Lead Opinion
delivered the opinion of the Court.
This case requires us to clarify the relationship between the rights of employees under § 7 of the National Labor Relations Act (NLRA or Act), 49 Stat. 452, as amended, 29 U. S. C. § 157, and the property rights of their employers.
I
This case stems from the efforts of Local 919 of the United Food and Commercial Workers Union, AFL-CIO, to organize employees at a retail store in Newington, Connecticut, owned and operated by petitioner Lechmere, Inc. The store is located in the Lechmere Shopping Plaza, which occupies a roughly rectangular tract measuring approximately 880 feet from north to south and 740 feet from east to west. Lech-mere's store is situated at the Plaza's south end, with the main parking lot to its north. A strip of 13 smaller "satellite stores" not owned by Lechmere runs along the west side of the Plaza, facing the parking lot. To the Plaza's east (where the main entrance is located) runs the Berlin Turnpike, a four-lane divided highway. The parking 1st, however, does not abut the Turnpike; they are separated by a 46-foot-wide grassy strip, broken only by the Plaza's entrance. The parking lot is owned jointly by Lechmere ~nd the developer of the satellite stores. The grassy strip is public property (except for a 4-foot-wide band adjoining the parking lot, which belongs to Lechmere).
The union began its campaign to organize the store's 200 employees, none of whom was represented by a union, in June 1987. After a full-page advertisement in a local newspaper drew little response, nonemployee union organizers entered Lechmere's parking 1~t and began placing handbills on the windshields of cars parked in a corner of the lot used mostly by employees. Lechmere's manager immediately
“WE WILL NOT prohibit representatives of Local 919, United Food and Commercial Workers, AFL-CIO (‘the Union’) or any other labor organization, from distributing union literature to our employees in the parking lot adjacent to our store in Newington, Connecticut, nor will we attempt to cause them to be removed from our parking lot for attempting to do so.” Ibid.
The Board affirmed the ALJ’s judgment and adopted the recommended order, applying the analysis set forth in its opinion in Jean Country, 291 N. L. R. B. 11 (1988), which had by then replaced the short-lived Fairmont Hotel approach. 295 N. L. R. B. 92 (1989). A divided panel of the United States Court of Appeals for the First Circuit denied Lech-mere’s petition for review and enforced the Board’s order.
II
A
Section 7 of the NLRA provides in relevant part that “[ejmployees shall have the right to self-organization, to form, join, or assist labor organizations.” 29 U. S. C. § 157. Section 8(a)(1) of the Act, in turn, makes it an unfair labor practice for an employer “to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in
Babcock arose out of union attempts to organize employees at a factory located on an isolated 100-acre tract. The company had a policy against solicitation and distribution of literature on its property, which it enforced against all groups. About 40% of the company’s employees lived in a town of some 21,000 persons near the factory; the remainder were scattered over a 30-mile radius. Almost all employees drove to work in private cars and parked in a company lot that adjoined the fenced-in plant area. The parking lot could be reached only by a 100-yard-long driveway connecting it to a public highway. This driveway was mostly on company-owned land, except where it crossed a 31-foot-wide public right-of-way adjoining the highway. Union organizers attempted to distribute literature from this right-of-way. The union also secured the names and addresses of some 100 employees (20% of the total) and sent them three mailings. Still other employees were contacted by telephone or home visit.
The union successfully challenged the company’s refusal to allow nonemployee organizers onto its property before the Board. While acknowledging that there were alternative, nontrespassory means whereby the union could communicate with employees, the Board held that contact at the workplace was preferable. The Babcock & Wilcox Co., 109 N. L. R. B. 485, 493-494 (1954). “[T]he right to distribute is not ab
The Court of Appeals for the Fifth Circuit refused to enforce the Board’s order, NLRB v. Babcock & Wilcox Co.,
Although we have not had occasion to apply Babcock’s analysis in the ensuing decades, we have described it in cases arising in related contexts. Two such cases, Central Hardware Co. v. NLRB,
If there was any question whether Central Hardware and Hudgens changed § 7 law, it should have been laid to rest by
“While Babcock indicates that an employer may not always bar nonemployee union organizers from his property, his right to do so remains the general rule. To gain access, the union has the burden of showing that no other reasonable means of communicating its organizational message to the employees exists or that the employer’s access rules discriminate against union solicitation. That the burden imposed on the union is a heavy one is evidenced by the fact that the balance struck by the Board and the courts under the Babcock accommodation principle has rarely been in favor of trespassory organizational activity.”436 U. S., at 205 (emphasis added; footnotes omitted).
