We are called on once again to review the labor situation at Southern Maryland Hospital Center (Southern Maryland or hospital), a full-service medical facility in Clinton, Maryland, with over 1200 employees. Since 1981, the Office and Professional Employees International Union, Local No. 2, AFL-CIO (union) has waged two organizational campaigns at the hospital. The first election campaign, which ran from early 1981 to June 1982, resulted in the defeat of all labor organizations. In response to union charges, the National Labor Relations Board (NLRB or Board) cited the hospital for numerous unfair labor practices during the election campaign. On appeal, we granted enforcement in part and refused enforcement in part.
Southern Maryland Hospital Center v. NLRB,
I.
The facts surrounding the claimed violations are largely undisputed. On February 23, 1984, two off-duty employees stood in front of the hospital’s main entrance at 6:30 a.m. and distributed union literature to arriving day-shift employees. The main entrance to the hospital is composed of wide double doors and one employee stood between the doors and the other stood to the right. According to the hospital, virtually all of its patients and about 40% of its staff use the main entrance, with the remaining 60% using the hospital’s side and rear entrances. 1 Consequently, traffic at the main entrance during this early hour was light. After 5-10 minutes of leaflet distribution, a hospital security guard approached the employees and asked them to stop their distribution. Upon being told that the hospital’s owner was quite upset over union leaflet-ting from the first organizational campaign, the employees discontinued their activity and returned to work. No other attempts to distribute union literature at building entrances were made after this incident.
Greater problems arose, however, over the use of the hospital’s subsidized cafete *934 ria. In the aftermath of the 1982 union elections, in which the hospital occasionally allowed union organizers to use the hospital’s cafeteria for organizational activity, the hospital posted a sign outside its cafeteria stating “Cafeteria available for employees, patients, patients’ visitors, and medical staff only. No solicitors.” The cafeteria is located on the ground floor of the facility, one floor below the main entrance, and is not readily accessible to the public. Since the formation of the no-solicitation policy, the hospital has tried to restrict admittance to the above groups, but there have been occasions where hospital employees and their family members have taken advantage of the cafeteria’s inexpensive meals.
On several occasions in February and March 1984, nonemployee union representatives walked past the hospital’s reception desk and proceeded to the cafeteria where they met with employees. Twice, the union organizers used the premise of picking up and dropping off volunteer applications to get past the reception desk and into the cafeteria. On March 15, three union recruiters walked past the reception desk and proceeded to the cafeteria where they met with employees for 45 minutes. During this time, two hospital administrators came in and the sat down at the same table as the union representatives. Hospital security director John Butschky also observed the union’s activities, at one point moving to an adjacent table to observe the representatives’ actions.
At noon the next day, when two of the same union organizers returned to the cafeteria (this time with visitors’ passes), Butschky sat down at the same table with them, followed by another hospital administrator, who joined Butchsky at the organizers’ table. After some comments were exchanged, the organizers left the cafeteria. Four days later, union organizer Burton returned to the hospital, approached the volunteer desk, and was told by a security guard, who cited the hospital’s no-solicitation rule, that she could not enter the cafeteria.
Also at issue in this appeal are Rules 24 and 25 of the hospital’s disciplinary policy. Rule 24 states that the "unauthorized presence” on hospital property would result in a three-day suspension from the grounds; Rule 25 provides a similar suspension for “malicious gossip or derogatory attacks” on fellow employees and patients.
II.
Upon the complaint of the Union, the AU held a three-day hearing, and concluded that the hospital violated section 8(a)(1) of the National Labor Relations Act (Act) by (1) barring employees from distributing union literature at the main entrance; (2) selectively and disparately denying union organizers from the cafeteria; (3) engaging in surveillance of the union’s activities in the cafeteria; and by (4) maintaining overly broad disciplinary rules that coerced employees in the exercise of their bargaining rights. In a summary order, the Board adopted the findings of the AU and ordered the hospital to cease and desist from interfering with the bargaining rights of the employees. The Board also ordered the hospital to rescind disciplinary rules 24 and 25. The Board has petitioned for enforcement of these orders.
III.
Section 8(a)(1) of the Act, 29 U.S.C. § 158(a)(1) (1982), prohibits employer conduct that “interfere[s] with, restraints], or coerce[s] employees” in the exercise of their rights under section 7 of the Act, 29 U.S.C. § 157. Section 7 guarantees employees “the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other activities for the purpose of collective bargaining_” In reviewing the alleged violations of the Act, we must sustain the Board’s findings and grant enforcement if the findings are supported by substantial evidence on the record as a whole.
