Lead Opinion
Opinion for the Court filed by Circuit Judge RANDOLPH.
Concurring opinion filed by Circuit Judge ROGERS.
Rodgers & MсDonald Graphics, a Los Angeles area commercial printer, refused to bargain with the Communications Workers of America, Local 14904, AFL-CIO-CLC (“Local 14904”), after a collective bargaining agreement expired, claiming that it had a good-faith reasonable doubt of the union’s majority status. The National Labor Relations Board rejected the claim and held that the company’s refusal to bargain violated Section 8(a)(1) and (5) of the National Labor Relations Act, 29 U.S.C. § 158(a)(1) & (5). McDonald Partners, Inc., 336 N.L.R.B. No. 74,
On the expiration of a collective bargaining agreement, the incumbent union enjoys a presumption of majority status. Auciello Iron Works v. NLRB, 517 U.S. 781, 786,
Although the company’s refusal to bargain occurred in the summer of 1998, after a collective bargaining agreement had expired, the company sought to establish its doubt about the union’s majority status on the basis of evidence that began to accumulate years earlier. Before 1997, Southern California Typographical and Mailer Union Local 17, affiliated with Local 14917 of Communications Workers of America, AFL-CIO-CLC (“Local 17”), represented the company’s employees. The bargaining unit consisted of about 100 individuals working in various pаrts of the operation. In 1992, Local 17 and the company signed an agreement containing a union shop clause, a type of union security clause requiring all employees covered by the agreement to become and to remain union members. See 29 U.S.C. § 158(a)(3); Pac. Northwest Newspaper Guild, Local 82 v. NLRB,
An unspecified number of employees submitted dues checkoff authorizations under the contract. In November 1994, for reasons not in the record, Local 17 terminated the agreement and offered to negotiate a new one. In the meantime, the company stopped honoring the dues checkoff authorizations. Between November 1994 and June 1995 (while no agreement was in effect), the company’s president, Doyle McDonald, gathered from frequent сonversations with various employees a “universal ... lack of kindness towards the union.” During the same time period, Cynthia Termath, an employee who served as one of two union stewards, told McDonald that most employees had lost confidence in the union, did not think it was representing them well, no longer wanted the union to represent them, and were generally dissatisfied with it. Termath gained her information from her conversations with other employees. Ignacio Bur-gos, the other union steward, also told McDonald between November 1994 and July 1995 that the employees were dissatisfied with the union. In addition, compa
In July 1995, Local 17 and the company signed a new agreement, effective until May 1998. The new agreement also contained a dues checkoff clause. But the union shop clause was replaced with a maintenance-of-membershiр clause, allowing employees to choose whether to join the union but requiring those who became members to remain members for the duration of the agreement. See Int’l Union,
No employee submitted a dues checkoff authorization under the new contract. Within months after the agreement was signed, Termath told McDonald that she had resigned from, the union because she was dissatisfied with it; that she had heard from about sixty other employees in the bargaining unit that they were dissatisfied with union representation and “perfectly happy with pulling out of the union and ... exercising their right ... to not belong to the union any more”; that to her knowledge, none of the employees in the bargaining unit were still members of the union; and that, as far as she knew, no one in the unit had reauthorized dues checkoff. Company managers also informed McDonald that they knew of no employees in their departments who continued to be union members in good standing after July 1995. Because of the lack of dues-paying members, on March 4, 1996, the company lost its license to use a union association label (a graphic called a “bug”) on its products.
At the end of December 1996, Local 17 merged with Local 14904. Members of the two locals were eligible to vote on the merger. Apparently, none of the company’s employees voted. Neither they nor the company were informed of the merger until sometime in late January 1997.
In support of its reаsonable doubt claim, the company presented this evidence (all of which the company claims to have known when it refused to bargain in the summer of 1998) and other evidence we need not recount. The Administrative Law Judge, whose findings and conclusions the Board affirmed without modification,
We disagree with the Board’s interpretation of Auciello, an interpretation to which we owe no deference, New York New York v. NLRB,
Nothing in that rationale bars employers from relying on pre-contract evidence. The logic of Auciello is that for the first three years of the contract, the presumption is irrebuttable no matter what evidence the employer might wish to offer. The bar has nothing to do with when the evidence arose. When the three-year period passes or the contract expires, the presumption becomes rebuttable, and all evidence — again, regardless of when it arose — may potentially be relevant to the employer’s gоod faith doubt. Neither Auciello nor Flying Dutchman, which simply reiterated Auciello’s reasoning,
Having excluded the pre-contract evidence, the ALJ found the remaining evidence insufficient to support a reasonable doubt.
