PROGRESSIVE ELECTRIC, INC., PETITIONER v. NATIONAL LABOR RELATIONS BOARD, RESPONDENT INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 265, INTERVENOR
No. 05-1127
United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT
Decided July 14, 2006
Argued February 17, 2006
Consolidated with 05-1157
William A. Harding argued the cause and filed the briefs for petitioner.
Michael J. Stapp was on the brief for intervenor.
Before: SENTELLE, BROWN and GRIFFITH, Circuit Judges.
Opinion for the Court filed by Circuit Judge BROWN.
BROWN, Circuit Judge: Progressive Electric, Inc. (“Progressive“) petitions for review of the National Labor Relations Board (“the Board“) decision and order finding that Progressive violated Sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (“the Act“),
I
Progressive, located in Lincoln, Nebraska, is a non-union electrical contractor in the construction business. Over a decade ago, the International Brotherhood of Electrical Workers, Local 265 (“the Union“) targeted Progressive for organizational purposes. Progressive did not go quietly.
A
In February 1996, Progressive advertised in the local paper that it was “accepting applications” for “electrician/technician,” and directed interested parties to Progressive‘s physical address. At the behest of the Union, David Cousins responded to the ad in order to organize Progressive. During the application process Cousins did not reveal his Union affiliation. He was hired and began work in early March. Around the same time, Charles Randall, a member of an out-of-town union, also responded to the ad and was hired. His past union affiliation was apparent on his resume and he initiated a discussion of it at his job interview with Randy Neeman, Progressive‘s president. Randall started work on February 20 and, in early March, he agreed to help the Union in its organizational efforts. On March 27, Cousins sought an application for a friend but was informed that there were no longer open positions and that Progressive was not accepting applications.
On March 29, pursuant to a decision by the Union‘s executive board, eight union journeymen electricians (“the Union Applicants“) went as a group to Progressive‘s office to apply for jobs.1 They were “equipped with a video camera and tape recorder” and were wearing clothing identifying their union affiliation. Gathered outside the office, the Union Applicants, talking among themselves, made statements such as “We should go in there before they have a chance to react“; “That son-of-a-bitch [Neeman]“; “He‘s calling his attorney.” “That‘s all right. That will cost him.“; and “Do you know if he‘s hiring or taking applications?” “No, but I got three salts. We have three salts in here.”
You guys, we are not hiring. We are not taking no [sic] applications. We advertised three [or] four weeks ago. We hired a couple of people and filled the spots. So I would love to put you all on and as soon as I get an opening I will give you guys a call.
The Union Applicants provided Neeman with a letter stating they wished to be considered for employment and listing their names and contact information. As soon as the Union Applicants left, Neeman threw away the information. Neeman later admitted that he never intended to call the Union Applicants, but only made that statement to get them to leave. On April 2, Progressive posted the following notice in its window: “Applications, as well as Names are not being accepted at this time. Video Cameras and recording devices are prohibited. Sales Reps. by appointment only.”
On April 8, Don Hildreth, a Progressive foreman, told Cousins and one other employee that Neeman had called Randall the “bad apple in the barrel, and [Neeman] didn‘t want any union crap around here.” Hildreth continued: “[I]f the Unions got into Progressive, . . . Progressive would lose [certain] contracts, and [Progressive] would go out of business . . . because [Progressive] couldn‘t afford the Union wages and benefits.” On April 26, Randall walked off of a job site and announced that he was on strike because he was not being paid union wages.
On May 1, Neeman held a company meeting. Just before it began, Neeman informed Randall that when Randall had walked off the job five days earlier it was not a “strike” but instead a “voluntary quit.” Randall, now out of a job, was directed to
Alright . . . I‘ve been quiet up ‘til now, which is strange for me I know and because I had to get a lot of legal advi[c]e before I could open my mouth. But now that we know what we‘re talking about[,] we‘re gonna talk about this dirty word . . . UNION . . . okay! Let‘s talk about unions. Are we for it, Bill and I? NO! Are you guys for it[?] I don‘t want to know. . . . I can‘t ask ya, but I can give ya my opinion on it.
