Lead Opinion
Oрinion for the Court filed by Circuit Judge ROGERS. Opinion dissenting in part filed by Circuit Judge SENTELLE.
Anheuser-Busch, Inc. installed hidden surveillance cameras to monitor an area where its employees occasionally work and take breaks. As a result of misconduct that Anheuser-Busch discovered on footage from the cameras, five employees were discharged and lesser discipline was imposed on eleven others. The National Labor Relations Board, with one member dissenting, ruled that Anheuser-Busch violated section 8(a)(5) and (1) of the National Labor Relations Act, as amended (“the Act”), 29 U.S.C. § 158(a)(5), (1) (2000), by failing to bargain with Brewers and Malt-sters, Local Union No. 6 over the installation and use of the hidden surveillance cameras and by failing to provide the Union with information it requested about the use of such cameras. Anheuser-Busch, Inc., 342 N.L.R.B. No. 49 (July 22, 2004). The Board, with a different member dissenting, refused to order Anheuser-Busch to rescind the discipline and to make the disciplined employees whole. Id. Anheu-ser-Busch petitions for review of the Board’s determination that it violated the Act, the Union petitions for review of the Board’s remedy, and the Board cross-applies for enforcement of its Order. We deny Anheuser-Busch’s petition, grant the Union’s petition, and remand the case to the Board to determine the appropriate remedy.
In response to concern that an elevator motors room on the roof of one of its buildings was being used for activities inconsistent with its employees’ work assignments and possibly for drug use, An-heuser-Busch installed two hidden surveillance cameras to monitor that rоom and the rooftop stairs leading to it. The elevator motors room is on the eighth-floor roof of Stockhouse 16, one of An-heuser-Busch’s brewing facilities in St. Louis, Missouri, and, as its name suggests, it contains the electrical motors and systems that operate the building’s elevators. It is accessible using a short staircase located on the roof. Although employees do not work frequently in that room, on at least a monthly basis bargaining-unit employees enter the room to perform a lock-out and tag-out procedure that immobilizes the elevators for cleaning. There are no signs restricting access to the roof, and Anheuser-Busch never instructed its employees that they could not use the elevator motors room as a break room, although the door to that room is marked with a sign indicating that only authorized personnel are permitted inside. Anheuser-Busch is aware that employees use the roof as a break area to escape the extreme temperatures in the Stockhouse, and the Board concluded that “the elevator motors room became an extension of the roof break area.” Anheuser-Busch, Inc., 342 N.L.R.B. No. 49, slip op. at 1.
During an inspection of the premises in late April or early May 1998, an Anheu-ser-Busch supervisor informed Assistant Brewmaster Mel Harris that he had discovered a table, four chairs, a number of mattress-sized foam pads, and pieces of cardboard in the elevator motors room. Harris notified Anheuser-Busch’s Captain of Security William Dougherty, and they, along with the Manager of Human Resources, inspectеd the room. According to the Administrative Law Judge (“ALJ”), these articles led Dougherty to conclude that “persons were using the room for reasons inconsistent with any work assignment and possibly illegal drug activity might be ongoing.” Id. at 7. In response, on May 17, 1998, Anheuser-Busch installed a non-oscillating hidden surveillance camera in a gang box with a pinhole; it was directed toward the stairs that led from the roof to the elevator motors room. A few weeks passed before Dougherty reviewed the video footage. Although the footage revealed that individuals were using flashlights to enter the elevator motors room at night, it was too dark to determine the individuals’ identities or what they were doing. To remedy this problem, in early June 1998 Anheuser-Busch placed a special lens on that camera sо that it could be used in low-light conditions, and it installed a second hidden surveillance camera inside the elevator motors room that was trained on the room’s entrance. Both cameras operated continuously from the moment they were installed until Anheu-ser-Busch removed them on June 30,1998.
