700 F.3d 551
D.C. Cir.2012Background
- KLB Industries sought wage concessions in 2007 to improve competitiveness; union challenged by requesting targeted information about customers, prices, quotes, and market data.
- KLB refused to disclose Competitive Information on October 18 and then lockout commenced October 22, paired with COBRA health insurance issues.
- Union argued disclosure was necessary to verify KLB’s competitiveness claim; ALJ found withholding violated NLRA 8(a)(1) and (5).
- Board adopted ALJ’s findings; dissenting Board member disagreed with ruling on disclosure and lockout.
- Petition for review pursued; the court analyzes whether a competitiveness claim triggers disclosure under a liberal discovery standard and the legality of the lockout.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether competitiveness claims trigger disclosure obligation | KLB: general competitiveness is insufficient for broad disclosure | KLB: Board should apply discovery-based, tailored approach to verify claims | Yes; information was relevant under discovery framework |
| Whether withholding information made the lockout unlawful | KLB: withholding not unlawful; lockout lawful if negotiations ongoing | Board: withholding information related to wage concessions tainted negotiations and justified lockout unlawful | Lockout unlawful due to improper information withholding |
| Whether the call to police during picketing violated the NLRA | KLB: Board jurisdiction and findings improper | Board: calling police violated NLRA; upheld enforcement | Board's finding enforces violation |
Key Cases Cited
- Truitt Mfg. Co. v. NLRB, 351 U.S. 149 (1956) (economic assertions require proof to bargain in good faith)
- Detroit Edison Co. v. NLRB, 440 U.S. 301 (1979) (liberal discovery-type standard; relevance to bargaining)
- U.S. Testing Co. v. NLRB, 160 F.3d 14 (D.C. Cir. 1998) (broadly construed relevance; information bears on bargaining)
- New York & Presbyterian Hospital v. NLRB, 649 F.3d 723 (D.C. Cir. 2011) (threshold for relevance; discovery-type standard; context matters)
- ConAgra, Inc. v. NLRB, 117 F.3d 1435 (D.C. Cir. 1997) (competitive-disadvantage assertion scrutinized; limits on disclosure)
- DaimlerChrysler Corp. v. NLRB, 288 F.3d 434 (D.C. Cir. 2002) (premises for analyzing unlawful bargaining practices; progress of negotiations)
- United Steelworkers of Am., Local Union 14534 v. NLRB, 983 F.2d 240 (D.C. Cir. 1993) (when financial information is required; ability to verify assertions)