Equitable Gas Company, an Operating Division of Equitable Resources, Inc. v. National Labor Relations Board, Equitable Gas Company, an Operating Division of Equitable Resources, Inc. v. National Labor Relations BoardEquitable Gas Company, an Operating Division of Equitable Resources, Inc. v. National Labor Relations Board, Equitable Gas Company, an Operating Division of Equitable Resources, Inc. v. National Labor Relations Board
Margaret Gaines Bezou, N.L.R.B., Washington, D.C., argued (Jerry M. Hunter, Gen. Counsel, D. Randall Frye, Acting Deputy Gen. Counsel, Aileen A. Armstrong, Deputy Associate Gen. Counsel, Howard E. Perlstein, Supervisory Atty., on brief), for respondent.
Before ERVIN, Chief Judgе, PHILLIPS, Circuit Judge, and RAMSEY, Senior United States District Judge for the District of Maryland, sitting by designation.
OPINION
PHILLIPS, Circuit Judge:
Equitable Gas Company (Equitable) petitions for review of a decision by the National Labor Relations Board (Board) that Equitable had violated
I.
McHale is a Credit Fieldman in Equitable‘s Customer Services Department. He is a uniformed employee who makes field investigations of customer accounts. McHale has been employed by Equitable for 29 years, and for most of that time, he has worn a long beard and shoulder-length hair. McHale was President of the Union from 1978 until 1987. During the years preceding this action, McHale participated in handling numerous Union grievances at arbitration.
McHale was involved in two relevant conflicts with Equitable management. In June of 1988, McHale presented the Union‘s position at a hearing on a unit clarification petition. The Union alleged that Equitable had established a separаte company as a means of diverting unit jobs to a nonunion operation, and the Union argued that the description of its bargaining unit should be clarified to include those jobs.
In July of 1988, Equitable convened a meeting of management and Union officials which McHale attended. At this meeting Equitable‘s Manager of Labor Relations, Willard Hardaman, criticized the Union for opрosing many of Equitable‘s actions, including some activities which McHale openly had challenged. Hardaman referred to Equitable as “bunnies“, accused the Union of taking “pot shots” at Equitable, and said that Equitable would soon “arm the bunnies and the bunnies would start to shoot back.” Hardaman said that unless the Union cooperated, Equitable would increase automation and the use of outside contractors. At that meeting, Equitable President John Milantoni said to McHale, “I see you haven‘t shaved your beard off yet.” McHale responded, “[N]o, I haven‘t and I have no intentions to.” Milantoni responded, “Good.”
From 1985 to 1987 Equitable received negative media coverage and severe criticism from the Pennsylvania Public Utility Commission (PUC). PUC levied fines on Equitаble for poor customer service. In response, Equitable management instituted a broad program to improve its public image. Equitable remodeled the first floor of its headquarters to accommodate customer services employees who formerly occupied the third floor and began considering employee appearance guidelines.
A 1987 Equitable memorandum said the Union would probably challenge an appearance code as “a unilaterally imposed change in ‘working conditions’ and/or as an unwarranted extension of management‘s rights.” Equitable acknowledged that the following language from the memorandum referred to McHale:
Hopefully, our ultimate definition and/or code will be reasonable and address the extremes. As you know, we have one Credit Fieldman who presents a rather unorthodox appearance and who ... will argue that his appearance is an asset....
Equitable asked the Union to appoint an employee committee to discuss the appearance guidelines. Equitable sought the Union‘s input but refusеd to bargain. In February 1988, the committee met with management. In June of 1988, Equitable sent the Union the “final draft” of the appearance guidelines, which prohibited “[e]xtreme appearance such as unkempt, bushy facial hair or unconventional hairstyles.” The guidelines provided for counseling for the first violation and application of the General Disciplinary Pоlicy for subsequent offenses. The guidelines for customer services employees took effect in July of 1988.
On or about July 4, 1988, McHale‘s direct supervisor told McHale he had ten days to comply with the guidelines. In the ensuing months, McHale received a verbal warning, a written warning, a one-day suspension, and a 10-day suspension. In August, McHale met with management and agreed to cut his hаir and trim his beard, but McHale‘s supervisor later told management that McHale had not cut enough. On August 16, Equitable suspended McHale for 30 days. On October 31, Equitable discharged him for “refusal and failure to report for work in compliance with ... Appearance Guidelines.” Although some other employees were counseled, McHale was the only employee disciрlined under the guidelines.
McHale and the Union filed a grievance which went to arbitration. The arbitrator found that Equitable was entitled to unilaterally adopt and enforce appearance guidelines and that there was no evidence that Equitable did so in retaliation for McHale‘s Union activities. However, finding that McHale‘s behavior was not serious enough to warrant discharge, the arbitrator ordered Equitable to reinstate McHale without back pay.
McHale and the Union filed Board charges alleging that the implementation of the guidelines violated
On review, the Board affirmed the ALJ‘s refusal to defer to the arbitrator. It affirmed the ALJ‘s finding of a violation of
We address in turn the Board‘s refusal to defer to the arbitrator‘s award and the following Board findings: (1) its rejection of McHale‘s claim under
A.