NLRB v. Kiawah Island Co.,
A. Distribution of Literature At Front Entrance
In
Beth Israel Hosp. v. NLRB,
Applying
Beth Israel
and
Baptist Hospital,
the Board in this case concluded that Southern Maryland failed to show the required adverse impact on patient care. We agree. Unlike both
Baptist Hospital
and
Baylor University Medical Center v. NLRB,
Nor can we find support for the hospital’s argument that the employees had alternative locations for the distribution of union literature.
5
Although the
Beth Israel
Court indicated that the availability of alternative sites might be a consideration
*936
when determining the validity of restrictions on employee solicitation in the health care context,
see
B. Access To The Cafeteria
We next review the Board’s holding that Southern Maryland violated the Act by refusing cafeteria access to a union organizer. Thirty-four years ago, in
NLRB v. Babcock & Wilcox Co.,
an employer may validly post his property against nonemployee distribution of union literature if reasonable efforts by the union through other available channels of communication will enable it to reach the employees with its message and if the employer’s notice or order does not discriminate against the union by allowing other distribution.
Id.
at 112,
Although
Babcock & Wilcox
involved distribution of union literature, the Court subsequently applied the
Babcock & Wilcox
standard to solicitation activity in
Central Hardware Co. v. NLRB,
[t]o gain access [to an employer’s property], the union has the burden of showing that no other reasonable means of communicating its organizational message exists or that the employer’s access rules discriminate against the union’s 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 courts under the Babcock accommodation principle has rarely been in favor of trespassory organizational activity.
Sears Roebuck & Co. v. San Diego County District Council of Carpenters,
Here, the hospital’s no-solicitation policy provided that “[pjersons not employed by the Hospital may not solicit or distribute literature on Hospital property for any purpose at anytime.” Under
Babcock & Wilcox
and
Sears Roebuck,
this policy is valid so long as the union organizers had alternative means of communicating with employees and so long as the hospital did not discriminate against the union by allowing other forms of solicitation at the cafeteria.
Cf. Hutzler Bros. Co. v. NLRB,
*937 The hospital raises two sources of error with regard to this holding: (1) the Board presented no evidence of discriminatory enforcement of the hospital’s no-solicitation policy, and (2) the Board erred in not applying the Babcock & Wilcox balancing test to the hospital’s conduct. We find both contentions persuasive.
In its brief, the Board argued that by allowing numerous friends and relatives of hospital employees into the cafeteria but keeping the union organizers out, the hospital discriminatorily enforced its “no-access rule.” However, the policy here was a
no-solicitation
policy designed to keep out union representatives and other salesmen. Claims of disparate enforcement inherently require a finding that the employer treated similar conduct differently,
see Restaurant Corp. of America v. NLRB,
Our conclusion is bolstered by reference to the different circumstances present in
Montgomery Ward & Co. v. NLRB,
In addition to the lack of substantial evidence supporting the Board’s discrimination holding, we agree with respondent that the Board incorrectly utilized
Babcock & Wilcox.
Relying on
Ameron Automotive Centers,
At least two circuits have rejected the applicability of
Ameron,
or at least rejected the inapplicability of
Babcock & Wilcox,
to situations like the one
sub judice. See Baptist Medical System v. NLRB,
when an employer has chosen not to allow any solicitation or promotional activity by ndnemployees in its public facility and union organizers attempt to use that facility for promotional or solicitation purposes, we believe that Babcock contemplates that such activity may validly be prohibited, even where the organizers’ activity is not actually disruptive.
Id. at 664.
We find the approach of Baptist Medical System, with its proper balance between the rights of private employers and the organizational concerns of a union, persuasive. In the absence of any evidence suggesting discriminatory enforcement of the hospital’s no -solicitation policy, combined with the fact that the union had alternative means of communicating with hospital employees, we conclude that Southern Maryland could prohibit solicitation in its cafeteria. Accordingly, we deny enforcement to this part of the Board’s order.
C. Surveillance Of Union Activities
Southern Maryland next objects to the Board’s finding that it unlawfully chilled the union representatives at the cafeteria and created a coercive environment. Consistent with our finding that the hospital could prohibit solicitation in its cafeteria, we hold that it could legally keep a close eye on the union representatives when they managed to gain entrance into the cafeteria. We therefore deny enforcement to that part of the Board’s order.
It is firmly established that management officials may observe public union activity, particularly where such activity occurs on company premises, without violating § 8(a)(1) of the Act, unless such officials do something “out of the ordinary.”
