Eric Taylor v. ADT, LLC

Court of Appeals for the Sixth Circuit·Decided October 10, 2023·No. 22-6116·Unpublished

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 23a0430n.06

No. 22-6116

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

) FILED ERIC TAYLOR, Regional Director of the Ninth Oct 10, 2023 )

Region of the National Labor Relations Board, for DEBORAH S. HUNT, Clerk )

and on behalf of the NATIONAL LABOR )

RELATIONS BOARD, ) ON APPEAL FROM THE Petitioner-Appellant, ) UNITED STATES DISTRICT ) COURT FOR THE WESTERN v. ) DISTRICT OF KENTUCKY )

ADT, LLC, ) OPINION Respondent-Appellee. )

)

)

Before: BATCHELDER, GRIFFIN, and LARSEN, Circuit Judges.

LARSEN, Circuit Judge. This case arises from efforts between ADT, LLC, a seller and servicer of residential and commercial electronic security systems, and Local No. 369 of the International Brotherhood of Electrical Workers, AFL-CIO (the Union), to negotiate a new collective bargaining agreement. Based upon ADT’s actions during negotiations and its ultimate withdrawal of recognition of the Union, the Union charged ADT with unfair labor practices in violation of the National Labor Relations Act (NLRA). After investigating, the Regional Director for Region 9 of the National Labor Relations Board filed a complaint before an administrative law judge (ALJ). While administrative proceedings were pending, the Regional Director petitioned in federal district court for a temporary injunction pursuant to § 10(j) of the NLRA, 29 U.S.C. § 160(j), to preserve the status quo during the pendency of the Board proceedings. The district

court granted in part and denied in part the Regional Director’s petition. The Regional Director now appeals. For the following reasons, we AFFIRM in part and VACATE in part.

I.

A.

ADT, LLC sells and services residential and commercial electronic security systems throughout the United States.1 Since 1971, Local No. 369 of the International Brotherhood of Electrical Workers, AFL-CIO has represented a bargaining unit comprising certain employees at two ADT facilities in Louisville and Lexington, Kentucky. The most recent collective bargaining agreement (CBA) between ADT and the Union was in effect from October 15, 2018, to October 14, 2021.

On August 25, 2021, in anticipation of negotiations for a successor CBA, Union representative Edward Devine contacted ADT to request information relevant to the negotiations. On August 31, ADT’s Director of Labor Relations, James Nixdorf, told Devine that he was working on a response to the information request. Devine followed up twice—in late September and early October—because he had not received any of the information he considered “necessary for negotiations,” which had begun on September 29. On October 8, Nixdorf provided Devine with information partially responsive to his request. Devine did not follow up again on the outstanding requests, and ADT never provided the missing information.

During the bargaining sessions on September 29 and 30, Nixdorf proposed that ADT and the Union replace the established wage rate, known as Schedule A, with a new, performance-based

1 We present the facts in the light most favorable to the Regional Director. See Glasser v. ADT Sec. Servs., Inc., 379 F. App’x 483, 486 (6th Cir. 2010); Fleischut v. Nixon Detroit Deisel, Inc., 859 F.2d 26, 29 (6th Cir. 1988) (“[T]he district court need not concern itself with resolving conflicting evidence if facts exist which could support the Board’s theory of liability.”).

pay plan. Although the performance-based plan promised higher wages, the Union opposed it because it introduced at-will employment, gave ADT more control over the rate of pay, and limited employee-grievance protections. ADT and the Union met again on October 12 to continue bargaining. At that time, Devine offered a proposal that continued Schedule A with wage increases of $3 per hour but also permitted the introduction of performance-based programs “in addition to the wages in . . . Schedule A.” Nixdorf countered with a performance-based pay plan similar to his initial suggestion. Devine responded with a proposal similar to the one he had made earlier in the day, but with more modest wage increases and with a clarification that any performance-based program beyond what was required by Schedule A was not “subject to the grievance and arbitration provisions” of the CBA. Nixdorf then emailed Devine: “Based upon your last submission, I see know [sic] reason to adjust my last offer. In fact, it confirms everything I already believed. Please consider this a resubmission of our last offer.” Half an hour later, Devine wrote to Nixdorf: “[W]e are still available to negotiate if you and your team are finished for the night we are available the rest of the week otherwise please sign and date the extension and provide a list of dates to finish negotiating.” Devine attached a proposed agreement that would extend the existing CBA through November 30. ADT did not agree to the proposed extension, so the CBA expired as scheduled on October 14.

In mid-October, a disaffection petition began circulating among bargaining-unit employees. Through conversations with ADT managers, some employees learned about ADT’s proposed performance-based pay plan, which they understood to include improved pay, bonuses, and more vacation time. The managers provided these employees with pamphlets detailing the performance‑based pay plan and informed them that, for the plan to be adopted, they would have to circulate some paperwork—a disaffection petition—among their coworkers. One manager, Eric

Sanders, was particularly proactive in this respect. He informed an employee, Michael Covert, that there was an opportunity to “get a lot more benefits” if the employees ousted the Union. Sanders “persistent[ly]” told Covert that the new plan was “super beneficial,” encouraged him “to advertise it” to coworkers, and provided him with a disaffection petition and instructions on how to “vote out the Union.” Sanders continued to discuss the matter with Covert almost every other day, even after Covert told him he did not want to talk about it anymore.

ADT and the Union held what would prove to be their final bargaining session on October 26. Devine made a new wage proposal, which again maintained the Schedule A structure. Nixdorf countered with a modified performance-based pay plan. Devine countered again, remaining firm on the Schedule A structure. Devine also offered to limit a new agreement to just one year, instead of the usual three, but ADT was not open to a one‑year deal. At that point, Marcus Rodriguez, an employee participating in the negotiations in his role as a Union steward, received a barrage of text messages from other employees stating that ADT had distributed the Union’s recent wage proposal to them and expressing their frustration with what they considered to be weak demands by the Union. ADT did not counter, and negotiations concluded for the day without an agreement.

In early November, ADT received a disaffection petition with nineteen signatures, reflecting a majority of the thirty-four-member bargaining unit.2 On November 8, a day before negotiations were to continue, ADT informed the Union that it was in possession of “conclusive, objective evidence” that the Union no longer “enjoy[ed] majority support amongst the Louisville/Lexington bargaining unit” and that ADT was therefore “withdrawing union

2 Before the district court, the Regional Director contended that seven of these signatures were from non-bargaining-unit employees and that the petition therefore did not reflect a majority of the bargaining unit. However, the Regional Director does not press this issue on appeal, so we do not weigh in on it.

recognition at these locations effective immediately.” The next day, ADT notified the Louisville and Lexington employees that it had withdrawn recognition of the Union.

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