Local Union No. 666, International Brotherhood of Electrical Workers, Afl-Cio v. Stokes Electrical Service, Incorporated

225 F.3d 415
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 11, 2000
Docket666
StatusPublished
Cited by11 cases

This text of 225 F.3d 415 (Local Union No. 666, International Brotherhood of Electrical Workers, Afl-Cio v. Stokes Electrical Service, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local Union No. 666, International Brotherhood of Electrical Workers, Afl-Cio v. Stokes Electrical Service, Incorporated, 225 F.3d 415 (4th Cir. 2000).

Opinion

Reversed and remanded by published opinion. Judge MICHAEL wrote the opinion, in which Judge WILKINS and Judge DUFFY joined.

OPINION

MICHAEL, Circuit Judge:

Local Union No. 666, International Brotherhood of Electrical Workers, AFL-CIO (Local 666 or the Union) sued Stokes Electrical Service, Inc. (Stokes or the Company) under Section 301 of the Labor Management Relations Act (LMRA), 29 U.S.C. § 185, to enforce two interest arbitration awards that directed Stokes to implement new labor contracts. The parties submitted the case on cross-motions for summary judgment, and the district court granted judgment to Stokes, refusing to enforce the awards. We reverse. Although Stokes’ good-faith doubt about the Union’s majority status relieved the Company of its statutory duty to bargain, that did not free the Company of its contractual obligation to submit to interest arbitration. We remand for enforcement of the awards.

I.

The relationship between Stokes and Local 666 is governed both by contract and by statute. For that reason, we will mention certain National Labor Relations Act (NLRA or the Act) provisions and case law as we recite the stipulated facts, contract terms, and history of the case.

An employer is obligated under section 8(a)(5) of the NLRA, 29 U.S.C. § 158(a)(5), to bargain with a union that has been “designated or selected,” in the words of section 9(a), 29 U.S.C. § 159(a), “for the purposes of collective bargaining by the majority of the employees.” As a general rule, it is an unfair labor practice under sections 8(a)(1) and (2) for an employer, and under section 8(b)(1)(A) for a union, to enter into a collective bargaining agreement when only a minority of employees has chosen the union as its bargaining representative. See American Automatic Sprinkler Sys., Inc. v. NLRB, 163 F.3d 209, 214 (4th Cir.1998), cert. denied, — U.S. -, 120 S.Ct. 65, 145 L.Ed.2d 56 (1999). However, under section 8(f) there is an exception for the construction industry because of special factors, such as the “uniquely temporary, transitory, and sometimes seasonal nature” of much of the work in that industry. Jim McNeff, Inc. v. Todd, 461 U.S. 260, 266, 103 S.Ct. 1753, 75 L.Ed.2d 830 (1983). Specifically, section 8(f) allows employers and unions in the construction industry to enter into labor agreements (commonly *419 called “prehire” agreements) before a majority of employees has approved the union as its bargaining representative. See 29 U.S.C. § 158(f). These section 8(f) agreements are voluntary, see Jim McNeff, 461 U.S. at 269, 103 S.Ct. 1753, and under this circuit’s law “a pre-hire agreement may be repudiated by either party prior to the union’s achievement of majority status.” Industrial TurnAround Corp. v. NLRB, 115 F.3d 248, 254 (4th Cir.1997). An 8(f) construction union is not required to achieve 9(a) status, and it may do so “only through the traditional means available to unions in nonconstruction industries.” American Automatic Sprinkler, 163 F.3d at 218. Thus, an 8(f) union may attain full 9(a) status “through either Board-certified election or voluntary recognition based upon a clear showing of majority support.” Id. at 217. Once the union has 9(a) status, all of the benefits and obligations of the NLRA are triggered, both for the union and the employer.

Stokes, the employer in this case, is an electrical contractor, and Local 666 is a labor organization. Stokes and Local 666 are involved in the construction industry, and both are based in Richmond, Virginia. The National Electrical Contractors Association (NECA) is a trade association authorized by its members to engage in mul-tiemployer collective bargaining. 1 NECA is organized into chapters, one of which is the Virginia Chapter. On August 25, 1986, Stokes signed “letters of assent” authorizing the Virginia Chapter of NECA to act as its representative for collective bargaining with Local 666. In sign-ing the letters of assent, Stokes became bound to “Inside Construction” and “Residential Construction” collective bargaining agreements between the Virginia Chapter of NECA and Local 666. At that stage, Local 666 was an 8(f) union insofar as its relationship with Stokes was concerned.

Local 666 remained an 8(f) union until March 11, 1991, when it attained 9(a) status. On that day Stokes executed an agreement voluntarily recognizing the Union as the exclusive collective bargaining agent for its electrical employees. This was done after a majority of these employees signed authorization cards. Stokes also signed new letters of assent with NECA on March 11, 1991. Thereafter, while Local 666 was a 9(a) majority representative, Stokes committed itself to new “Inside” and “Residential” collective bargaining agreements, effective from September 1, 1992, through August 31, 1994 (the “1992-94 Agreements” or the “Agreements”).

All of the labor agreements to which Stokes was bound, including the 1992-94 Agreements, contained provisions for interest arbitration. (Interest arbitration covers “ ‘disputes over the formation of collective agreements or efforts to secure them.’ ” Local Union No. 637, IBEW v. Davis H. Elliot Co., Inc., 13 F.3d 129, 133 (4th Cir.1993) (quoting Elgin, J. & E.R. Co. v. Burley, 325 U.S. 711, 723, 65 S.Ct. 1282, 89 L.Ed. 1886 (1945)).) Section 1.02(a) in each of the 1992-94 Agreements provides that either party desiring to change or terminate the Agreement must notify- the other at least 90 days prior to the anniversary date. A notice of desire to terminate is handled in the same way as a proposed change. Negotiation is contemplated in both instances. Under section 1.02(d) any unresolved issues in negotiations may be submitted jointly or unilaterally to the Council on Industrial Relations (CIR) for adjudication. The CIR is an interest arbitration panel for the electrical contracting industry; the panel is made up of twelve members, six appointed by the NECA and six by the IBEW. CIR rulings must be unanimous.

On March 14, 1994, Stokes withdrew from the NECA and revoked the authority *420 of NECA’s Virginia Chapter to act as its bargaining agent. On May 9 2 Stokes wrote to Local 666, serving notice that the Company intended to terminate the 1992-94 Agreements upon their expiration on August 31. On June 2 Local 666 notified Stokes by letter that it wished to negotiate new agreements in accordance with the terms of the 1992-94 Agreements. With its letter the Union included drafts of successor agreements with the proposed changes high-lighted.

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