Neeman‘s presentation was punctuated by phrases such as “Mr. Asshole Union Rep.” (describing a hypothetical union member) and “bunch of dummies” (describing union members in general). At some point in the presentation Neeman wrote the word “union” on the board, drew a circle around it, and put a slash through it. Perhaps in an effort to soften the edges, Neeman also made statements to convey ambivalence toward union activities, such as: “[Randall] didn‘t lose his job, for the record, because of some organization[.] . . . Far as I know, half you guys are with some organization and I don‘t care.”
Progressive subsequently filled a number of positions, using various means. On May 27, 1996, Steve Baumli became a Progressive employee doing ladder rack work; he had been performing work for Progressive on a temporary basis (via a temp agency) for a couple of months. No job vacancy was advertised for this position. On May 31 and June 13, Progressive placed ads indicating that positions were available for ladder rack installers. As a result of these ads, Progressive hired
At no point from March 1996 to March 1997 was any Union Applicant contacted or offered employment, even though the Union Applicants were qualified for all seven positions described above.2 From April to July of 1996, Jim Pelley (the Union Business Manager, who was one of the Union Applicants) sent three letters on Union letterhead via fax to Progressive in order to follow up on the events of March 29, 1996; the letters expressed the Union Applicants’ continuing interest in employment and included the same sheet of contact information as the Union Applicants has previously submitted. Union records show that Progressive received each fax. Pelley also sent these letters via both certified and first class mail, but they were refused and returned. Two of Pelley‘s letters requested that Neeman “please inform [the Union Applicants] of any efforts [they] must undertake in order to be fully considered for employment.” A final letter was sent on March 27, 1997. Progressive‘s only response, on April 4, 1997, rejected the “renewed” request
B
On August 9, 1996, the Union filed an unfair labor practice charge with the Board and amended it on September 18. On September 30, the Board‘s General Counsel issued a complaint alleging various violations of Sections 8(a)(1) and 8(a)(3) of the Act. The complaint was amended on May 13, 1997, and the case was tried before an administrative law judge (“ALJ“) from June 30 to July 3, 1997. On November 18, 1997, the ALJ found, in relevant part, that Progressive committed unfair labor practices by threatening employees with plant closure (on April 8, 1996) and job loss (on May 1, 1996) and by refusing to consider and hire the Union Applicants. On August 23, 2000, at the Board‘s direction, the ALJ issued a supplemental decision in light of FES (A Division of Thermo Power) (“FES“), 331 N.L.R.B. 9 (2000). Over four and a half years later, the Board largely upheld the ALJ‘s decision, albeit with some modification. Progressive Elec., Inc., 344 N.L.R.B. No. 52, 2005 WL 762117 (Mar. 31, 2005). The Board, agreeing with the ALJ, found that Progressive violated Section 8(a)(1) by “threatening the loss of employment if employees engaged in union activities and by threatening to close its facility,” and violated Sections 8(a)(3) and 8(a)(1) by “refusing to consider [the Union Applicants] for employment, and by failing and refusing to hire them,
II
Our role here is a limited one, as the Board‘s factual findings are “conclusive” if “supported by substantial evidence on the record considered as a whole.”
III
We turn first to Progressive‘s threats. According to Progressive, substantial evidence is lacking for the Board‘s conclusion that Progressive violated Section 8(a)(1) of the Act by threatening employees with loss of employment and plant
Under Section 8(a)(1), it is an unfair labor practice “to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed” in Section 7, to wit: “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 concerted activities for the purpose of collective bargaining or other mutual aid or protection.”
While “an employer is free to communicate to his employees any of his general views about unionism or any of his specific views about a particular union,” such communications must not “contain a ‘threat of reprisal or force or promise of benefit.‘” NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969) (quoting
A
Progressive first challenges the Board‘s finding that, at the company meeting on May 1, 1996, Neeman unlawfully coerced employees by threatening their jobs, in violation of Section 8(a)(1). As previously described, shortly after informing Randall he no longer had a job at Progressive, Neeman told the remaining employees assembled for the meeting that Randall‘s actions were going to “cost all you guys your jobs and that‘s why we have to put a stop to it.” Neeman went on to offer his thoughts about that “dirty word . . . UNION,” sprinkling in various colorful epithets; his hostility was palpable throughout the meeting.
