We review a determination of the National Labor Relations Board (the “Board”) that an employer, a wholly-owned subsidiary of another company, need not furnish a union with a relevant document when the employer’s
parent
company has possession of the document. • The Board’s decision, as written, appears inconsistent with relevant Board precedent.
See, e.g., Shaw’s Supermarkets, Inc. v. NLRB,
I
Background
Before April 1990, the Rice Growers Association of California (“RG California”) shipped California short-grained rice in bulk to its wholly-owned Puerto Rico subsidiary (“RG Puerto Rico”). RG Puerto
Congreso de Uniones Industriales de Puerto Rico, the union representing the RG Puerto Rico employees (the “Union”), began to bargain with RG Puerto Rico about severance pay. The parties eventually reached a stalemate about whether their collective bargaining agreement’s “mechanization clause” (providing for 2,800 hours of severance pay) applied to the proposed plant closing.
While the bargaining was in progress, the Union asked RG Puerto Rico to provide various items of information, including (1) 1988 and 1989 financial statements, and (2) a “copy of the signed contracts that [RG Puerto Rico] has with Casera Foods Inc., inasmuch as ... the latter is distributing the rice which our members used to process_” When RG Puerto Rico refused to comply, the Union, and eventually the Board’s General Counsel, brought unfair labor practice charges. 29 U.S.C. §§ 158(a)(1), (5). An administrative law judge dismissed the charges in respect to the financial statements, concluding that the company’s past financial condition had nothing to do with the disagreement about severance pay. The AU found, however, that the contract with Casera Foods, Inc. (“Casera”) might be relevant. The AU thought the contract might give rise to a claim by displaced union employees for “wrongfully subcontracting out unit work” and might support a union proposal “leading to the revival of a limited facet” of RG Puerto Rico’s loading and packaging operations. Hence, the AU concluded that RG Puerto Rico committed an unfair labor practice in failing to give the Union a copy.
RG Puerto Rico appealed the AU’s decision to the Board itself. In doing so, it pointed out, apparently for the first time, that the contract in question was not a contract between Casera and RG Puerto Rico, but rather a contract between Casera and RG California (RG Puerto Rico’s parent). The Board, noting that RG California “has not been joined as a party to this case” and that “no effort” had been made to show that RG California and RG Puerto Rico “were a single employer” or “alter ego[s],” overturned the AU’s decision. The Board ordered the unfair labor practice complaint dismissed. The Union now asks us to review the Board’s determination.
II
The Inconsistency
For purpose of this appeal, we shall treat, as did the Board, the Union’s information request — for a contract between
RG Puerto Rico
and Casera — as if it were a request for the right document (the
RG California
/Casera contract) but made to the wrong company. We also accept the Board’s conclusion that the Union did not present the Board with good reasons or evidence sufficient to warrant treating RG California and RG Puerto Rico as if they were a “single employer” or “alter egos.”
See, e.g., C.E.K. Indus. Mechanical Contractors, Inc. v. NLRB,
In Arch of West Virginia, Inc., for example, the Board found an unfair labor practice arising, in part, out of a firm’s failure to obtain lawfully requested information from its parent — information that the firm had simply said was “not in its possession or otherwise available to it.” The Board wrote:
The Respondent [i.e., the firm] has not shown that it has requested any information not in its possession from its parent corporation and sister subsidiaries and that they have refused to provide the Respondent with such additional information. Under these circumstances, the Respondent has failed to demonstrate that such information is unavailable.
We have extended the employer’s duty to supply relevant information during grievance processing to situations where that information is not in the employer’s possession, but where the information likely can be obtained from a third party with whom the employer has a business relationship that is directly implicated in the alleged breach of the collective-bargaining agreement.
The record before us, and before the Board, contains evidence that RG Puerto Rico might obtain the contract in question simply by asking its parent to provide it. In its defense of the AU’s decision before the Board (arguing then on the side of the petitioner rather than the respondent), the Board’s General Counsel pointed out that the parent company, RG California, itself decided to close RG Puerto Rico’s rice processing plant, and that an executive from RG California came to Puerto Rico to present the decision to the Union. Nothing in the record suggests that RG California would have refused to provide the contract copy if requested. Indeed, RG Puerto Rico, before the ALJ, refused to provide the contract, not because it could not obtain a copy, but because, in its view, the contract was not relevant to any issue involved in the bargaining.
The Board, on this appeal, has not pointed to any factual evidence suggesting that RG Puerto Rico could not obtain a copy of the contract from its parent, nor has it pointed to any Board authority denying such an obligation. To the contrary, as the Board itself declares, the authority it cites indicates that an employer “is not obligated by the statute to provide the other party with information it does not have and
cannot reasonably be expected to obtain.”
NLRB Br. at 7 (emphasis added).
See, e.g., Korn Indus., Inc. v. NLRB,
without explicitly recognizing that it is doing so and explaining why.... ‘Whatever the ground for departure from prior norms, ... it must be clearly set forth so that the reviewing court may understand the basis of the agency’s action and so may judge the consistency of that action with the agency’s mandate....’ ‘[Tjhere may not be a rule for Monday, another for Tuesday....’
Shaw’s Supermarkets, Inc. v. NLRB,
The decision of the Board is vacated and the case is remanded for proceedings consistent with this decision.
So Ordered.
