to the circuit where the case arose). However, after Noel Canning, the D.C. Circuit announced that it is holding all cases involving a Board decision since January 4, 2012 in abeyance. From an enforcement strategy, will the NLRB start racing respondents to the courthouse by immediately filing petitions for enforcement in other circuits immediately after issuing decisions?
  4. The Notice Posting litigation is unaffected by Noel Canning. As the Board issued the Notice Posting rules in August 2011 just prior to then-Chairman Liebman's departure, the Board had a quorum to act when it issued its rules requiring employers to post notices about employees' rights under the Act.
  5. But Noel Canning could impact the "Quickie Election" rules litigation and other pre-2012 decisions . The Board's new election rules purportedly issued in December 2011 were supported by only Chairman Pearce and Member Becker, whose term expired December 31, 2011. However, Member Becker was a recess appointee appointed by President Obama in March 2010. As such, the argument can be made under Noel Canning that Becker was not appointed during an intersession recess and thus there was no quorum in December 2011 when the new election rules were purportedly passed. Moreover, if Becker's recess appointment was unconstitutional, the decisions by the Board after Liebman's term expired are also invalid (such as D.R. Horton involving mandatory arbitration and class claim waivers). Further, what becomes of the decisions where Becker was the deciding vote on a three-member panel even when Liebman was still there, and does it matter from a practical standpoint? In case you were wondering, all four Members at the time participated in Specialty Healthcare, so it is unaffected by Noel Canning.

@LRToday Morning Round-Up: February 7, 2013

Bozeman Nurses File ULP Charges Against HospitalJodi Hausen of the Bozeman Daily Chronicle reports that the Montana Nurses Association (the union) has filed unfair labor practice charges against Bozeman Deaconess Hospital. The complaint alleges that the Hospital has refused to bargain with the union and has also refused to allow a union representative to sit in on meetings between nurses and supervisors.

The union and the Hospital have been in tense negotiations over a new contract since October. Last December, the union voted down the Hospital's proposal by a large margin. The nurses allege that the Hospital has since retaliated by conducting various unfair labor practices.

“Unfortunately, the hospital recently changed how they interact with the nurses and our union after the collective bargaining agreement expired,” union representatives wrote in a letter to Terry Cunningham, chair of the hospital’s board of trustees. “Our relationship with hospital administration is becoming strained.”

Board Issues Complaint Against FirstEnergyPam Kasey of WBOY reports that the National Labor Relations Board has filed a complaint against FirstEnergy's Harrison Power Station in West Virginia. The Board's complaint alleges that FirstEnergy imposed unilateral changes in employees' health care and benefits without first bargaining with the Utility Workers Union of America. A spokesman for FirstEnergy said the company was currently reviewing the charges. Currently, a hearing is set for the end of March in Fairmont, WV.

Head of NBA Players Union Out?Howard Beck of the New York Times has published an interview with Billy Hunter, the current head of the N.B.A. Players Union. Hunter claims that he received an unsigned letter last week informing him that he was being put on indefinite paid leave, effective immediately.

“I haven’t spoken to anybody since,” Hunter said Wednesday, in his first interview since the Jan. 17 release of an independent audit that faulted his business and hiring practices.

Hunter claims to be owed over $10million on the remainder of his contract, which he intends to pursue if he is terminated. However, if Hunter is terminated, the Players Union is expected to challenge Hunter's right to that money since his initial election was not conducted in accordance with the Union's bylaws.

The Players Union is expected to determine Hunter's fate during the All-Star Game weekend meeting on February 16, 2013. We will keep you posted as the situation develops further.

@LRToday Morning Round-Up: February 5, 2013

Justice Ginsburg Denies HealthBridge's Injunction Request: Sindhu Sundar of Law360 ($$) reports that Justice Ginsburg has denied HealthBridge Management LLC's request to stop a partial injunction that would require the company to reinstate striking workers. HealthBridge argued that the recent D.C. Circuit ruling invalidating President Obama's recess appointments to the National Labor Relations Board should delay the injunction until the whole mess is sorted out.

“It makes little sense for the courts to order immediate action at the behest of the board here when the board’s ability to act is in profound doubt and will be addressed by this court,” HealthBridge argued.

The row stems from a dispute between the company and the New England Health Care Employees Union, which represents HealthBridge employees at several facilities in Connecticut. Over 600 workers have been on strike since July, when the most recent round of contract talks broke down.

HealthBridge's attorneys said that they were reviewing Justice Ginsburg's denial and were most likely planning on re-petitioning another Justice for review, which is allowed under Supreme Court rules. We will be watching this issue closely and will keep you up to date.

ULP Charges Going Ahead Despite Claims of Union MalfeasanceTarryl Jackson of MLive reports that a long-simmering labor dispute between Hendrickson Trucking and Jackson's Teamster Local 164 is headed for review to the National Labor Relations Board. The charges remain active despite several allegations of financial improprieties committed by union officials.

Recently, it was discovered that Al Sprague, local president of the International Brotherhood of Teamsters, had been collecting state unemployment checks. Furthermore, local secretary and treasurer William Bernard alleges that he is owed over $100,000 in unused vacation pay, despite the fact that the local's assets are less than half that amount. A spokesman for the union said that it would not comment on internal investigations.

Coastal Ports and Longshoremen Reach Deal in Principal: Larry Swisher of Bloomberg BNA ($$) reports that the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have agreed in principal to a six-year contract that would govern relations between the employer and over 15,000 dock workers. However, the agreement is still subject to ratification by ILA members. Further, 14 local port agreements must be negotiated before the master contract can be finalized.

The two sides were brought back to the bargaining table in December after a bi-partisan coalition urged President Obama to invoke the Taft-Hartley Act. Doing so kept the parties' discussions moving forward and also avoided a potential copycat scenario of the Los Angeles Port strikes, which were short, but economically devastating.

We will continue to follow the local port negotiations and will report back when the contracts are completely ratified.

@LRToday Morning Round-Up: January 31, 2013

A Different Take on the Hostess BankruptcyMegan McArdle of the Daily Beast published a thought-provoking piece on Tuesday regarding the recent Hostess bankruptcy. McArdle posits that the Baker's Union, derided in the press for their "unreasonably demands," has actually put together a brilliant negotiating strategy. Instead of fighting with Hostess, the Baker's Union essentially forced Hostess into bankruptcy in order to blow up the Teamsters' contract and start from scratch. Holman Jenkins of the Wall Street Journal explains the issue as follows: 

Under the latest turnaround plan, the sticking point was Hostess's distribution operations, source of the Hostess horror stories filling the media. Union-imposed work rules stopped drivers from helping to load their trucks. A separate worker, arriving at the store in a separate vehicle, had to be employed to shift goods from a storage area to a retailer's shelf. Wonder Bread and Twinkies couldn't ride on the same truck.

Essentially, massive inefficiencies in the Teamsters' contract, not the Baker's contract, forced Hostess out of business. The company is currently close to selling off its Twinkie brand to an investment firm. Perhaps a new deal for the Bakers will follow. We will keep you posted.

Sen. Barrasso Moves to Kill 2012 Board Decisions: Fox News reports that Senator John Barrasso (R-Wyoming) has introduced legislation that would effectively hit the reset button and overturn all National Labor Relations Board decisions made in the last year. Sen. Barrasso's bill comes in the wake of last week's Noel Canning ruling that held that the Board did not have enough members to constitute a quorum because President Obama's recess appointments were constitutionally unsound.

“Until we have a final resolution from the courts, the NLRB should not be able to issue or enforce decisions that will create even more confusion and illegitimate regulations,” Barrasso, R-WY, said. “My bill will restore clarity, order and respect for the U.S. Constitution.”

Sen. Barrasso's bill faces an uphill battle in the Democratically-controlled Senate. Further, President Obama is expected to appeal the Noel Canning ruling to either the full D.C. Circuit or to the Supreme Court.

Cafeteria Workers file ULP Charges Alleging Union AnimusKevin Penton of the Asbury Park Press reports that school cafeteria workers in Neptune, NY have filed unfair labor practice charges against New York's Chartwells. The complaint alleges that Chartwells retaliated against employees after they tried to unionize last year.

The 45 employees filed a charge with the National Labor Relations Board alleging that New York’s Chartwells threatened them with job losses, tightened its enforcement of work rules, created the impression that workers were being watched and imposed more onerous work conditions, according to the case’s file.

Chartwells denied the allegations in a statement, saying that the company respects the workers' right to choose to join or not join a union as they see fit. We will keep you posted as this case moves forward.