This was not a correct treatment of the company’s evidence. It is true that a union may enjoy majority support even if less than a majority of employees maintain union membership or authorize their employer to deduct union dues from their paychecks. See, e.g., Furniture Rentors of Am., Inc. v. NLRB,
It is up to the Board to evaluate the evidence and to weigh it along with the other evidence. See Teamsters Local Union 769,
The error would be beside the point if the ALJ correctly ruled that this evidence was “stale” and for that reason alone should not be considered. As to the dues checkoffs, we are baffled by the ALJ’s description of the evidence as “stale.” The evidence was as fresh as could be. The company knew for certain how many of its 100 employees (none) were having union dues deducted from their wages. And the company knew this while the agreement was in effect, after the contract expired, and right up to the time the company refused to bargain over a new agreement. This was not old' evidencе; the absence of dues checkoffs was continuing and it was current. Each day without any dues authorizations constituted new evidence of lack of employee support for the union. In terms of Rule 401 of the Federal Rules of Evidence, which the Board generally must follow (29 U.S.C. § 160(b)), it was more likely with this evi
As to the evidence regarding lack of union membership, it is true that the company based most of its knowledge on events occurring two years before the summer of 1998. But we cannot understand how this rendered the evidence “unreliable” as the ALJ supposed. The Board has never dismissed evidence as stale based solely on its age; it has required changed circumstances or new evidence calling the reliability of the old evidence into doubt. See Rock-Tenn Co. v. NLRB,
The petition for review is granted, the cross-application for enforcement is denied, and the case is rеmanded to the Board for reconsideration.
So ordered.
Concurrence Opinion
concurring: I concur in granting the petition and remanding the case to the Board to evaluate the evidence and draw reasonable inferences therefrom.
The Board misinterpreted Auciello Iron Works, Inc. v. NLRB,
The Board could reasonably say that giving employers some flexibility in raising their scruples would not be worth skewing bargaining relationships by such one-sided leverage, and the fact that any collective-bargaining agrеement might be vulnerable to such a postfor-mation challenge would hardly serve the Act’s goal of achieving industrial peace*1009 by promoting stable collective-bargaining relationships.
Id. at 790,
At issue here is a rebuttable presumption of majority status upon expiration of a collective-bargaining agreement. The court states that nothing in the rationale underlying the conclusive presumption addressed in Auciello “bars employers from relying on pre-contract evidence” once the contract has expired. Op. аt 1006. The Union, as Intervenor, suggests, however, that “[t]he same policy considerations” underlying Auciello apply here:
Allowing an employer with genuine doubt about a union’s majority support to bargain, reach agreement, enjoy the benefits of having reached agreement for three years, and then raise three-year old doubt ... in the context of bargaining for a successor agreement would clearly undermine the stability of collective bargaining relationships.
Intervenor’s Br. at 4. Pointing to an elеment of repose, the Board notes in its brief that when an employer chooses “to swallow its nascent doubt, it deprives the union of the opportunity to explain or counter the pre-contract evidence while the evidence is fresh, or to react by shoring up support.” Respondent’s Br. at 38. Indeed, in Auciello the Supreme Court rejected the employer’s attempt to raise a reasonable doubt in light of the Board’s judgment that “the risks associated with giving employers such ‘unilateral!] control [over] a vital part of the collective-bargaining process’ ... would undermine the stability of the collective-bargaining relationship ... and thus outweigh any benefit that might in theory follow from vindicating a doubt that ultimately proved to be sound” was “entitled to prevail.” Auciello,
Although the Board’s brief suggests that two Members of the Board may consider the policy concern about industrial peace under the Act, and in particular the balance of bargaining power between employer and the union, reflected in Auciello to be relevant in determining when the employer may rely on the requisite uncertainty, the Board’s majority decision did not articulate the rationale suggested in its brief or the Intervenor’s brief. Instead two Members of the Board treated the pre-contract evidence as “moot,” McDonald Partners, Inc., 336 N.L.R.B. No. 74, at 9,
Because the misinterpretation of Auciello affects the entirety of the Board’s deсision, the decision must be remanded. The Board properly invoked the uncertainty test of Allentown Mack Sales & Service, Inc. v. NLRB,
The court, after recоgnizing that “the Board [is] to evaluate the evidence and to weigh it along with the other evidence,” Op. at 1007, proceeds to discuss the evidence, in particular the “sharp decline in [dues] checkoffs,” id., and the lack of union membership. Id. at 1008. Indeed, the court draws several inferences of its own from that evidence, stating that “[t]he natural inference is that the decline [in dues checkoffs] reflected a loss of union support,” id. at 1007 and “[t]he evidence was as fresh as could be,” and “it was current.” Id. at 1007-1008. Still, thе court’s opinion cannot be read to restrict the Board’s evaluation of the evidence on remand. Pointing to the Board’s (ALJ’s) “flat dismissal of the evidence,” id. at 1007, the court instructs the Board, upon reconsideration, to evaluate the evidence as “ ‘a matter of logic and sound inference from all the circumstances .’” Id. (quoting Allentown Mack,
Without prejudging the Board’s decision on remand, it is evident from the Board Chairman’s separate opinion that on remand, in light of Board precedent on dues checkoff evidence
The Board’s discussion in other cases of free riders and other explanations for the lack of voluntary dues checkoffs, as under the 1995-98 contract, supports the Chairman’s analysis. See supra n. 1. Whether a majority of the Board adopts that analysis on remand remains to be seen. Moreover, other Board policies may be implicated, Intervenor suggests, see Intervenor Br. at 5, by allowing employer reliance on dues checkoff evidence such that doing so would give the employer greater rights to oust the union than are possessed by the employees, for “[generally, the Board does not rely on employees’ signatures on a petition seeking representation or seeking to oust a representative that are more than one year old.” Id. (citing Audubon Reg’l Med. Ctr., 331 N.L.R.B. No. 42,
Notes
. See, e.g., S. Bent & Bros., 336 N.L.R.B. No. 72,
. See, e.g., Curtin Matheson,
