When Diane Gorrell was fired from a Bob Evans restaurant in East Peoria, nearly all of the employees under her supervision walked off the job at the start of a busy Friday evening shift. The employees later sought to return to work but Bob Evans refused to reinstate them. This matter comes before us on cross applications to set aside and enforce an order of the National Labor Relations Board requiring Bob Evans to allow the employees to return to work. The Board adopted the ALJ’s decision that Bob Evans had committed an unfair labor practice by interfering with the employees’ right to engage in concerted protected activity under the National Labor Relations Act. See 29 U.S.C. § 158(a)(1). The ALJ found that the walkout was protected since the employees believed that Gorrell’s dismissal would have a negative impact on their working conditions. However, neither the ALJ nor the Board addressed the further question whether the walkout was a reasonable means of protest. We agree that the employees had a protectable grievance. But because the Board should have considered the means of protest and because we find the walkout an unreasonable means, we deny the Board’s application for enforcement of its order.
I.
The background facts are fairly straightforward. As First Assistant Manager at the East Peoria restaurant, Gorrell was one of five statutory supervisors and was second in command to General Manager Andy Dunlap. Gorrell was in charge of the night shift, a responsibility assumed by Second Assistant Manager Mark Weaver on Gorrell’s scheduled days off. Gorrell enjoyed a close working relationship with the hourly employees under her supervision. Individual employees frequently turned to her for comfort and counsel over work-related problems and she in turn mediated their grievances with her superiors. These grievances ranged from seemingly trivial disagreements over day-today restaurant practices to serious complaints, such as management and supervisor harassment of female and minority employees and an arbitrary termination of employment. Gorrell also socialized with the night-shift employees, many of whom were welcomed as guests at her home.
Ironically, the events that precipitated Gorrell’s departure from the ranks of Bob Evans took place on a scheduled day off for Gorrell, Sunday October 15,1995. Weaver— who was supervising the night shift — was evidently in over his head. A lack of staff and a shortage of food generated intense customer dissatisfaction. Two of the employees telephoned Gorrell who came in, took over the shift and restored order. Weaver was left in no doubt of Gorrell’s displeasure and her exasperation at Manager Dunlap’s apparent inability to run the restaurant. At about 10:00 p.m., shortly before closing time, Gorrell convened an impromptu pizza party in the restaurant area which degenerated into a raucous food fight. She neither encouraged nor condemned these antics, choosing instead to sit at the counter with other employees drinking alcohol under Weaver’s watchful eye. At about 4:00 a.m., the merry troop left the restaurant to continue the festivities at Gorrell’s house. Unfortunately,
Gorrell’s next scheduled shift was Friday October 20, 1995. At about 4:00 p.m., Dunlap called Gorrell into his office and, after a heated exchange, informed her that her services were no longer required. Several night-shift employees who were preparing to come on duty had gathered near Dunlap’s office and watched events unfold. As Gorrell left she told them that she had been fired and within a matter of minutes fifteen employees had walked off the job. They congregated outside the restaurant entrance for five to ten minutes and conversed with approaching customers, inevitably encouraging some to dine elsewhere. Dunlap called the police and the employees disbanded under threat of arrest. Having re-grouped at Gorrell’s house, the employees collectively called Area Director Ward seeking an explanation for Gorrell’s termination and inquiring about their own job security. According to Ward — whom the ALJ found to be less than credible — the employees informed him that they had quit and made no offer to return. But Ward later instructed Dunlap not to rehire those employees that had called the restaurant in the days after the walkout looking to get back on the job. In a letter dated November 7, 1995, all but one of the employees made an unconditional offer to return to work. Citing its published policy of treating hourly employees who walk off the job without permission as “voluntary quits,” Bob Evans took the position that the employees had abandoned their posts — leaving the restaurant in dire straits — and refused to reinstate them.
That the walkout had a far-reaching effect on the operation of the restaurant is undisputed. Without notice, the restaurant was left virtually unattended at the start of what was characteristically one of its busiest shifts. Some day-shift employees were persuaded to stay on that evening and Dunlap managed to call in extra help from other restaurants. But the die had been cast and the best that Bob Evans could hope for was to limit the damage: service was poor, customers got angry, bills were not paid and business was lost. Repercussions were felt over the next few days with continued customer service problems and further walkouts — this time by two employees fed up with the onerous working conditions imposed in the wake of the initial walkout.
