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Brown & Root, Inc. v. National Labor Relations Board
333 F.3d 628
5th Cir.
2003
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*3 JOLLY, DUHÉ, Before DENNIS, and Judges. Circuit JOLLY, E. GRADY Circuit Judge: In this appeal we are concerned with (“Brown Root, whether Brown & Inc. & Root”) became liable under the National Act, Labor Relations as a successor em- ployer, to the former of Brown- Eagle Contractors (“Brown-Eagle”) at Ciba Specialty Chemical Corporation’s fa- McIntosh, cility (“Ciba”). Alabama Af- ter it bested Brown-Eagle for the con- tract, Brown & Root met with the Brown- Eagle employees that, and announced upon application, they would be considered for employment applicants. with other As might expect, one this news well received the Brown-Eagle employees. They upset became and began to ask about the future of their Root, union. Brown & already which had some 200 employees in operation another at the facility, stated in unambiguous terms that it was non-union and would remain non-union. When & completed Brown Root application and hiring process, about per- twenty-five cent of the Brown-Eagle employees who applied had had been hired. The National Labor Relations Board was favorably impressed. The Board found that Brown had coerced Brown-Eagle employ- Linzy Howard S. (argued), Robert Peter ees when it position stated its vis a vis the Lombardi, Firm, The Kullman New Or- union; discriminated all former leans, LA, Root, for Brown Inc. Brown-Eagle employees whom it failed to (cid:127) Aileen A. Deputy Armstrong, hire; Associate refused to recognize bargain and Counsel, General Cornnell, Frederick Lee union; with the unilaterally and set initial Fleischer, David A. National Labor Rela- and terms employment. conditions of Board, tions. DC, Washington, Rodney D. Board entered what fairly can be charac- Johnson, National Board, Labor Relations terized as a sweeping order. It ordered Orleans, LA, New for N.L.R.B. Brown & Root to: reinstate back pay with CO i—I employ- terms of retroactively the restore Brown-Eagle employees;1 48 former some Brown & Root when union with- ment existed bargain with recognize han- retroactively and materials packaging election; adopt assumed out an deny en- thérefore dling operations. had been We conditions terms and terms order. new of the Board’s Brown-Eagle until forcement under place a bar- negotiated or and conditions I was reached. impasse gaining awarded & Root was In rec- the entire sum, reviewing after materials packaging and subcontract Board and ord, the decisions had This work handling work Ciba. hold parties, we ALJ, and the briefs Brown-Eagle.2 been done previously speech at issue *4 Brown-Eagle lost its contract time At the only position non-union regard its —the employees Ciba, rank and file its 68 with viola- independent finding of for a basis and by the United Food represented were Brown & of Section tion 1657, Union, 8(c) Local Commercial Workers under Section protected Root—is Union”). Root, (“the & Brown AFL-CIO consti- consequently did Act the and however, at the McIn- new-comer was no of Section speech in violation tute coercive construc- facility; performed had tosh it 8(a)(1). for Ciba services tion and maintenance 8(a)(1) vio- alleged Section this Without con- plant the had been continuously since the upon which predicate lation as a 200 employed It over in 1953. structed built, largely finding of motive was Board’s represent- been They had never workers. the support does not substantial evidence by a union. ed findings Board’s the remainder of with newly contract the awarded Under violated Sections Brown & Root Ciba, was scheduled Root therefore conclude Act. We han- and material packaging assume the finding that Brown in the erred 10, On 1998. operations on June dling employment unlawfully denied had & Root 27, project & Brown Root’s May 26 and and con- Brown-Eagle employees, superin- project Bill Outlaw manager with ordering reinstatement sequently, in shift held three Sloat tendent Gordon Brown-Eagle former all 48 pay for back employees. Brown-Eagle meetings with by Brown not hired employees were who employment their told them in Outlaw erred that the Board Root. It follows & terminated, Brown-Eagle would be with Root successor- Brown & had finding that & with Brown they apply and, could conse- but that to the union ship obligations the atmo- meetings, At of these Root. two to rec- Brown Root ordering & quently, Outlaw’s after Bill heated sphere became and to the Union bargain with ognize and by filed the tions some confusion as been 1. There has completed and never applicants at issue & was employee Brown Root exact number applicants "at least” were Brown-Eagle employee clear What is in this case. some Root; Brown-Eagle’s employees submitted 66 of accounts by Brown & unreachable NLRB No. applications to Brown Root. totals. discrepancy in the for the 48 is number at *2. The 2001 WL 831621 Board’s deci- by reference the arrived names, similarities their Despite the 2. ALJ, adopting the remedial order sion Brown-Eagle. is unrelated Brown & Root Brown employees it found the 48 which listed Kellogg, Brown is now & Root Brown hired, The 17 to hire. refused & Root had Root, Inc. Apparently, yield a total of 65. plus the applica- approximately one or more variety employment-relat- answers to a However, Brown-Eagle applicants pro- questions, ed all raised from the floor gressed to the structured interview re- employees. questions Some related to gardless score, in apparent test recogni- of the Union. Although future tion of they the skills likely possessed as record concerning pre- is not uniform Brown-Eagle employees performing simi- responses given by cise ques- Outlaw to lar duties. tions about continuation of union rep- By June after all processing applica-

resentation, question there is no but that tions, Brown & Root had hired 77 unit Outlaw indicated that & employees, of which 17 were former non-union and would way. remain that Brown-Eagle employees. Of unit happy neither nor supervisors hired, Brown & Root 11 were content they with what heard. formerly employed by Brown-Eagle. Nevertheless, beginning May 66 of some 68 Brown-Eagle employees applied II jobs with Brown & Root. However, consistent with its position that it was a On charges Union, filed new employer, and with obligations to Board’s General Counsel issued a com- *5 the U.S. of Office Federal Contract Com- plaint alleging Brown Root & had pliance Programs, on May 28 Brown & 8(a)(1), (5) violated (3), Sections and posted, Root an applicants ad for in a local Act; is, the Complaint alleged that newspaper. Brown & accepted Root appli- Brown & Root employees, threatened re- cations applicants, from walk-in referrals fused to employees formerly hire em- job from the service, state and from cur- ployed by Brown-Eagle, and failed rec- rent and former Brown & Root employees. ognize and bargain with the Union. The Brown & accepted Root applica- some 367 Complaint further alleged that Brown & tions, including those from former Brown- Root violated the Act by unilaterally Eagle employees. changing the terms and conditions of em- ployment. After a hearing, the