We are persuaded that there is substantial evidence for the Board to reasonably discern impermissible coercion. See, e.g., Timsco, 819 F.2d at 1178 (upholding a Board determination that an interrogation of a non-union member was coercive based on the employer‘s statement that “union organizers were ‘going to screw up a lot of jobs for a lot of people‘“); see also United Food & Commercial Workers Union Local 204, 447 F.3d 821, 825 (D.C. Cir. 2006) (“[A]n employer‘s statement that union support would ‘cause trouble’ can put an employee in a ‘defensive posture’ and be unduly coercive under the right circum-
B
Progressive next challenges the finding that it violated Section 8(a)(1) by virtue of Hildreth‘s April 8, 1996 statements threatening facility closure. Progressive‘s opening gambit—that Hildreth‘s statements did not violate the Act because they were simply an opinion protected by Section 8(c),
Progressive‘s followup salvo—that Hildreth was not its agent also misfires. The Board applies common law principles of agency when assigning liability under the Act. Overnite Transp. Co. v. NLRB, 140 F.3d 259, 265 (D.C. Cir. 1998). Even if the “specific acts performed” have not been “actually authorized or subsequently ratified,”
“Apparent authority” exists where the principal engages in conduct that “reasonably interpreted, causes the third person to believe that the principal consents to have the act done on his behalf by the person purporting to act for him.” For there to be apparent authority, however, the third party must not only believe that the individual acts on behalf of the principal but, in addition, “either the principal must intend to cause the third person to believe that the agent is authorized to act for him, or he should realize that his conduct is likely to create such belief.”
Id. at 266 (quoting Restatement (Second) of Agency § 27 & cmt. a (1992)).
The ALJ explained that Hildreth‘s statements were attributable to Progressive because
[w]hen Cousins began working for [Progressive], Randy Neeman assigned Cousins to work with Hildreth whom Randy Neeman described as “running a few jobs for him.” Randy Neeman told Cousins that if Cousins had any questions, he should ask Hildreth. Randy Neeman described Hildreth‘s duties as overseeing the projects. This manifestation by [Progressive] to employees created a reasonable basis for employees to believe that Hildreth was reflecting company policy and speaking for [Progressive].
Progressive Elec., Inc., 344 N.L.R.B. No. 52, 2005 WL 762117, at *11 (citing GM Elecs., 323 N.L.R.B. at 128); see also Petitioner‘s Br. at 6 (acknowledging Hildreth was a “job foreman“).
IV
Next we examine the Board‘s conclusion that Progressive violated Sections 8(a)(3) and 8(a)(1) of the Act by failing to consider and hire the Union Applicants because of their union affiliation. Progressive contends this finding is not supported by substantial evidence. We disagree.
Under Section 8(a)(3), it is “an unfair labor practice for an employer . . . by discrimination in regard to hire or tenure of employment . . . to encourage or discourage membership in any labor organization.”
To establish violations of Section 8(a)(3) in an antiunion animus case such as this, the General Counsel, per the Board‘s two-step Wright Line framework, has the initial burden to show that the “protected activity was a motivating factor in the adverse employment decision.” Int‘l Union of Operating Eng‘rs, Local 470 v. NLRB, 350 F.3d 105, 110 (D.C. Cir. 2003) (internal quotation marks and citation omitted); see Wright Line, 251 N.L.R.B. 1083 (1980), enforced, 662 F.2d 899 (1st Cir. 1981). More specifically, under the Board‘s test for refusal-to-hire violations, the General Counsel must establish:
(1) that the [employer] was hiring, or had concrete plans to hire, at the time of the alleged unlawful conduct; (2) that the applicants had experience or training relevant to the announced or generally known requirements of the positions for hire, or in the alternative, that the employer has not adhered uniformly to such requirements, or that the requirements were themselves pretextual or were applied as a pretext for discrimination; and (3) that antiunion animus contributed to the decision not to hire the applicants.