On November 9, 1995, Gorrell filed an unfair labor practice charge with the Board on behalf of the employees who had walked off the job. The General Counsel filed a complaint and a hearing was conducted before an ALJ on December 4 and 5,1996. On November 8,1997, the Board issued an order incorporating the ALJ’s findings and adopting his recommendations with minor modifications. The order required Bob Evans to offer the employees full reinstatement to their former or equivalent positions, to make them whole for any losses sustained and to expunge from their personnel files any negative trace of the incident. Bob Evans now petitions this court, seeking to set aside the Board’s order of November 8, 1997. The Board cross-petitions seeking enforcement of its order.
II.
First we must clarify a tricky question concerning the appropriate standard of review. Relying on
Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc.,
In general, the Administrative Procedure Act sets out the standards which govern judicial review of administrative actions.
See
5 U.S.C. § 706. The functional equivalents of these standards apply to the Board by operation of Section 10 of the National Labor Relations Act.
See
29 U.S.C. §§ 160(e) & (f). The Board's factual findings are reviewed to determine whether they are supported by substantial evidence on the record-as a whole,
see NLRB v. Alwin Mfg. Co.,
Judicial deference to administrative findings of fact is clearly justified, especially given the particular expertise of the various agencies in their respective fields of specialization and their role as a maker of policy. In the case of agency conclusions of law, the justification is less obvious since resolving legal questions lies at the heart of the judicial function. The final word on the law — including statutory interpretation — rests with the courts.
See Chevron,
Bob Evans asserts that the Board’s reliance on
Chevron
is misplaced. It takes the position — which is endorsed by the Labor Policy Association acting as
amicus
curiae— that
Chevron
applies only in the context of agency rulemaking as opposed to agency adjudication. Since the ease before us involves the purely adjudicative function of balancing the competing rights of employers and employees under the Act, Bob Evans contends that
Chevron
has no bearing on our review of
But the functions of rulemaking and adjudication are not mutually exclusive; frequently adjudication is the vehicle for a statutory interpretation that is functionally equivalent to a rule.
1
See Securities & Exchange Commission v. Chenery Corp.,
Our recent decision in
International Ass’n of Machinists & Aerospace Workers (“IAM”) v. NLRB,
L.Ed.2d 36 (1998), provides an apt illustration. In
IAM,
we reviewed an order of the Board specifying union procedures for the protection of union nonmembers in the collective bargaining process. The National Labor Relations Act contemplates the possibility of union shop clauses in collective bargaining agreements but the Supreme Court has held that employers are precluded from requiring union nonmembers to pay any portion of union dues that are used for activities unrelated to collective bargaining.
See Communications Workers of America v. Beck,
Although courts generally do not explain why
Chevron
does or does not govern a particular case, the prominence or obscurity of a legislative purpose or of policymaking itself is a factor.
See, e.g., International Ass’n of Bridge, Structural & Ornamental Ironworkers v. NLRB,
The issue we presently face is in the first instance whether the Board adopted what amounts to a “rule” here. Section 8(a)(1) of the Act makes it an unfair labor practice for an employer to “interfere with, restrain or coerce employees” in the exercise of the rights guaranteed in Section 7, including the right to engage in “concerted activities for the purpose ... of mutual aid or protection ____” 29 U.S.C. §§ 158(a)(1) & 157.
2
The Act is silent as to permissible forms of concerted activity, and neither side has directed us to any legislative history that would provide guidance in defining the limits of the term. This function falls to the Board in the first instance in the course of adjudicating conflicts between the rights of employers and employees “with as little destruction of one as is consistent with the maintenance of the other.”
NLRB v. Babcock & Wilcox Co.,
A determination whether particular employee conduct constitutes protected concerted activity cannot be said to involve policy choices or rulemaking in the legislative sense. Unlike
IAM,
this case did not require the Board to implement a program or craft rules for translating the generalities of the statute.
See
In deciding that the employees were entitled to walk out over Gorrell’s dismissal, the Board was engaged in the classic judicial exercise of resolving competing claims under the statute, a function which does not implicate the Supreme Court’s central concerns in
Chevron.
When we review the Board’s decisions, we replicate the weighing of competing claims, but, in contrast to the Board, we have consistently included the means of protest as a factor in the balance. Specifically, in concert with some other circuits, we have held that the means of protest are relevant in determining whether concerted activity over changes in supervisory personnel is protected by the Act.