The complete video footage revealed sixteen identifiable employees engaging in misconduct by smoking marijuana, urinating on company property, and/or being away from their assigned work areas for extended periods. It also showed four employees not engaged in misconduct — two employees were performing the lock-out and tag-out procedure, one employee was removing a ladder, and one employee was engaging in nо obvious work activity. An-heuser-Busch informed the Union of the hidden surveillance cameras on July 1, 1998 — the day after they were removed. The Union objected to not being informed prior to the use of the cameras, but An-heuser-Busch maintained, as it does in this court, that it had no obligation to notify or
The Union filed griévances on behalf of each employee, and, oh October 5, 1998, before the initial arbitration hearing, it wrote to Anheuser-Busch requesting information relating to the installation and use of hidden surveillance cameras or other monitoring devices “[i]n order to carry out its responsibility under the" Collective Bargaining Agreement and to properly investigate the grievance and prepare for the arbitration.” Anheuser-Busch responded on October 22, 1998, by prоviding information about the installation of the two hidden surveillance cameras, but it stated that it was “still in the process of determining whether there is any additional information responsive to” the Union’s request. On November 2, 1998, the Union’s counsel repeated the request, and Anheuser-Busch’s counsel responded the next day by stating that the information was not relevant to the arbitration but that he was willing to discuss the matter at the upcoming hearing The parties proceeded to arbitrate three of the employee discharges — deferring the remaining two until the resolution of this proceeding — and three arbitrators independently sustained the discharges but did not rule on the refusal-to-bargain issue. Anheuser-Busch, however, did not provide the Union with the requested information until May 25, 1999 — the first day of the unfair lаbor practice hearing before the ALJ.
On September 29, 1998, the Union filed an.unfair labor practice charge that, as amended on November 13, 1998, alleged that Anheuser-Busch committed two violations of section 8(a)(5) and (1) of the Act: first, by unilaterally installing hidden surveillance cameras and disciplining sixteen employees as a result of information obtained from those cameras; and second, by failing to provide information about the use, installation, and extent of the cameras. On November 23, 1998, the Board’s General Counsel issued a complaint alleging violations of section 8(a)(5) and (1), which was amended on May 18, 1999, to allege more specifically that Anheuser-Busch failed and refused to provide information that the Union requested orally and in writing.
After a two-day heаring, the ALJ issued his decision on October 1, 1999. Relying on Colgate-Palmolive Co.,
Nearly five years later, a divided three-member panel of the Board issued its Decision and Order. Anheuser-Busch, Inc., 342 N.L.R.B. No. 49 (July 22, 2004). One two-member majority (Chairman Battista and Member Walsh; Member Schaumber, dissenting) affirmed the ALJ’s ruling that Anheuser-Busch violated section 8(a)(5) and (1) by failing to notify and to bargain with the Union before installing and using hidden surveillance cameras in the workplace. That majority relied on National Steel Corp. v. NLRB,
II.
Under section 8(a)(5) of the Act, it is an unfair labor practice for an employer to refuse to bargain with the exclusive bargaining representative of its employеes, 29 U.S.C. § 158(a)(5), and a violation of section 8(a)(5) constitutes a derivative violation of section 8(a)(1), Exxon Chem. Co. v. NLRB,
The court’s review of the Board’s determinations in an unfair labor practicе proceeding is limited, DaimlerChrysler Corp. v. NLRB,
A.
