Local Joint Executive Board v. National Labor Relations Board

540 F.3d 1072, 184 L.R.R.M. (BNA) 3136, 2008 U.S. App. LEXIS 18425
Court of Appeals for the Ninth Circuit·Decided August 27, 2008·No. 07-73979·Published·Cited by 28 cases

Opinion

PAEZ, Circuit Judge:

This is the second time that .Petitioner Local Joint Executive Board of Las Vegas, Culinary Workers Union Local 226 and Bartenders Union Local 165 (“the Union”) 1 petitions for our review of a National Labor Relations Board (“NLRB” or “the Board”) order dismissing its consolidated complaints against Hacienda Resort Hotel and Casino and Sahara Hotel and Casino (“the Employers”) 2 for unilaterally terminating dues-checkoff before bargaining to agreement or impasse. The dispute centers on the Board’s application of the unilateral change doctrine as recognized by NLRB v. Katz, 369 U.S. 736, 82 S.Ct. *1075 1107, 8 L.Ed.2d 230 (1962). Under this doctrine, absent a waiver, an employer violates sections 8(a)(1) and 8(a)(5) of the National Labor Relations Act (“NLRA” or “the Act”), 29 U.S.C. § 158(a)(1) and (5), if it makes a unilateral change in a term or condition of employment — so-called “mandatory subjects” of bargaining — without first bargaining over the relevant term. In our prior decision in this case, Local Joint Executive Bd. of Las Vegas v. NLRB (LJEB I), 309 F.3d 578 (9th Cir.2002), we granted the Union’s petition, vacated the Board’s decision and remanded to the Board with instructions because we could not discern the Board’s rationale for excluding, in the absence of union security, dues-checkoff from Katz’ unilateral change doctrine. In particular, we found that if “[t]he checkoff is merely a means of implementing union security [as in Bethlehem Steel ] ... such reasoning would not support the rule that the Board applies in this case.” Id. at 584 (internal quotation marks omitted). We asked the Board to “articulate a reasoned explanation for the rule it adopted, or [to] adopt a different rule and present a reasoned explanation to support it.” Id. at 586.

On remand, the Board reaffirmed its dismissal of the complaint but, reversing field, did not rely on the bright-line rule articulated in its original decision. See Hacienda Hotel Inc., Gaming Coup. (Hacienda II), — N.L.R.B. -, 351 NLRB No. 32, 2007 WL 2899736, at *1 (Sept. 29, 2007). Instead, the Board interpreted the collective bargaining agreements (“the Agreements”) and found, without resolving whether in the absence of union security dues-checkoff should be excluded from Katz ’ unilateral change doctrine, that the Union had explicitly waived any right of employees to claim dues-checkoff after the Agreements expired. Id. at *2-3. Accordingly, the Board dismissed the Union’s complaint.

In its petition for review, the Union argues that the Board side-stepped the issue posed in our remand, but we conclude that the Board was responsive to our instruction to “adopt a different rule.” LJEB I, 309 F.3d at 586. The Board’s decision does not, however, properly apply the rule it adopted. Where a unilateral change is defended on a claim of contractual right, the alleged waiver must be — as the Board acknowledges on appeal — “clear and unmistakable.” Metro. Edison Co. v. NLRB, 460 U.S. 693, 708, 103 S.Ct. 1467, 75 L.Ed.2d 387 (1983). There is simply no clear and unmistakable waiver here. We again grant the petition for review, vacate, and remand.

I. Background 3

The Employer and the Union had collective-bargaining relationships for more than thirty years. The 1989-1994 collective bargaining agreements (the “Agreements”) were embodied in separate, but substantially identical documents. Each agreement contained the following dues-checkoff provision:

The Check-Off Agreement and system heretofore entered into and established by the Employer and the Union for the check-off of Union dues by voluntary authorization, as set forth in Exhibit 2, attached to and made part of this Agreement, shall be continued in effect for the term of this Agreement.

(emphasis added). Exhibit 2 attached to each agreement provided:

Pursuant to the Union Security provision of the Agreement between [name of *1076 hotel] and [the Union], the Employer, during the term of the Agreement, agrees to deduct each month Union membership dues (excluding initiation fees, fines and assessments) from the pay of those employees who have authorized such deductions in writing as provided in this Check-Off Agreement. Such membership dues shall be limited to amounts levied by the Unions in accordance with their Constitutions and Bylaws. Deductions shall be made only for those employees who voluntarily submit to the hotel employing them a written authorization in accordance with the “Authorization for Check-Off of Dues” form set forth below. It is the Union’s responsibility to provide the employees with this form.

(emphasis added). The State of Nevada, where the Employers are located, is a “right-to-work” state. 4 As a result, under section 14(b) of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 164(b), the Agreements legally could not, and therefore did not, include a union security provision requiring union membership as a condition of employment. 5 The Agreements instead provided that the union-security clauses would become effective only if state law changed to allow union security.

The Agreements expired on May 31, 1994. The Employers continued to abide by the dues-checkoff arrangement for more than a year after this expiration date. In June 1995, however, after notifying the Union, the Employers ceased giving effect to the dues-checkoff provision in the expired Agreements and thereafter redirected amounts, which previously had been deducted and remitted to the Union, to their employees as part of their regular wages.

On October 26, 1995, the General Counsel for the Board issued consolidated complaints alleging that the Employers’ unilateral termination of dues-checkoff, without bargaining to impasse, constituted an unfair labor practice in violation of sections 8(a)(1) and 8(a)(5) of the Act. The administrative law judge (“ALJ”) dismissed the complaints. Relying on the language of the dues-checkoff provision, which stated that dues-checkoff would “continu[e] in effect for the term of this agreement,” the ALJ concluded that “it is unnecessary to examine the state of the law on checkoff clauses, whether in right-to-work [s]tates or otherwise” because “[t]he most reasonable interpretation ... is that [dues-checkoff] would continue through the duration of the contract but would not survive thereafter.”

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Local Joint Executive Board v. National Labor Relations Board, 540 F.3d 1072, 184 L.R.R.M. (BNA) 3136, 2008 U.S. App. LEXIS 18425 (9th Cir. 2008).

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