Lead Opinion
GIBSON, J., delivered the opinion of the court, in which MOORE, J., joined. ROGERS, J. (pp. 440-42), delivered a separate opinion concurring in part and dissenting in part.
OPINION
Center Construction Co. petitions for review of the National Labor Relations Board’s order finding Center committed numerous unfair labor practices to combat the organization of Center’s two-man plumbing staff by Local 370 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO. Local 370 intervened to oppose Center’s petition and also petitions for review of the one claim on which the Board reversed the ALJ, finding Center had not committed an unfair labor practice. The Board cross-petitions for enforcement. We deny Center’s petition for review, grant Local 370’s petition, and grant the Board’s petition for enforcement except insofar as the Board held that Center had not committed an unfair labor practice in threatening the sheet metal workers with loss of jobs.
I. Facts.
Center Construction does mostly heating and air-conditioning, employing about twenty to forty HVAC (heating, ventilation, and air-conditioning) workers who are represented by the Sheet Metal Workers’ Union, Local 7. Plumbing is a small part of Center’s business, and at the time of the events in this case, Center only employed two plumbers-a licensed plumber, Wayne Rose, and an apprentice plumber, Lance Lockhart. The plumbers’ union, Local 370, had tried to organize Center twice before, in 1994 and 1998, but had been defeated. The owner and president of the business was Robert Eagleson.
In July 2003, Center’s two plumbers, Rose and Lockhart, signed authorization cards and gave them to Local 370’s organizer, Benjamin Ranger. On August 4, 2003, Ranger and Local 370’s business
The next day, Ranger sent Eagleson a letter that wrongly stated in the first line that Local 370 represented a majority of the HVAC technicians at Center, although the body of the letter requested bargaining on behalf of Center’s plumbing employees only. The sheet metal workers’ representative learned about the letter and called Ranger about it. As soon as Ranger found out about his mistake, he faxed a corrected letter to the sheet metal workers and to Center saying it was the plumbers he represented, not the HVAC workers. Ranger filed a petition for a representation election with the Board three days after his meeting with Eagleson. The petition stated that there were two employees in the bargaining unit.
Picket Incident. Within a day or two after presenting the cards to Eagleson, Local 370 began picketing Center. Lance Lockhart, Center’s apprentice plumber, as well as a few other Center employees, participated in the picketing. The remaining Center employees refused to cross the picket line to report to work. Supervisor Matt Welsh
Eagleson’s statements to Ruddy. Johnson delivered to Eagleson a copy of Local 370’s collective bargaining agreement with the Flint Association of Plumbing and Mechanical Contractors the next day after the initial meeting. Eagleson said he asked if the collective bargaining agreement was negotiable and Johnson said no. Eagleson said he reviewed the contract and noticed that it covered some work that was assigned to the sheet metal workers and that it contained a clause saying that if the union gave better terms to any employer than those in the contract, all employers were entitled to the same terms. Eagleson said that the sheet metal workers representatives were telling his employees that the plumbers were not claiming sheet metal work, but that after reading the contract he concluded the plumbers were indeed claiming that work.
Patrick Ruddy, the union steward for the sheet metal workers’ union, had picketed on behalf of the plumbers on August 6. Ruddy testified that the next day he spoke to Eagleson in Eagleson’s office. Eagle-son had Local 370’s existing collective bar
Eagleson’s conversation with Wayne Rose. In mid-August, Center’s licensed plumber, Wayne Rose, had his first conversation ever with Eagleson. On payday, supervisor Welsh told Rose he should go to Eagleson’s office to pick up his pay check, instead of picking it up in Welsh’s office as usual. When Rose went to Ea-gleson’s office, Eagleson detained him for 45 minutes, telling him the history of the company, and in particular, how the company had resisted organization by the plumbers’ union in 1994 and 1998. Eagle-son told Rose he “eventually got rid of the sons of bitches.” Rose said he asked whether Eagleson considered him useless, but Eagleson replied, “I hear you’re a good one.” When Rose told Eagleson he did not have health insurance, Eagleson said the company would provide it. Rose quoted Eagleson as saying: “[I]f you have any problems with this company, I’m the President. [Eagleson] said you need to discuss these with me, so.”