@LRToday Morning Round-Up

Right-To-Work Amendment Fails in VA SenateNatalie Rodriguez of Law360 ($$) reports that a proposed amendment to the Virginia state constitution has failed in the Senate. The amendment, proposed by Sen. Richard Black (Republican), would have made Virginia a "Right to Work" state. The amendment would have prohibited a labor union from denying a non-member the right to work alongside that union.

“In a victory for Virginia's working families, a 'right to work' for less measure has failed in the state senate on a 20-20 tie vote ... Adding right-to-work to the constitution would have further entrenched a harmful policy already existing in Virginia state law,” the Virginia chapter of the AFL-CIO said in a statement on Monday.

The attempted Virginia amendment follows similar successful efforts in Michigan and Indiana. Further, similar right-to-work legislation is currently working its way through the Pennsylvania legislature. We will keep you updated as this legislation moves forward.

Outrage on NY Bus Driver Picket Line: Eyewitness News 7 reports that heated protests are occurring this morning on the picket line set up by New York City school bus drivers who are on strike over job protection issues. Yesterday, union officials and bus company management met at Gracie Mansion in an effort to end the nine-day strike. Furthermore, the National Labor Relations Board is currently examining the legality of the labor strike. A decision from the Board is expected in the coming days.

N.M. Hospital Staffing Issue to be Heard by NLRBPhaedra Haywood of the Santa Fe New Mexican writes that an Administrative Law Judge will today entertain unfair labor practice allegations filed against Christus St. Vincent Regional Medical Center. The allegations stem from a dispute last summer wherein the Hospital refused to provide the National Union of Hospital and Health Care Employees (the Union) with certain information the union had requested regarding Hospital staffing needs.

Union officials and the Hospital have repeatedly been at odds in recent years over staffing levels, with the Union maintaining that the Hospital is dangerously understaffed. The two parties are currently in settlement talks which, if successful, would void the need for a Board hearing.

@LRToday Morning Round-Up: January 23, 2013

Wisconsin Bargaining Law Upheld by 7th CircuitMichael Bologna of Bloomberg BNA ($$) reports that the U.S. Court of Appeals for the Seventh Circuit has upheld Wisconsin's 2011 law limiting collective bargaining rights of the majority of public sector workers. In so doing, the Court reversed an earlier District Court ruling invalidating the law. The Seventh Circuit held, contrary to the District Court, that the law did not violate the equal protection clause even though the law strips collective bargaining rights for public workers, but not public safety employees. Governor Scott Walker trumpeted the ruling.

“Today's court ruling is a victory for Wisconsin taxpayers,’’ Walker commented in a statement. “The provisions contained in Act 10, which have been upheld in federal court, were vital in balancing Wisconsin's $3.6 billion budget deficit without increasing taxes, without massive public employee layoffs, and without cuts to programs like Medicaid.’’
Representatives of AFSCME also released a statement expressing their disappointment with the Court's ruling. However, this is not the end of the road because two additional suits challenging the law on other grounds are pending. We will certainly keep you posted as to any updates.
 
Forbes Magazine Examines Board Social Media PoliciesSusan Adams of Forbes Online has published an interesting analysis of recent National Labor Relations Board decisions regarding social media policies. Answering the question, "When Is It OK to Diss Your Boss Online," Adams discusses that while the most recent Board rulings seem to include most statements by employees as "protected and concerted activities," those statements cannot be gripes that only affect the single employee. While the Board offers broad protections to employees, some commentators advise against making such posting regardless.
“Even if it’s technically protected by the NLRA, it’s not going to make your boss like you or smooth your road at work when the company learns about this.”
The case law in this area is new and is continuing to evolve as the full Board makes further decisions regarding social media in the workplace.
 
Nurses Protest in Vallejo, CARachel Raskin-Zrihen of the San Jose Mercury News reports that registered nurses at Sutter Solano in Vallejo, California protested outside of Sutter's facility Tuesday. The protests were aimed at Sutter officials who allegedly threatened disciplinary action against striking nurses.
"Nurses, united, can never be defeated!" they shouted. Two speakers suggested that because nurses are predominantly women, management sees them as "expendable," and treat them accordingly. Hospital officials denied such claims.
Union officials have filed a complaint with the National Labor Relations Board and have also filed grievances against Sutter Solano. We will keep you posted as this dispute unfolds.
 

@LRToday Morning Round-Up: January 18, 2013

FSI Settles Board Complaint: Kristina Smith at the News-Messenger reports that the United Food and Commercial Workers Local 75 (UFCW) has settled with FSI after filing a complaint with the National Labor Relations Board last summer. The complaint alleged that an FSI employee was suspended and ultimately discharged for engaging in union organizing activities. FSI issued a written statement, denying that the settlement was an admission of guilt.

“Companies settle these issues daily for myriads of reasons,” he said. “It did not make sense for us financially to pursue the matter any longer while Tyler Keathley was receiving free legal counsel.”

FSI also denied allegations of unlawful interrogation that sprang from the Board complaints. The  discharged employee could not be reached for comment.

NYC Bus Drivers' Strike Greatly Affecting Disabled StudentsRachel Monahan, Corinne Lestch, and Richard Shapiro of the New York Daily News report that disabled students have been disproportionately affected by the New York City bus drivers' decision to walk off the job. Many disabled students depend on receiving various forms of therapy at school and are unable to get there via alternative means. One student's mother voiced the following complaint.

“I can’t take him on the subway because there are no elevators, and I can’t take a cab because his wheelchair doesn’t fold up,” groused Carmen Padilla, whose 18-year-old son is a paraplegic suffering from cerebral palsy.

The City reports that almost a third of disabled students were unable to make it to class Tuesday, while a full half of disabled students did not attend classes Wednesday. A complaint has been filed against the bus drivers with the National Labor Relations Board. A ruling is expected today.

AGC Solomon Interviewed by HR MagazineHR Professionals Magazine has published an interview with National Labor Relations Board Acting General Counsel Lafe Solomon. In the interview, AGC Solomon covers territory ranging from the current makeup of the Board to current union trends. It is certainly an interesting read.

@LRToday Morning Round-Up: January 17, 2013

Should Charter Schools be Treated as Private Entities?: Adam Emerson of the Fordham Institute has published an interesting article outlining whether it is really appropriate for the National Labor Relations Board to treat Charter Schools as private schools subject to federal labor regulations. Recently, the Board held that the Chicago Mathematics and Science Academy was essentially a private entity and was subject to the Board's jurisdiction. The State of Illinois had argued that the Academy was, for all intents and purposes, a public entity and could be regulated under state law.

You can’t have it both ways—and there is no third option (even if American society might benefit from such a thing). You cannot, on the one hand, argue that charter schools are not governmental subdivisions for purposes of escaping hostile state labor laws and sundry public regulations and then turn around and urge the IRS to stick with its assumption that charters are “agencies or instrumentalities of the state” to assure that charter employees can benefit from government retirement plans.

While the Board's decision was limited to one school in Chicago, this case could have major implications regarding charter schools in general. We will certainly keep you posted as this issue will certainly come up again as teachers continue to organize.

Need for Cost Controls at Nation's Ports Causing Labor DisputesErnest Scheyder at Reuters reports that the recent increase in labor disputes at various ports across the country has resulted from the need for employers to cut costs and reduce their workforce. U.S. productivity levels lag badly behind those of other countries, with Scheyder projecting that it takes 20 U.S. workers to do the work of 5 or fewer workers in other parts of the world.

"Everyone wants to reduce their cost and that means lower wages or fewer people," said a senior executive at a major West Coast container terminal operator who spoke on the condition of anonymity so as not to affect future negotiations with labor unions.

Earlier this year, dock workers in Los Angeles and Long Beach struck for 8 days. While the actual work-stoppage was relatively short, its ripple-effect across the economy cost several billion dollars. Employers are looking to increase productivity, while dock workers are striving for increased benefits. We will be following these issues as they develop further.

School Bus Drivers' Strike ContinuesNY1 news reports that the New York City school bus drivers' strike has entered a second day. Neither side has made any indication that they are willing to budge, and no talks are currently scheduled. The Mayor's office has reported that school attendance was slightly below average yesterday. However, among special needs children, attendance was down almost 30 percent.

The bus companies are in the process of hiring replacement drivers and have also filed a complaint with the National Labor Relations Board in an attempt to end the work-stoppage. Mayor Bloomberg's office stated that the Mayor hoped the strike would end soon and that the city could not meet the union's demands for increased job protections because doing so would be illegal.

