Hadsall, Jennifer v. ADT, LLC

CourtDistrict Court, W.D. Wisconsin
DecidedJune 4, 2021
Docket3:21-cv-00009
StatusUnknown

This text of Hadsall, Jennifer v. ADT, LLC (Hadsall, Jennifer v. ADT, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hadsall, Jennifer v. ADT, LLC, (W.D. Wis. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WISCONSIN

JENNIFER A. HADSALL, for and on behalf of the NATIONAL LABOR RELATIONS BOARD,

OPINION and ORDER Petitioner,

v. 21-cv-9-jdp

ADT, LLC,

Respondent.

Petitioner Jennifer Hadsall, a regional director of the National Labor Relations Board (the board), seeks a temporary injunction against respondent ADT, LLC. The director contends that ADT is violating the National Labor Relations Act (NLRA) by withdrawing recognition of a union and making changes to the terms and conditions of its workers’ employment without engaging in collective bargaining. The case is already proceeding before the board, but the NLRA gives the director the right to seek interim relief from a district court while waiting for a final decision from the board. See 29 U.S.C. § 160(j). The dispute arose in 2019, after ADT decided to close its Rockford, Illinois and Madison, Wisconsin facilities and consolidate them into a new facility in Janesville, Wisconsin. The International Brotherhood of Electrical Workers Local Union 364 (the union) represented some of the Rockford employees, but the Madison employees weren’t unionized. A year later, ADT withdrew recognition of the union representing the former Rockford employees. The director contends that ADT was required to continue collectively bargaining with the former Rockford employees, which had been represented by the union since 1994. The key dispute is whether the former Rockford employees remained an “appropriate” collective bargaining unit after the consolidation of the two facilities. The director says that the former Rockford employees remain an appropriate bargaining unit; ADT says that the consolidation of the two facilities makes it inappropriate to separate the two sets of employees for collective bargaining purposes. If the Rockford employees are an appropriate unit, the parties agree that

ADT was not entitled to withdraw recognition of the union. The court concludes that the director is entitled to temporary relief under § 160(j). Board precedent creates a presumption that a group of employees with a lengthy bargaining history remains an appropriate bargaining unit despite a change in circumstances. That presumption can be overcome, but the undisputed evidence shows that very little changed for the former Rockford and Madison employees after the transfer. Although both sets of employees now report to the same facility, they spend little time at that facility, they have little interaction with each other even after the transfer, and they continue servicing mostly separate

geographic areas. Under these circumstances, the director is reasonably likely to succeed on her contention that the former Rockford employees remain an appropriate bargaining unit. The director also moves to expedite the decision. Dkt. 20. This order moots that request.

BACKGROUND The following undisputed facts are taken from the administrative record. ADT installs and services residential and commercial security systems. From 1994 until 2020, ADT had a collective bargaining agreement with the union, which represented the

following employees: All full-time and regular part-time installers, technicians and service personnel employed by the Employer at its 510 LaFayette Avenue, Rockford, Illinois facility; but excluding all office clerical employees, professional employees, guards, and supervisors as defined in the Act, and all other employees. In September 2019, ADT closed its Rockford facility, and the Rockford employees were relocated to a temporary facility in Janesville, Wisconsin. In early 2020, the Rockford employees moved to a permanent facility in Janesville, along with employees from ADT’s Madison, Wisconsin facility, who did not belong to a union as the Rockford employees did. In May 2020, the union filed a petition to create a new bargaining unit that represented employees from both the Madison and Rockford facilities that were transferred to Janesville. Shortly thereafter, the union withdrew the petition. In June 2020, the employees from the former Madison facility and one new employee signed a petition to decertify the union; no employees from the Rockford facility signed the petition. In response to the employees’ petition, ADT determined that a majority of Janesville employees did not want to be

represented by the union, so ADT would withdraw recognition of the union when the collective bargaining agreement expired on August 31, 2020. In September 2020, ADT withdrew recognition of the union and then made several changes to the employees’ terms and conditions of employment without engaging in collective bargaining. Specifically, ADT made changes to wages, bonuses, overtime eligibility, vacation, sick leave, and the performance review system of the former Rockford employees. The union filed a complaint with the board, contending that ADT’s conduct violated the NLRA. On March 29, 2021, an administrative law judge (ALJ) issued a “Decision and

Recommended Order,” concluding that ADT’s refusal to recognize the union violated the NLRA in two primary ways.1 First, the ALJ concluded that the petition to decertify the union

1 The ALJ also addressed allegations that ADT threatened its employees in violation of the was invalid because none of the petition’s signatories were represented by the union, citing Johnson Controls, Inc., 386 NLRB 20 (2019). Second, the ALJ relied on ADT Security Services, Inc., 355 NLRB 1388 (2010), enfd. NLRB. v. ADT Sec. Servs., Inc., 689 F.3d 628, 632 (6th Cir. 2012), for the proposition that an employer must show “compelling circumstances” to

withdraw recognition of a union that has a long bargaining history. The ALJ concluded that ADT failed to meet its burden because the former Madison and Rockford employees remained distinct even after the transfer, continuing to service the same, mostly separate, geographic areas they had serviced before the transfer. As a result, the ALJ concluded that ADT had an obligation to bargain with the following unit of employees: All full-time and regular part-time installers, technicians and service personnel employed by the Employer at its Janesville, Wisconsin facility, who are regularly assigned to work in the service territory of the Employer’s former Rockford, Illinois facility; but excluding all office clerical employees, professional employees, guards, and supervisors as defined in the Act, and all other employees. As a remedy, the ALJ recommended that ADT be ordered to: (1) recognize the union as the exclusive representative of employees in the bargaining unit; (2) rescind any unilateral changes to the terms and conditions of the unit’s employment since August 31, 2020; and (3) make employees whole for any losses incurred by the unilateral changes. The court will discuss additional facts as they become relevant to the analysis.

NLRA. See Dkt. 19, at 18–19. Neither side asks the court to address any alleged threats, so the court will not do so. ANALYSIS A. Legal standard The board will make the final decision in this case, subject to review by the Court of Appeals for the Seventh Circuit. But this court may award interim relief under 29 U.S.C.

§ 160(j) when doing so is “just and proper.” In practice, the standard for obtaining interim relief under § 160(j) is similar to the standard that applies for obtaining a preliminary injunction under Federal Rule of Civil Procedure 65.

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