See Henning & Cheadle, Inc. v. NLRB,
We prefer to proceed by the route of traditional deference and advance directly to review the Board’s decision to determine whether is has a reasonable basis in the law.
See
29 U.S.C. §§ 160(e)
&
(f);
Beverly Farm Found., Inc. v. NLRB,
As a practical matter, our conclusion that the Board’s interpretation of the Act is unreasonable renders moot this tussle over the standard of review; for Chevron deference is also premised on the reasonableness of the agency construction. Thus, even if we were to hold that the Board’s decision to discount the means of protest was a policy choice governed by Chevron, the doctrine would not avail the Board in this case. 4 The Board misreads Chevron by suggesting implicitly that the Supreme Court created an irrebutta-ble presumption in favor of agency interpretation. Whichever the preferred standard— traditional deference or Chevron — the bottom line is that administrative decisionmak-ing must survive the test of reasonableness. Under either standard, we hold that the Board’s decision does not survive.
III.
Next we turn to the issue whether the Act allows employees to engage in concerted activity in protest at the termination of a supervisor. Concerted activity is generally protected under the Act provided it is
In holding that Gorrell’s termination was a special case, the Board relied on a narrow but well recognized exception to the general rule: concerted activity over the firing of a supervisor is protected when the identity and capabilities of the supervisor have a direct impact on the employees’ own job interests and work performance.
See Henning & Cheadle,
The facts in
Dobbs Houses
— which also involved a walkout by restaurant staff over the firing of a supervisor — are strikingly similar. The employees were fifteen waitresses who walked out during a busy Thursday night shift as well as a bartender who failed to report to work the following day. The precipitating event was the dismissal of the restaurant’s assistant manager who had attempted to alleviate unpleasant working conditions, principally by acting as a buffer between the employees and the source of their angst — the restaurant manager who habitually subjected them to extreme forms of verbal abuse. The manager responded by firing the assistant manager chiefly on a hunch that the assistant manager was orchestrating a strike. On appeal, the Fifth Circuit agreed with the Board that the dismissal of the assistant manager fell within a category of exceptional cases involving legitimate employee concerns.
See Dobbs Houses,
The proposition that concerted activity to protest the appointment or replacement of a supervisor may be protected when the identity of the supervisor is directly related to the terms and conditions of employment has also been endorsed by some other circuits.
See Oakes Machine,
Our eases since
Phoenix Mutual
have decided the issue of changes in supervisory personnel principally on the reasonableness of the means of protest.
See Henning & Cheadle,
IV.
According to the Board, we need go no further. Having established that the employees had reason to protest Gorrell’s dismissal, the Board exhorts us to enforce its order without further ado. In the proceedings below, neither the ALJ nor the Board addressed the further question whether the walkout was an appropriate means of protest, the legitimacy of the employees’ grievance notwithstanding. This was not an oversight; nor was it the result of a considered determination that the walkout was reasonable in the circumstances. As the ALJ explained:
Under Board law, the fact that the employees chose a work stoppage as the means of pressing their dispute does not negate the determination that their activity was protected. Thus, the Board has rejected the view that the protected nature of concerted activities depends on the reasonableness of the method of protest in relation to the subject matter in dispute.
325 N.L.R.B. No. 7, Case 33-CA-11389,
We can construe the Board’s argument in two ways. From one perspective, the Board seems to be contending that employees are entitled to take any imaginable form of concerted action — presumably short of committing a crime — as long as their grievance relates to their terms and conditions of work. This, however, runs counter to the objectives of industrial harmony on which the National Labor Relations Act rests and the conventional wisdom that preserves strike activity as a measure of last resort. It
The Board may also be contending that in circumstances where a strike is an appropriate means of protest, the Act places no restraint on the nature, extent and timing of employee conduct. According to this view, the Bob Evans employees were entitled not only to strike over Gorrell’s dismissal but to do so in a manner entirely of their own choosing. The Board’s suggestion is contradicted by its own case law which recognizes that the right to walk off the job for the purpose of mutual aid or protection is not unlimited. There are established exceptions to the general rule that a work stoppage constitutes protected activity. We have already noted the exception with regard to strike activity that threatens the health or safety of others.
