International Association of Bridge, Structural, and Ornamental Ironworkers, Afl-Cio, Local No. 111 v. National Labor Relations Board

946 F.2d 1264, 138 L.R.R.M. (BNA) 2703, 1991 U.S. App. LEXIS 25412, 1991 WL 216300
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 28, 1991
Docket90-2684, 90-2981
StatusPublished
Cited by14 cases

This text of 946 F.2d 1264 (International Association of Bridge, Structural, and Ornamental Ironworkers, Afl-Cio, Local No. 111 v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Association of Bridge, Structural, and Ornamental Ironworkers, Afl-Cio, Local No. 111 v. National Labor Relations Board, 946 F.2d 1264, 138 L.R.R.M. (BNA) 2703, 1991 U.S. App. LEXIS 25412, 1991 WL 216300 (7th Cir. 1991).

Opinion

CUDAHY, Circuit Judge.

This case involves an important question of labor law and policy. Section 10(c) of the National Labor Relations Act (NLRA) provides the National Labor Relations Board (Board) with remedial authority to correct union or employer unfair labor practices. A proviso in section 10(c) states that the Board may require back pay of a union or an employer, when “responsible for the discrimination suffered by [the employee].” In 1949 the Board established a policy of not awarding a back pay remedy under section 10(c) against a union unless the union is responsible for employer action causing the employee to miss work or otherwise lose wages. This condition on union back pay remedies has not since been overruled, although the Board has awarded back pay against unions in a few situations without employer discrimination. The Board now wants to abandon the policy altogether, which it contends is not compelled by statute and is a matter within its discretion.

I.

A. Background

Because the Board’s finding that Local 111 committed unfair labor practices has been reviewed, enforced and reported elsewhere, International Ass’n of Bridge, Structural and Ornamental Ironworkers, AFL-CIO, Local No. 111 (Northern States Steel Builders, Inc.), 274 NLRB 742 (1985), aff'd in part, remanded in part, 792 F.2d 241 (D.C.Cir.1986), we review the facts only briefly. Northern States Steel Builders, Inc. (Northern States), a construction company, employed iron workers for a power plant construction project. Local 111, bargaining representative for Northern State’s iron workers, referred workers for the job. Northern States hired twenty or so workers, many of whom were “travelers”— members of other locals affiliated with Local 111 through the international union. The constitution of the Iron Workers’ International Union requires that travelers pay “travel service dues” of $2.50 per week and prove payment to the local where they work.

In early 1982, Local 111 attempted to improve its unemployed members’ prospects by refusing to accept certain travelers’ proof of dues payment, encouraging some travelers to resign to make room for unemployed Local 111 members and threatening internal union charges against travelers working without travel service dues receipts. The Board’s first order found in these practices three section (b)(1)(A) unfair labor practices, 29 U.S.C. § 158(b)(1)(A) (1988), for (i) the union’s refusal to accept properly tendered travel service dues from travelers, (ii) threats of intra-union charges and attempts to have Northern States discriminate against travelers, and (iii) encouragement of certain travelers to quit their jobs. 274 NLRB at 747. The Board also found two (b)(2) violations, 29 U.S.C. § 158(b)(2) (1988), for (i) threats of intra-union charges against travelers and attempts to pressure Northern States to lay off the travelers, and (ii) attempts to coerce travelers not to work, thereby indirectly pressuring the company to hire Local 111 workers. Id. (This “indirect pressure” *1266 (b)(2) violation was reversed on review.) The Board concluded that some travelers missed days of work because of the union’s actions and found no discrimination by Northern States. None of this is in dispute.

What is in dispute is the Board’s remedy requiring Local 111 to pay back wages to the travelers who missed work because of the local’s refusal to accept proof of properly paid dues. The back pay remedy against the union departed from the Board’s general rule, first announced in United Furniture Workers of Am., Local 472 (Colonial Hardwood Flooring, Inc.), 84 NLRB 563 (1949), against awarding back pay for union unfair labor practices unless the employee thereby suffers discrimination by the employer. The Board has followed the rule in numerous cases since then. E.g., Local 983, United Bhd. of Carpenters and Joiners of Am., AFL-CIO (O.W. Burke Co.), 115 NLRB 1123, 1123 & n. 1, 1131 (1956); United Mine Workers of Am. (Blue Diamond Coal Co.), 143 NLRB 795, 807 & n. 25 (1963); Local 235 Lithographer and Photoengravers Int’l Union (Henry Wurst, Inc.), 187 NLRB 490, 491 & n. 5 (1970). On Local Ill’s petition for review, the United States Court of Appeals for the D.C. Circuit found that the Board had not explained the basis for its change and thereby violated the Administrative Procedure Act’s requirement, under 5 U.S.C. § 557(c)(3)(A) (1982), that agencies provide a statement of “findings and conclusions, and the reasons or basis therefor, on all the material issues of fact, law, or discretion presented on the record.” 792 F.2d at 247-48. Remanding, the court noted inconsistency in the Board’s application of the rule since 1949, as in cases where the Board has ordered unions to pay lost wages without employer discrimination and without an explanation of Colonial Hardwood. E.g., Sachs Elec. Co., 248 NLRB 669 (1980), enf'd in relevant part sub nom. NLRB v. IBEW, Local 453, 668 F.2d 991, 995 (8th Cir.1982). The court found it difficult to find a rule reconciling Board holdings in this area and held it “unquestionably incumbent upon the Board to explain why it did not consider its decision a departure from the principles established in its prior cases, or why it considered a departure appropriate.” 792 F.2d at 248. 1

B. The Board’s Response

The Board’s subsequent order clearly abandoned the Colonial Hardwood rule:

[W]e state our disagreement with the Colonial Hardwood Board’s holding that the denial of backpay ... is statutorily required. In our view, Colonial Hardwood has, sub silentio, been overruled by subsequent decisions of the Board to the extent it holds that we lack the statutory authority to award backpay in any cases in which the union’s discrimination against members or employees results in a loss of pay but there has been no union-procured discrimination by the employers. To avoid any confusion, however, we hereby overrule Colonial Hardwood and its progeny insofar as they rest on the proposition that the Board lacks the power under the Act to provide backpay to employees victimized solely by union misconduct. We do not, however, disturb the Board’s doctrine ... of declining to grant backpay awards for losses attributable to strike or picket line union misconduct directed against employees where there has been no employer culpability.

International Ass’n of Bridge, Structural, and Ornamental Ironworkers, AFL-CIO, Local No. 111 (Northern States Steel Builders, Inc.), 298 NLRB No. 129 (1990) (slip order at 4-5). The order first charts an evolution from Colonial Hardwood’s, view that back pay awards are not authorized by the NLRA to subsequent cases’ view that,

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946 F.2d 1264, 138 L.R.R.M. (BNA) 2703, 1991 U.S. App. LEXIS 25412, 1991 WL 216300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-association-of-bridge-structural-and-ornamental-ca7-1991.