Brown Adminis- & Root’s written hiring policy (“ALJ”) trative Judge Law dismissed a system preferential established of con- allegations of the Complaint respect sideration with among applicants: first, cur- to three of alleged discriminatees. rent He & second, Brown employees, .Root further found that Brown & Root had third, former not employees, applicants re- violated by the Act establishing by ferred initial a Brown & Root employee or terms of employment. However, the supervisor, fourth, ALJ and policy others. This concluded that Brown & Root had violated guarantee was of employment and the Act by refusing to hire 48 former appear does not to have uniformly been Brown-Eagle employees, by and refusing followed. to recognize bargain and with the Union. May Between 29 and June Brown & processed the 367 applications. Ap- The Board not altogether was satisfied plicants given test written in arith- with the ALJ’s decision. Although the metic, by followed a “structured” interview adopted Board findings, ALJ’s it clari- consisting questions of answers, and and fied opinion, his explicit make the addi- finally an interview with either Outlaw or tional finding of a distinct Section Sloat. progress order to to the struc- violation for the statements made Out- interview, tured most applicants had to law at employee meeting. Further- achieve a passing more, score on the written test. the Board reversed the ALJ’s find- Cir.1993). Accordingly, 278, 282 F.2d free to set its was Brown & Root ing that substantial must determine whether employ- we conditions and initial terms supports as a whole on the record instead, finding that evidence ment; on its relying findings Brown & Root its Board’s to avoid attempted Root had 8(a)(1), (3), and refusing to violated Sections successorship obligations Root had Act. hire, that Brown it found imposed and bargain

illegally refused IV employment. and conditions own terms order, the Board was In its remedial the state The Board contends all Root to hire employee It ordered at the shy. Brown that Outlaw made ments 8(a)(1). employees It relies meeting 48 former violated Section Union, without recognize the further pay, predicate for back this on repre- election, bargaining as exclusive refusal to hire and the Act for violations of material and packaging bargain for the with the recognize and sentative refusal to adopt retroac- employees, only it direct handling and is the the sense that employ- anti-union tively alleged the terms conditions to establish evidence trans- time of the at the that existed Brown & Root violate ment motive for 8(c) & Root filed Yet, explicitly provides operations. fer Act. Section the decision speech. for review Because petition protection for Labor Relations The National in this speech order. at issue find that we of its cross-applied enforcement protected, case order. sustained. cannot be *6 8(a)(1) Section

Ill 8(c) explicitly Act Section Appeals re the When Court right to employer has the that an provides findings, it must deter Board’s views the views, opinion” argument, or whole, express “any whether, a record as on mine the no expression contains “such long so as by substan findings supported are those promise or 160(e). or force reprisal threat of § Sub 29 U.S.C. tial evidence. 158(c). § Sec Under 29 U.S.C. benefit.” relevant evi is “such stantial evidence 8(c) communi is free to employer an accept tion mind would a dence as reasonable opinion statement cate to Cam a conclusion.” Universal support the predict 477, union as NLRB, 474, the well 71 about U.S. Corp. v. 340 era so workplace the (1951). on of unionization 456, Because effect 95 L.Ed. 456 S.Ct. objec on prediction is based long as such merely accept left is not the Court not con and it does facts tively verifiable conclusions, must be the Court Board’s See reprisal or force. tain a threat that the “conscientiously conclude able NLRB, Services, Co. v. Pipeline Tellepsen determi Board’s supporting the evidence (5th Cir.2003); Me Selkirk 554 320 F.3d NLRB v. Mini- nation is substantial.” 782, NLRB, talbestos, F.3d 788 (5th 116 N.A. v. 1027, Inc., 1032 Cir. F.2d Togs, 980 8(c) Cir.1997). imple (5th “merely Section 1993); Brookshire Gro NLRB v. see also al rights (5th the First Amendment” 1336, ments Co., 1340 Cir. F.2d cery 837 employers. Allentown ready possessed 1988). Board’s con This court reviews NLRB, Service, v. Inc. novo, Mack Sales must enforce but clusions of law de 818, 386, 139 359, 118 S.Ct. reasonably 522 U.S. is if the construction orders C.J., con- (Rehnquist, Motorola, Inc., 797 991 L.Ed.2d NLRB v. defensible. 634

curring). employer’s speech “[A]n free employer is threatening reprisals economic right to communicate his view to his em- employee supports the union. Sel ployees firmly is established kirk, and cannot be 116 F.3d at 788. prohibitions The infringed by a union or Board.” Section include statements that tell Gissel, NLRB 575, 617, v. 395 U.S. 89 employees selection of a bargaining repre 1918, (1969). S.Ct. 23 L.Ed.2d 547 Section See, sentative would e.g. be futile. In re 8(c) thus affirmed the continued existence Whirlpool Corp., 117, 337 NLRB No. 2002 of employers’ First rights, Amendment 1805433, 2002) 5, WL (July *9 (citing which must be balanced pro- Co., 1506, Trane 137 NLRB 1962 WL tection afforded Section to em- (1962)). However, 16789 this Court has ployees’ right to engage activity. only found comments be unlawful state ments futility about when accompanied by “Section prohibits employ implication threat or employer ers from expressing anti-union views take will some action to union sup render expression where the accompanied by a port futile. v. NRLB Laredo Coca Cola reprisal threat of Poly-Amer force.” Co., Bottling 1338, (5th 613 F.2d Cir. ica, Inc. (5th v. 260 F.3d 1980) (statements that replacements strike Cir.2001); Gissel, see also 395 U.S. at permanent constituted pre unlawful 89 S.Ct. 1918. The test for determining diction of futility); Varo, NLRB v. “whether employer has violated Section Cir.1970) (stated F.2d willing 8(a)(1) is whether employer’s ques ness of to shut business down tions, or statements threats; tend to be futility indicated in violation of Section coercive, not whether are in 8(a)(1)). fact ... coerced The coercive tendencies of an employer’s conduct must be assessed precise The content of Bill Outlaw’s totality .within circumstances statements at the shift meetings on May surrounding the occurrence at issue.” 26 and 27 has been contested throughout Electric, v. Inc., PNEU 309 F.3d litigation. Board, in adopting the (5th Cir.2002) (citations quo decision, ALJ’s found that “[a]ceording to omitted).3 tations the credited testimony of employees ...