Rose’s union t-shirt. Rose bought a t-shirt with Local 370’s insignia. Kristie Eagleson stopped him as he was leaving to go to a job and told him he must change shirts because she did not want contractors at the job to think that Center paid union wages. Center employees regularly wore t-shirts and other clothing with logos of various kinds. There was conflicting testimony about whether the company had a pre-existing, enforced rule limiting what clothes employees could wear to job sites, but Kristie Eagleson’s version of the rule at the hearing was that employees could not wear anything offensive, religious, or political. She never said which of these categories the union insignia fell within.
Rose’s termination. On Monday, September 22, Eagleson saw the company truck assigned to Rose on 1-75 near Pier-son Road at 6 p.m. The company’s policy is that its trucks are only to be driven to the job and straight home, although there was disagreement among the witnesses at the hearing over whether it was permissible to do errands on the way. On Thursday of the same week, Welsh called Rose in and asked him about it.
Rose said that when Welsh asked him about why he was at 1-75 and Pierson, he told Welsh he had stopped by the Local 370 office on the way home. Welsh said that it was “3, 5, 10 miles out of [Rose’s] way.” Rose cited instances where employees were allowed to do personal errands in a company truck. Welsh responded that Rose could no longer drive the company’s truck. Rose said he told Welsh he would need a ride home and that he could not come to work the next day because his van needed a repair. Rose said Welsh told him to try to come in the next day. Rose said he called in that Friday and told a secretary that he could not get to work that day. Rose recounted that when he reported to work the next Monday, Welsh told him that he knew Rose was not happy at Center and Welsh would therefore accept Rose’s resignation. Rose said he had not resigned, but Welsh insisted he did. The company then sent Rose a letter saying it accepted his voluntary resignation. Rose denies that he ever resigned.
Eagleson’s interview of David Lawrence. David Lawrence applied for a job as a plumber at Center at the end of August 2003. He was interviewed by Ea-gleson, who asked him “how [he] felt about the Union.” Lawrence testified that he wanted the job, so he told Eagleson “what I thought he wanted to hear”: “I told him that there’s pros and cons to a union.... ” Lawrence said Eagleson told him that if he wanted to join a union, Eagleson would put him in touch with the sheet metal workers’ union (even though Lawrence was applying for a job as a plumber).
The union members’ job applications. On August 17, Center ran a help-wanted ad for plumbers in the Flint Journal. The next day, Ranger first called to confirm that there were still openings, then he rounded up seven qualified union plumbers and they all went to apply for the jobs. The reception area at Center was very small and did not have chairs, so the men took their applications out to their trucks to fill them out. They turned in their applications, and the receptionist took the applications without any comment on whether the men had been inside or outside when they filled out the forms. Ranger copied the form and another group of union men brought in applications to Center on August 19, which the receptionist again accepted without comment. Three more union plumbers applied for jobs on October 2, and they filled out their applications in the reception area. Center never hired or even interviewed any of the union applicants. Instead, Center hired David Lawrence, Jeffrey Blasdell, Bradley Lidell, and Chance Crosno.
Procedural history. Local 370 filed unfair labor practices charges, and the Board’s General Counsel filed a complaint alleging a long list of unfair labor practices based on the following allegations: (1) Welsh and Eagleson threatened to fire employees honoring the picket line, and Welsh took photographs of the picketers; (2) Eagleson threatened sheet metal workers that they would lose their jobs if the plumbers’ union was elected to represent the plumbers; (3) Eagleson solicited grievances from employees during the organizing campaign; (4) Kristie Eagleson promulgated and enforced a rule prohibiting the wearing of union insignia; (5) Eagle-son interrogated employees regarding their sentiments about unions; (6) Center refused to hire plumbers’ union members who applied for jobs, even though the applicants were qualified for open jobs; and (7) Welsh fired Wayne Rose.
After a hearing, the ALJ found unfair labor practices on each allegation. Generally, where the testimony conflicted, the ALJ discredited the employer’s witnesses, particularly Eagleson, and believed the union’s witnesses. Center Constr. Co., 345 N.L.R.B. No. 45,
The ALJ recommended that Wayne Rose be reinstated with backpay. Id. at 40. He also recommended that the company should be required to offer a job and backpay to one of the applicants wrongfully denied consideration on account of union affiliation. Id.
