Int'l Union 150 v. NLRB

CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 28, 2003
Docket02-1044
StatusPublished

This text of Int'l Union 150 v. NLRB (Int'l Union 150 v. NLRB) 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
Int'l Union 150 v. NLRB, (7th Cir. 2003).

Opinion

In the United States Court of Appeals For the Seventh Circuit ____________

No. 02-1044 INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 150, AFL-CIO, Petitioner, v.

NATIONAL LABOR RELATIONS BOARD, Respondent, and

BRANDT CONSTRUCTION COMPANY, Intervening Respondent. ____________ Petition for Review of an Order of the National Labor Relations Board Nos. 33-CA-12420, 33-CA-12686 & 33-CA-12942 ____________ ARGUED SEPTEMBER 27, 2002—DECIDED MARCH 28, 2003 ____________

Before POSNER, RIPPLE, and MANION, Circuit Judges. MANION, Circuit Judge. The International Union of Operating Engineers, Local 150, AFL-CIO, filed three unfair labor practice charges against Brandt Construction Company, alleging that the company: (1) changed, limited, and made more onerous its hiring practices and proce- 2 No. 02-1044

dures with the purpose of making it more difficult for ap- plicants with pro-union sentiments to apply or obtain em- ployment; (2) refused to hire or consider hiring individuals with pro-union sentiments; and (3) maintained a policy of giving preference in hiring to referral applicants over walk- in or unknown applicants with the purpose or intended effect of making it more difficult for applicants with pro- union sentiments to be considered for employment. The General Counsel of the National Labor Relations Board issued complaints on the charges, and a consolidated hearing was held before an administrative law judge. The ALJ concluded that, although Brandt had engaged in some unfair labor practices, the company had not refused to hire or consider hiring pro-union applicants on ac- count of their union affiliation. A three-judge panel of the National Labor Relations Board affirmed the ALJ’s decision, and the union filed a petition for review of the Board’s order, which we deny.

I. Brandt Construction Company (“Brandt”), a highway contractor located in Milan, Illinois, is engaged in the business of road construction; bridge building; concrete paving; asphalt, sewer and water utility work; and dem- 1 olition work. The company conducts its business within a 2 50-mile radius of the Quad City, Illinois area, and has been in existence for over forty years. Since at least 1994, Brandt

1 The background summary contained in this section of the opinion is based on the findings of fact made by the ALJ, which were affirmed by the Board in toto. 2 Brandt is an employer within the meaning of Section 2(2), (6)-(7) of the National Labor Relations Act, 29 U.S.C. § 152(2). No. 02-1044 3

has followed a set hiring policy. Under this policy, Brandt gives preferential treatment to employment applications filed by current and former employees, as well as individ- uals referred by current supervisors or employees, over unknown or walk-in applicants. Brandt also gives preferen- tial treatment to applicants referred by equal employment opportunity service providers pursuant to a conciliation agreement that it entered into with the U.S. Department 3 of Labor on March 19, 1997 (“DOL Agreement”). The com- pany attempts to fill any open positions with these “pre- ferred” applicants before it will even consider an applica- tion filed by an unknown or walk-in job applicant. Brandt established, and has maintained, this preferential hiring policy as a means by which to better assess the caliber of prospective employees. Brandt’s preferential hiring policy allows referral candi- dates to apply with the company at any time without an appointment, but only permits unknown or walk-in appli- cants to submit employment applications when the com- pany is hiring and even then only on Mondays. The com- pany instituted the “Mondays only” rule (also in 1994) for efficiency reasons and to dissuade individuals receiving unemployment compensation from coming into the office and submitting employment applications solely for the purpose of proving that they were attempting to obtain full-time employment, i.e., in order to receive unemploy- ment compensation. On January 1, 1997, Brandt placed a sign on its front of- fice door indicating that it only accepted employment

3 This agreement required Brandt to, among other things, make efforts to increase the percentage of women and minorities on each job in order to comply with federal, state, and local equal employment opportunity rules and regulations. 4 No. 02-1044

applications on Mondays, replacing a similarly worded sign that had been used by the company since the mid- 1990’s. When Brandt posted the “Mondays only” sign it meant that the company was currently hiring. If the com- pany was not distributing employment applications, the Mondays only sign would be replaced by another sign advising: “We are not accepting applications.” In February 1997, Brandt amended its hiring policy to require all job applicants not hired within fourteen days of submitting an application to reapply if they were still interested in working for the company. Brandt instituted the fourteen-day rule to ensure that Terry Brandt could immediately locate the applicant laborers, who, in the construction industry, are often needed on short notice. In late February or early March 1997, Brandt memorial- ized its hiring policy in writing and posted it on the com- pany’s employee bulletin boards. The policy stressed that the company “only accepts employment applications on Monday,” and that applications would only be “considered current for a period of two weeks. . . . After fourteen days the employment application expires and any individual interested in employment must complete a new applica- tion, if they are being accepted. . . . We do not accept em- ployment applications when we are not hiring.” The policy further provided that Brandt “rigorously follow[s]” a pro- cedure of preferring, in descending order, the follow- ing types of job applicants: “(a) Current employees of the company; (b) Past employees with proven safety, attendance and work records; (c) Applicants recommended by supervi- sors; (d) Applicants recommended by current [non-supervi- sory] employees; and (e) unknown [e.g., walk-in] appli- cants.” Brandt posted the policy to promote the efficiency of its office staff, and to stay in compliance with the DOL Agreement. As in the past, Brandt’s limitations on accepting No. 02-1044 5

applications—i.e., on Mondays when the company is hiring—only applied to unknown or walk-in applicants. At all times relevant to this litigation, Brandt accepted applications from current and former employees, indi- viduals referred by current supervisors and employees, 4 and equal employment opportunity service providers. The company also received applications from unknown or walk-in applicants in 1997, but none in 1998. Upon receiv- ing an employment application, Terry Brandt, the company officer in charge of hiring, would place it in a file accord- ing to the trade classification for which he would hire that applicant—e.g., operator, laborer, truck driver or flagger. When Mr. Brandt needed to fill a position for the company, he would pull out the folder for that partic- ular job classification and examine the applications then on file. In January and February 1997, Brandt received approximately twelve employment applications (seven walk-ins and five referrals) but hired none of them. In March 1997, the company received approximately twenty- eight applications, hiring two of the twelve referred candi- dates and none of the sixteen walk-in candidates. On April 10, 1997 (Thursday), the International Union of Operating Engineers, Local 150, AFL-CIO (“Local 150” or 5 “union”), at a regularly scheduled meeting, announced

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