NATIONAL LABOR RELATIONS BOARD v. FINANCIAL INSTITUTION EMPLOYEES OF AMERICA, LOCAL 1182, CHARTERED BY UNITED FOOD & COMMERCIAL WORKERS INTERNATIONAL UNION, AFL-CIO, ET AL.
No. 84-1493
Supreme Court of the United States
Argued December 4, 1985—Decided February 26, 1986
475 U.S. 192
*Together with No. 84-1509, Seattle-First National Bank v. Financial Institution Employees of America, Local 1182, Chartered by United Food & Commercial Workers International Union, AFL-CIO, et al., also on certiorari to the same court.
Mark A. Hutcheson argued the cause for petitioner in No. 84-1509. With him on the briefs was Stephen M. Rummage.
Laurence Gold argued the cause for respondents in both cases. With him on the brief were George Murphy, Marsha S. Berzon, Michael Rubin, and David Silberman.†
JUSTICE BRENNAN delivered the opinion of the Court.
The question for decision in these cases is whether a rule of the National Labor Relations Board that requires that nonunion employees be permitted to vote in a certified union‘s decision whether to affiliate with another union is consistent with the National Labor Relations Act.
I
In 1970, the Board certified the Firstbank Independent Employees Association (Firstbank) as the collective-bargaining representative of a bargaining unit consisting of the employees of petitioner Seattle-First National Bank (SeaFirst). Firstbank and SeaFirst subsequently negotiated successive collective-bargaining agreements, the most recent of which expired in 1977. In 1978, Firstbank voted to affiliate with the Retail Clerks International Union, AFL-CIO. Under Firstbank‘s constitution, only union members in good standing could vote in the election. The union members voted in
SeaFirst refused to recognize the amended certification or to bargain with FIEA. The Board sustained FIEA‘s charges and held that SeaFirst had committed an unfair labor practice in violation of
On remand, the Board notified the parties of its decision on its own motion to reconsider its earlier decision. On reconsideration, the Board held that, because nonunion employees were not allowed to vote in the affiliation election, the election did not meet minimal “due process” standards, and therefore that the affiliation was invalid. Accordingly, the Board dismissed FIEA‘s unfair labor practice charge and vacated the amended certification. Seattle-First National Bank, 265 N. L. R. B. 426 (1982).
FIEA petitioned the Court of Appeals for the Ninth Circuit for review of the Board‘s decision. The Court of Appeals, in a 2-1 decision, granted the petition and remanded the case. 752 F. 2d 356 (1984). The court held that the Board‘s requirement that nonunion employees be allowed to vote on affiliation questions was irrational and inconsistent with the Act for three reasons. First, the Board‘s rule intruded upon the union‘s internal affairs—here a totally unjustified intrusion because the Board had not determined that affiliation had substantially changed the union or eroded its majority support—and violated the “longstanding federal labor policy of avoiding unnecessary interference in internal union affairs.” Id., at 362. Second, the Board‘s rule was “inconsistent with the strong national policy of maintaining stability in the bargaining representative.” Id., at 364. Pursuant to that policy, Congress and the Board had restricted the opportunities for employers and employees to challenge a certified union‘s status as bargaining representative,3 and the Board‘s new rule did not further but breached
The holding of the Court of Appeals conflicts with contrary holdings of the Courts of Appeals for the Fifth and Seventh Circuits upholding the Board‘s rule. Local Union No. 4-14 v. NLRB, 721 F. 2d 150, 152-153 (CA5 1983); United Retail Workers Union, Local 881 v. NLRB, 774 F. 2d 752 (CA7 1985).4 We granted both petitions in this case to resolve the conflict. 471 U. S. 1098 (1985). We affirm.
II
The Act recognizes that employee support for a certified bargaining representative may be eroded by changed circumstances. In such cases, employees may petition the Board for another election, alleging that the certified representative no longer enjoys majority support.
One such change in circumstances is, as here, where an independent union decides to affiliate with a national or inter-
The Board‘s new rule dramatically changes this scheme.9 The Board now takes the position that all employees in the
III
A
Petitioners argue that the Board should be afforded “a wide degree of discretion in establishing the procedure and safeguards necessary to insure the fair and free choice of bargaining representatives by employees,” NLRB v. A. J. Tower Co., 329 U. S. 324, 330 (1946); see also
Under the Act, the certified union must be recognized as the exclusive bargaining representative of all employees in the bargaining unit, and the Board cannot discontinue that recognition without determining that the affiliation raises a question of representation and, if so, conducting an election to decide whether the certified union still is the choice of a majority of the unit.
