Chevron Mining, Inc. v. National Labor Relations Board

684 F.3d 1318, 401 U.S. App. D.C. 393, 2012 WL 2548821, 193 L.R.R.M. (BNA) 2801, 2012 U.S. App. LEXIS 13523
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 3, 2012
Docket10-1382, 11-1006
StatusPublished
Cited by22 cases

This text of 684 F.3d 1318 (Chevron Mining, Inc. v. National Labor Relations Board) 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
Chevron Mining, Inc. v. National Labor Relations Board, 684 F.3d 1318, 401 U.S. App. D.C. 393, 2012 WL 2548821, 193 L.R.R.M. (BNA) 2801, 2012 U.S. App. LEXIS 13523 (D.C. Cir. 2012).

Opinions

Opinion for the Court filed by Circuit Judge GRIFFITH.

Dissenting opinion filed by Senior Circuit Judge WILLIAMS.

GRIFFITH, Circuit Judge:

In 2005, Chevron Mining, Inc. amended its employee bonus plan in response to the decision of the United Mine Workers of America to call “memorial period” work stoppages. The National Labor Relations Board concluded that the amendment was an unfair labor practice, and we agree.

I

Before the Board, the parties agreed on a set of facts, exhibits, and issues presented. We rely on those stipulations.

The United Mine Workers of America (the Union) and Chevron Mining, Inc. (CMI) are parties to separate collective bargaining agreements (CBAs) at four mines, including the North River Mine in Alabama where this dispute arose. Since 1978, the CBAs have included a clause that gives the Union the ability to call “memorial periods.”1 A memorial period, which may last one or more days at one or more mines, is an unpaid work stoppage.

In 1995, the Union and CMI executed a Letter of Agreement allowing Union-represented employees to participate in CMI’s employee bonus plan. The plan provides bonus payouts based on financial and safety achievements at an employee’s mine. The Agreement gives CMI the authority to change the bonus plan unilaterally and provides that disputes over such changes are not arbitrable.' If the Union objects, its sole recourse is to quit the Agreement.

In February and July of 2004, the Union, after providing proper notice, called six memorial days at the North River Mine to place economic pressure on CMI over ongoing grievances that were being arbitrated. Stipulation of Facts ¶ 31 [hereinafter “Stip.”J. (The record does not reveal the nature of those grievances.) The work stoppages cost CMI $1.5 to $2.5 million in pre-tax profit, but CMI took no immediate action in response.

On February 3, 2005, CMI amended the bonus plan to provide that no financial achievement bonus would be paid to Union-represented employees at any mine where the Union calls a memorial day that doesn’t cover all mines in the same district,2 “regardless of whether that mine [1322]*1322has met all of its financial targets under the Plan in that year.” Id. ¶ 33. At the same time, citing its parent company’s “best year ever in 2004,” CMI offered a one-time 6% bonus that paid $700,000 to Union-represented employees at the North River Mine. Id. ¶ 30. Since then, the Union has called only district-wide memorial days, so no bonuses have gone unpaid because of the amendment.

In April 2005, the Union filed charges with the NLRB alleging that CMI’s amendment to the bonus plan was retaliation for the Union’s exercise of its contractual right to call memorial day work stoppages at the North River Mine. The General Counsel issued a complaint in October 2005, and the parties stipulated to the following issue presented:

Whether, under Wright Line, [251 N.L.R.B. 1083 (1980),] the Employer violated Sections 8(a)(3) and (1) of the Act by amending its collectively-bargained bonus plan, which generally permits unilateral Employer amendment or modification of the plan, to deny a mine’s Union-represented employees financial bonuses under the plan if the Union called a Memorial Day at that mine, pursuant to the “Memorial Periods” provision of the parties’ underlying collective bargaining agreement, on a nonUMWA District wide basis.

Parties’ Stmt, of Issues Presented.

In a decision issued in September 2010, the Board concluded that the amendment to the bonus plan was an unfair labor practice. The Board determined that the Union’s use of memorial periods to place economic pressure on CMI in support of pending grievances was protected activity. The Board then found a violation under Wright Line and rejected CMI’s defenses as either unconvincing or barred by the stipulation. CMI filed a petition for review in this Court, and the Board filed a cross-application for enforcement. We take jurisdiction over the application and petition under 29 U.S.C. § 160(e) and (f), respectively.

II

We must first determine whether the employees’ participation in the 2004 memorial days was protected under the National Labor Relations Act, 29 U.S.C. §§ 151-169. It is well-established that the exercise of a right grounded in a CBA is protected by the Act. See NLRB v. City Disposal Sys., Inc., 465 U.S. 822, 829, 104 S.Ct. 1505, 79 L.Ed.2d 839 (1984) (reaching this conclusion based on section 7 of the Act’s protection of “the right to ... bargain collectively”). Action taken to discourage the exercise of such a right violates section 8(a)(3), 29 U.S.C. § 158(a)(3), which makes it an unfair labor practice for an employer “to discourage” participation in protected union activities by “discriminat[ing] in regard to hire or tenure of employment or any term or condition of employment,” see Radio Officers’ Union v. NLRB, 347 U.S. 17, 39-40, 74 S.Ct. 323, 98 L.Ed. 455 (1954), and also violates section 8(a)(1), 29 U.S.C. § 158(a)(1), which makes it unlawful for an employer “to interfere with, restrain, or coerce employees in the exercise of’ protected rights, see Metro. Edison Co. v. NLRB, 460 U.S. 693, 698 n. 4, 103 S.Ct. 1467, 75 L.Ed.2d 387 (1983). The question before us is whether the CBA permits these memorial period work stoppages, which were called to pressure CMI about arbitrable Union grievances.

[1323]*1323It is also well-established that an agreement to arbitrate labor disputes “gives rise to an implied obligation not to strike over such disputes.” Gateway Coal Co. v. United Mine Workers of Am., 414 U.S. 368, 381, 94 S.Ct. 629, 38 L.Ed.2d 583 (1974); see also Boys Markets, Inc. v. Retail Clerks Union, 398 U.S. 235, 248, 90 S.Ct. 1583, 26 L.Ed.2d 199 (1970) (“[A] no-strike obligation, express or implied, is the quid pro quo for an undertaking by the employer to submit grievance disputes to the process of arbitration.”). This rule reflects the policy favoring “the arbitral process as a substitute for economic warfare.” Teamsters Local v. Lucas Flour Co., 369 U.S. 95, 105, 82 S.Ct. 571, 7 L.Ed.2d 593 (1962). The parties remain free, of course, to “expressly negate any implied no-strike obligation” through an “explicit expression” of their intent to do so. Gateway Coal, 414 U.S. at 382, 94 S.Ct. 629.

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684 F.3d 1318, 401 U.S. App. D.C. 393, 2012 WL 2548821, 193 L.R.R.M. (BNA) 2801, 2012 U.S. App. LEXIS 13523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chevron-mining-inc-v-national-labor-relations-board-cadc-2012.