An unlawful threat is established if responded Outlaw that ‘Brown & Root was the of totality the circumstances reveals an a non-union company and going employee reasonably could stay conclude the way,’ that and that ‘if the [Brown- 3. The dissent's finding that the statement of a plied jobs for after Outlaw's comments is ir- upheld be must if there is substantial is relevant incorrect because unlawful threats evidence that the specifically statements were are totality assessed under the the of circum- discourage intended to union involvement inquiry stances. The is employ- whether "an employees threaten inquiry into the em- ee reasonably —an could conclude the that em- subjective ployer's mischaracterizes, ployer threatening intent — is reprisals economic if the think, we the standard evaluating employ- employee Selkirk, supports the union.” 116 speech 8(a)(1). § er under inquiry Such an F.3d at 788. Although it is true that the seems to be in conflict the with dissent's own inquiry is not employees whether were in fact key that admonition the determination coerced, but rather whether the statements coercive, whether the statements tend be coercive, Electric, tend to be PNEU 309 F.3d objective inquiry more totalily based on the of 850,. at totality the logi- circumstances the circumstances. include, cally may objectively, consideration Furthermore, the sophistication dissent’s statement that the past experi- and union the sophistication relative Brown-Eagle particular of a type ence and audience they or whether ap- likely nevertheless response of such audience.

635 fact, the statements hold that ion and we for them to work employees came Eagle] 8(a)(1). violate Section Brown did not non-union.’” be they would WL 831621 Root, No. employee that the At the outset we note 2001).4 (July *2at naive, expe- having its first was not group are its ALJ and Although the Board spoke Outlaw rience with the when a factual deference when accorded instead, them; lengthy group had credibility, of witness a resolution rests on shop a union working in with experience Co., Inc. v. Cement Blue Circle totality of the circum- In the contract. Cir.1994) (5th (citing NLRB 203, 206 F.3d assumed, objectively, be it cannot stances Motorola, Inc., F.2d v. to infer quick group that such a would not turn on Cir.1993)), does the issue here permissible state- from otherwise threats credibility find- credibility. accept We Bill Outlaw and fact. position ments of Board, find that but ings of the at Brown-Eagle employees shift addressed state- that Outlaw’s Board’s determination to, things, inform meetings among other sup- is not violated Section ments job opportunities about their them that evidence by substantial ported application process. & Root and the Brown it cannot Therefore unlawful. speech was he telling employees, whom Outlaw was stand. members, they had that knew to be union employed to be on opportunity circumstances

An examination of Outlaw, applicants. as other demon- same basis statements surrounding Outlaw’s law, respond- in labor was not trained not reason- who employees could strates from questions extemporaneously to threaten- ed & Root was conclude Brown ably about, a union members union. floor support of the for their ing reprisals atmosphere at the variety topics. at the em- responses Except for Outlaw’s the em- heated as meetings did become not con- Board does meetings, the ployee his re- dissatisfied any ployees became contains evidence that the record tend about vacation questions sponses Out- threats, or coercion intimidation any not volunteer Outlaw did insurance. represen- & Root other any law or the Union’s comments about unsolicited any reveal record tative. Nor does the ques- future; specific only responded he discriminatory action statements position, tions, & Root’s stating Brown union members or that the be taken would com- a non-union & Root was that “Brown be disfavored would way,” stay going to pany and was no there was hiring process. Because [Brown-Eagle] coercion, “if the because reprisal or threat of non- they would be for them came to work reasonably feel could not these employees made These statements re- union.” by Outlaw’s unlawfully threatened *8 8(c) plant where of the context protects marks, and because Section em- 200 non-union already employed Root expression opin- of right of free employers’ Section & Root’s to be Brown what it found of the Board decisions 4. It is from the unclear violation, ALJ noted that the the Board they determined to be ALJ what and the that Out- evidence the credited "found from Differ- statements. exact content Outlaw’s Brown-Eagle employ- to the announced while the law testimony presented, and ing was ees, questions response to their specific the General Coun- and ALJ credited union, Respon- retaining that the witnesses,. their explicit about make failed to sel's each company' 'intend- a 'non-union dent was they to have said what Outlaw precisely found ” WL way.’ Id. 2002 stay to that quotes in dif- ed meetings, using different at the at *4. clarifying 31262154 In parts decisions. of their ferent 636