Metal Industries, Inc.,
Applying that test, the Board has on several occasions found that employers unreasonably chilled the exercise of their employees’ Section 7 rights through excessive surveillance.
See Arthur Briggs, Inc.,
By contrast, the organizers at Southern Maryland were not, as we concluded supra, legally entitled to solicit members in the cafeteria. Having concluded that the employer can completely prohibit solicitation in the cafeteria, we must also hold that the same employer has the lesser right to conduct surveillance of union activities to determine if the rightly prohibited activity is taking place. Thus, in situations where the employer has the right to bar the union from a part of its premises, the degree of surveillance, no matter how “out of the ordinary,” is irrelevant.
The Board has accepted the logic of this argument previously. In
Hoschton Garment Co.,
We agree that such reasoning applies in the instant case and so refuse to enforce the part of the Board’s order that applies to employer surveillance.
D. Hospital Disciplinary Rules
The final challenge to the Board’s order concerns Rules 24 and 25 of the hospital’s disciplinary policy. Rule 24 provides for a “3-day suspension with intent to terminate” in response to an “unauthorized presence on Hospital property.” Applying the Board’s decision in
Tri-County Medical Center, Inc.,
The hospital maintains that Rule 24 is valid because it is “not inherently threatening or coercive,” and is not aimed at union activity. Disciplinary rules such as this do not survive, however, merely because they do not induce a threatening or coercive atmosphere. In Tri-County, which still stands as the leading Board case on the access rights of off-duty employees, the Board set out the permissible limits of an employer’s disciplinary procedures:
[A disciplinary rule is not unlawful if it] (1) limits access solely with respect to the interior of the plant and other working areas; (2) is clearly disseminated to all employees; and (3) applies to off-duty employees seeking access to the plant for any purpose and not just to those employees engaging in union activity. Finally, except where justified by business reasons, a rule which denies off-duty employees entry to parking lots, gates, and other outside nonworking areas will be found invalid.
We conclude that
Tri-County
represents a defensible construction of the Act,
see NLRB v. Pizza Crust Co. of Pennsylvania,
Turning to Rule 25, this policy provides that “[mjalicious gossip or derogatory attacks on fellow employees, patients, physicians or Hospital representatives: First Offense, 3-day suspension with intent to terminate.” The Board found such a rule overly broad “because it combines a lawful prohibition of ‘malicious gossip’ with an unlawful prohibition of ‘derogatory attacks’ on hospital representatives.”
It is well established that, while employers may proscribe “deliberately or maliciously false” statements, employers may not proscribe and punish for publication of false or inaccurate statements.
Owens-Corning Fiberglas Corp. v. NLRB,
Relying on
Maryland Drydock,
the hospital maintains that the permission to prohibit “defamatory and insulting statements” applies to “derogatory” statements as well. We do not agree. Although certain types of derogatory remarks may sound quite similar to maliciously false and defamatory speech, which an employer may prohibit, derogatory remarks may also include truthful union propaganda that places hospital personnel in an unfavorable light. By permitting the punishment of employees for speaking badly about hospital personnel, the employer “failfedj to define the area of permissible conduct in a manner clear to employees and thus cause[d] employees to refrain from engaging in protected activities.”
American Cast Iron Pipe Co. v. NLRB,
IV.
To summarize, we grant enforcement with respect to the Board’s findings on the distribution of union literature and the hospital’s disciplinary rules. However, we deny enforcement with respect to the Board’s finding that the hospital unlawfully excluded union representatives from soliciting in the cafeteria, and that the hospital unlawfully conducted a chilling surveillance on the union organizers in the cafeteria.
ENFORCEMENT GRANTED IN PART AND DENIED IN PART.
Notes
. The hospital’s emergency room is located about 37 feet from the main entrance, and the facility's ambulance entrance is located an additional 59 feet from the ER entrance.
. The Court found that "patient use of the cafeteria [was] voluntary, random, and infrequent," and considered it of "critical significance that only 1.56% of the cafeteria's patrons are patients."
Id.
at 502,
. The record shows that emergency room patients generally use the separate ER entrance.
. The hospital attempts to distinguish
Harper-Grace
by noting that, in
Harper-Grace,
the hospital's main entrance was the "exclusive entrance," whereas here the side entrance presented an alternative leafletting spot. To the contrary, in
Harper-Grace,
as here, employees were able to enter the hospital through a basement entrance.
.The hospital argued both to the Board and to this court that the employees could have distributed literature at both the side and rear entrances and in the cafeteria.
.
See Ameron,
. We also reject the view that the employer’s rule is saved because it was never enforced.
See NLRB v. Beverage Air Co.,
