Fedex Freight, Inc. v. National Labor Relations Board

816 F.3d 515
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 7, 2016
Docket15-1848, 15-1999, 15-2494, 15-2732
StatusPublished
Cited by15 cases

This text of 816 F.3d 515 (Fedex Freight, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fedex Freight, Inc. v. National Labor Relations Board, 816 F.3d 515 (8th Cir. 2016).

Opinion

MURPHY, Circuit Judge.

The International Brotherhood of Teamsters locals in Charlotte, North Carolina and Croydon, Pennsylvania petitioned the National Labor Relations Board (NLRB) seeking to represent collective bargaining units including both city and road drivers who work at terminals operated by FedEx Freight, Inc. FedEx proposed that the units should also include the dockworkers at the terminals. In considering the proposal the NLRB regional director applied a two step analysis from Specialty Healthcare and Rehabilitation Center of Mobile, 357 NLRB No. 83 (2011). In each case the director found that (1) the union’s proposed bargaining unit was composed of a readily identifiable group of employees sharing a community of interest, and (2) FedEx did not meet its burden to show that the dockworkers shared an “overwhelming community of interest” with the drivers which required their inclusion.in the same unit. The Board denied review, and the Teamsters won the elections in both cities.

FedEx now petitions for review of thé Board’s orders forcing it to bargain with the unions, arguing that the Specialty Healthcare standard violates the National Labor Relations Act, our own circuit law, and the Administrative Procedure Act. The Board petitions for enforcement of its orders. After full consideration, we deny, the FedEx petitions and grant the Board’s petitions for enforcement.

I.

FedEx operates freight terminals across the country. The terminal in Charlotte, North Carolina includes, a main building containing a dock with 224 operational doors surrounded by a yard. FedEx employs approximately 115 city drivers, 106 road drivers, and 186 dockworkers at this terminal. The- city drivers pick up and *520 deliver freight to and- from customers in the area while the road drivers transport freight between the terminal and other FedEx facilities. All these drivers are employed full time and must possess a commercial driver license and wear a uniform while driving. FedEx maintains separate seniority lists for each class of.driver. While city drivers occasionally do road driving, road drivers rarely do city driving.

The dockworkers load, and unload freight from the trailers and move freight around the dock using forklifts. This work takes place exclusively at the terminal. One hundred and fourteen of the 186 dockworkers are “supplemental” part time employees and are not on a seniority list. The other 72 dockworkers work full time. These individuals are part of a one year “dock to driver” program in which they work full time on the dpck while taking a course to obtain their commercial driver license. Eighteen of the 221 drivers are graduates of this program. The full time dockworkers have a seniority list. The only requirement for employment. as a dockworker is being at least 18 years of age; they are not required to wear uniforms.

Around one quarter of the drivers performed some dock work during the six month period surveyed in the stipulated record. City drivers also occasionally perform “hostling” work, which involves moving trailers and other equipment around the yard. Road drivers rarely do hostling work. Dock and hostling work take up a total of around 5% of the city drivers’ time and less than 1% of the road drivers’ time. Although dockworkers do not do any driving work, they use specialized trucks that do not require a commercial driver license to perform hostling work.

The terminal in Croydon, Pennsylvania (referred to as the East Philadelphia terminal) is smaller than the one in Charlotte, having only 51 operational doors. FedEx employs about 29 city drivers, 14 road drivers, and 19 part time supplemental dockworkers in East Philadelphia. Seven of these drivers are graduates of the dock to driver program. In comparison to the Charlotte terminal, more of the East Philadelphia dock work is done by drivers. Approximately 34% of the dock and hostling hours there are worked by drivers. Forty one of the 43 drivers performed dock or hostling work, and 13 of the drivers performed over 100 hours of dock work in six months.

The Teamsters locals in both cities petitioned the Board to represent bargaining units for both the city drivers and the road drivers. FedEx contended that such units were inappropriate because they did not include the dockworkers. After hearings, the NLRB regional director employed the Specialty Healthcare two step analysis and found that the proposed units were appropriate but that FedEx had not met its burden to show the dockworkers must be included in these units. FedEx filed requests for review of the regional director’s decisions which the Board summarily denied. After the drivers in both cities voted to unionize, FedEx contested the certification of the bargaining units by refusing to bargain. See NLRB v. St. Clair Die Casting, LLC, 423 F.3d 843, 848 (8th Cir.2005). The Board’s general counsel filed refusal to bargain complaints against FedEx, and the Board granted the general counsel’s motions for summary judgment and ordered FedEx to bargain with the unions. Now before us are petitions for review by FedEx and for enforcement by the Board, We have jurisdiction over the matter under 29 U.S.C. § 160(e), (f) because FedEx transacts business in this circuit. 1

*521 II.

The first question raised is whether FedEx preserved its challenges to the Specialty Healthcare framework. The Board argues that in the proceedings below FedEx failed to raise and preserve an argument against Specialty Healthcare. An objection to a Board decision cannot be heard unless it has been “urged before the Board, its member, agent, or agency” such that the Board has “received adequate notice of the basis for the objection.” Nathan Katz Realty, LLC v. NLRB, 251 F.3d 981, 985 (D.C.Cir.2001); 29 U.S.C. § 160(e).

FedEx stated in a footnote in each of its requests for review of the determinations by the regional director that “Specialty Healthcare was decided erroneously” for the reasons stated in Board member Hayes’ dissent. See 357 NLRB No. 83 at *15 (Hayes, dissenting). FedEx indicated that it would focus its briefing assuming that the Board would not revisit its decision. FedEx later incorporated its arguments in its responses to the Board’s show cause orders in the refusal to bargain cases. The Board was aware of the FedEx challenge to Specialty Healthcare, as shown by member Johnson’s concurring statements attached to the two summary affirmance orders by the Board. By adopting member Hayes’ dissent, FedEx signaled that it might bring a challenge to the Specialty Healthcare framework if the Board were to apply it. This gave the Board adequate notice that' FedEx was objecting to the regional director’s use of the Specialty Healthcare framework. We therefore have jurisdiction to review the FedEx claims. See Nathan Katz Realty, 251 F.3d at 985.

III.

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816 F.3d 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fedex-freight-inc-v-national-labor-relations-board-ca8-2016.