ployees only and if there were one bar- lates by Section telling employees it unit, gaining employees 70 union would not will remain Galloway non-union. involved change Brown & Root’s non-union status. by Section a contract Furthermore, only doctrine of suc- successor who predecessor’s informed its cessorship applied doctrine that Outlaw employee applicants —a that “his Company unacquainted with—would the em- union, union, was not would never be that ployees initially “come to work” for Brown union, he would not hire and that he would sum, employees. & Root as union In Out- do stay whatever he to could nonunion.” law’s pro- comments should be viewed as Id. at 1996 514510. WL Further- opinion, tected statements Outlaw’s more, when employees in Galloway preferences, Brown & Root’s or objectively sought applications, employer effec- verifiable statements of the current state tively informed that them the company affairs Brown & Root—that it was commit intentionally would unfair labor non-union—and of Brown & wholly Root’s practices by refusing any to hire preference lawful intention and that employees. Galloway is not this case. employees Ciba Illegal remain non-union. The in Galloway statements connotations cannot be attached to these in response were not employee ques- absence, lawful here, statements in the tions at an unscripted meeting as here. any independent law, violations of labor Outlaw factually answered and responsive- and we believe the dissent is incorrect to ly spontaneous questions by Brown- say otherwise. Eagle employees. Further, Brown & Root The record contains no any evidence of never made assertions Brown-Ea- other comments or by actions Outlaw or gle employees reasonably that could be any other Brown & employee Root that interpreted to imply that it would commit would lead an unfair practice labor potential to avoid a reasonably to feel coerced in the exercise bargaining fact, obligation. In Outlaw told of their Section 7 rights the' Board —and workers, union, whom he knew to be does not contrary.5 contend to the Final- they had an opportunity to be hired. The ly, the fact of 68 employees persist- facts Galloway inapposite it make to the applying ed in to Brown & despite case presently us. before these allegedly threatening statements supports a reasonable inference that no Furthermore, each of the cases cited by conveyed threat was ALJ, Materials, Inc., Custom Pacific they and that were not unlawfully intimi- 327 NLRB (1998), 1998 WL 799274 dated Bill Outlaw. Markets, Inc., Kessel Food 287 NLRB (1987), authority WL 90101 Ryder cited the Board Truck does Rental, Inc., otherwise convince us that these state WL (1995), ments were support unlawful. The Board relies his conclusion principally Lines, on Galloway Inc., coercive, School Outlaw’s comments re- 1422, 1996 321 NLRB WL 514510 lies on facts that fundamentally are differ- support its .assertion an employer vio- ent from this case. Custom Pacific Discussing 5. threatening fact, nature of Out- urges, the dissent imbues his comments statements, gives law's the dissent substantial *9 they with inherent because coercion would be weight, concluding in that the statements seriously. taken The unadorned fact of rank unlawful, were to the fact that Outlaw was in however, status, managerial in cannot trans- managerial position (cid:127)a and had final decision- form otherwise statements into lawful threats. making authority respect hiring; this

637 an response in statement was Elliott’s of Materials, a violation Board found the accompa- was 8(a)(1) employee question and statements explicit in Section threats, interrogations, or oth- prospective any management nied successor’s the Further, light “a num- in of hiring be would unlawful coercion. that er employees per- only a certain a operation as thing” Respondent’s pre-existing bers employees statement, would predecessor Elliott’s centage company, of nonunion corporation parent objec- the hired because of a truthful statement constituted the union back they would vote afraid 257497. was at 1990 WL fact.” Id. tive Kessel, *1. In at in. Id. 1998 WL were more Although Outlaw’s comments testimony presented General Counsel the (largely Elliott than those in P.S. extensive supervisors instructed management were in re- because Outlaw’s statement [predeces- the percent of stay under 50 “to questions), the union members’ sponse em- prospective and that workforce” sor’s] a closer statements bear facts and the “quota” a informed of ployees cases than the to P.S. Elliott resemblance Kessel, NLRB at employees. union here, the-Board; in P.S. upon by relied Ryder in Finally, 90101. 1987 WL Elliott, are state- at issue the statements Truck, evi- ample additional there was objective fact. For position ments of employer ad- the where of coercion dence above, of the vari- none the reasons stated that, potential testimony had mitted by the ALJ and ous statements credited union, they the resigned transferees by Outlaw con- having been said Board as to a new transferred not have been would coercion, instead were but unlawful stitute Truck, 318 Ryder facility. non-union objec- or opinion of statements permissible The 547774. WL NLRB tive statements fact. clearly were cases found these violations sum, that Outlaw’s state- In we conclude evidence of supported by substantial they con- because were not coercive ments employees explicitly informed threats threat, implied, of express or no tained unfair to commit employer intended the Moreover, futility. Outlaw’s or reprisal obli- bargaining its practices avoid labor employees to the union statement do not by Outlaw statements gation. The speech free protected as Brown-Eagle was threat, explicit, and implied contain 8(c) Act and conse- under Section statements other is no evidence of there of Section not a violation quently would affect & Root that by. Brown made 8(a)(1). statements; thus of its lawful meaning inapposite. are cases Section view, case are facts of this In our of ille the Board’s Once P.S.Elliott, like more rejected, is statements gality of Outlaw’s (1990), which the 1990 WL Root violated finding that Brown Elliot, distinguish. P.S. attempted to for to hire 48 by refusing Section held a on a contract bidder successful seriously mer employer’s displaced meeting with simply because undermined; say this we asked workforce, at which the violation is finding of compa- jobs would be union. new Board built upon which predicate are a non- replied, “we ny representative Root’s to taint Brown illegal motive Board wrote company.” The begin our for hire. We choices applicant byAct ... did not violate “Respondent the ab case—in analysis of the Board’s ... em- to the former statement Elliott’s independent company.’ sence that it was ‘non-union ployees *10 premise nate, that successor finding derived from the that Out- —with any employers obligation 8(a)(1), are not under to law’s comments violated Section predecessors’ employees; hire at the same supported by further certain inferences it time, however, evidence, an who declines drew from statistical and individ- simply employees they comparisons, to hire because are ual the Board found that § a union commits a members of Brown & unlawfully Root had discrimi- v. violation. See NLRB Burns Int’l Sec. nated en against mass the 48 former Serv., 272, Inc., 280, 406 U.S. 92 S.Ct. employees who were not (1972). proper L.Ed.2d hired. applied to be in refusal to test hire cases is say We cannot is supported whether there is substantial evidence that by substantial evidence. As we have indi- employment an adverse decision was moti cated, it is crucial to the Board’s vated unlawful animus toward un findings that Outlaw’s remarks to the ion, employer’s not whether an failure to Brown-Eagle employees violated Section employees “solely” hire was because of 8(a)(1). response From Outlaw’s to em- employees’ affiliation with union. ployee questions, gener- the Board drew a Services, NLRB v. Houston Distribution al illegal inference of union animus and a Inc., (5th Cir.1978). 573 F.2d 263-64 presumption that because Brown & Root Although this Court’s review is “more than stated that it intended to remain non-un- Asarco, stamp,” mere rubber Inc. v. ion, it had a illegally motive to discrimi- NLRB, (5th 1401, 1406 Cir.1996), 86 F.3d Although nate. the record contains no reviewing uphold court will the Board’s evidence that Brown & Root would not decision if it is reasonable and supported give union members fair consideration for by substantial evidence on the record tak employment and no evidence that it con- Indus., en as a whole. Valmont Inc. v. any applicant’s sidered union affiliation in Cir.2001). 244 F.3d decisions, hiring the 77 the ALJ only We can reverse if we find that the reasoned that “the evidence did show that Board’s decision supported by is not sub Respondent was motivated to insure that a stantial evidence. majority of its unit did not again