@LRToday Morning Round-Up: January 16, 2013

Workforce Fairness Institute Calls for Member Griffin to Step Down: Dave Boyer of the Washington Times reports that the Workforce Fairness Institute (WFI) has called for National Labor Relations Board Member Richard Griffin to resign from his post due to being named as a defendant in a lawsuit alleging union corruption. Prior to being named to the Board by President Obama, Member Griffin was employed as the general counsel of the International Union of Operating Engineers (IUOE). Fred Wszolek, a spokesman for the WFI, had this to say: 

"The recent complaint that names him as a defendant and details his role in an embezzlement scheme clearly makes him unsuited to serve as an unbiased arbiter deciding matters that significantly impact American workers and small businesses."

A Board spokesman declined comment, but Member Griffin's attorney has called the allegations "frivolous." We will certainly keep you posted as the case develops.

NYC Bus Drivers on Strike, Stranding Hundred Thousand Students: Lindsey Christ of NY1 reports that New York City school bus drivers represented by the Amalgamated Transit Union (ATU) have walked off  the job and are officially on strike. The drivers are demanding increased job protections from the City of New York.

“We’ve tried every option to avoid a strike, but our members feel that their back is to a wall and they must take a stand on this issue," Amalgamated Transit Union Local 1181 President Michael Cordiello said.

The move to strike effectively strands 150,000 students, forcing parents to make alternative arrangements. So far, schools have been handing out free Metro Cards, while the bus companies have been searching for replacement workers. The bus companies also have stated that they intend to file a complaint with the National Labor Relations Board in an effort to end the strike.

Unions Allege Workers at Corinthian Contractors Being UnderpaidPatricia Sullivan of the Washington Post reports that more than a dozen labor unions protested outside the Arlington, VA office of Corinthian Contractors, alleging that workers are not being paid federally required wages under the Davis-Bacon Act. The company, in a written statement, responded by arguing that the firm pays "at or above the prevailing wage on all federal contracts." 

The issue had already been brought to the attention of the National Labor Relations Board, which dismissed the claims as baseless. D.C. Water, who brought Corinthian Contractors onto the project, has also investigated the allegations and has found the company to be in compliance.

@LRToday Morning Round-Up: January 15, 2013

Retail Groups File Brief With Board Arguing Against "Micro-Unions"Stewart Bishop of Law360 ($$) reports that two retail groups have filed a brief with the National Labor Relations Board in support of a challenge by Macy's, Inc. to a Board Regional Director's recognition of a "micro-union" at one of its Massachusetts stores. The Retail Industry Leaders' Association (RILA) and the Retail Litigation Center (RLC) argue that the NLRB should return to its former presumption favoring whole-store collective bargaining units.

Such a change in favor of micro-unions “would serve to balkanize the structure of the employer’s business, adversely affecting amici’s members and their businesses, complicating labor relations and collective bargaining, threatening to embroil customers and other members of the public in labor disputes, and building in delay and increased costs in the board’s currently fair and efficient representation process,” the brief said.

A retail store composed of multiple independent bargaining units would have an adverse effect on morale, as well as on business, the parties continued. Further, it would arguably undermine the Board's preference for "stable labor conditions."

Case Against Hyatt Regency Goes to HearingJamie Smith Hopkins of the Baltimore Sun reports that the NLRB has begun making its case against the Hyatt Regency Baltimore, alleging multiple unfair labor practices in response to a union organizing campaign. The complaint, filed last November, contends that the hotel began interrogating employees and "invoking harsh discipline" upon learning of the potential organizing campaign. 

"It's a classic nip-in-the-bud case," said Sean R. Marshall, a senior trial attorney for the board.

However, the hotel said in a statement that it believed it would ultimately prevail over the charges. We will certainly keep you updated as the case moves forward.

Union States School Bus Drivers Strike to Begin TomorrowCourtney Gross of NY1 reports that the President of the Amalgamated Transit Union Local 1181 (ATU) has stated that New York City school bus drivers will go on strike as of Wednesday morning. The strikers are demanding that the City include certain employee protection clauses in its contracts with bus drivers. Mayor Bloomberg released a statement of his own upon learning of the ATU's decision to strike.

"The union is abandoning 152,000 students and their families who rely on school bus service each day. We hope that the union will reconsider its irresponsible and misguided decision to jeopardize our students' education."

Fortunately for parents and students, the City has come up with a contingency plan. Metro Cards will be distributed to regular bus riders during the school day, which will hopefully result in minimal disruption for the students and the schools. Parents and students, however, are somewhat skeptical.

"If we can't go on the school bus, how are we going to get to school?" asked a student.

We here at @LRToday have been following this story closely and will keep you updated as it unfolds further.

Labor and Human Relations Professionals Face More Challenges In Light of Recent NLRB Decisions

If you are responsible for labor or human relations at a unionized employer, your job just got tougher last month. In two decisions issued on back to back days in December, the National Labor Relations Board eliminated two long-standing, bright-line rules favorable to employers relating to their duty to bargain: 1) the ability to discipline represented employees without first bargaining with the union; and 2) the right to refuse to produce confidential witness statements to the union in response to information requests. As if elimination of those rules were not concerning enough for employers, the Board’s new law in these areas will create additional burdens for labor and human relations administrators in performing their day-to-day duties.  

On December 14, 2012, the Board in Alan Ritchey, Inc., 359 NLRB No. 40 (2013), reversed decade-old precedent and held that employers can no longer issue discretionary discipline unilaterally without bargaining with the union unless there is an agreement providing for a grievance procedure. Accordingly, where an employer’s disciplinary system is fixed as to broad standards, but discretionary as to what type of discipline will be imposed, the Board now requires that:

after the employer has decided (with or without an investigatory interview) to impose certain types of discipline, it must provide the union with notice and an opportunity to bargain over the discretionary aspects of its decision before proceeding to implement the decision. As explained below, at this stage, the employer need not bargain to agreement or impasse, if it does so afterward. In exigent circumstances, as defined, the employer may act immediately, provided that, promptly afterward, it provides the union with notice and an opportunity to bargain about the disciplinary decision and its effects. Finally, if the employer has properly implemented its disciplinary decision without first reaching agreement or impasse, the employer must bargain with the union to agreement or impasse after imposing discipline.

(See our previous post summarizing Alan Ritchey for more specifics regarding the bargaining obligations.)

As a result, unionized employers without an agreed upon grievance procedure must now determine to what extent they can exercise discretion in their disciplinary policies, and then bargain with the union regarding the exercise of that discretion whenever it seeks to discipline an employee. For example, presume that an employer has a no-fault attendance policy that proscribes certain discipline at various levels of attendance points, but the employer’s policies reserve the right for the employer to exercise discretion in the enforcement of its policies. If the employee has accumulated enough points to warrant a suspension under the attendance policy, the employer must now bargain with the union before suspending the employee, which will include responding to any information requests the union might serve seeking information regarding the consistency with which the employer has applied its policies and the level of discipline issued to other employees for similar infractions. Accordingly, this new bargaining obligation can delay the issuance of discipline and create significant additional work for labor and human resources administrators at a time when they are trying to direct their efforts towards negotiations for a new collective bargaining agreement.

Similarly, on December 15, 2012, the Board held in Piedmont Gardens, 359 NLRB No. 46 (2012), that the disclosure of witness statements in response to a union's request for information will now be governed by the balancing test articulated by the Supreme Court in Detroit Edison v. NLRB, 440 U.S. 301 (1979), that is used to determine when employers must produce confidential information to the union. Previously, the Board had a bright-line rule providing that employers had no duty to produce confidential witness statements produced during an investigation in response to a union's information request under Anheuser-Busch, 237 NLRB 982 (1978).

This decision is problematic for labor and human resources professionals, and thus their employers, for two reasons. First, the fact that employers might have to produce confidential witness statements to the union will likely discourage some employees from cooperating during investigations because they fear retribution by the union and/or their co-workers. Employers can no longer make assurances of confidentiality when asking an employee to submit a witness statement and thus cannot comply with the guidelines issued by the Equal Employment Opportunity Commission regarding confidentiality.

Second, labor/human resources administrators must now either become labor law professionals or frequently engage such professionals to determine, on a case by case basis, whether it must produce confidential witness statements in response to an information request. Even then, as Member Hayes highlights with a quote by former Board Member Brame, it will be difficult to chart the legally acceptable course: 

It would take the wisdom of Solomon and the time of the ages for the Board, on a case-by-case basis, to attempt to grade and classify all potential forms of employee misconduct and to determine how the gravity of the offense ranks in the majority’s subjective scale of various legitimate interests. Moreover, there is no correlation between the majority’s perceptions of the nature of the misconduct and the potential peril to an informer. When the informant gives up information that results in an employee’s dismissal, it does not matter if the discharge is because of workplace theft or drug use. The employee’s job is lost just the same and the resentment of fellow employees toward the informer is likely to be just as great.

