Dodge of Naperville, Inc. v. National Labor Relations Board

796 F.3d 31, 418 U.S. App. D.C. 31, 203 L.R.R.M. (BNA) 3627, 2015 U.S. App. LEXIS 13527
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 4, 2015
Docket12-1032, 12-1122
StatusPublished
Cited by13 cases

This text of 796 F.3d 31 (Dodge of Naperville, 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
Dodge of Naperville, Inc. v. National Labor Relations Board, 796 F.3d 31, 418 U.S. App. D.C. 31, 203 L.R.R.M. (BNA) 3627, 2015 U.S. App. LEXIS 13527 (D.C. Cir. 2015).

Opinion

Opinion for the Court filed by Circuit Judge WILKINS.

WILKINS, Circuit Judge:

The owner of a small car dealership closed the dealership down and informed the six mechanics there — all of whom were union members — that they were expected to continue working at the owner’s larger, non-unionized dealership for reduced wages and inferior benefits. After delivering this news, the owner refused to bargain with the mechanics’ union over the effects of the move or to otherwise recognize the union in any way. The union filed a charge with the National Labor Relations Board, which ultimately found that the company had committed various unfair labor practices during the relocation. Most critically here, the Board concluded that the company acted unlawfully when it withdrew recognition of the union.

On appeal, the company contends that it had no choice but to withdraw recognition of the union, on the ground that the relocated employees had been absorbed into a larger unit of non-union employees at the new dealership. The company also levies an attack on the Board’s composition at the time the decision was issued. Because we conclude that these challenges are mer-itless, we deny the petition for review and grant the Board’s cross-application for enforcement.

I.

A.

This labor dispute unfolded outside of Chicago at two car dealerships owned by Ed Burke: Burke Automotive Group, Inc., doing business as Naperville Jeep Dodge, in Lisle, Illinois; and its subsidiary, Dodge of Naperville, in nearby Naperville, Illinois. (We refer to these dealerships respectively as the Lisle dealership and the Naperville dealership, and collectively as Burke Automotive, or simply Burke.) In early June 2009, the Lisle dealership employed fourteen mechanics, none of whom were unionized, while the Naperville dealership employed six mechanics, all of whom belonged to Automobile Mechanics Local No. 701, International Association of Machinists and Aerospace Workers, AFL-CIO (“the Union”). See Dodge of Naperville, Inc., 357 N.L.R.B. No. 183, 2012 WL 30418, at *1 (Jan. 3, 2012). The Union had represented employees at the Naperville dealership for 20 years. Id. at *28.

The Chrysler bankruptcy of 2009 triggered a chain of events that forced Burke Automotive to close one of its dealerships. On June 19, after significant back-and-forth, Chrysler approved a proposal by Ed Burke to continue selling vehicles in Lisle *35 so long as he closed, at least temporarily, the Naperville facility. Id. at *13.

On June 20, Burke Automotive shut down the Naperville dealership and notified the six mechanics that they no longer had jobs there. Id. at *14, 17. It permitted the Naperville mechanics to work at the Lisle dealership immediately and told them that if they refused employment, they would be viewed as having quit and would be denied unemployment compensation. Id. at *1, 17-20. Burke also ceased to honor the collective bargaining agree-. ment (“CBA”) that it had entered into with the Union. Id. at *19. At the Lisle facility, the transferred employees worked alongside the other Lisle employees and under the same supervision. They also were compensated with wages and benefits at the standard Lisle rates, which were considerably less favorable than those set forth in the Naperville employees’ CBA. Id. at *2, *19-20. Two former Naperville employees resigned in light of the inferior terms and conditions imposed. Id. at *35-36. 1

The Union contacted Burke Automotive and requested the opportunity to bargain over the effects of the move. But Burke refused to recognize the Union, explaining that it no longer represented a majority of mechanics in the bargaining unit. Id. at *18-19.

B.

The Union filed charges with the National Labor Relations Board’s General Counsel, who subsequently issued a complaint against Burke Automotive. A hearing was held before an administrative law judge (“ALJ”) in Chicago on March 15 and March 16, 2010. The ALJ found that Burke Automotive had violated Sections 8(a)(5) and 8(a)(1) of the National Labor Relations Act (“NLRA”) by failing to bargain with the Union about the effects of the relocation on the Naperville mechanics, unreasonably delaying the provision of information to the Union, and unlawfully threatening the mechanics against unionizing. Dodge of Naperville, Inc., 13-CA-45399, 2010 WL 3285387 (N.L.R.B. Div. of Judges Aug. 2, 2010). He further found that Burke Automotive had unlawfully withdrawn recognition of the Union as the exclusive representative of the mechanics in the Naperville bargaining unit, unlawfully repudiated the collective bargaining agreement in effect at the time, unilaterally changed the terms and conditions of employment, and constructively discharged the two Naperville mechanics who resigned. Id.

The Board affirmed the ALJ’s decision, subject to some technical modifications and clarification of the underlying reasoning. The Board also affirmed the ALJ’s order directing Burke Automotive to take various affirmative steps, including bargaining with the Union. One of the panel’s members dissented with respect to the Board’s finding that Burke unlawfully withdrew recognition of the Union. 2 It is primarily *36 this question of withdrawal that Burke presses in its petition for review.

II.

Because the Board has “the primary responsibility of marking out the scope of the statutory language and of the statutory duty to bargain” under the NLRA, this Court “defers to the Board’s ‘reasonably defensible’ construction of that duty.” Cincinnati Newspaper Guild, Local 9 v. NLRB, 938 F.2d 284, 286 (D.C.Cir.1991) (quoting Ford Motor Co. v. NLRB, 441 U.S. 488, 496-97, 99 S.Ct. 1842, 60 L.Ed.2d 420 (1979)) (internal quotation marks omitted). Any findings of fact made by the Board are conclusive if supported by substantial evidence, “even if a reviewing court on de novo review would reach a different result.” Citizens Inv. Servs. Corp. v. NLRB, 430 F.3d 1195, 1198 (D.C.Cir.2005); see also Synergy Gas Corp. v. NLRB, 19 F.3d 649, 651 (D.C.Cir.1994) (the Court mil uphold an order of the Board unless “it appears that the Board’s factual findings are not supported by substantial evidence or that the Board acted arbitrarily or otherwise erred in applying established law to the facts at issue”).

1.

As noted, the Board concluded that Burke Automotive violated its duty to bargain with the Union over the effects of the relocation to Lisle.

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796 F.3d 31, 418 U.S. App. D.C. 31, 203 L.R.R.M. (BNA) 3627, 2015 U.S. App. LEXIS 13527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dodge-of-naperville-inc-v-national-labor-relations-board-cadc-2015.