We once review the relevant facts come from the unionized Brown-Eagle relating to hiring. Brown-Eagle Root, had 68 work force.” Brown & 334 NLRB rank-and-file facility the Ciba No. 2001 WL 831621 at *13 n. 21. at the time it lost the contract to Brown & Although the statements of Outlaw indis- Root. Of jobs the 66 who applied for putably allow an inference Brown & Root, 17, Brown & or slightly more than Root had a strong preference to remain twenty-five percent, non-union, were hired. Out of a preference was It lawful. pool applicants, Root, of 367 Brown & conclude, seems too much of a stretch to applying its field hiring policy,6 does, hired a the dissent that the may draw total of 77 non-supervisory employees. inference, based on Brown & Root’s presumed Based on a motive to discrimi- preference, lawful that it would violate the 6. The Board challenge does not that Brown & question decisions. But not whether Root hiring policy had an established that set applied hiring policy uni- preferences out applied to be in the context of formly, applied but whether it it non-uniform- job does, qualifications. other The Board ly discriminatory in a manner Brown- however, rely heavily for its case on the fact Eagle employees because of their union affili- applied that it non-uniformly and seems ation. not to hiring have influenced several of the

639 Brown-Eagle em- ten former that these preference, a it had simply because law hiring pref- a entitled to ployees who were strong preference.7 a even when Brown & not been hired erence had course, finding of Section Of non-Brown-Eagle appli- hired 18 Root had through supported may be violation depar- preference. This cants had no who evidence, circumstantial, rather than direct policy was inter- from its established ture Inc., Elevators, F.2d 736 Esco v. NLRB & Root as evidence that Brown preted Cir.1984). evidence, (5th That howev 295 applicants because of failed hire these substantial, speculative, not er, must be turn, this, in activity, and their union upon infer inferences from nor derived massive support finding of evidence (em at 1032 F.2d Mini-Togs, 980 ences. 48. The against all Board discrimination added). Board, aon relying The phasis that “18 of the non specifically noted evidence, conclud variety of circumstantial hired applicants who were Brown-Eagle hired 17 & Root although Brown that ed handling packaging and material had no & employees, Brown Brown-Eagle former any and were not entitled experience remaining for 48 to hire refused & writ- Root’s] under preference [Brown of employees because mer contrast, By ten Brown- hiring policy. ten We will review sympathies. union their hired] were not Eagle applicants [who to determine evidence this circumstantial applicable experience but only had supported is the Board’s whether policy.” under that preference entitled to evidence. by substantial 83, Root, 2001 334 No. NLRB (A) at *3. 831621 WL illegal of drawing In its conclusion dis- sin- Board’s decision respect the In this ten from these against crimination 48 to demonstrate gled out ten of discrimi- using it as evidence facts and all of against Brown-Ea- discrimination 48, stopped Board nation all It found evidence employees. gle’s former analysis of Brown thorough fact short of in the of support a violation decisions, supra 2001 WL Transportation, Overnite non-coercive recent Board 7. Under Chairman, *10, (Hurtgen, n. 5 8(c) 1006052 at may as be protected used statements Appeals dissenting). of have Some Courts practice limited in of an unfair labor evidence Locks, Security e.g., Inc. agreed. See Medeco Care See Sunrise Health circumstances. Cir.1998) 733, (4th NLRB, 744 142 F.3d v. 111, WL 888293 Corp., 334 NLRB No. employer state protected (rejecting use of Jr., Hancock, 2, 2001); (Aug. W. *2 John at support of animus as evidence union ments Inc., 2002 WL 337 NLRB No. Act); Constr. Co. v. K of BE & 1, 2002) Transporta (citing (Aug. Overnite 8n. 1375-76 Cir. 133 F.3d tion, WL 1006052 335 NLRB No. 1997). Inc., Foods, *4, n. 15 and Affiliated (1999)). admissibility issue, of we find the view respect to this With currently speech protected minority is contested to be more of the Board such Hancock, A the NLRB. this case. lawful particularly members of persuasive, willingness to over does not position noted members' of a lawful Board statement language willing light in the of one is precedent itself inference turn allow any illegal 8(c), through expressing position means. "the Section enforce views, reject reliance on Out- opinion, Accordingly, ... we argument, shall or illegal labor of an unfair statements evidence or be evidence law’s constitute otherwise, any successor no expression To hold contains animus. ... such practice position would promise bene in Brown Root’s reprisal or force threat freely stating virtually prohibited from the admis feel that Certain members fit.”. though posi- employees, even directly position to contra protected speech of such sion 8(c). protected by 8(c). Section See tion of Section plain language venes the policy. of its An evalua- application failing Root’s to hire all Brown-Eagle employee- *12 tion of as a whole the record seems applicants, placed empha- Board some hiring demonstrate that Brown & Root’s sis on what it considered Brown & Root’s policy applied unevenly against was not departure from its stated intention to “re- Brown-Eagle applicants. Out of a of total many tain as Brown-Eagle employees as applicants, possessed at least one Root, possible.” No. preferences. of the three Of the 20 83, 2001 WL 831621 at *1. The Board Brown-Eagle employee applicants who drew this conclusion from Brown & Root’s possessed preference at least one under stated; proposal to Ciba which “Brown & (50%). hiring policy, 10 were hired not using understands the benefits of a non-Brown-Eagle Of the applicants with large portion existing of the Material Han- hired, preference, rejection were dling work force and their immediate su- Thus, although rate of 66%.8 it is true pervisors provide continuity of that ser- & that the statistics indicate that plan vice and it is our to do so.” The apply preference policy Root did not its follow-up also relied on a letter employment qualified applicants, assure which plans stated “Brown & Root to hire although there seems to be no unifor- significant number of existing work inmity application, there is no demon- ” force to assure a changeover smooth .... pattern policy operated strated that the Id. against, discriminate Brown-Eagle ap- plicants compared when appli- to other apparent The Board’s theory is that cants. Brown & Root had an intention to retain Without some evidence that tends to many as Brown-Eagle possible workers as show that the failure to hire these ten was at the time it proposal made its (although based on activity their union sympa- fully status), it was aware of their union thy there is no such evidence—there —and and then retreated from plan is not support substantial evidence to acquired illegal anti-union animus when Board’s conclusion that Brown & Root’s expressed themselves at the failure to hire the ten constitutes evidence May meetings. shift illegal against discrimination either clear, course, It is Brown Root, them or the additional 38 Brown-Eagle employee applicants.9 having worked at the facility Ciba for the Brown-Eagle’s contract, duration of knew

