Local 512, Warehouse & Office Workers' Union v. National Labor Relations Board

795 F.2d 705
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 22, 1986
DocketNos. 85-7281, 85-7355
StatusPublished
Cited by3 cases

This text of 795 F.2d 705 (Local 512, Warehouse & Office Workers' Union v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 512, Warehouse & Office Workers' Union v. National Labor Relations Board, 795 F.2d 705 (9th Cir. 1986).

Opinions

PREGERSON, Circuit Judge.

The National Labor Relations Board (“NLRB” or “Board”) found that Felbro, Inc. had violated the National Labor Relations Act (“NLRA”) by laying off certain workers and refusing to execute a collective bargaining agreement negotiated with Local 512, Warehouse and Office Workers’ Union (“Local 512”). Many of Felbro’s employees are undocumented alien workers. Relying on its reading of Sure-Tan, Inc. v. NLRB, 467 U.S. 883, 104 S.Ct. 2803, 81 L.Ed.2d 732 (1984), the NLRB conditioned its backpay order on proof at the compliance hearing that the workers whose labor law rights Felbro had violated (“discrimina-tees”) are legally entitled to work in the United States. The NLRB petitions to enforce its order. Local 512 petitions for [709]*709review of the conditional remedy ordered by the NLRB. Felbro contests parts of both the liability and remedy sections of the order.

Substantial evidence in the record supports the NLRB’s findings that Felbro violated the NLRA, and thus we enforce the liability portion of the NLRB’s order. However, we also conclude that the NLRB’s decision to condition Felbro’s payment of backpay upon proof of each discriminated worker’s legal status in the United States is inconsistent with both the NLRA and the immigration laws. For this reason, we deny enforcement of the remedy portion of the order and remand the order to the Board for appropriate modification.

FACTS

Felbro manufactures wire and tubular displays in South Gate, California. On August 5, 1981, Felbro’s employees elected Local 512 as their bargaining agent in an NLRB-supervised election.

In a series of incidents immediately before and in the months after the election, Felbro supervisors changed working practices and laid off certain employees in ways that an Administrative Law Judge (“AU”) found constituted several violations of sections 8(a)(1) and 8(a)(3) of the NLRA. The AU also found two violations by Felbro of both sections 8(a)(5) and 8(a)(1) of the NLRA.1 First, in the period between the union election and the NLRB’s certification of the result, Felbro temporarily laid off three employees without notifying Local 512 or giving it an opportunity to bargain over the layoff. Second, after extended discussions, negotiators for Felbro and Local 512 agreed on the terms of a three-year collective bargaining agreement, subject to ratification by the members of the bargaining unit. The AU found that the employees ratified the contract. Felbro contests the validity of the ratification, and asserts that, in any event, it repudiated the contract offer before Local 512 notified Felbro of the ratification. Felbro refused to execute the contract. The AU found this refusal a violation of section 8(a)(5). The Board affirmed the AU’s conclusions with some modification. 274 N.L.R.B. No. 186 (Mar. 29, 1985). Felbro opposes only the finding of the two section 8(a)(5) violations.

Felbro reinstated all the laid-off employees before the AU’s hearing. The discri-minatees are all presently in the United States working for Felbro. As far as the record shows, no Felbro employee has been [710]*710the subject of any INS deportation proceeding.

The AU recommended that the traditional NLRB remedy of reinstatement and backpay be afforded to those employees specifically discriminated against by Felb-ro, and that Felbro be required to implement retroactively the agreed collective bargaining agreement and to reimburse its employees for any loss in pay or benefits caused by Felbro’s belated implementation of the contract’s terms. The NLRB affirmed the AU’s recommended remedy with respect to the two section 8(a)(5) violations, but amended the proposed remedy for the section 8(a)(1) and 8(a)(3) violations. In his opinion, the ALJ noted that several of the discriminatees were undocumented workers, and permitted them to testify under assumed names and to refuse to answer questions relating to their immigration status. Amending the AU’s remedial order, the NLRB stated:

Subsequent to the issuance of the [AU’s] decision, the Supreme Court issued its decision in Sure-Tan, Inc. v. NLRB, [467 U.S. 883], 104 S.Ct. 2803 [81 L.Ed.2d 732] (1984), in which it held, inter alia, that while undocumented alien workers are employees entitled to the Act’s protection, “in computing backpay, the employees must be deemed ‘unavailable’ for work (and the accrual of backpay therefor[e] tolled) during any period when they were not lawfully entitled to be present and employed in the United States.” Because it appears that a number of the employees affected by the backpay order herein were undocumented aliens, we shall leave to the compliance stage the issue of the employees’ entitlement to backpay consistent with the requirements of the Court’s opinion in Sure-Tan.

274 N.L.R.B. No. 186, slip op. at 5.

Local 512 timely petitioned for review of the conditional terms in the remedy ordered by the NLRB. The NLRB timely cross-petitioned to enforce its order in its entirety. The Mexican-American Legal Defense and Educational Fund (“MALDEF”) has filed a brief amicus curiae in support of Local 512.

STANDARD OF REVIEW

We will enforce an NLRB order if it correctly applies the law and its factual findings are supported by substantial evidence in the record as a whole. Universal Camera Corp. v. NLRB, 340 U.S. 474, 488, 71 S.Ct. 456, 464, 95 L.Ed. 456 (1951); US Ecology, Inc. v. NLRB, 772 F.2d 1478, 1480 (9th Cir.1985).

The NLRB has broad discretion in fashioning remedies that will “effectuate the policies” of the National Labor Relations Act. See NLRB v. J.H. Rutter-Rex Manufacturing Co., 396 U.S. 258, 262-63, 90 S.Ct. 417, 419-20, 24 L.Ed.2d 405 (1969). We will defer to the NLRB’s broad authority to construe the NLRA unless the NLRB’s decision is “irrational or inconsistent with the Act.” NLRB v. Financial Institution Employees of America, Local 1182, — U.S. —, 106 S.Ct. 1007, 1013, 89 L.Ed.2d 151 (1986). However, we must not allow our deference to the NLRB “to slip into a judicial inertia which results in the unauthorized assumption ... of major policy decisions properly made by Congress.’ ” Id. (quoting American Ship Building Co. v. NLRB, 380 U.S. 300, 318, 85 S.Ct. 955, 967, 13 L.Ed.2d 855 (1965)).

DISCUSSION

SECTION 8(a)(5) VIOLATIONS

I. Felbro’s Failure to Bargain Over the Layoffs.

On August 22 or 24,1981, Felbro laid off employees Armando Castaneda, Ramirez, and Santizo. The layoff was not discriminatory. However, Felbro did not notify Local 512 of its intention to lay off the three employees.

An employer violates section 8(a)(5) of the NLRA when it institutes a material change in the terms and conditions of employment in an area that is a compulsory subject of collective bargaining without giving the bargaining agent both reasonable notice and an opportunity to nego[711]*711tiate about the proposed change. NLRB v. Katz, 369 U.S.

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