II. Board decision.
The Board unanimously agreed that the company committed unfair labor practices by threatening the employees for honoring the picket line, surveilling the picket line, interrogating David Lawrence during the job interview, prohibiting Rose from wearing the union t-shirt, firing Rose, and refusing to hire the union-affiliated job applicants. Center Constr. Co.,
However, the Board, with a dissent, rejected the ALJ’s recommendation that Ea-gleson’s conversation with Ruddy constituted an unfair labor practice. It held that Eagleson’s statement about needing to let three or four sheet metal workers go if Local 370 prevailed was a prediction based on the objective fact of Local 370’s existing collective bargaining agreement. Id., at *4. The Board found Eagleson’s statement was not coercive. Id.
III. Standard of review.
We must uphold the factual findings of the Board if they are supported by substantial evidence on the record considered as a whole. W.F. Bolin Co. v. NLRB,
IV. Center Construction’s petition for review.
Center contends that the Board’s findings in numerous respects were not supported by substantial evidence, simply pointing to Center’s own evidence and insisting that the ALJ and the Board should have accepted Center’s evidence and rejected Local 370’s evidence. Center further argues that there was no basis for issuance of the Gissel order. Center also contends that the Board held that Center should have recognized Local 370 based on the authorization cards alone, but the Board did not so hold, so we have no need to consider that argument.
Picket line incidents. “It is well-settled Board law that absent proper justification, the photographing of employees engaged in protected concerted activities violates the Act because it has a tendency to intimidate.” Clock Elec., Inc. v. NLRB,
Center also contends that Welsh’s statements to the employees refusing to cross the picket line were not coercive, since all Welsh did was remind employees that Center had a mandatory policy of calling in to report absences. This version of events is contradicted by testimony that Welsh told the employees honoring the picket line that if they did not get to work, he would have them fired. The ALJ accepted the latter version of Welsh’s statement, Center Constr.,
Center also contends that the letter it handed out to the employees who were honoring the picket line was only meant to remind them that they had to call in if they were not going to report to work that day. The ALJ found that the letter threatened to punish the employees for absence, without regard to whether the employees called in or not. Center Constr.,
Solicitation of grievance. “Under the Act, an employer cannot solicit grievances from employees during a union organizing campaign with the express or implied suggestion that the problems will be resolved if the union is turned away.” NLRB v. V & S Schuler Eng’g, Inc.,
Rose’s Termination. Center contends that the Board erred in not accepting its evidence that Rose voluntarily quit and in concluding that Rose was fired for engaging in union activity.
Firing an employee because he has engaged in union activity is an unfair labor practice under sections 8(a)(1) and 8(a)(3) of the NLRA. Under the Wright Line,
Center Construction does not contend that it fired Rose because of .driving the company truck out of his way, but instead insists that Rose quit and that Welsh then refused to allow him to withdraw his resignation. All of Center’s arguments on this point depend on our accepting its version of the facts, which we may not do. The ALJ found Rose’s story credible and Welsh’s story incredible, and consequently concluded that Rose did not quit, but that Welsh pretended Rose had quit so that Center could be rid of him. Center Constr.,
Eagleson’s interview with Lawrence. An employer violates section 8(a)(1) of the NLRA when it interrogates employees about their union activities under circumstances in which the interrogation reasonably tends to restrain, coerce, or interfere with the employees’ rights under the NLRA. V & S ProGalv, Inc. v. NLRB,
The union members’ job applications. Center contends that the Board erred in finding that it discriminated against the union job applicants based on their union affiliation. An employer violates section 8(a)(3) of the NLRA when it refuses to hire job applicants because of their union affiliation. Fluor Daniel, Inc. v. NLRB,
The Gissel bargaining order. Center contends that the circumstances in this case did not justify entering a bargaining order under NLRB v. Gissel Packing Co.,
It is undisputed that Local 370 had authorization cards from both the employees in the bargaining unit. The Board in this case adopted the recommendations of the ALJ, who found that Center had committed a series of unfair labor practices, including a “hallmark” violation in firing Rose; that Rose was fifty percent of the bargaining unit; that the misconduct was committed by the highest company officials; that Eagleson interrogated one of the replacement plumbers about his union sentiments before hiring him; and that the effect of these incidents would make it unlikely that the conditions prior to the unfair labor practices could be restored by other remedies. Center Constr.,
Center relies on its arguments, rejected above, that it did not commit the string of unfair labor practices found by the ALJ and Board. Since the individual arguments failed, so should the cumulative argument.