Anheuser-Busch contends that the Board erred-in ruling that it violated section 8(a)(5) and (1), and it first relies on section 9(b)(3), 29 U.S.C. § 159(b)(3), tо support the proposition that its use of hidden surveillance cameras is not a mandatory subject of bargaining because the Act exempts matters of internal security from bargaining. That reliance is misplaced. Section 9(b)(3) prohibits the Board from including both rank-and-file employees and guards in a single bargaining unit and from certifying a union as the representative of a guard bargaining unit if the union also represents non-guards or is affiliated with a union that does so. This provision does not express a broad policy disfavoring bargaining over security-related matters. In fact, it has nothing to do with bargaining, and the Act does not prevent an employer from bargaining with a properly-constituted unit of security employees. See, e.g., Swanson Group, Inc.,
Contrary to Anheuser-Busch’s assertion, the Board’s rulings in section 8(a)(1) unlawful-surveillance cases easily are reconcilable with its rulings that the use of hidden surveillance cameras constitutes a mandatory subject of bargaining. Although the Board has recognized that an employer may use overt surveillance of its employees’ protected, concerted activities
Anheuser-Busch further contends that Colgate-Palmolive Co.,
The Board reaffirmed its characterization of the use of hidden surveillance cameras as a mandatory subject of bargaining in National Steel Corp.,
Anheuser-Busch further faults the Board for not explaining what aspеcts of the use of hidden surveillance cameras should be bargained. In its Decision, however, the Board recognized that while an employer must bargain over a proposal for the use of hidden surveillance cameras and the general reasons for such a proposal, it need not “apprise the union of the location of the cameras or the time in which they will be in use.” Anheuser-Busch, 342 N.L.R.B. No. 49, slip op. at 2 n. 7. Anheu-ser-Busch responds that, even with this caveat, the Board has created an unworkable situation because “instance-by-instance bargaining ... is impractical and undercuts an employer’s legitimate need for promptness and secrecy.” Br. of Pet’r Anheuser-Busch,, Inc. at 39. We do not read the Board’s Decision to require instance-by-instance bargaining. Instеad, the Board has left open what seems to be the far more practical option of a union and an employer bargaining over the general requirements for an employer’s use of hidden surveillance cameras as part of their collective bargaining agreement, including, for example, whether the cameras may ever be used, in what general areas the cameras may be used, whether the employer would have to demonstrate some level of suspicion before using the cameras, and whether the cameras may be used to discipline employees. Addressing these and other issues as part of the collective bargaining agreement preserves the benefit- of hidden surveillance, while also involving a union in the development-of the terms and conditions of their members’ employment.
Even if the installation' and use of hidden surveillance cameras generally is a mandatory subject of bargaining, Anheu-ser-Busch contends that it still did not violate section 8(a)(5) and (1) under the circumstances presented here. . It first maintains that the Board’s determination that the cameras were trained on an employee work area and break area is not supported by substantial evidence in the record. The record, however, belies An-heuser-Busch’s assertion. Although, as the Board noted, “the area surveilled was not a part of the physical plant in which employees worked frequently,” Anheuser-Busch, 342 N.L.R.B. No. 49, at slip op. 1, it is undisputed that two employees had work assignments in the elevator motors room at leаst once a month. In fact, the hidden surveillance cameras, which were trained on the stairs leading to the elevator motors room and inside the room itself, recorded those employees performing their routine tasks. Furthermore, the record contains ample evidence that the roof generally was a de facto break area and that the camera trained on the steps filmed a portion of the roof itself. This evidence is sufficient to support the Board’s determination that the hidden surveillance cameras were located within the working environment and therefore that their installation and use was a mandatory subject of bargaining.
Anheuser-Busch next contends that the Union made no demand to bargain. However, a union is obligated to demand bargaining оnly “[i]f an employer gives a union advance notice of its intention to make a change to a term or condi
Therefore, because the Board reasonably concluded that the use of hidden surveillance cameras in the workplace is a mandatory subject of bargaining, substantial evidеnce in the record supports the Board’s finding that Anheuser-Busch used these cameras in the workplace without bargaining over them, and the Union did not waive its right to object to the unilateral change in terms or conditions of employment, we defer to the Board’s determination that Anheuser-Busch violated section 8(a)(5) and (1).
B.
Anheuser-Busch also challenges the Board’s determination that it violated section 8(a)(5) and (1) by failing timely to respond to the Union’s October 5, 1998, request for information It is well-settled that “[t]he duty to bargain in good faith also includes the obligation to provide the union with information relevant to the collective bargaining process in certain circumstances.” ConAgra, Inc. v. NLRB,
Substantial evidence in the record supports the Board’s finding that on October 5, 1998, in advance of the first arbitration over the employee discharges, the Union made a written request to -Anheuser-Busch for information related to the use of hidden surveillance cameras, which is a term or condition of employment. After not receiving a complete response, the Union followed up with another letter on November 2, 1998. ■ Although Anheuser-Busch provided -the Union with information about the use of such cameras in Stockhouse 16, the record indicates that it failed to provide the requested information about surveillance in other areas of the workplace until over six months later.- Because the Union had put Anheuser-Busch on notice that it desired information relevant to a mandatory subject of bargaining, it was under no obligation to make continued requests, and thus cannot be said to have abandoned its request in the face of Anheuser-Busch’s resistance. Anheuser-Busch’s suggestion that the Board’s determination is inconsistent with the reality of information exchanges that occur prior to arbitration proceedings ignores that this information relates -to a term or condition of employment and therefore is presumptively relevant-regardless of the context in which the request arose. See DaimlerChrysler,
III.. .