An employee contemplating whether to provide confidential information should not be required to attempt to predict how the Board will apply its subjective balancing test . . . . Such a rule will have a chilling effect on informants and employees.

As such, it is clear that the jobs for some labor and human resources professionals just got a lot tougher as a result of both Alan Ritchey and Piedmont Gardens. It is not yet known whether either employer will file a petition for review challenging these decisions, but we will keep you posted on any developments in these cases as well as any other ALJ or Board decisions applying these new Board rules.

@LRToday Morning Round-Up: January 9, 2013

Lawsuit Alleges Member Griffin Complicit in Embezzlement Cover-UpLachlan Markey at the Washington Free Beacon reports that a lawsuit filed in California federal court accuses National Labor Relations Board member Richard Griffin of being complicit in a plot to cover up acts of embezzlement at the International Union of Operating Engineers (IUOE). The lengthy complaint, which can be found HERE, also alleges violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act).

The suit seeks over $5million in damages for a number of RICO Act violations, as well as violations of the Labor Management and Disclosure Act. A Board spokesman referred requests for comment to Griffin's attorney, who has called the allegations "preposterous." 

This is not the first time that Griffin has been in some hot water. Back in July of 2012, Senator Orrin Hatch (R-Utah) sent Griffin a letter requesting information regarding any ties Griffin may have had with IUOE members who have been convicted of crimes. We will certainly keep you posted on any developments in this case.

Hockey is (Almost) Back: The X's and O's of the New Collective Bargaining AgreementDonnie Tasser of the Pitt News has laid out the major terms that the National Hockey League and the Players' Association have agreed to in order to end the current lockout. Pucks are tentatively set to drop on January 19, 2013 on a 48-game season. While players and owners still need to ratify the deal, at this point signing the agreement seems to be nothing more than a formality.

Both sides made several major concessions in bargaining in order to reach an agreement. In particular, the division of revenue between players and owners has dropped from 57/43 to an even 50/50 split. The NHL also agreed with the Players' Association that player salary variances would be capped at 35%.

Local Alro Steel Union Members to Vote on De-UnionizingJeff Engel of the Milwaukee Business Journal reports that production employees at Local Alro Steel in Wauwatosa, WI will vote this Thursday on whether or not they wish to remain represented by the United Steelworkers, AFL-CIO. The 34 employees voting had filed a petition with the National Labor Relations Board on December 7, 2012, seeking a decertification vote. The current collective bargaining unit governing the employees expires in November of this year, so there is a possibility that the employees could shop around for new representation.

NLRB's Office of the General Counsel Releases Annual Report for FY2012

Today Lafe Solomon, Acting General Counsel, National Labor Relations Board, released the annual "Summary of Operations" for Fiscal Year 2012. The report focuses mainly on the statistical accomplishments of the Board for FY 2012, and highlights that: 

  • 93.9% of all initial representation elections were held within 56 days of the filing of the petition (up from 91.7% last year);
  • Initial elections in union representation elections were conducted in a media of 38 days from the filing of the petition;
  • 97% of the 37 10(j) petitions litigated in federal district court resulted in a satisfactory settlement or substantial victory;
  • Regional offices settled 91% of the unfair labor practice charges that were deemed by the regional office to have merit (down from 93%);
  • Regional offices won in whole or in part 90.1% of the unfair labor practice and compliance cases before administrative law judges (up from 87%); and
  • $44,316,059 was recovered on behalf of employees as backpay or reimbursement of fees, dues, and fines.

AGC Solomon also noted that the Agency exceed two out of three of its "overarching casehandling goals," closing:

  • 84.5% of all representation cases within 100 days (target 85.2%),
  • 72.7% of all unfair labor practice cases within 120 days (target 72.0%), and
  • 83.8% of all meritorious unfair labor practice cases within 365 days (target 80.3%).

As he described 2011 in last year's report, AGC Solomon labeled 2012 as "another successful fiscal year enforcing the National Labor Relations Act," and "another year of excellent casehandling performance" in his introductory letter.

Will the NLRB's New Rule Requiring Employers to Continue Dues Deductions Following Contract Expiration Lead to More Bargaining Impasses?

Last month the National Labor Relations Board issued a decision perceived to be very beneficial to organized labor, as it erased 50 years of precedent to hold that an employer can no longer unilaterally discontinue dues checkoff provisions after the expiration of a collective bargaining agreement. However, the Board might have unintentionally made it more difficult for unions to reach agreement with some employers on new contracts, thus promoting more industrial strife.

As we noted two weeks ago, in WKYC-TV, 359 NLRB No. 30 (2012), the Board reversed its decision in Bethlehem Steel, 136 NLRB 1500 (1962), as it relates to dues checkoff provisions based on “compelling statutory and policy reasons.” Finding that there was no statutory basis to exclude dues checkoff from the general rule that employers cannot make unilateral changes regarding mandatory subjects of bargaining, the Board ruled that dues checkoff, like other terms and conditions of an expired collective bargaining agreement, is part of the status quo that cannot be changed absent agreement by the union. 

This development is significant as some employers will object to continuing dues checkoff during negotiations for a new collective bargaining agreement because it eliminates what has historically been a legitimate leverage point available to them. While unions ordinarily place high priority on these provisions, employers typically recognize they provide little benefit to operations while increasing administrative burdens. As a result, employers may give it a second thought now that the commitment will be more open-ended.

Moreover, and perhaps more importantly, the Board's decision in WKYC-TV provides employers an easier path for bargaining to impasse in either first or successor contract negotiations given the recent decision by the U.S. Court of Appeals for the District of Columbia in Erie Brush & Manufacturing Corp. v. NLRB, Case. No. 11-1337 (D.C. Cir. Nov. 27, 2012).

As discussed in our analysis of Erie Brush, the NLRB found that the employer unlawfully refused to bargain with the union by claiming that there was an impasse. The primary issue leading to overall impasse in Erie Brush was the employer being "committed to an open shop," and thus unwilling to agree to the union's proposal on union security. On petition for review with the appellate court, the court vacated the NLRB’s order because the evidence “uniformly” supported the employer’s position that there was a bargaining impasse despite the fact that impasse existed on only two discrete issues:

Impasse on a single critical issue can create an impasse on the entire agreement. See CalMat Co., 331 NLRB 1084, 1097 (2000). A party asserting impasse based on a single issue must show that: first, a good-faith bargaining impasse actually existed; second, the single issue involved was critical; and third, “the impasse on this critical issue led to a breakdown in the overall negotiations.” Id. The Board does not dispute that Erie established the second CalMat factor: union security was a critical issue. See Board Decision at 2; Resp’t Br. at 26.

Although Erie Bush provides employers reluctant to bargain with a union an opportunity to create a bona fide impasse by insisting on an open shop, the tactic is very risky as the Board generally views an employer's reluctance to agree to union security as evidence of bad faith bargaining. See Clarke Manufacturing, 352 NLRB 141 (2008) (finding that an employer's submission, without a tenable explanation, of a regressive proposal to eliminate a union-security provision was unlawful under Section 8(a)(5) and (1)). Accordingly, the detrimental effect of Erie Bush, at least as perceived by organized labor, was somewhat limited--at least until the Board's decision in WKYC-TV.

WKYC-TV now provides employers an additional path under Erie Bush to use a singular issue to create an overall impasse. Because some employers will want to secure elimination of dues checkoff as an economic weapon in subsequent negotiations, they now have a "tenable explanation" for being "committed" to proposals that either:

  1. do not provide for dues checkoff; or
  2. expressly provide that dues checkoff ceases immediately before or at the termination of the collective bargaining agreement.

Given that most unions will likely refuse to agree to either of those proposals, it certainly appears that a bona fide impasse may be more likely to result in future negotiations than before, which may in turn result in more strikes, lockouts, and other industrial strife. So even if the current Board was trying to reduce industrial strife by shifting some bargaining leverage back in organized labor's favor, it remains uncertain whether WKYC-TV will actually achieve those results.

NLRB Acting General Counsel Provides Guidance on At-Will Employment Disclaimers

On October 31, 2012, the Acting General Counsel of the National Labor Relations Board issued two advice memos recommending the dismissal of unfair labor practice charges alleging the employers’ at-will disclaimers in their employee handbooks violated the National Labor Relations Act. In the first advice memo issued yesterday, (Rocha Transportation, NLRB Case No. 32-CA-086799 (G.C. Div. of Advice Memo., October 31, 2012)), the employer maintained an at-will policy in its Driver Handbook stating that:

Employment with Rocha Transportation is employment at-will. Employment at-will may be terminated with or without cause and with or without notice at any time by the employee or the Company. Nothing in this Handbook or in any document or statement shall limit the right to terminate employment at-will. No manager, supervisor, or employee of Rocha Transportation has any authority to enter into an agreement for employment for any specified period of time or to make an agreement for employment other than at-will. Only the president of the Company has the authority to make any such agreement and then only in writing.

