Associated Builders & Contractors, Inc. v. Herman

166 F.3d 1248, 334 U.S. App. D.C. 285, 1999 WL 79366
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 16, 1999
Docket97-5300, 97-5327 and 97-5362
StatusPublished
Cited by25 cases

This text of 166 F.3d 1248 (Associated Builders & Contractors, Inc. v. Herman) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated Builders & Contractors, Inc. v. Herman, 166 F.3d 1248, 334 U.S. App. D.C. 285, 1999 WL 79366 (D.C. Cir. 1999).

Opinion

Opinion for the Court filed by Chief Judge HARRY T. EDWARDS.

HARRY T. EDWARDS, Chief Judge:

Grinnell Fire Protection Systems Co. (“Grinnell”) has for some time now been engaged in a labor dispute with employees represented by the Road Sprinkler Fitters Local Union No. 699 (“Union”). The Union has filed unfair labor practice charges with the National Labor Relations Board (“NLRB”) claiming that Grinnell unlawfully instituted changes in the terms and conditions of employment (including modifying a joint apprenticeship training program) without first bargaining in good faith to impasse. Because its unionized employees are currently on strike, Grinnell sought permission from the Department of Labor’s (“DOL”) Bureau of Apprenticeship and Training (“BAT”) to train striker replacements under some form of BAT-approved apprenticeship program' — ■ either a new program to be administered by Grinnell, or an existing, lawfully registered program administered by another employer. In response to Grinnell’s request, BAT deferred judgment on whether to allow Grinnell to implement a new apprenticeship program and it refused to allow other employers to train Grinnell employees under their apprenticeship programs, pending a decision by the NLRB on the yet unresolved unfair labor practice charges. Grinnell sought relief in the District Court, alleging that BAT’s decisions were arbitrary, capricious, and contrary to law.

On cross-motions for summary judgment, the District Court held that it was reasonable for BAT to defer judgment on Grinnell’s proposal for a new program, but that it was arbitrary and capricious for BAT to preclude Grinnell employees from enrolling in already approved programs. Subsequently, the Union moved to intervene and this motion was denied by the District Court. Both Grinnell and DOL have appealed the District Court’s judgment to this court. In a consolidated case, the Union appeals the District Court’s denial of its motion to intervene.

We affirm the judgment of the District Court only insofar as it ordered BAT to permit Grinnell employees to enroll in ongoing and lawfully registered apprenticeship programs of other employers. BAT acted without any statutory or regulatory authority in blocking the enrollment of Grinnell employees in these programs. We reverse the District Court, however, insofar as it endorsed BAT’s decision to defer consideration of Grinnell’s request to register a new apprenticeship program for striker replacements. BAT’s decision inexplicably ignored the plain language in the governing regulations that dispenses with any need to defer to the NLRB. Accordingly, we vacate that portion of BAT’s decision and remand to the District Court with instructions to remand the case to the agency for prompt disposition of Grinnell’s request for registration of a new apprenticeship program. Finally, because the Union has offered no justification for its failure to intervene prior to judgment in the *1251 District Court, we affirm the District Court’s denial of its motion to intervene.

I. Background

A. Regulatory Background

In accordance with the National Apprenticeship Act (“NAA”), 29 U.S.C. §§ 50-50b, DOL has promulgated and implemented regulations related to the administration of the nation’s apprenticeship programs, which offer training to apprentices in certain skilled trades. See 29 C.F.R. pt. 29 (1998). These programs are registered and monitored either through BAT or through a BAT-approved State Apprenticeship Agency or Council (“SAC”). See id. §§ 29.2(o), 29.12. Under DOL regulations implemented pursuant to the Davis-Bacon Act, 40 U.S.C. §§ 276a-276a-5, an employer may pay apprentices wages below the prevailing wage rate “when [the apprentices] are employed pursuant to and individually registered in a bona fide apprenticeship program registered with [BAT], or with a [SAC] recognized by [BAT].” 29 C.F.R. § 5.5(a)(4) (1998).

In order to register an apprenticeship program with BAT or a SAC, a “sponsor,” ie., a person or entity operating an apprenticeship training program, see id. § 29.2(g), must designate an “apprenticeship committee” to administer the program. See id. § 29.2(i). The committee may be “joint” — in which case it is comprised of an equal number of company and employee representatives — or it may be “unilateral” — in which case employee representatives do not participate in its operation. See id. When a sponsor seeks to register an apprenticeship program, it must meet certain eligibility requirements. See id. § 29.3. Once approved, the program must conform to certain regulatory standards. See id. § 29.5.

B. Factual Background

Prior to April 1994, Grinnell and the Union had agreed to, and participated in, a collectively bargained joint apprenticeship program. See Agreement Between National Fire Sprinkler Ass’n, Inc. and Road Sprinkler Fitters Local Union No. 699 (“agreement”) at 33, reprinted in Appendix to Brief of Local 699 (“Union App.”) 85. The program was administered by a Joint Apprenticeship and Training Committee (“JATC”), which was comprised of an equal number of Grinnell officials and Union agents. See id. at 34, reprinted in Union App. 86.

In April 1994, the Union organized a strike against Grinnell. Grinnell subsequently hired replacement workers. Following contract negotiations, the Union rejected Grin-nell’s purported “final” contract offer. Grin-nell then informed the Union that the terms of its final offer would be implemented on April 14, 1994. The Union responded by filing unfair labor practice charges against Grinnell, alleging that, in violation of the National Labor Relations Act (“NLRA”), the company had unilaterally instituted changes in the terms and conditions of employment without first bargaining in good faith to impasse. See 29 U.S.C. § 158(a)(5) (1994); NLRB v. Katz, 369 U.S. 736, 743, 82 S.Ct. 1107, 8 L.Ed.2d 230 (1962). After a hearing, an Administrative Law Judge (“ALJ”) agreed with the Union that Grinnell had violated the NLRA by “implementing the terms of its last contract offer in the absence of a lawful impasse.” Grinnell Fire Protection Sys. Co., 5-CA-24521, 5-CA-25227,5-CA-25406, at 32 (Jan. 16, 1997), reprinted in Appendix (“Grinnell App.”) 159. The ALJ proposed that Grinnell be “ordered to restore the terms and conditions of employment of unit employees as they existed prior to April 14, 1994, [and to] continue them in effect until the parties reach an agreement or a good-faith impasse.” Id. Grinnell appealed the ALJ’s ruling to the full NLRB. The NLRB has yet to render a judgment in the case.

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Cite This Page — Counsel Stack

Bluebook (online)
166 F.3d 1248, 334 U.S. App. D.C. 285, 1999 WL 79366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-builders-contractors-inc-v-herman-cadc-1999.