(B) the time it proposal made its As further circumstantial Brown-Eagle’s employees evidence that represent- Brown & Root violated Furthermore, Section ed the union. Brown tests, applicants 8. Of the 223 prefer- who had no while it refused to hire four former policy, ences under the Brown-Eagle appli- Brown-Eagle employees that had failed the cants fared better than their non-Brown-Ea- same tests. The ALJ relied on this as circum- gle counterparts; Brown-Eagle applicants stantial evidence of an unlawful refusal to preference without a were hired at a rate of impermissible hire all 48. Other than the 15%, roughly non-Brown-Eagle while employ- inference of anti-union animus from Outlaw’s preference ees without a were hired at a rate statements, general pre- counsel has not of 10%. sented evidence that Brown & Root actu- ally particular discriminated 9. The same can be said for the AU’s reliance employees, remaining Brown-Eagle or the on the fact that Brown & Root hired two employees, because of their union activities. inexperienced applicants who had not worked Brown-Eagle battery and failed its illegal evidence of it un- substantial simply stated that proposal Root’s discrimination.10 large hiring “a the benefits derstood “significant number” or a portion” V indicates The record Brown-Eagle staff. than hired more 25% sum, & Root

that Brown the record taken as a whole hourly employees who does not demonstrate substantial evidence finding of support the Board’s blanket may qualify may or which applied, *13 against the 48 former discrimination more than it does seem large portion;” “a employees who were not Brown-Eagle “insignificant and not an portion” “a small it Accordingly, hired & Root. Brown employee pool. number” that Brown & Root never incurred follows commitments; no statements made Root’s obligation bargain to with the union11 general the intention they did declare deny enforcement of the Board’s and we continuity operations would be there entirety. in its order trained em- the value of recognized and it par- Petition for relief GRANTED. goal. It is achieving ployees & Brown ticularly difficult to see how DE- Cross-petition for enforcement to hire commitment Root’s NIED. any anti- demonstrates to be union

known DENNIS, Judge, dissenting: Circuit animus, apparently and union the so; only sug- the Board does not contend majori- respectfully I dissent from the attitude hard- that Brown & Root’s gests pe- ty’s granting decision Brown & Root’s illegal anti-union animus into an ened denying the NLRB’s tition for relief and a result of the as against must cross-petition for enforcement. We from as we can tell May meetings. As far “sup- decision if it is enforce an NLRB record, on a contention is based such on the rec- ported by substantial evidence relied Thus the statements considered as a whole.” 29 U.S.C. speculation. ord 160(e). Therefore, if rele- § there is “such support not add to a upon by the Board do through bargaining obligations theory successorship and accepts the NLRB's 10. The dissent estab interprets proposals’ statements to all Brown-Ea- massive discrimination mostly 8(a)(3), & intention "to hire § lish Brown Root’s gle employees in Brown-Eagle applicants.” (Emphasis add Galloway proposition for the dissent cites ed.) support the NLRB’s We do not find 8(a)(3) find violation is sufficient to "a section nof theory, dissent’s characterizatio or the employed have the new ‘would intentions, record. & in the Brown Root’s predecessor employees number of a sufficient or state did Brown & Root evince Nowhere employer had it acted law- be a successor ” "mostly” Brown-Eagle an intention to hire Galloway, fully.’ (quoting 321 NLRB 1422 Brown applicants; the record establishes that 514510). ap- The dissent at 1996 WL Root, best, large planned "a to hire holding unduly the narrow pears to broaden “significant number” of portion” or a by omitting preceding Galloway lan- hiring, Brown-Eagle more staff. This limited opinion, that "the guage in the which clarified preexist goal, with Brown & Root’s coupled 8(a)(3) warrants” such a violation in this case familiarity ing with the unionized status employees and finding, number of due to the Brown-Eagle employees, renders the NLRB's bargaining unit at issue in appropriate intervening pro- theory the dissent’s—of —and added). We this (emphasis note that case activity the determinant of Brown about what merely avoid confusion decisions, substantially hiring weak Root’s trigger § § violations sorts of ened. liability. After should be clarified. 11. One minor issue avoided its concluding that Brown & Root however, Brown-Eagle applicants, mind as a reasonable would were vant evidence conclusion,” pass we must accept support required written test before NLRB, even if we would have defer to the proceeding to the structured interview be- differently. decided the case Universal “they already on project cause 474, 477, Corp. (9) Camera v. U.S. work”; performing during (1951). 71 S.Ct. 95 L.Ed. Consid- interview, applicants structured were not deference, I ering deny would job any specific asked about skills or their petition for and & Root’s relief enforce the (10) job performance; recent despite its entirety. in its NLRB order initial intentions hire em- transition, ployees to ensure smooth NLRB found that Brown & Root only Brown & Root hired 25% of the 8(a)(3), 8(a)(1), violated NLRA sections Brown-Eagle employees applied; who packag- when it took over the Brown-Eagle employees ten former ing handling department and material preferences in the Brown & Root Brown-Eagle. from It relied on the fol- *14 (1) evidence, hired, lowing hiring policy were not although which showed that: expressly eighteen employees Brown & Root stated that it non-Brown-Eagle with “large portion” intended to hire a “sig- preference and no were hired. Because this nificant number” of the support evidence is sufficient to the transition; workforce to assure a smooth findings, its NLRB’s order Brown (2) highest the ranking Outlaw was Brown & Root should be enforced.