FES, 331 N.L.R.B. at 12 (refining the Wright Line framework) (footnotes omitted). Similarly, under the Board‘s test for refusal-to-consider violations, the General Counsel must show “(1) that the [employer] excluded applicants from a hiring process; and (2) that antiunion animus contributed to the decision not to consider the applicants for employment.” Id. at
A
Progressive first argues that substantial evidence is lacking to support the General Counsel‘s case because the Union Applicants were not applying during a time when Progressive was hiring. Although the ALJ found no evidence that Progressive was hiring on March 29, 1996, Progressive‘s argument misses the import of the Board‘s decision. By virtue of Neeman‘s deliberate misrepresentation and the events of the following year, the Board found an “overall scheme” of refusing to consider and hire the Union Applicants. Progressive Elec., Inc., 344 N.L.R.B. No. 52, 2005 WL 762117, at *1 n.3. Given that several suitable positions opened up and were filled over that
The Board‘s finding is reasonable. On March 29, 1996, after Neeman accepted a sheet containing the Union Applicants’ information, he lied to them, assuring them he would call them “as soon as [there is] an opening” when in fact he had no such intention. In the ALJ‘s words, this falsehood had the “effect of luring the applicants into complacency.” Progressive Elec., Inc., 344 N.L.R.B. No. 52, 2005 WL 762117, at *14; cf. Commercial Erectors, Inc., 342 N.L.R.B. No. 94, 2004 WL 1967543, at *7 (Aug. 31, 2004) (explaining that applicants “reasonably would have [been] dissuaded . . . from coming to the site frequently” where employer assured them he would call them after calling others on employer‘s “master list“). The Board also pointed to various events over the course of the subsequent year, including the appearance of the notice in the window; the multiple Union letters, which Progressive received via fax but refused via certified mail; the decision to use blind advertisements; and the failure to hire the Union Applicants to any of the seven suitable positions that became available. While we doubt any of these actions—including the initial misrepresentation—would be independently sufficient, the Board reasonably found they were collectively “part and parcel of [Progressive‘s] overall scheme to refuse to consider and hire” the Union Applicants. Progressive Elec., Inc., 344 N.L.R.B. No. 52, 2005 WL 762117, at *1 n.3.
Progressive‘s proffer of a 45-day application period is also unavailing, regardless of whether it normally employed such a retention policy. Having deliberately sought to divert the Union Applicants from its normal hiring process, Progressive cannot
Contrary to Progressive‘s suggestion, the Board nowhere indicates that employers must favor union applicants. See Phelps Dodge, 313 U.S. at 186. We readily acknowledge that the Board is not authorized to function as a “ubiquitous ‘personnel manager,‘” and, indeed, “[i]t is well recognized that an employer is free to lawfully run its business as it pleases.” Detroit Newspaper Agency v. NLRB, 435 F.3d 302, 310 (D.C. Cir. 2006) (quoting Epilepsy Found. of Ne. Oh. v. NLRB, 268 F.3d 1095, 1105 (D.C. Cir. 2001)); see Phelps Dodge, 313 U.S. at 187 (explaining that the Act “does not touch ‘the normal exercise of
B
Whether there is sufficient evidence to conclude Progressive was motivated by antiunion animus is a closer question. “Motive is a question of fact, and the [Board] may rely on both direct and circumstantial evidence to establish an employer‘s motive, considering such factors as the employer‘s knowledge of the employee‘s union activities, the employer‘s hostility
There are, of course, limits to our deference. See Universal Camera Corp. v. NLRB, 340 U.S. 474, 487-88 (1951); Epilepsy Found. of Ne. Oh., 268 F.3d at 1103. For example, in TIC, we held that a “showing of animus requires greater proof than a single comment by a supervisor to the effect that the company preferred to hire non-union personnel” and that “[t]he mere fact that the [employer] knew the applications were from Union applicants does not show animus.” TIC, 126 F.3d at 338; see also Detroit Newspaper Agency, 435 F.3d at 310; BE & K Constr. Co. v. NLRB, 133 F.3d 1372, 1376 (11th Cir. 1997) (“[W]e will not allow the Board to punish an employer simply because that employer is anti-union.“). We also noted that a prohibited motive will not be inferred “where job applicants fail to follow regularly applied, facially neutral application procedures.” TIC, 126 F.3d at 338.