Center also contends that the unfair practices were not serious or pervasive enough to warrant issuance of a bargaining order. To the contrary, the firing of a union activist is a “hallmark” violation, see
V. Local 370’s petition for review.
The Board rejected the ALJ’s recommendation in only one respect: the Board held that section 8(c) of the NLRA protected Eagleson’s statements to Ruddy that the plumbers’ collective bargaining agreement would cause the loss of three or four sheet metal worker jobs. Center Constr. Co.,
An employer violates section 8(a)(1) by threatening employees with loss of jobs to coerce them into relinquishing their rights to concerted activity. See NLRB v. Okun Bros. Shoe Store, Inc.,
make a prediction as to the precise effects he believes unionization will have on his company. In such a case, however, the prediction must be carefully phrased on the basis of objective fact to convey an employer’s belief as to demonstrably probable consequences beyond his control or to convey a management decision already arrived at to close the plant in case of unionization.
The Board here held that Eagleson’s reliance on the Local 370’s existing collective bargaining contract with other employers and his making that contract available for Ruddy to look at meant that Eagleson made a permissible prediction, not a forbidden threat. Center Constr.,
An employer predicting adverse consequences of unionization does not have to prove the truth of his assertions, but his statements must have the support of “precise objective facts.” ITT Automotive v. NLRB,
Where the Board differed from the ALJ was in failing to take into account the surrounding circumstances that made Ea-gleson’s statements misleading. In determining whether Center’s statements were coercive, the ALJ considered the facts in the context in which they occurred, see NLRB v. E.I. duPont de Nemours,
The Board argues that Eagleson’s statements consisted of objective facts, which could be ascertained by looking at Local 370’s existing collective bargaining contract. The jurisdictional provision of the collective bargaining contract with the Flint Association of Plumbing & Mechanical Contractors, Inc. did include some work that appears to be HVAC work, but the terms of that particular contract would not be binding on Center unless Center agreed to it; thus, Eagleson’s prediction was based on future events partially within Center’s control. Moreover, Ranger specifically disavowed any intent to cover the HVAC workers, which shows that the plumbers were not seeking the same jurisdictional scope described in the contract that Eagleson was relying on. The ALJ found Eagleson was involved in a disingenuous attempt to convince the sheet metal workers of a jurisdictional grab that he knew was not real. Id., at 15* (“Eagleson tried to exploit what he knew was an inadvertent mistake in order to drive a wedge between Local 370 and the Sheet Metal Workers Union.”). A misleading statement is not based on “objective fact.” See NLRB v. Pentre Elec., Inc.,
Accordingly, we must grant Local 370’s petition for review of this aspect of the Board’s order.
In sum, we grant the Board’s petition to enforce except insofar as the Board’s order holds that Eagleson’s statement about loss of sheet metal jobs was not an unfair labor practice; we deny Center Construction’s petition to review; and we grant Local 370’s petition to review.
Notes
. The name is also spelled "Welch” in the record; we have been unable to determine which spelling is correct.
. We will refer to Kristie Eagleson by first and last name in order to distinguish her from Robert Eagleson.
. Under NLRB v. Gissel Packing Co.,
. Although sixteen union members applied for jobs, the ALJ found that the General Counsel only proved that twelve of them were qualified, Center Constr., 2005 WL 2204524, at *33; the ALJ only recommended including those twelve applicants in the remedial order, id., at *44, and the Board's order accepted the ALJ's recommendation, id., at *6.
. Q: "Did you indicate or tell any of your employees that there would be a reduction in the number of Sheet Metal Workers em
Concurrence Opinion
concurring in part and dissenting in part.
With respect, it is not our job to second-guess the labor policy determinations of the National Labor Relations Board. Yet in my view that is what we are doing by taking sides in an intra-Board dispute on an issue that is essentially one of labor policy rather than one of fact or pure law. I therefore dissent from the reversal of the Board’s determination that the employer’s prediction of consequences was not an unfair labor practice in this case. I concur in the remainder of the majority opinion.