See Federal Security,
In summary, we reject the Board’s contention that concerted activities can take any form and reassert the approach adopted by the majority of the courts which have confronted the issue, namely, that the reasonableness of the means of protest is one of a variety of factors that are examined in order to determine whether employee activity is protected.
See Abilities & Goodwill,
Ordinarily we would remand this issue to the Board for a determination whether this walkout was a reasonable means of protesting Gorrell’s dismissal. But we believe that remand would be superfluous in this case. When they walked out of the restaurant en masse at the start of a busy Friday evening shift, Gorrell’s underlings surely strayed into the realm of unprotected activity. The walkout had the immediate effect of crippling the restaurant’s ability to function at what was characteristically a particularly busy time. The employees must have been aware of the consequences that were likely to flow from their actions and could have resorted to less disruptive forms of concerted action in order to register their dissatisfaction over Gorrell’s dismissal. 8 The Board contends that we must take account of Bob Evans’s actions in assessing the reasonableness of the employees’ conduct. It points out that the employees in Dobbs Houses were expressly asked to abandon their walkout and return to work whereas Bob Evans called in the police to evict the employees from the premises. But in oral argument, the Board conceded the absence of evidence that the employees were willing to resume their posts on the evening of the walkout. We believe that this case is on all-fours with Dobbs Houses. In short, the Bob Evans employees acted with the intemperance of the waitresses in Dobbs Houses and without the restraint exercised by the salesmen in Phoenix Mutual. The other relevant ease law points in the same direction. There is substantial evidence to suggest that them unduly disruptive walkout bore no reasonable relation to their grievance and necessarily lost them the protection of the Act. 9
Enforcement Denied.
Notes
. "Rulemaking, the quasi-legislative power, is intended to add substance to the Acts of Congress, to complete absent but necessary details, and to resolve unexpected problems. Adjudication, the quasi-judicial power, is intended to provide for the enforcement of agency statutes and regulations on a case-by-case basis.” Jacob A. Stein et al„ Administrative Law, § 1401.1 (1998).
. The Board also cites § 13 which provides that "[n]othing in this subchapter, except as specifically provided for herein, shall be construed so as either to interfere with or impede or diminish in any way the right to strike ...." 29 U.S.C. § 163. As we discuss below, this provision notwithstanding, the right to engage in concerted strike activity pursuant to Section 7 is not unlimited.
. Of course, even under the Board’s reading of the Act, employees must present substantial evidence that the disputed change in supervisory personnel relates to their terms and conditions of work. Thus, the Board’s argument reduces the breadth but not the depth of the employees’ burden of production.
. Another way of expressing our disenchantment with the Board’s interpretation is to say that it strikes us as contrary to the policies and purposes underlying the Act.
See Stardyne,
. In oral argument, Bob Evans emphasized the social dimension of Gorrell's relationship with the employees. However, we agree with the Board that this factor adds nothing to the discussion of Gorrell’s impact on the employees' working conditions.
See Puerto Rico Food Prod. Corp.
v.
NLRB,
. At first blush,
Okla-Inn
appears to be such an instance. The Tenth Circuit held that a walkout in protest over the dismissal of a supervisor was protected. However, the Court concluded that the employees were also protesting their own intolerable working conditions; while the supervisor’s dismissal triggered the walkout, it was not the sole source of dispute. Thus, in determining that a walkout was a reasonable form of protest, the Court had in mind the totality of the employees’ grievances.
See
. Employees may also lose the protection of the Act by engaging in a walkout that poses a foreseeable risk of damage to their employer’s plant and equipment. See Columbia Portland Cement Co. v. NLRB, 915 F.2d 253, 258 (6th Cir.1990) (citing cases).
. The Board does not point to any evidence in the record that would support its depiction of these employees as unsophisticated individuals who could not appreciate the probable consequences of their actions. But the Board proceeds on this assumption, and perhaps this understanding underlies its indifference to means in these circumstances. Perhaps, the Board believes a walkout is an understandable reaction— possibly the only understandable reaction — to the grievance here. But understandable or not, we cannot recognize the disruptive employee reaction as legitimate.
. There is one outstanding matter that is easily disposed of. Bob Evans also argues that the walkout was not protected because the employees failed to articulate any objectives to which it could respond. Employees do not necessarily lose the right to engage in concerted activities merely because they do not present a specific demand.
See Washington Aluminum,