The decision whether to defer in a particular case is a discretionary one which we review only for abuse. N.L.R.B. v. Motor Convoy, Inc., 673 F.2d 734, 735 (4th Cir.1982). But the Board‘s discretion in this matter is limited by its prior decisions recognizing a national policy in favor of using voluntary arbitration as a critical means of resolving labor disputes. Olin Corp., 268 N.L.R.B. 573, 574 (1984). In Spielberg Mfg. Co., 112 N.L.R.B. 1080 (1955), the Board adopted the general policy of deferring to an arbitration award when the arbitration proceedings appear to have been fair and regular, all parties have agreed to be bound, and the decision is not clearly repugnant to the purposes and policies of the Act. Id. at 1082. Raytheon Co., 140 N.L.R.B. 883 (1963), later emphasized that to warrant deferral, the arbitrator must adequately have considered the unfair labor practice issue presented to the Board. Id. at 884-85. Olin later fleshed out this requirement with the rule that an arbitrаtor has adequately considered the unfair labor practice if (1) the contractual issue is factually parallel to the unfair labor practice issue, and (2) the arbitrator was presented generally with the facts relevant to resolving the unfair labor practice charge. Id. at 576.
The Board has excepted from the Spielberg/Olin general deferral policy allegations made under
In the instant case, the Board adopted the ALJ‘s view that deferral was improper for all of McHale‘s allegations because the
While we accept the Filmation exception to the Spielberg/Olin deferral policy,1 we are concerned that it be applied only on the basis of a reasoned determination, specific to the facts of a case, that the necessary “close intertwinement” of the
B.
In light of the Filmation rule that the Board need not defer to arbitration awards with respect to allegations made under
C.
We also affirm the Board‘s refusal to defer to the arbitrator‘s decision with respect to allegations that Equitable violated
McHale claims Equitable implemented the guidelines in response to his participation in the unit clarification hearing. However, the hearing occurred six months after Equitable began discussing guidelines. In addition, McHale had been active in Union matters during the ten years prior to the adoption of the guidelines, and Equitable did not retaliate during those years. Finally, although McHale was the only employee disciplined under the guidelines, Equitable gave him numerous opportunities to comply.
Even assuming McHale made a prima facie showing of anti-union animus as one motivating factor in McHale‘s ultimate discharge, Equitable satisfied its burden under Wright Line of proving it would have adopted the guidelines regardless of McHale‘s activities. Although the media and the PUC had not specifically criticized the appearance of Equitable employees, we think it essentially undisputed that Equitable аdopted the appearance guidelines as part of a company-wide program to upgrade its public image following the adverse criticisms of its customer service.
Accordingly, we vacate the Board‘s finding that Equitable violated
D.
We find no error in the Board‘s refusal to defer to the arbitration award with respect to McHale‘s claim that Equitable violated
We believe there is substantial evidence on the record to support a finding that Equitable violated
We agree with the Board that Hardaman‘s July 1988 speech before Union representatives had a reasonable tendency to intimidate employees. Hardaman‘s references to Union “hassles,” his allusion to arming the bunnies and “let[ting] them shoot,” and his claim that Equitable would increase automation and the use of outside contractors if the Union did not cooperate were implied threats of reprisal for Union activities. Accordingly, we affirm the portion of the Board‘s order holding Equitable in violation of
We conclude that the Board abused its discretion in failing to defer to the arbitrator‘s holding that Equitable had not violated the collective bargaining agreement by unilaterally adopting the guidelines. Deferral was appropriate under the Spielberg/Olin tests. The three day arbitration proceedings were fair and regular, the parties agreed to be bound by arbitration under their collective bargaining agreement, and the finding that the guidelines were work rules which could be unilaterally adopted by Equitable was not clearly repugnant to the goals of the Act. In addition, in accordance with Olin, the arbitrator squarely had addressed bargaining as a contract issue which was factually parallel to the unfair labor practice claim under
McHale‘s claim that Equitable committed an unfair labor practice by failing to bargain collectively over the appearancе guidelines required an interpretation of provisions in the collective bargaining agreement and an interpretation of testimony by Union members that might have constituted waiver of the right to bargain. This factual inquiry presented issues that were wholly separate from the question whether Equitable adopted the guidelines with a retaliatory motive. Because the
III.
In summary, we affirm the Board‘s finding that Equitable had violated
Accordingly, we affirm that portion of the Board‘s order which directs Equitable to cease and desist from making implied threats to its employees and which, in accordance with the arbitrator‘s award, requires Equitable to reinstate McHale. We vacate thоse portions of the Board‘s order which require Equitable to rescind the guidelines, to bargain with the Union over new guidelines, and to give McHale back pay in connection with his reinstatement. As so modified, we grant enforcement of the Board‘s order.
AFFIRMED IN PART, VACATED IN PART, AND, AS MODIFIED, ENFORCED.