The Board in this case ruled in most respects in favor of the Union. It held that threatening the employees for honoring the picket line, surveilling the picket line, interrogating David Lawrence, prohibiting Rose from wearing the union t-shirt, firing Rose, and refusing to hire the union-affiliated job applicants amounted- to unfair labor practices in this case. On the claim that the employer’s prediction of consequences amounted to a threat, however, the Board reasoned as follows:
Eagleson’s statement to the Sheet Metal Workers Union shop steward represented his understanding of the collective-bargaining agreement that the Plumbers Union wanted the Respondent to sign. In expressing his opinion, he repeatedly quoted from the agreement and made it clear that he was relying upon the language of the proposed agreement as the basis for his opinion.
To be sure, Member Liebman dissented, reasoning that Eagleson’s statements were “neither based on objective fact, nor did they address consequences beyond Respondent’s control.”
If, as Board members, we would agree with Member Liebman, that alone is insufficient to warrant reversal in this case. It is the majority of the Board that has power within our system to set labor policy, and it is for reviewing courts to reverse only if there is not substantial evidence to support the facts found by the Board majority, Allentown Mack Sales and Serv. v. NLRB,
First, there is no real factual dispute as to what Eagleson said; the record is clear that Eagleson said to Ruddy that, “If we let the Plumbers come in here, it is going to take three or four of your men’s positions. Who would [you] like to get rid of here?” There may be a dispute as to what the underlying motivation of the statement was, or how the statement was perceived,
An examiner’s finding binds the Board only to the extent that it is a ‘testimonial inference,’ or ‘primary inference,’ i.e., an inference that a fact to which a witness orally testified is an actual fact because that witness so testified and because observation of the witness induces a belief in that testimony. The Board, however, is not bound by the examiner’s ‘secondary inferences,’ or ‘derivative inferences,’ i.e., facts to which no witness orally testified but which the examiner inferred from facts orally testified by witnesses whom the examiner believed. The Board may reach its own ‘secondary inferences,’ and we must abide by them unless they are irrational; in that way, the Board differs from a trial judge (in a juryless case) who hears and sees the witnesses, for, although we are usually bound by his ‘testimonial inferences,’ we need not accept his ‘secondary inferences’ even if rational, but, where other rational ‘secondary inferences’ are possible, we may substitute our own.
NLRB v. Universal Camera Corp.,
In particular, reversal is not required because the Board’s analysis of the facts focused on the particular conversation at issue, while the ALJ looked at the “broader context.” Maj. Op. at 438. The Board gets to focus where it wants, as long as there is substantial evidence to support its conclusions. Our deference is accorded to the Board and not the ALJ. W.F. Bolin Co. v. NLRB,
Second, the Board made no determination in contravention of the NLRA, or court precedent. The only suggested legal basis for reversal of the Board in this case, apart from the general obligation not coer-cively to threaten job loss, is the requirement that employer predictions of adverse consequences of unionization be based on “precise objective facts.” ITT Auto. v. NLRB,
In balancing the employer’s ... right to free expression against the employee’s right to free association, the Supreme Court has observed that:
[A]n employer is free to communicate to his employees any of his general views about unionism or any of his specific views about a particular union.... He may even make a prediction as to the precise effects he believes unionization will have on his company. In such a case however,*442 the prediction must be carefully phrased on the basis of objective fact to convey an employer’s belief as to demonstrably probable consequences beyond his control.... If there is any implication that an employer may or may not take action solely on his own initiative for reasons unrelated to economic necessities and known only to him, the statement is no longer a prediction based on available facts but a threat of retaliation based on misrepresentation and coercion.
Gissel Packing,395 U.S. at 618 ,89 S.Ct. 1918 ,23 L.Ed.2d 547 . Under Gissel Packing, an employer may claim the protections of § 8(c) as a defense to an unfair labor practice charge of unlawful coercion in violation of § 8(a)(1). See, e.g., NLRB v. Pentre Elec.,998 F.2d 363 , 368-69 (6th Cir.1993). Indeed, “ ‘it is often difficult in practice to distinguish between lawful advocacy and threats of retaliation’ ” when an employer seeks to point out to workers the adverse consequences of unionization during a representation election. Id. at 369 (quoting NLRB v. Village IX, Inc.,723 F.2d 1360 , 1367 (7th Cir.1983)).
ITT Auto.,
If the dissenting Board member’s position had carried the day before the Board, that determination would warrant deference, just as we uphold the other determinations in favor of the Union in this case. But the law requires us to uphold the decisions of the Board majority, if consistent with the law and supported by substantial evidence. I therefore respectfully dissent from Part V of the majority opinion.