& Root official at Ciba and made final the hiring decisions when & Root took Brown 8(a)(1) I. Section Violation packaging handling over the and material 8(a)(1) up- The section violation must be (3) department; meeting at a to- discuss if, considering totality held the of the cir- takeover, responded the Outlaw ques- to cumstances, there is evidence substantial tions about the future of the current union showing that Outlaw made statements by stating that “Brown & Root was a non- specifically impede intended to or dis- company union going stay and was to courage union involvement and threatened way” “if [Brown-Eagle] and that the em- reprisals employees if supported the ployees to they came work for them would Metalbestos, union. Selkirk N.A. v. (4) non-union”; meeting, be after the 782, Cir.1997); 116 F.3d 788 attempted Union to deliver demands for In Whirlpool Corp., re No. NLRB recognition signed and membership cards 2002). (July 2002 WL 1805433at *9 Outlaw, (5) them; to accept who refused to This includes statements Brown & Root hired 78% Brown- it bargain- that would be futile to select a (6) Eagle supervisors applied; al- ing agent. In Whirlpool Corp., re though the Brown-Eagle supervisors were NLRB No. WL 1805433 at *9. general application pro- hired before the key determination is whether began, cess Brown & Root failed to solicit coercive, statements tend be not wheth- regarding their advice the Brown-Eagle (7) employees er in fact applicants; have been hiring policy the field Electric, Inc., preferences coerced. NLRB v. granted applicants PNEU who (5th Cir.2002). 309 F.3d were former Brown & Root There- fore, sophistication referred current the relative Brown & Root em- ployees, Brown-Eagle Brown-Eagle employees they but not to former or whether employees who had packag- applied positions worked still after Outlaw’s ing handling department; and material comments is irrelevant. shop employees. all non-union supported by substan- is

This violation reasonably could also be person was a His comments Outlaw evidence. tial representative By stating that and an official as a threat. authority construed non-union, made the final stay He also & Root. Brown & Root intended to which, any, Brown-Eagle if im- reasonably decisions could be understood to he at a hired. He stated be applicants would necessary that it do ply would what address the Brown- designed to meeting Therefore, the record stay non-union. the tran- questions about Eagle employees’ finding that Outlaw supports the Board’s Root was a non-union that “Brown & sition & Root implied made an threat that Brown way” stay going company Brown-Eagle employees not hire would [Brown-Eagle] “if and that hiring employees would result these non- they them would be to work for came department. Accord- unionization of the by a responses Obviously, the union.” statements were ingly, because Outlaw’s official at an position in Outlaw’s person 8(c), protected by section the section questions such meeting designed to answer should upheld. be could, seriously there- taken would also fore, coercive. It is be considered II. Section Violation specifical- that these statements clear I enforce the section would also discourage union involve- ly intended violation, To violation. establish through on followed ment because Outlaw must find that anti-union animus only about 25% promises, and hired *15 employer an to make an adverse motivated There- Brown-Eagle applicants. employment decision. See 29 U.S.C. that fore, could have found the NLRB 158(a)(3); v. Houston NLRB Distrib. section statements violated Outlaw’s Cir.1978). (5th Servs., 573 F.2d 263-64 8(a)(1) would because these statements analysis of burden-shifting Under the employee that it would to tend coerce Line, required Wright the NLRB is first belong to a union at futile to in an motivating that a factor to show Root. anti-un employment decision was adverse re- NLRB not Additionally, the Indus., Inc. v. animus. See Valmont ion were that quired to find statements 464-65 Cir. 244 F.3d 8(c). An by employer’s protected section 2001). does, shifts to If it then the burden 8(c) by protected section statement will be prove by preponderance true of if his comments are statements have taken that it would of the evidence not constitute a threat objective fact or do of its anti-union regardless action the same 158(c); § In re P.S. 29 U.S.C. reprisal-. stance. See id. Serv., 1161, 1990 WL 300 NLRB Elliott Here, evidence there is substantial (1990). here, But state- Outlaw’s was a moti- that anti-union animus show objec- ments were not true statements decision in Brown & Root’s vating factor correctly Although fact. he did state tive Brown-Eagle majority of the not to hire a com- a non-union that Brown & Root was addition, has Brown & Root applicants. through & Root could not pany, Brown hired the it would have proven not that guarantee packaging that the lawful means Brown-Eagle applicants same number department would handling material to avoid trying if not it had been even it over. Nor non-union when took become material han- unionizing packaging truthfully maintain could Brown & Therefore, the section department. dling successorship would the doctrine of upheld. should be a non- require efforts to prevent explains, majority Brown-Eagle applicants under to hire more than As the events, actually it Brown & Root did. NLRB’s version of mostly Brown-Eagle appli- planned to hire Second, between the time Brown & Root continuity to ensure when it cants order hiring pro- made these statements and the But, department. as the took over the began, Brown-Eagle applicants cess found, reasonably when it realized abundantly it they made clear that would Brown-Eagle applicants these on remaining insist unionized. At unionized, remaining adamant about it de- Outlaw, meeting they asked numer- union cided avoid concerns caused questions Shortly ous about unionization. successorship doctrine and hired thereafter, the Union delivered letters only minimal Brown-Eagle amount of headquarters both Brown & Root and Out- applicants. Because the NLRB could rea- demanding recognized. law to be Even sonably determine that Brown & Root’s department Brown Root knew that the not to Brown-Eagle appli- decision hire meetings, was unionized before the it did cants was motivated its desire to re- necessarily know the extent of the non-union, main Brown & Root’s violation Brown-Eagle employees’ fervor for re- supported by of section substan- Therefore, maining employees. tial evidence. supports evidence NLRB’s hiring poli- Brown & Root re-evaluated its majority does not contend that this cies and hiring majority decided avoid incapable version of supporting events is applicants after a section violation. Instead it con- events occurred. cludes that the NLRB’s account was not Third, it although did hire some Brown- supported by substantial evidence and thus Eagle applicants, there is substantial evi- speculation. disagree. was mere I There showing dence hiring Brown Root’s support every is substantial evidence process as a whole was based more on Therefore, aspect theory. of the NLRB’s remaining hiring non-union then on I proved believe the NLRB that a motivat- *16 possible applicants. best Brown & Root ing factor behind hiring Brown Root’s & only hired Brown-Eagle 25% the em- decisions was anti-union animus. ployees, supervisors, but hired 78% of its First, expressly Brown & Root stated who have no effect on the successorship planned provide that it continuity of doctrine. Then it chose not to ask these by “using service large portion a of the supervisors qualifications about the existing Handling Material work force” Brown-Eagle employees, though they even and “to significant hire a number of the provided would have knowledge valuable existing work force to assure a smooth employees’ about these abilities.1 Brown changeover.” argues Brown that & proceeded Root then to hire a number only it this meant intended to hire a about non-Brown-Eagle applicants without a quarter Brown-Eagle applicants. preference policy under the field hiring But the NLRB could still have concluded rejecting Brown-Eagle while a number figure that this 25% “large” was not or preference. had a who addi- “significant,” tion, and that its own state- no applicant was asked about originally job ments Brown & Root specific job perfor- intended skills or recent doubly significant 1. given prefer- This choice was because applicants would have those a supervisors those could have recommended hiring policy. ence under the Brown-Eagle applicants, some of the which applicants vastly more Brown-Eagle interview. the structured during manee evidence, experienced counterparts. than then their it was more on this Based the NLRB to conclude for reasonable Initially, & Root Brown had admired concerned about & Root was more Brown It im- experience. acknowledged this successorship than doctrine of avoiding the Brown-Eagle employees’ portance of the applicants. hiring the best experience it that it when stated wanted significant appli- If still doubt about there were hire a number motivations, by Out- continuity it is alleviated it Root’s cants to ensure and when did Brown-Eagle em- require pass at the test law’s statements them to the written clearly meeting. These statements ployee moving on to the structured inter- before concerned provided & Root was adequate show But it never an view. the de- future union status of explanation why experience about the was sud- motiva- explains primary partment denly Brown-Eagle irrelevant after the during Root’s actions employees displayed pro-union tion behind Brown & sentiments avoid unionization. hiring process why rejected many experi- it so of these —to Therefore, adequately has Brown-Eagle employees ap- the NLRB enced who animus a moti- that anti-union proven plied positions. Because Brown decision explanation, factor the NLRB’s vating provide behind Root failed to such Brown-Eagle appli- required most of the find that not to hire the NLRB was cants. Brown & Root would have made the same ani- hiring decisions absent its anti-union case, made its the bur- After the NLRB Consequently, mus. the section vi- prove Root to shifted to Brown & den upheld. should olation hiring made the same deci- it would have no anti-union animus. even it had sions III. Violation Section As noted It has not done so here. had a Finally, it because Brown & Root & Root claims majority, Brown duty bargain with the Union as a suc applicants pref- Brown-Eagle hired with employer, it violated section hiring policy at a some- cessor erence under the bargain with the Union. non-Brown-Eagle by refusing to higher rate than what successorship, It also the doctrine preference. with a Under applicants takes over a unionized applicants a new who hired without bargain similarly obligation unit has an higher at a rate than preference employer is fact non-Brown-Eagle Al- union if: that new applicants. situated *17 (2) the true, employer of the old do not take successor though these statistics majority employed of its into account the fact that Dyeing & by predecessor. Fall River sig- hired at a its applicants should have been 27, 41, Finishing Corp. v. 482 U.S. nificantly higher rate because of their ex- (1987). 2225, above, 96 L.Ed.2d preferences 107 S.Ct. As noted perience. a succes employer fact previous experi- on given were not based Whether work, in nature and is primarily “is factual type but were sor ence with totality of the circum upon the being on a former Brown & based instead based 43, 2225. It Id. at 107 S.Ct. being by referred a cur- stances.” employee company has on “the new employee. Thus the focuses whether rent Brown & Root predeces assets of its appli- acquired substantial comparing that result from numbers continued, interruption or without does not sor preferences cants with or without that, whole, change, predecessor’s busi- substantial into account as a take 8(a)(5). Therefore, keeping in mind whether operations,” ness ed section the NLRB justified requiring have been retained “those who was Brown & Root to job previous understandably bargaining agree- will view their situa- abide agreement Id. A ment until a essentially tions as unaltered.” new new with the Un- negotiated. ion can employer will be considered successor Id.