Similarly, the employer in the second advice memo (SWH Corporation, NLRB Case No. 28-CA-084365 (G.C. Div. of Advice Memo., October 31, 2012)), maintained the following at-will policy statement in its employee handbook: 

The relationship between you and Mimi’s Café is referred to as “employment at will.” This means that your employment can be terminated at any time for any reason, with our without cause, with or without notice, by you or the Company. No representative of the Company has authority to enter into any agreement contrary to the foregoing “employment at will” relationship. Nothing contained in this handbook creates an express or implied contract of employment.

In both cases it was alleged that the at-will policies were overbroad and would reasonably chill employees in the exercise of their rights under the Act.

The acting general counsel concluded in both cases that the employers' employment at-will provisions "would not reasonably be interpreted to restrict an employee's Section 7 right to engage in concerted attempts to change his or her employment at-will status" since:

[t]he provision does not require employees to refrain from seeking to change their at-will status or to agree that their at-will status cannot be changed in any way. Instead, the provision simply prohibits the [Employers’] own representatives from entering into employment agreements that provide for other than at-will employment.

In finding both provisions lawful, the Acting General Counsel distinguished American Red Cross Arizona Blood Services Region, NLRB Case No. 28-CA-23443 (Feb. 1, 2012), in which an administrative law judge found an employer’s at-will policy unlawful. In that case, employees were required to sign a form acknowledging their at-will employment status:

I further agree that the at-will employment relationship cannot be amended, modified or altered in any way.

According to the Division of Advice, American Red Cross “more clearly involved an employee’s waiver of his Section 7 rights than the handbook provisions here” because the employees, by signing the acknowledgement, had to agree that their at-will employment could not be changed in any way, and was thus a waiver of the employee’s right “to advocate concertedly…to change his/her at-will status.”

Given that employers have long utilized employment at-will provisions in employee handbooks as a defense to potential claims by employees that the provisions in the handbook create an employment contract, these advice memorandum provide much-needed guidance for employers regarding at-will disclaimers given the NLRB’s ruling in American Red Cross earlier this year. However, the Acting General Counsel noted that the law in this area remains unsettled, and has thus requested that the Regions submit all cases involving employee handbook provisions restricting modification of an employee’s at-will status to the Division of Advice.

NLRB Issues 341 Decisions in FY 2012

The National Labor Relations Board issued a press release today touting its work in fiscal year 2012. Between October 1, 2011 and September 30, 2012, the NLRB issued 341 decisions in contested cases - 277 unfair labor practice cases and 64 representation cases. Included in those decisions were nine of its 10 oldest decisions. By removing those from its docket, the average age of pending cases was cut in half from 219 days to 108 days.

The Board's press release highlights the significant topics it addressed in FY 2012:

Mandatory arbitration: In D.R. Horton, the Board ruled that it is a violation of federal labor law to require employees to sign arbitration agreements that prohibit them from joining together in any forum to bring legal claims against the employer.

Lawsuits as unfair labor practices: A number of decisions, including two issued by the full Board, found that lawsuits filed by employers or unions may be unfair labor practices in certain circumstances. Federal Security Inc.; J.A. Croson Co.; Operative Plasterers and Cement Masons (Standard Drywall); Sheet Metal Workers (EP Donnelly); and Allied Mechanical Services.

Symphony musicians: In three cases, set in Cape Cod, MA, Lancaster, PA, and Plano, TX, the Board found that symphony musicians are employees, not independent contractors, and so are eligible to join a union.

Facebook firings: In its first look at a case involving a discharge for Facebook posts, the Board found that the particular postings that led to the discharge were not protected. More such cases are pending.

Immigration status and backpay: In Flaum Appetizing, the Board found that employers must have good reason to raise the immigration status of employees during procedures to determine backpay awards, and cannot raise the question as a ‘fishing expedition’ to avoid payment. 

Successor employer obligations: In Massey Energy Company, the Board found that the company unlawfully refused to hire former unionized employees in order to avoid union obligations at a coal mine. The Board also found the company to be a single employer with its subsidiary, Mammoth Coal Company.

Specialty Healthcare standards: The Board applied the standards for unit determination that were clarified in its August 2011 opinion in Specialty Healthcare to several cases, including DTG Operations, Northrop Grumman Shipyard, and Odwalla, Inc.

The statement also referenced the new election rules it passed that were designed to "streamline the representation case process." However, as we have discussed in this blog, the new "quickie" election rules are currently suspended pending legal challenges, and several of the holdings in the decisions referenced above (e.g., class action waivers and the Specialty Healthcare standard) are currently being challenged in appellate courts. We will continue to provide updates on those issues and other labor law developments as they occur.

National Labor Relations Board Releases Annual Report for FY2011

Back on March 1, the National Association of Manufacturers asked "Where is the NLRB General Counsel Report [for FY 2011]?"  On its Shopfloor blog, NAM noted:

...Over the last ten years, the latest the report has been released was February 4th. Fiscal year 2012 began on October 1, 2011 and is nearly at its half-way point. Yet, the NLRB General Counsel has not let us know how the Board performed the year before.

Late last week, the Board answered, releasing  its annual "Summary of Activities" for fiscal year 2011.  The report focuses mainly on the statistical accomplishments of the Board for FY 2011.  As summarized by the report's introduction, elements of the report include that:

  • 91.7% of all initial representation elections were held within 56 days of the filing of the petition;
  • Regional offices settled 93% of the unfair labor practice charges that were deemed by the regional office to have merit
  • Regional offices won in whole or in part 87% of the unfair labor practice and compliance cases before administrative law judges
  • The NLRA’s case intake dropped by 5.9% overall from FY 2010, which represents a decrease of 5.1% in unfair labor practice charges and a decrease of 12.2% in representation cases.
  • Case inventory rose from 4,063 cases in FY 2010 to 4,421 cases in FY 2011, an increase of 8.8%.

In his introductory note to Board staff, the Acting GC described 2011 as "another successful fiscal year enforcing the National Labor Relations Act," and "another year of excellent casehandling performance." 

 

For more perspective on the specific elements of the Board's 2011 performance, please review our annual report "Labor Law 2011: A Year in Review."

Labor Relations Today Releases "Labor Law 2011: A Very Active Year in Review"

2011 was the most dynamic year in labor law in quite some time.  Fueling many of the changes last year were the impending departures of National Labor Relations Board Chairman Wilma Liebman and Member Craig Becker. With no certainty as to when Liebman or Becker might be properly replaced, the Board acted aggressively while it still held a pro-labor majority and a quorum. In addition to the Board’s activity, the Acting General Counsel pursued an expansive agenda. In response to these efforts, Republican opposition in Congress attempted to rein the Board in via additional oversight and legislative efforts that failed to gain much traction.

The labor attorneys here at Labor Relations Today have been following these significant developments every step of the way.  Today we are publishing "Labor Law in 2011: A Very Active Year in Review."  This brief summary highlights some of the most noteworthy developments in 2011.  We hope you find it a helpful resource as we head into what is already shaping up to be another "very active year." 

NLRB Postpones Implementation of Notice-Posting Rule

Today the National Labor Relations Board announced that it is postponing the implementation date for its new notice-posting to January 31, 2012. The notice-posting rule, which requires private-sector employers subject to the National Labor Relations Act to post a notice to employees informing them of their rights under the Act, was to become effective November 14, 2011.

According to the NLRB, the postponement is "to allow for enhanced education and outreach to employers, particularly those who operate small and medium sized businesses" following

queries from businesses and trade organizations indicating uncertainty about which businesses fall under the Board's jurisdiction, and [the postponement] was made in the interest of ensuring broad voluntary compliance.

Suppressing any potential speculation that the NLRB will modify or retract the Rule, the NLRB's notice states that "[n]o other changes in the rule, or in the form or content of the notice, will be made."

The NLRB originally announced its final notice-posting rule on August 30, 2011. Since then the National Association of Manufacturers (NAM) filed suit in the District Court for the District of Columbia, seeking to enjoin the Rule, alleging that it is "in excess of the Board's statutory jurisdiction, authority, limitations and rights." NAM has requested preliminary and permanent injunctions against implementation and enforcement of the Rule, but no ruling has been made to date.

Employers should continue to follow developments regarding the Rule because, absent an injunction, most private sector employers will be required to post the required Notice in the workplace as of January 31, 2012. We will update the blog once any new information regarding the NAM lawsuit becomes available.

