National Labor Relations Board, Petitioner/cross-Respondent v. Ferguson Electric Company, Inc., Respondent/cross-Petitioner

242 F.3d 426, 166 L.R.R.M. (BNA) 2513, 2001 U.S. App. LEXIS 2248
Court of Appeals for the Second Circuit·Decided February 14, 2001·No. 18-2492·Published·Cited by 19 cases

Opinion

FEINBERG, Circuit Judge:

The National Labor Relations Board (Board) petitions for enforcement of its order of January 19, 2000, reported at 330 NLRB No. 75, requiring Ferguson Electric Company, Inc., (Ferguson) to pay backpay to David Carr, a paid union organizer, in the amount of $25,626, plus interest, as remedy for its previously adjudicated unfair labor practice in refusing to hire Carr in violation of § 8(a)(3) and § 8(a)(1) of the National Labor Relations Act (the Act), 29 U.S.C. § 158(a)(3), (1). Ferguson, a contractor that provides electricians to construction jobsites in upstate New York, cross-petitions for review of the Board’s order, arguing that Carr’s damages were *429 speculative, that the Board failed to reduce the backpay award by Carr’s interim earnings and that Carr failed to mitigate damages.

I. Background

This case arises out of the union practice of “salting,” or sending paid union organizers into non-union workplaces as employees for the purpose of organizing the workplace from the inside. 1 David Carr, a full-time organizer employed by Local 241 of the International Brotherhood of Electrical Workers (IBEW), sought employment as an electrician at Ferguson’s job-site in Kendall, New York, for just this purpose in August 1995. On his application, Carr alerted Ferguson to his status as an IBEW organizer and his intention to organize the jobsite. If he had been hired, Carr would have remained in the employ of IBEW, engaging in organizing activity during the hours he was not working for Ferguson, and would have left his job at Ferguson when IBEW’s organizational efforts were no longer served by his employment there. While working at Ferguson, Carr would have continued to receive his union salary and benefits, in addition to his salary at Ferguson. IBEW would not have permitted Carr to work in this manner for any company other than a nonunion employer that IBEW was attempting to organize.

Ferguson refused to hire Carr; as a result, IBEW filed unfair labor practice charges against Ferguson alleging that it refused to hire Carr on the basis of his union membership, activities and affiliation. In July 1996, Carr was promoted to business manager by IBEW; at this time, had he been employed by Ferguson, he would have quit to devote his full efforts to his new IBEW position. Between August 1995, when Ferguson failed to hire him, and July 1996, when he took the IBEW business manager position, Carr was not employed by anyone other than IBEW.

An administrative law judge (ALJ) held that the company violated §§ 8(a)(3) and (1) of the Act in failing to hire Carr 2 and deferred the issues regarding Carr’s entitlement to backpay to a supplemental proceeding. Ferguson filed no exceptions to this decision, and the Board accordingly adopted it on September 24,1996, ordering Ferguson to cease and desist its discrimination and make an offer of employment to Carr. We enforced this order on April 27, 1997.

In the supplemental proceeding regarding damages, Ferguson disputed the General Counsel’s calculation of backpay, and the parties jointly filed a motion to transfer the proceeding to the Board. In that motion, the parties agreed that no oral testimony was necessary or desired. Instead, the dispute was submitted to the Board on the record, which included the original ALJ decision finding that Ferguson had committed an unfair labor practice, the September 1996 order of the Board adopting this decision, the April 1997 judgment of this Court enforcing the Board’s order, the General Counsel’s compliance specification and notice of hearing in regard to backpay, Ferguson’s answer, a Stipulation of Facts (Stipulation) and exhibits. On January 19, 2000, the Board issued a supplemental decision and order. *430 The Board held that Carr was entitled, to backpay for the August 1995 to July 1996 period in the amount of $25,626, with interest. Member Hurtgen dissented. Ferguson Elec. Co., 330 N.L.R.B. No. 75, 163 L.R.R.M. (BNA) 1081, 2000 WL 85273 (N.L.R.B. Jan. 19, 2000). The Board petitioned for enforcement of this decision, and Ferguson cross-petitioned for review.

In its petition for review, Ferguson argues, as it did before the Board, that (1) the backpay award was based on impermissible speculation as to the duration of Carr’s employment, given that Carr would have quit his work at Ferguson when IBEW determined his organizing efforts were no longer useful; (2) Carr’s wages as an IBEW employee from August 1995 to July 1996 should be offset against the backpay award; and (3) Carr failed to mitigate his damages after Ferguson refused to hire him, since IBEW would not have permitted him to work as an electrician anywhere except a non-union shop that IBEW was attempting to organize. Amicus briefs have been filed by IBEW and by Associated Builders and Contractors, Inc., a national trade association representing non-union shops.

II. Discussion

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National Labor Relations Board, Petitioner/cross-Respondent v. Ferguson Electric Company, Inc., Respondent/cross-Petitioner, 242 F.3d 426, 166 L.R.R.M. (BNA) 2513, 2001 U.S. App. LEXIS 2248 (2d Cir. 2001).

242 F.3d 426 (National Labor Relations Board, Petitioner/cross-Respondent v. Ferguson Electric Company, Inc., Respondent/cross-Petitioner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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