We further noted that, in practice, nonemployee organizational trespassing had generally been prohibited except where “unique obstacles” prevented nontrespassory methods of communication with the employees. Id., at 205-206, n. 41.
B
Jean Country, as noted above, represents the Board’s latest attempt to implement the rights guaranteed by §7. It sets forth a three-factor balancing test:
“[I]n all access cases our essential concern will be [1] the degree of impairment of the Section 7 right if access should be denied, as it balances against [2] the degree of impairment of the private property right if access should be granted. We view the consideration of [3] the availability of reasonably effective alternative means as especially significant in this balancing process.” 291 N. L. R. B., at 14.
The Board conceded that this analysis was unlikely to foster certainty and predictability in this corner of the law, but declared that “as with other legal questions involving multiple factors, the ‘nature of the problem, as revealed by unfolding variant situations, inevitably involves an evolutionary process for its rational response, not a quick, definitive formula as a comprehensive answer.’ ” Ibid, (quoting Electrical Workers v. NLRB,
Citing its role “as the agency with responsibility for implementing national labor policy,” the Board maintains in this case that Jean Country is a reasonable interpretation of the NLRA entitled to judicial deference. Brief for Respondent 18, and n. 8; Tr. of Oral Arg. 22. It is certainly true, and we have long recognized, that the Board has the “special function of applying the general provisions of the Act to the complexities of industrial life.” NLRB v. Erie Resistor Corp.,
Before we reach any issue of deference to the Board, however, we must first determine whether Jean Country — at least as applied to nonemployee organizational trespassing— is consistent with our past interpretation of § 7. “Once we
In Babcock, as explained above, we held that the Act drew a distinction “of substance,”
The threshold inquiry in this case, then, is whether the facts here justify application of Babcock’s inaccessibility exception. The ALJ below observed that “the facts herein convince me that reasonable alternative means [of communicating with Lechmere’s employees] were available to the Union,” 295 N. L. R. B., at 99 (emphasis added).
We cannot accept the Board’s conclusion, because it “rest[s] on erroneous legal foundations,” Babcock, supra, at 112; see also NLRB v. Brown,
The Board’s conclusion in this case that the union had no reasonable means short of trespass to make Lechmere’s employees aware of its organizational efforts is based on a misunderstanding of the limited scope of this exception. Because the employees do not reside on Lechmere’s property, they are presumptively not “beyond the reach,” Babcock,
The judgment of the First Circuit is therefore reversed, and enforcement of the Board’s order is denied.
It is so ordered.
Notes
Lechmere had established this policy several years prior to the union’s organizing efforts. The store’s official policy statement provided, in relevant part:
“Non-associates [i. e., nonemployees] are prohibited from soliciting and distributing literature at all times anywhere on Company property, including parking lots. Non-associates have no right of access to the non-working areas and only to the public and selling areas of the store in connection with its public use.” Brief for Petitioner 7.
On each door to the store Lechmere had posted a 6- by 8-inch sign reading: “TO THE PUBLIC. No Soliciting, Canvassing, Distribution of Literature or Trespassing by Non-Employees in or on Premises.” App. 115— 116. Lechmere consistently enforced this policy inside the store as well as on the parking lot (against, among.Qthers, the Salvation Army and the Girl Scouts).
Under the (pre-Jean Country) Fairmont Hotel analysis applied by the ALJ, it was only where the employees’ § 7 rights and an employer’s property rights were deemed “relatively equal in strength,” Fairmont Hotel Co., 282 N. L. R. B. 139, 142 (1986), that the adequacy of nontrespassory means of communication became relevant. Because the ALJ found that the §7 rights involved here outweighed Lechmere’s property rights, he had no need to address the latter issue. He did so, he explained, only because of the possibility that his evaluation of the relative weights of the rights might not be upheld. 295 N. L. R. B. 94, 99 (1988).
Dissenting Opinion
with whom Justice Blackmun joins, dissenting.