NLRB Creates Lead Technology Counsel Position

In what is clearly a move to modernize the National Labor Relations Board's ability to gather, preserve, and analyze electronic data, the NLRB's Division of Enforcement Litigation today announced the appointment of P. Brian See to the newly created position of Lead Technology Counsel. In this role, Mr. See will be responsible for:

provid[ing] support and strategic guidance to Agency attorneys faced with issues regarding the retrieval and exchange of documents and electronically stored information (ESI) during the investigation, discovery and litigation of particular matters. Mr. See will also assist Agency attorneys and staff craft policies and procedures relating to managing electronic information and litigation holds.

According to the NLRB's press release, Mr. See was previously engaged in private practice with Williams Mullen in Richmond, Virginia,  and "has extensive experience investigating, negotiating, drafting and arguing electronic discovery issues and coordinating large-scale document processing and review in matters such as complex discrimination, antitrust, wage-hour and intellectual property litigation, civil and criminal investigations and bankruptcies."

District Court Enjoins NLRB from Proceeding with ULP Hearing Against Indian Tribe

On Monday, the U.S. District Court for the Western District of Oklahoma issued a preliminary injunction in The Chickasaw Nation v. National Labor Relations Board, Case No. CIV-11-506-W, enjoining the National Labor Relations Board from proceeding with an unfair labor practice hearing against the Chickasaw Nation, a federally-recognized Indian Tribe. Relying on "a deep body of Tenth Circuit law expressing extreme deference to tribal sovereignty," the district court found that it had jurisdiction to enjoin the NLRB from proceeding with its hearing and that the Chickasaw Nation "is substantially likely to prevail on the merits of its claim for a declaratory judgment that it is not subject to the provisions of the NLRA."

The Chickasaw Nation holds a series of treaties with the United States and is governed by its citizen-elected government in accordance with the Chickasaw Nation Constitution. Through the Chickasaw Nation Division of Commerce, it operates gaming facilities on tribal trust property. Revenues generated by the Nation's Indian Gaming Regulatory Act (IGRA) gaming are used exclusively by the Nation to fund Tribal government operations or programs, or to provide for the general welfare of the Nation and its citizens, consistent with the requirements of IGRA. These functions and purposes include but are not limited to healthcare, education, law enforcement, youth and family services.

In granting the Chickasaw Nation's motion, the district court noted:

Because of the extraordinary number of tribes located within its jurisdiction, the Tenth Circuit is uniquely experienced in the application of the canons of Indian law. The Tenth Circuit has clearly held that "federal regulatory schemes do not apply to tribal governments exercising their sovereign authority absent express congressional authorization." ... Such Tenth Circuit authority is in accord with the United States Supreme Court's holding that before a treaty right will be abrogated, there must be a "clear and plain" expression of Congress' intent to do so.

It is undisputed that the National Labor Relations Act makes no explicit reference to Indian tribes.

The district court acknowledged the District of Columbia Circuit's decision in San Manuel Indian Bingo & Casino, 475 F.3d 1306 (D.C. Cir. 2007).  In that case, the D.C. Circuit ruled that the NLRB does have jurisdiction over tribally owned businesses based upon a statement of questionable significance from a 1960 Supreme Court case that "a general statute in terms applying to all persons includes Indians and their property interests." Noting that the Tenth Circuit "firmly disavowed" the reasoning employed in San Manuel because the 1960 Supreme Court decision involved proprietary interests rather than sovereign interests, the district court found that it had jurisdiction to temporarily enjoin the NLRB from proceeding with its hearing against the Chickasaw Nation.

The district court's order comes on the heels of Rep. Kristi Noem's (R-SD) bill introduced on June 23, 2011, that seeks to clarify that the NLRB does not have jurisdiction over tribally owned businesses on reservation land as a matter tribal sovereignty. Prior to 2004, the NLRB's position regarding jurisdiction over Indian tribes as employers was that tribes were exempt from the NLRA, but that changed with the NLRB's San Manuel decision affirmed by the D.C. Circuit as noted above. Representative Noem's proposed legislation is intended to reverse the San Manuel decision.

NLRB to Weigh In On Arbitration Agreements Prohibiting Class Claims

Just two months after the Supreme Court's decision in AT&T Mobility v. Concepcion, in which the Court held that the use of class arbitration waivers in consumer contracts are permissible even when they conflict with state law, the National Labor Relations Board has invited interested parties to file briefs regarding whether an employer violates Section 8(a)(1) of the National Labor Relations Act by maintaining and enforcing an arbitration agreement with its employees that denies the arbitrator any authority to fashion the proceeding as a class or collective action.  On June 16, 2011, the Board issued a Notice and Invitation to File Briefs on this issue in the case of D. R. Horton, Inc., Case No. 12-CA-25764.

Exactly one year earlier, on June 16, 2010, Ronald Meisburg, the NLRB's General Counsel at the time, issued a guideline memorandum for unfair labor practice charges involving employers' mandatory arbitration policies. In the memorandum, the General Counsel concluded that so long as the arbitration agreement does not require the arbitration of claims under the National Labor Relations Act:

[e]mployers...may require individual employees to sign a...waiver of their right to file a class or collective claim without per se violating the Act. So long as the wording of these agreements makes clear to employees that their right to act concertedly to challenge these agreements by pursuing class and collective claims will not be subject to discipline or retaliation by the employer, and that those rights— consistent with Section 7—are preserved, no violation of the Act will be found.

However, in the Board's recent Notice in the D. R. Horton  case, the NLRB asks interested amici to file a brief addressing the following issue:

Did the Respondent violate Section 8(a)(1) of the Act by maintaining and enforcing its Mutual Arbitration Agreement, under which employees are required, as a condition of employment, to agree to submit all employment disputes to individual arbitration, waiving all rights to a judicial forum, where the arbitration agreement further provides that arbitrators will have no authority to consolidate claims or to fashion a proceeding as a class or collective action?

As such, it appears that the Board may not agree with the former General Counsel's analysis, and may find that arbitration agreements precluding class or collective action arbitrations violate Section 8(a)(1) of the Act.

The deadline for amici briefs is July 20, 2011. The parties may then file responsive briefs on or before August 3, 2011.

Regional Office Refers NFL Charge to Division of Advice in D.C.

Liz Mullen of the Sports Business Journal (subscription) is reporting today that Region 2 of the National Labor Relations Board has sent the unfair labor practice charge filed against the NFLPA by the NFL to the Division of Advice in Washington, D.C. 

Back in February, the NFL owners filed the charge (subsequently amended) against the NFLPA, alleging that the union had 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 in New York City, accused the union of engaging in unlawful "surface bargaining and an anticipatory refusal to bargain."  The charge described the alleged misconduct 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.  Finally, the charge spelled out the heart of the NFL's concern -- the NFLPA's strategy of coordinating a decertification in order to obtain a strategic advantage in their negotiations -- which is now also at the heart of the antitrust litigation playing out in the Court of Appeals for the Eighth Circuit.

The Region's referral to the Division of Advice is not terribly unique, especially given the stakes involved here.  The Division of Advice, under the auspices of the Office of the General Counsel in Washington, D.C., consists of three branches: The Regional Advice Branch, the Injunction Litigation Branch, and the Legal Research & Policy Planning Branch.  This matter is obviously now before the Regional Advice Branch which will research, analyze and provide "advice" to the General Counsel and the Regional Office with respect to whether the charge is worth pursuing.  Following this review -- perhaps a few weeks or months hence -- the Division will likely issue an Advice Memorandum to the Regional Director recommending either issuance of a complaint or dismissal of the charge absent withdrawal. 

As a practical matter, in the instant dispute between the NFL and the NFLPA, this is not likely to have much impact.  We are likely to see an Eighth Circuit decision in the court litigation before we see the results of this review by Advice.  It certainly does not hurt the owners' position in ongoing negotiations in that the PR of an outright dismissal by the Regional Office might have had an impact on their leverage.  And, to some extent, the NLRB's referral to Advice does undermine the certainty of District Court Judge Susan Nelson's conclusions about what the Board was likely to do when she granted the players an injunction against the owners' lockout back in late April.  But this fairly routine decision by the Regional Office certainly did not shift any significant leverage toward one side or the other in this ongoing legal battle.