The record before us, however, permits a finding that the actions in question were motivated by antiunion animus. The evidence, appropriately centered on Neeman as the decisionmaker in personnel matters,9 includes his deliberate
C
Finally, Progressive argues that, even if the General Counsel‘s initial showing was sufficient, Progressive met its burden to demonstrate it would not have considered or hired the Union Applicants even in the absence of their union affiliation. Progressive advances three defenses: (1) the Union Applicants were overqualified;14 (2) some of the Union Applicants were employed by Progressive‘s competitors; and (3) the Union Applicants were not legitimate applicants for employment. We find substantial evidence for the Board‘s conclusion that Progressive failed to carry its burden.
As the Board correctly observes, the first two arguments rest on the “unremarkable proposition that an employer can apply neutral criteria and hiring procedures to job applicants without regard to union affiliation.” Respondent‘s Br. at 42; see, e.g., Dalton Roofing Serv., 344 N.L.R.B. No. 108, 2005 WL 1492881-1, at *4 (employer can use wage history as neutral factor in determining whether applicants are overqualified); Bay Control
Progressive‘s third defense—that the Union Applicants “who came to [Progressive] armed with a video camera were not involved in an activity that was protected by the Act because they were not truly seeking employment,” Petitioner‘s Br. at 21—also falls short.15 Progressive acknowledges that, under
In raising the Union Applicants’ bona fides as a defense, Progressive marshals only an ALJ opinion that has been specifically disavowed in relevant part by the Board. See W.D.D.W. Commercial Sys. & Invs., Inc., 335 N.L.R.B. 260, 263-65 (2001), enforced in relevant part sub nom. Contractors’ Labor Pool, 323 F.3d at 1060-61; accord A. Montano Elec., 335 N.L.R.B. 612, 614 & nn.9-10 (2001). Equally curious is Progressive‘s passing citation to a Sixth Circuit opinion that was superseded by a subsequent opinion. See NLRB v. Fluor Daniel, Inc., 102 F.3d 818, 832 (6th Cir. 1996), superseded by 161 F.3d 953 (6th Cir. 1998). We are underwhelmed.
Although Progressive might find it unpalatable that applicants furthering their own agenda without regard for Progressive‘s well-being stand on equal footing with job seekers who are just seeking jobs, the Board does not perceive anything problematic per se with a salting effort that involves a group of union members (often called “batch applicants“) arriving en
It is true the Board has recognized that, under certain circumstances, an employer can justify its refusal to hire by showing the applicant has a “disabling conflict.” See Contractors’ Labor Pool, 323 F.3d at 1060 (noting that the “Board likened a disabling conflict defense to a Wright Line defense“); Sunland Constr. Co., 309 N.L.R.B. 1224, 1230 (1992) (noting that employer in certain circumstances need not “hire a paid organizer whose role is inherently and unmistakably inconsistent with employment” (internal quotation marks omitted)). In that vein, the Board has indicated that “‘salting’ . . . may be found to be unprotected if the purported organizational activity is a subterfuge used to further purposes unrelated to organizing, undertaken in bad faith, designed to result in sabotage, or
The Board has also previously found that where “the overall environment created by the applicants” in attempting to gain employment was “sufficiently intimidating and disrespectful,” an employer is “privilege[d] . . . to not hire” them. Heiliger Elec. Corp., 325 N.L.R.B. at 966 n.3. In Heiliger Electric, for example, the Board determined that an employer was justified in refusing to hire applicants who refused to leave when asked, refused to stop videotaping when asked, and videotaped personal and private papers on the employer‘s desk. Id. at 968. In the present case, the Board reasonably declined to find any such disruption. See Commercial Erectors, Inc., 342 N.L.R.B. No. 94, 2004 WL 1967543, at *7 & n.9 (finding applicants “at no time engaged in disruptive, intimidating, or disrespectful behavior,” and distinguishing Heiliger Electric). Indeed, at no point did Neeman ask the Union Applicants to leave or to stop recording.
In short, Progressive offers us insufficient reason to disturb the Board‘s findings as to the refusal-to-hire and refusal-to-consider violations.
V
For the foregoing reasons, we deny Progressive‘s petition for review and grant the Board‘s cross-application for enforcement.
So ordered.