“We will uphold a Board rule so long as it is rational and consistent with the Act, . . . even if we would have formulated a different rule had we sat on the Board.” NLRB v. Curtin Matheson Scientific, Inc.,
In NLRB v. Babcock & Wilcox Co.,
In the case before us, the Court holds that Babcock itself stated the correct accommodation between property and organizational rights; it interprets that case as construing §§7 and 8(a)(1) of the National Labor Relations Act (NLRA) to contain a general rule forbidding third-party access, subject only to a limited exception where the union demonstrates that the location of the employer’s place of business and the living quarters of the employees place the employees beyond the reach of reasonable efforts to communicate with them. The Court refuses to enforce the Board’s order in this case, which rested on its prior decision in Jean Country, 291 N. L. R. B. 11 (1988), because, in the Court’s view, Jean Country revealed that the Board misunderstood the basic holding in Babcock, as well as the narrowness of the exception to the general rule announced in that case.
For several reasons, the Court errs in this case. First, that Babcock stated that inaccessibility would be a reason to grant access does not indicate that there would be no other circumstance that would warrant entry to the employer’s parking lot and would satisfy the Court’s admonition that accommodation must be made with as little destruction of property rights as is consistent with the right of employees to learn the advantages of self-organization from others. Of course the union must show that its “reasonable efforts,”
Moreover, the Court in Babcock recognized that actual communication with nonemployee organizers, not mere notice that an organizing campaign exists, is necessary to vindicate §7 rights.
Second, the Court’s reading of Babcock is not the reading of that case reflected in later opinions of the Court. We have consistently declined to define the principle of Babcock as a general rule subject to narrow exceptions, and have instead repeatedly reaffirmed that the standard is a neutral and flexible rule of accommodation. In Central Hardware Co. v. NLRB,
Third, and more fundamentally, Babcock is at odds with modern concepts of deference to an administrative agency charged with administering a statute. See Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.,
That being the case, the Babcock Court should have recognized that the Board’s construction of the statute was a permissible one and deferred to its judgment. Instead, the Court simply announced that as far as access is concerned, third parties must be treated less favorably than employees. Furthermore, after issuing a construction of the statute different from that of the Board, rather than remanding to the Board to determine how third parties should be dealt with, the Babcock Court essentially took over the agency’s job, not only by detailing how union organizer access should be determined but also by announcing that the records before it did not contain facts that would satisfy the newly coined access rule.
Had a case like Babcock been first presented for decision under the law governing in 1991, I am quite sure that we would have deferred to the Board, or at least attempted to find sounder ground for not doing so. Furthermore, had the Board ruled that third parties must be treated differently than employees and held them to the standard that the Court now says Babcock mandated, it is clear enough that we also would have accepted that construction of the statute. But it is also clear, at least to me, that if the Board later reworked that rule in the manner of Jean Country, we would also accept the Board’s change of mind. See NLRB v. Curtin Matheson Scientific, Inc.,
As it is, the Court’s decision fails to recognize that Babcock is at odds with the current law of deference to administrative agencies and compounds that error by adopting the substantive approach Babcock applied lock, stock, and barrel. And unnecessarily so, for, as indicated above, Babcock certainly
Finally, the majority commits a concluding error in its application of the outdated standard of Babcock to review the Board’s conclusion that there were no reasonable alternative means available to the union. Unless the Court today proposes to turn back time in the law of judicial deference to administrative agencies, the proper standard for judicial review of the Board’s rulings is no longer for “ ‘erroneous legal foundations,’” ante, at 539, but for rationality and consistency with the statute. Litton Financial Printing Div. v. NLRB,
The more basic legal error of the majority today, like that of the Court of Appeals in Chevron, is to adopt a static judicial construction of the statute when Congress has not commanded that construction. Cf.
It is evident, therefore, that, in my view, the Court should defer to the Board’s decision in Jean Country and its application of Jean Country in this case. With all due respect, I dissent.
In Sears, Roebuck & Co. v. Carpenters,
Sears was a pre-emption case, and only peripherally involved substantive principles of § 7 accommodation by the Board. Unlike Hudgens, in Sears we did not remand for ultimate disposition by the Board, but rather remanded to the state court. Thus, we had no occasion in that case, as we did in Hudgens, to provide further guidance to the Board in its interpretation of the NLRA (and of Babcock, Hudgens, and other decisions). Our “general rule” language recounting the rarity of Board decisions allowing access should be taken for what it was, a descriptive recounting of what “experience ... teaches,” Sears, supra, at 205, about the way that the Board had exercised its authority, and not any prescription from this Court as to the analysis the Board should apply. That analysis had already been cited.
Dissenting Opinion
dissenting.
For the first two reasons stated in Justice White’s opinion, ante, at 541-545, I would affirm the judgment of the Court of Appeals enforcing the Board’s order. I agree with Justice White that the Court’s strict construction of NLRB v. Babcock & Wilcox Co.,