NLRB Issues Complaint Against Union for Unilaterally Printing Weingarten Statement on CBA

Law360 (subscription) reports today on a Complaint issued by the NLRB against the California Nurses Association for unilaterally printing a statement regarding employee "Weingarten Rights" on the inside cover of its CBA with various healthcare institutions.  The Complaint alleges that this conduct violates the employees' rights to refrain from union activity, as well as the Act's requirement that parties refrain from unilateral modifications to the terms of their agreements.  From Law360:

Printing the rights on collective bargaining agreements implies that employees must have a union representative present, impeding their right to choose to avoid unions altogether, the complaint says. Moreover, including the text on the agreements without the employers' permission amounts to unilaterally altering the terms and conditions of employment, the office claims.

  *  *  *

The 227-bed Henry Mayo Newhall Memorial Hospital filed an unfair labor practice charge against the union in October. The CNA has represented the hospital's full-time, part-time and per diem registered nurses since 2000, the complaint says.

The hospital and the union signed off on a collective bargaining agreement in April 2009, and the union was supposed to print up copies for the employees but instead distributed copies to employees that include a copy of the Weingarten Rights printed on the back, according to the complaint.

The hearing in this case is scheduled for August 1, 2011 in Los Angeles.

National Labor Relations Board Sues Arizona Over Secret Ballot Amendment

The National Labor Relations Board this afternoon filed suit against the State of Arizona in the federal District Court for the District of Arizona.  Consistent with its previous announcement of its intent to do so, the Board is seeking a Declaratory Judgment proclaiming Arizona Constitution Article 2 § 37 pre-empted by the National Labor Relations Act. 

Article 2 § 37 of the Arizona Constitution, approved by voter referendum on November 2, 2010, states: 

[t]he right to vote by secret ballot for employee representation is fundamental and shall be guaranteed where local, state or federal law permits or requires elections, designations or authorizations for employee representation.

After citing sections of the NLRA which pertain to the designation or recognition of a union representative, the Board's Complaint asserts:

The NLRA permits but does not require secret ballot elections for the designation, selection, or authorization of a collective bargaining representative where, for example, employees successfully petition their employer to voluntarily recognize their designated representative on the basis of reliable evidence of majority support, in accordance with Sections 7 and 9 of the NLRA, 29 U.S.C. §§ 157 and 159, or where a construction union seeks recognition from a construction employer in accordance with Section 8(f) of the NLRA, 29 U.S.C. § 158(f).

Moreover, argues the Board, the provision ought to be preempted "insofar as it creates a parallel state enforcement mechanism for protecting employee representation rights that Congress assigned to the National Labor Relations Board."

Following an earlier exchange of positions between the Board and four states on this issue, several witnesses at a February 11, 2011 hearing before the House Committee on Education and the Workforce encouraged that this dispute be resolved by Congressional action on the Secret Ballot Protection Act.  That Act, which would require secret ballot elections in federal union representation proceedings, was introduced by Senator Jim DeMint (R-SC) on January 27, 2011 and Rep. Phil Roe (R-TN) on March 15, 2011.

The State Attorneys General responsible for enforcing their states' secret ballot protection measures responded strongly to the initial threats by the Acting General Counsel to initiate litigation.  In the face of politically charged reactions to other recent choices, the Acting General Counsel is showing no signs of embracing a less aggressive approach going forward.

NYT: National Labor Relations Board to Sue Arizona, South Dakota Over Anti-Card-Check Amendments

Steven Greenhouse writes in the New York Times that the National Labor Relations Board plans to proceed with lawsuits against two of the four states it threatened earlier this year over state constitutional amendments to ban union recognition by card-check.  On January 14, 2011, Acting General Counsel Lafe Solomon advised the Attorneys General of Arizona, South Carolina, South Dakota and Utah that the National Labor Relations Act preempts constitutional amendments to require the use of secret ballots in union representation elections.  In response the states argued that the amendments support the current federal law and did not disrupt the federal regulatory scheme.  

In February, the Acting General Counsel replied to the states indicating that the Board would refrain from bringing suit while they discussed whether they could resolve the issue "without the necessity of costly litigation."  Now, Greenhouse reports the Board has indicated it will soon file federal lawsuits against Arizona and South Dakota seeking to invalidate the amendments: 

In a letter sent on Friday, the labor board told those states that it would invoke the United States Constitution’s supremacy clause in asserting that the state constitutional amendments conflict with federal laws and are pre-empted by those laws. One federal official said the lawsuits would be filed in the next few days.

The Board has suggested it might proceed against the other two states at a later date.  Greenhouse includes reaction from Arizona and South Dakota to the announcement: 

In an interview, Tom Horne, Arizona’s attorney general, criticized the board’s planned suit, saying, “I find it shocking that they do not believe in the fundamental principle of democracy that people have a right to a secret ballot.” He said that while federal pre-emption might apply to laws passed by Congress, it should not apply to the labor board’s decision allowing card check to be used in some unionization campaigns.

South Dakota’s attorney general, Marty J. Jackley, said he respectfully disagreed with the board’s analysis, adding that he did not believe the agency “has the authority under circumstances like this to sue a state.”

At a February 11, 2011 hearing before the House Committee on Education and the Workforce, several witnesses indicated that any preemption dispute over this issue could be resolved by Congressional action on the Secret Ballot Protection Act.  That Act, which would require secret ballot elections in federal union representation proceedings, was introduced by Senator Jim DeMint (R-SC) on January 27, 2011 and Rep. Phil Roe (R-TN) on March 15, 2011.

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 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.

NLRB Asserts State Secret Ballot Laws Are Unconstitutional

This past Friday, January 14, 2011, the National Labor Relations Board advised the Attorneys General of four states – Arizona, South Carolina, South Dakota and Utah – that the National Labor Relations Act preempts constitutional amendments to require the use of secret ballots in union representation elections. Letters sent by Acting General Counsel Lafe Solomon assert that these amendments, approved by voters in each of these states last November, conflict with Section 7 of the National Labor Relations Act.

In the letters, Acting GC Solomon cites Linden Lumber Division v. NLRB, 419 U.S. 301 (1974) and NLRB v. Gissel Packing Co., 395 U.S. 575 (1969) for the proposition that federal law provides employees two different paths to pursue the Section 7 right to choose a representative: a secret ballot election or voluntary recognition. The state constitutional amendments, however, require only secret ballot elections to select union representation according to the Acting GC’s letters. Accordingly, the letters assert these conflicting amendments are preempted by operation of the Supremacy Clause set forth in Article VI of the U.S. Constitution.

Acting GC Solomon requested responses from the states within two weeks. If the states refuse to acknowledge that these provisions are unconstitutional, the Board has indicated it will initiate civil actions in federal court to have them invalidated.  When we reported on similar efforts by states in early 2009, we noted that federal preemption principles would likely pose significant legal challenge to the enforcement of these state provisions.  It seems we will soon find out.

More commentary, resources:

UAW Asks Auto-Makers to Agree to "Principles for Fair Union Elections"

The United Auto Workers has issued a two page flier entitled “UAW Principles for Fair Union Elections.”  The Principles are obviously directed at the various foreign automakers operating non-union facilities in the United States.  Among other disputes, the UAW has been engaged in a protracted battle with Toyota over its inability to organize factories primarily throughout the South.  This recently issued document appears to be part of a new, long-awaited P.R.strategy to “reset” the union’s efforts.

The document itself is highly critical of the current state of American labor law, and the institutions tasked with its enforcement. Echoing the language used by sponsors and other proponents of the Employee Free Choice Act, the introductory sidebar to the UAW’s “Principles” states:

The current federal framework under the National Labor Relations Act does not protect the rights of workers to freely decide whether or not to join the UAW. ... Employee attempts at redress are futile due to lengthy delays and lack of penalties.

The Principles include commitments by the parties to comply with existing labor law – e.g., not to promise benefits to deter organizing, not to threaten repercussions on account of union sympathies, etc. Law-abiding employers should not have much problem acknowledging these.

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District Judge Issues Preliminary Injunction Ordering Employer to Recognize and Bargain With Union Pending Litigation of NLRB Charge

On Friday, August 20, 2010, a District Court Judge for the Eastern District of California issued a preliminary injunction pursuant to Section 10(j) of the National Labor Relations Act. The order, in Garcia v. Sacramento Coca-Cola Bottling Co., 2:10-cv-2176 (Damrell, U.S.D.J.), requires the employer to recognize and bargain with Teamsters Local 150 pending the outcome of refusal to bargain charges filed at Region 20 of the NLRB.

The employer is a soft drink distribution franchisee. For over forty years, the production and maintenance employees were represented by an “in-house” union, the SCCBE. The employer and SCCBE were parties to a collective-bargaining agreement in effect from November 1, 2009 through October 31, 2013.   During early 2010, new officers of the union helped facilitate an affiliation with Local 150, which was apparently approved at a union meeting.