Turning to the record in these cases, the Board revoked FIEA‘s certification and relieved SeaFirst of its obligation to bargain despite the fact, as the Board acknowledges, that it was not sufficient to raise a question of representation that nonunion employees were not allowed to vote in the affiliation election. Brief for NLRB 16-17. Absent a question of
B
Petitioners contend that this statutory scheme does not adequately protect the interests of nonunion employees, and that this justifies the Board‘s new rule. They argue that an affiliation may affect a union‘s representation of the bargaining unit even if it does not raise a question of representation, but that argument overlooks the fact that a union makes many decisions that “affect” its representation of nonmember employees. It may decide to call a strike, ratify a collective-bargaining agreement, or select union officers and bargaining representatives. Under the Act, dissatisfied employees may petition the Board to hold a representation election, but the Board has no authority to conduct an election unless the effects complained of raise a question of representation. In any event, dissatisfaction with representation is not a reason for requiring the union to allow nonunion employees to vote on union matters like affiliation. Rather, the Act allows union members to control the shape and direction of their organization, and “[n]on-union employees have no voice in the affairs of the union.” Allis-Chalmers, 388 U. S., at 191. We repeat, dissatisfaction with the decisions union members make may be tested by a Board-conducted representation
Petitioners concede that a union‘s organizational and structural changes would not ordinarily justify the Board‘s meddling in a union‘s internal affairs, but argue that affiliation is different from other changes because affiliation necessarily changes the union‘s identity, and because initiation of the change is by the certified union seeking the Board‘s approval for the affiliation by amendment of its certification or an order on the employer to bargain after affiliation. Neither distinction is persuasive.
First, petitioners argue that affiliation differs from other organizational changes because it results in employees being represented by a different organization. See Hamilton Tool Co., 190 N. L. R. B. 571, 576 (1971) (Miller, concurring). But many organizational or structural changes may operate to alter a union‘s “identity.” This would be the case where the union amends its constitution or bylaws, restructures its financial obligations and resources, or alters its jurisdiction. The fact that an affiliation is often accompanied by a formal name change does not serve to distinguish it from other organizational developments. As the Board has recognized, “an affiliation does not create a new organization, nor does it result in the dissolution of an already existing organization.” Amoco Production Co., 239 N. L. R. B. 1195 (1979). Rather, the union will determine “whether any administrative or organizational changes are necessary in the affiliating organization.” Ibid. If these changes are sufficiently dramatic to alter the union‘s identity, affiliation may raise a question of representation, and the Board may then conduct a representation election. Otherwise, the statute gives the Board no authority to interfere in the union‘s affairs.
Petitioners next contend that affiliation involves the union‘s asking the Board to amend its certification or to order
IV
The basic purpose of the National Labor Relations Act is to preserve industrial peace.
Absent any statutory framework, the Board‘s rule might well be a rational means of preserving industrial stability. However, as the Ninth Circuit noted, Congress has already determined “as a matter of national labor policy that bargaining stability and the principle of majority rule may limit the timing of employee challenges to their certified bargaining
We hold that the Board exceeded its authority under the Act in requiring that nonunion employees be allowed to vote for affiliation before it would order the employer to bargain with the affiliated union.13 The judgment of the Court of Appeals is affirmed. The cases are remanded for further proceedings consistent with this opinion.
It is so ordered.
I write separately to note that the Court‘s action today striking down a Board action is one of those rare departures from this Court‘s long history of special deference to the Board‘s decisions concerning the selection of an exclusive bargaining unit representative by employees. See, e. g., NLRB v. A. J. Tower Co., 329 U. S. 324, 330 (1946); see also NLRB v. Action Automotive, Inc., 469 U. S. 490 (1985).
Notes
“(1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 157 of this title;
. . . . .
“(5) to refuse to bargain collectively with the representatives of his employees, subject to the provisions of section 159(a) of this title.”
Respondents argue that the Board‘s rule is irrational because it assumes that affiliation involves the selection of a new bargaining representative absent any indication that the affiliation has significantly changed the union. Because we conclude that the Board has exceeded its authority under the statute, we need not address this issue.