employer predecessor of its there is IV. Conclusion continuity” “substantial between the two Id. operations. sum, we must to the defer NLRB as employer long findings supported by & Root is a successor as its are sub- First, Brown-Eagle. findings Brown & Root did stantial evidence. Because its are case, operation, taking supported deny not start a new instead so in this I would Brown-Eagle’s petition over contract to run the Brown & Root’s and enforce the already-existing packaging and material NLRB order.

handling department for the same custom- result,

er, employees’ posi- Ciba. As a essentially

tions were unaltered because

they performed the same work under the

same conditions for almost all of the same Therefore,

supervisors. there was sub- continuity

stantial between the Brown & Brown-Eagle operations. Root and Sec- 3750 ORANGE LIMITED PLACE ond, discriminatory hiring prac- but for its PARTNERSHIP, Beachwood d/b/a tices, as found on NLRB based Holiday Inn; Snavely Development evidence, Brown-Eagle appli- substantial Co., Inc., Snavely Management a/k/a majority cants would have constituted a Services; Snavely Services, Hotel the Brown & Root workforce in this de- LLC, Petitioners/Cross-Respondents, partment, which would have satisfied the v. prong successorship second doc- NATIONAL LABOR RELATIONS trine. BOARD, Respondent/Cross- it cannot Because benefit from its un- Petitioner. practices, uphold lawful we must 01-2385, Nos. NLRB’s that Brown & Root 01-2734. employer duty successor and had a to bar- Appeals, United States Court of gain Galloway, with the Union. In re Sixth Circuit. WL (holding that a section violation is Argued: May 2003. sufficient employer to find that the new Decided and Filed: June 2003. employed “would have sufficient number predecessor employees abe successor lawfully”). had it acted In addi- *18 tion, acts, discriminatory because right

Brown & Root also lost the to set the

initial terms and bargain- conditions before

ing with the Union. Id. at 1996 WL Accordingly, by

514510. refusing to bar-

gain Union, with the Brown & Root violat-

Case Details

Case Name: Brown & Root, Inc. v. National Labor Relations Board
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Jun 24, 2003
Citation: 333 F.3d 628
Docket Number: 01-60635
Court Abbreviation: 5th Cir.
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