Subsequently, a significant number of employees protested the affiliation – including by signing a “disaffiliation petition” presented to the employer. The employer refused to recognize Local 150 and refused to hear grievances filed by Local 150. Accordingly, the union filed unfair labor practice charges alleging violations of Section 8(a)(1) & (5) of the Act. The Region issued a Complaint against the employer on or about June 20, 2010, and proceeded to file a petition in the District Court seeking injunctive relief under Section 10(j) of the Act.

To obtain interim injunctive relief under Section 10(j), the Board must demonstrate that it is likely to succeed on the merits, that irreparable harm is likely in the absence of preliminary relief, that the balance of equities tips in favor of such relief, and that an injunction is in the public interest. The Court’s decision to issue an injunction here applies this standard to the specific facts of the case before it – a mid-contract refusal to recognize a new union following an affiliation vote. But it restates a broad view of “irreparable harm” that future Courts might find equally applicable in “first contract” or organizing cases. Section 4 of the proposed but stalled Employee Free Choice Act (S. 560, H.R. 1409) would require Regional Offices to pursue injunctive relief in all organizing and “first contract” cases.   Likewise, without being prompted by legislative action, in 2006 and 2007, former General Counsel Ronald Meisburg issued memoranda to all Regional Offices urging them to consider pursuing 10(j) relief in more “first contract” cases. One might certainly expect that the current Board may be even more aggressive about doing so.

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The NLRB and Social Media Policies

The National Labor Relations Board knows social networking. The NLRB is on Facebook. It is also on Twitter, and it has its own YouTube channel. As part of what it calls a “modern outreach and education strategy aligned with the contemporary workforce and workplace,” the agency hired Anthony Wagner in October 2009 as a New Media Specialist in the NLRB Office of Public Affairs.  And the NLRB has published a Social Networking Comment Policy

Perhaps of more significance to employers is the fact that the NLRB Division of Advice has already weighed in on at least one aspect of this new phenomenon. While Memoranda from the Division of Advice do not constitute formal adjudication or binding precedent, they are often quite instructive. 

In response to an inquiry from the Regional Director from Minneapolis (Region 18), the Division of Advice considered whether a social media policy promulgated by Sears Holdings violated the National Labor Relations Act.

The International Brotherhood of Electrical Workers (IBEW) filed an unfair labor practice charge with Region 18 claiming that the Sears Holdings Social Media Policy violated Section 8(a)(1) of the NLRA because it might chill employee participation in union organizing activities. As often happens in cases that raise new or novel legal questions, the Regional Director submitted the issue to the agency’s Division of Advice for direction on whether to issue a Complaint. 

The policy at issue stated:

[I]n order to ensure that the Company and its associates adhere to their ethical and legal obligations, associates are required to comply with the Company’s Social Media Policy. The intent of this Policy is not to restrict the flow of useful and appropriate information, but to minimize the risk to the Company and its associates.

* * *

Prohibited Subjects

 

In order to maintain the Company’s reputation and legal standing, the following subjects may not be discussed by associates in any form of social media:

·        Company confidential or proprietary information

·        Confidential or proprietary information of clients, partners, vendors, and suppliers

·        Embargoed information such as launch dates, release dates, and pending reorganizations

·        Company intellectual property such as drawings, designs, software, ideas and innovation

·         Disparagement of company’s or competitors’ products, services, executive leadership, employees, strategy, and business prospects

·        Explicit sexual references

·        Reference to illegal drugs

·        Obscenity or profanity

·         Disparagement of any race, religion, gender, sexual orientation, disability or national origin

The Division of Advice analyzed the issue under the framework set forth by the Bush Board in Lutheran Heritage Village – Livonia, 343 NLRB 646 (2004), a case that dealt with a rule prohibiting certain types of interactions in the workplace. The union in that case had argued that workplace rules prohibiting “abusive and profane language,” “harassment,” and “verbal, mental and physical abuse” unlawfully chilled union activity. The Board, announced a three-part test to determine the validity of rules that do not explicitly forbid union activity protected by Section 7 of the NLRA. Under that test, a rule is only unlawful if: “(1) employees would reasonably construe the language to prohibit Section 7 activity; (2) the rule was promulgated in response to union activity; or (3) the rule has been applied to restrict the exercise of Section 7 rights.” The Board in Lutheran Heritage Village found that the test was not met, so the rules prohibiting “abusive and profane language,” “harassment,” and “verbal, mental and physical abuse” were lawful.

Using that test, the Division of Advice opined that the Sears Holdings Social Media Policy did not violate the Act. It noted:

While the ban on “[d]isparagement of company’s . . . executive leadership, employees, [or] strategy . . . .” could chill the exercise of Section 7 rights if read in isolation, the Policy as a whole provides sufficient context to preclude a reasonable employee from construing the rule as a limit on Section 7 conduct. The Policy covers a list of proscribed activities, the vast majority of which are clearly not protected by Section 7.

The Division of Advice therefore concluded that the Regional Director should not issue a Complaint. 

Can employers rely on the December 2009 Advice Memorandum in drafting or maintaining social media policies? Because no Complaint was issued, the question did not reach the Board for a adjudication. But issues regarding social media policies will almost certainly reach the Board at some point in the near future. The analysis by the Division of Advice in the Sears Holdings case certainly seemed sound under existing legal principles. However, under the Obama Board, the application of the Lutheran Heritage Village test (if not the test itself) may well change.

Then-Member Wilma Liebman (appointed Chairman by President Obama) and former Member Dennis Walsh strongly dissented in the Lutheran Heritage Village case. The dissenters noted that they were “struck by the ambiguity” of the rules and that words like “abusive” and “harassment” were “highly subjective.” In their view:

Without a defining context, or limiting language, the rules at issue here could subject to discipline—and thus inhibit—an angry conversation with a supervisor expressing dissatisfaction over an evaluation, a heated discussion between employees over the benefits of unionization, or a loud protest by employees over safety conditions. But expressions of displeasure, and even anger, are protected means of Section 7 communication.

The dissenting opinion went on to discuss “workplace realities” and suggested that “in the course of protected activity, tempers often flare, emotions run high, and employees sometimes do use language that is abusive but not so egregious as to cost them the protection of the Act.” Accordingly, Members Liebman and Walsh would have found the Lutheran Heritage Village rules to be unlawful. 

Of course, the Obama Board may choose to acknowledge that communications in the online world of social media are different than face-to-face interactions in the workplace. Or it may not. But in either case it is prudent to study the Lutheran Heritage Village dissent when drafting or reviewing an employer’s social media policy.

Weekend Round-Up

Henry to lead SEIU:  Politico's Ben Smith reports on the surprising elevation to SEIU President of California nurses leader Mary Kay Henry over Andy Stern protege Anna Burger.  The move "turn[s] the giant union away from the Washington-based political and policy engagement that made it a major ally of the Democratic Party...."    Regarding the impact of her election:

Henry remains a largely unknown quantity on the national political scene, and some officials predicted that she would allow power to return from the Washington headquarters to scattered local unions; others suggested she'd emerge as a charismatic, central figure in Stern's tradition.

NLRB This Week:  Early in the week, the National Labor Relations Board issued its second decision since the President's recess appointments.  In International Union of Operating Engineers, Local 513, AFL-CIO (Ozark Constructors LLC), 355 NLRB No. 25 (Apr. 19, 2010), the Board held that an IUOE Local violated Section 8(b)(1)(A) of the Act by imposing a $2,500 fine on a member for reporting safety hazzards as required by a collective-bargaining agreement.

Toward the end of the week, the Board issued a press release announcing that Hugo Boss and Workers United/SEIU had reached a collective bargaining agreement which would keep the employer's Brooklyn, Ohio plant open.  Another release announced that a representation election will be held at University of Chicago Medical Center to resolve a disputed claim of representation between two rival nursing unions.

EFCA in Arkansas Dem Primary Debates:  National Journal reports on last night's debate between Senator Blanche Lincoln (D-AR) and her primary challenger Lt. Gov. Bill Halter (D-AR):

Halter went on offense first against Lincoln during a question about the Employee Free Choice Act, which is often referred to as "card check." He mentioned that she first sponsored EFCA, then opposed it and then "signaled" to Senate leadership that she would filibuster such a bill. Halter stressed that he would support what he's heard about a compromise unionization bill being worked on by Sen. Mark Pryor (D-AR) and that the original EFCA draft is a non-starter even among union leadership now.

That set up Lincoln for an easy body blow on Halter, saying, that she appreciated he "has seen that compromise because most senators haven't seen that compromise." She later added bluntly, "I don't support card check," saying that it "creates unfortunate divisions" though she did not offer specific details. Instead, Lincoln said more focus should be paid to the economy.