Aramark Corporation v. National Labor Relations Board

156 F.3d 1087, 1998 Colo. J. C.A.R. 5140, 159 L.R.R.M. (BNA) 2288, 1998 U.S. App. LEXIS 23323
CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 22, 1998
Docket97-9535
StatusPublished
Cited by1 cases

This text of 156 F.3d 1087 (Aramark Corporation v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aramark Corporation v. National Labor Relations Board, 156 F.3d 1087, 1998 Colo. J. C.A.R. 5140, 159 L.R.R.M. (BNA) 2288, 1998 U.S. App. LEXIS 23323 (10th Cir. 1998).

Opinion

156 F.3d 1087

159 L.R.R.M. (BNA) 2288, 136 Lab.Cas. P 10,281,
98 CJ C.A.R. 5140

ARAMARK CORPORATION, Petitioner,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent,
The Florida Public Employees Council 79, AFSCME (Union),
International Union of Operating Engineers, Local
465, AFL-CIO, Intervenors.

Nos. 97-9535, 97-9550.

United States Court of Appeals,
Tenth Circuit.

Sept. 22, 1998.

David W. Miller, of Baker & Daniels, Indianapolis, IN (Philip J. Gibbons, Jr. with him on the briefs), for Petitioner.

Howard E. Perlstein, Deputy Assistant General Counsel, N.L.R.B., Washington, DC (Frederick L. Feinstein, General Counsel, Linda Sher, Associate General Counsel, and Aileen A. Armstrong, Deputy Associate General Counsel, with him on the briefs), for Respondent.

Marsha S. Berzon, Altshuler, Berzon, Nussbaum, Berzon & Rubin, San Francisco, CA (Jonathan P. Hiatt, AFL-CIO, Washington, DC, John C. Dempsey, Larry P. Weinberg, and Margaret A. McCann, AFSCME, Washington, DC, Richard Griffin and Helen L. Morgan, International Union of Operating Engineers, Washington, DC, with her on the briefs), for Intervenors.

Before BRISCOE, McWILLIAMS, and MURPHY, Circuit Judges.

MURPHY, Circuit Judge.

Aramark Corporation ("Aramark") seeks review of two orders of the National Labor Relations Board ("Board") asserting jurisdiction over Aramark's operations and ordering Aramark to bargain with the Florida Public Employees Council 79, AFSCME ("Council 79") and with the International Union of Operating Engineers, Local 465, AFL-CIO ("Local 465") (collectively, "Unions"). The Board has petitioned for enforcement of its orders, and the Unions have intervened to support the Board's application for enforcement.

Aramark argues the Board is without jurisdiction to order Aramark to engage in collective bargaining because Aramark's operations fall within the political subdivision exemption of the Act. Aramark also argues the Board is without jurisdiction because under its government contracts, Aramark does not retain sufficient control over its labor relations to engage in meaningful bargaining with a labor union. Our jurisdiction to review the Board's orders arises under sections 10(e) and (f) of the National Labor Relations Act ("Act"), 29 U.S.C. § 160(e), (f). This court rejects Aramark's claim the Board erred in concluding it was not an exempt political subdivision. This court remands to the Board, however, to determine upon an appropriately developed record whether Aramark retains sufficient control over labor relations to engage in meaningful collective bargaining such that the Board may assert jurisdiction over Aramark's operations.

I. BACKGROUND

Aramark is a Delaware corporation providing food services nationwide. Aramark manages food service operations in the Duval County School District ("School District") in Jacksonville, Florida, and at The Citadel in Charleston, South Carolina. The challenged Board orders arose out of Aramark's refusal to recognize and bargain with the Unions representing Aramark's food service employees in Duval County and at The Citadel.

A. Duval County Proceedings

In July 1990, Aramark and the Duval County School Board ("School Board") entered into a contract for Aramark to manage all of the food service operations of the School District. Prior to this time, the School District operated and managed its own food service program staffed solely by public employees. Under the parties' contract, employees in the food service operation as of the contract date, July 1, 1990, remained employees of Duval County. These employees accordingly retained civil service status and the employees were in a public-sector collective-bargaining unit represented by Council 79. All food service employees hired after July 1, 1990 were Aramark employees and were not represented in the public-sector collective-bargaining unit.

The original contract was renewed yearly until June 30, 1995. At that time, after submitting a bid for a new contract, Aramark was awarded a one-year contract, effective July 1, 1995. This contract was renewable for additional one-year periods.

In December 1996, Council 79 filed a petition with the Board seeking to represent Aramark's approximately 430 food service employees working in the School District. Aramark responded by asserting the Board lacked jurisdiction over its operations because Aramark did not retain sufficient control over essential terms and conditions of employment, including wages and benefits, to be able to engage in meaningful bargaining with a labor union. Aramark also argued that its operations fell under the political subdivision exemption of § 2(2) of the Act1 because the individuals responsible for day-to-day food service operations serve at the pleasure of public officials or are public employees.2

Following a hearing, the Board's Regional Director concluded the Board had jurisdiction and ordered a representation election. The Regional Director determined the Board had jurisdiction because Aramark was an "employer" within the meaning of § 2(2) of the Act3 and because Aramark's operations met the Board's monetary jurisdictional standards, thus satisfying the Board's jurisdictional standard set out in Management Training Corp., 317 N.L.R.B. 1355, 1995 WL 451936.4 See Aramark Corp., 323 N.L.R.B. No. 26, 1997 WL 101268, at * 3 app. The Regional Director rejected Aramark's argument that the Management Training standard should not be used to determine the Board's jurisdiction. The Regional Director also rejected Aramark's contention that its operations in the Duval County schools were exempt under the political subdivision exemption. See id. at * 3 n. 11 app.

The Board denied Aramark's Request for Review of the Regional Director's Decision and Direction of Election. In affirming the Regional Director's decision, the Board reaffirmed its holding in Management Training. See id. at * 1. The Board further noted that the Florida Public Employees Relations Commission had ruled it was precluded from asserting jurisdiction over Aramark's food service workers because they were not public-sector employees, and noted that if the Board were to decline to assert jurisdiction the Aramark employees would not have any opportunity for representation by a union.5 See id.

Following the election held on February 28, 1997, in which a majority of Aramark's employees chose union representation, Council 79 was certified by the Board as the exclusive collective-bargaining representative of Aramark's food service workers employed in the School District.

Following Council 79's certification, Aramark refused the union's requests to bargain. Acting on charges filed by Council 79, the Board's General Counsel issued a complaint alleging that Aramark's refusal to bargain violated sections 8(a)(5) and (1) of the Act, 29 U.S.C. § 158(a)(5), (1).

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ARAMARK Corporation v. NLRB
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156 F.3d 1087, 1998 Colo. J. C.A.R. 5140, 159 L.R.R.M. (BNA) 2288, 1998 U.S. App. LEXIS 23323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aramark-corporation-v-national-labor-relations-board-ca10-1998.