Although in agreement with the Board’s determination that Anheuser-Busch violated section 8(a)(5) and (1), the Union challenges the Board’s failure to order a make-whole remedy for the disciplined employees. In evaluating the Board’s chosen remedy, the court “give[s] great deference to [its] selection.” Caterair Int’l v. NLRB,
In an effort to remedy Anheuser-Busch’s unfair labor practices, the Board entered a cease-and-desist order, ordered it to bargain over hidden surveillance upon request, and required it to post remedial notices. However, relying on section 10(c) of the Act, a majority of the Board' refused to order make-whole relief for the sixteen disciplined employees because there was “an insufficient nexus in the instant ease between [Anhеuser-Busch’s] unlawful installation and use of the cameras and the employees’ misconduct.” Anheuser-Busch, 342 N.L.R.B. No. 49, slip op. at 2. Section 10(c) “delegate^] to the Board the primary responsibility for making remedial decisions that best effectuate the policies of the Act.” ABF Freight Sys., Inc. v. NLRB,
Section 10(c) does not expressly address whether the Board shall or shall not deny make-whole relief where an employer would not have discovered its employees’ misconduct but-for its own unlawful action. As the Seventh Circuit has observed, “[T]he proviso [in § 10(c) ] does not prevent the Board from insisting that the employer [prove ‘cause’] without using the ‘fruit’ of the violation.... Section 10(c) does not speak to burdens of persuasion, fruits of violations, exclusionary rules, and the other paraphernalia of trials and inferences.” Communication Workers v. NLRB,
In Tocco, Inc.,
Furthermore, in Great Western Produce, Inc.,
Here, as in Great Western, and unlike Taracorp Industries, Inc.,
Despite the shortcomings of the remedial aspect of the Board’s Decision, it remains for the Board to determine, based on policies consistent with the Act, whether reinstatement is not appropriate here because an exclusionary rule would improperly “reward [employees] who engage[] in unprotected conduct.” Anheuser-Busch, 342 N.L.RB. No. 49, slip op. at 2. The Supreme Court stated when the Act was in its infancy that “[i]n the exercise of its informed discretion the Board may find that effectuation of the Act’s policies may or may not require reinstatement. We have no warrant for speculating on matters of fact the determination of which Congress has entrusted to the Board.” Phelps Dodge,
Dissenting Opinion
dissenting-in part.
I am completely in concurrence with the Court’s opinion denying Anheuser-Busch’s petition. I cannot concur in that portion of the opinion which grants the petition of the union.
To recap briefly what is well set forth in the opinion in the majority, Anheuser-Busch disciplined sixteen employees. It discharged five for violating the company’s drug use policy (and by all appearances, the drug laws of the state of Missouri and possibly the United States). It entered last-chance agreements with seven employees for leaving assigned work areas for extended periods, sleeping on the job, and urinating on the roof of the brew-house. It suspended four for leaving assigned work areas for extended periods. The Board, quite expectedly, approved this course of discipline. It did so acting under the authority of section 10(c) of the National Labor Relations Act (“the Act”), 29 U.S.C. § 160(c). That section provides, in pertinent part, “no order- of the Board shall require the reinstatement of any individual as an employee who has been suspended or discharged, or the payment to him of any backpay, if such individual was suspended or discharged for сause.” The employees whose status is at issue in the union’s petition were discharged or suspended for cause. The Board’s order, in perfect compliance. with the statute, did not require reinstatement. The Court holds this error.
My understanding of the role of the court in the application of a statute, and specifically in the review of statutory application by federal agencies, is that: “If the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress.” Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
The majority quotes from a Seventh Circuit decision, Communication Workers of Am. v. NLRB,
I would perhaps be able to better accept the majority’s reasoning if it were offered in support of a Chevron analysis upholding a decision the Board had made. Here, where it is used solely for the purpose of reversing a decision that the Board has made, it seems to me wholly inappropriate.
In short, the language of the statute is clear. There is nothing in legislative history or in Supreme Court decisions compelling or even counseling a departure from that plain language. The Board was correct. I would deny the union’s petition.
