National Labor Relations Board v. Babcock & Wilcox Company D/B/A B & W Construction Company

736 F.2d 1410, 116 L.R.R.M. (BNA) 2748, 1984 U.S. App. LEXIS 21677
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 11, 1984
Docket83-1410
StatusPublished

This text of 736 F.2d 1410 (National Labor Relations Board v. Babcock & Wilcox Company D/B/A B & W Construction Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Babcock & Wilcox Company D/B/A B & W Construction Company, 736 F.2d 1410, 116 L.R.R.M. (BNA) 2748, 1984 U.S. App. LEXIS 21677 (10th Cir. 1984).

Opinion

BREITENSTEIN, Circuit Judge.

Petitioner National Labor Relations Board, NLRB, seeks enforcement of an order that Babcock & Wilcox violated the National Labor Relations Act, §§ 8(a)(1) and (3), 29 U.S.C. § 158(a)(1) and (3), by the discharge of employee Morgheim. We have jurisdiction under 29 U.S.C. § 160(e). The argument is that the NLRB abused its discretion in not deferring to the award of an arbitrator. We order enforcement.

During 1978, Babcock & Wilcox, the Company, was constructing a power generating facility at the Laramie River Power Station near Wheatland, Wyoming. Approximately 20 of the 350 employees at the site were covered by a collective bargaining agreement between the Company and the International Brotherhood of Operating Engineers, Local 400, the Union. The agreement provided that a foreman should confine himself to supervision except in emergencies. Both foreman Metcalf and employee Morgheim, who worked as an assistant oiler, were members of the Union and covered by the agreement. Morgheim had the duty of fueling a 165-ton crane. On May 15 work was suspended and most employees, including Morgheim, were sent home because of heavy rains. Later that day, the refueling truck arrived, and, as Morgheim was gone, foreman Metcalf unlocked the crane and permitted the driver to fuel it.

When Morgheim discovered that the crane had been fueled in his absence, he confronted Metcalf in the presence of two hourly employees. He told Metcalf that he had no business in refueling the crane and that he was going to file intra-union disciplinary charges against Metcalf. Metcalf then threatened to fire Morgheim and reported the incident to- assistant project manager Dean. Dean determined that Morgheim should be discharged because of his threat to file charges against his foreman, Metcalf, and the associated insubordination in arguing with and seeking to intimidate Metcalf in the presence of two other employees.

Several days after his discharge, Morgheim filed intra-union charges against Metcalf. Metcalf was found guilty by the Union and fined $300.00. The Company then filed an unfair labor practice charge with the NLRB alleging that the imposition of the fine on Metcalf constituted a violation of the Act. The Administrative Law Judge found that the Union had violated the Act by the imposition of the fine because Metcalf was engaged in the performance of a supervisory function in recommending Morgheim’s discharge.

Shortly after his discharge, Morgheim filed a grievance against the Company pur *1412 suant to the collective bargaining agreement. The grievance proceeded to hearing on August 28, 1983, before an impartial arbitrator. In the arbitration, the Union asserted on Morgheim’s behalf, that, among other things, his discharge was improper because it was motivated by the Company’s anti-union animus in response to Morgheim’s engaging in union activity. In his award issued on October 6, 1979, the arbitrator ruled that the Company had failed to prove that the discharge had been for just cause, and ordered him reinstated. He found that Morgheim was not entitled to back pay because his conduct had been wrongful.

After the Company asserted its unfair labor practice charge against the Union, the Union filed the unfair labor practice charge against the Company that is at issue here. The Union alleged that Morgheim’s discharge was the result of union activities, in violation of §§ 8(a)(1) and (3) of the Act, 29 U.S.C. §§ 158(a)(1) and (3). A complaint was issued and an evidentiary hearing was held before an Administrative Law Judge, AU. She refused to defer to the arbitrator’s findings that Morgheim’s conduct was not based on any union activity, and sustained the unfair labor practice charge. This decision was affirmed on August 16, 1982, by a two member majority of the NLRB. Chairman Van de Water dissented on the ground that the NLRB ought to have deferred to the arbitrator’s award and dismissed the case. NLRB seeks enforcement of its order.

The Company argues that the Board’s failure to defer was an abuse of discretion because (1) the standard applied in refusing to defer — whether the arbitrator considered and resolved the unfair labor practice issue — is not accepted by this circuit, citing NLRB v. Gould, Inc., 10 Cir., 638 F.2d 159,166, cert. denied 452 U.S. 930, 101 S.Ct. 3065, 69 L.Ed.2d 430; and (2) even if the standard was correctly used, the unfair labor practice issue was presented to and determined by the arbitrator.

In his award, the arbitrator states:

“Finally, the Arbitrator notes that a Section 8(a)(3) unfair labor practice charge has been filed with Region 27 of the National Labor Relations Board, growing out of the facts of this ease____ The very last thing the Arbitrator would want to do is to usurp the function of the Board. However, and for what it is worth, the Arbitrator finds no evidence of discharge because of the Grievant’s Union activities. Put in its lowest common denominator, this is just a case where an employee and a foreman both lost their tempers and the foreman then acted precipitously and no subsequent investigation was ever held by senior supervision____”

In refusing to defer to this award, the AU said:

“The arbitrator’s disavowal of any intent to usurp the function of the Board and his off-hand conclusions, contrary to his statement of facts, that he finds no evidence of discharge because of the grievant’s union activities show that he never seriously considered whether Morgheim was discharged because he engaged in protected concerted activities or made any attempt to apply Board doctrine to this issue.”

The Board has jurisdiction to decide an unfair labor practice charge even though it was the subject of a prior arbitral award. NLRB v. Gould, Inc., 10 Cir., 638 F.2d 159, 166. The Board has a wide discretion in deciding whether to defer, and on review this court looks only to whether this discretion has been abused. The Board set guidelines for this discretion in Spielberg Manufacturing Co., 112 N.L.R.B. 1080, 1082, when it voluntarily deferred to an award where the arbitration procedure was “fair and regular, all parties had agreed to be bound, and the decision of the arbitration panel is not clearly repugnant to the purposes and policies of the Act.” The Board has enunciated, and several circuits have approved, a fourth requirement for deference, that the arbitrator must have considered and decided the statutory unfair labor practice issue. See Raytheon Co., *1413 140 N.L.R.B. 883, enforcement denied on other grounds, 1 Cir., 326 F.2d 471; NLRB v. Magnetics International, Inc.,

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736 F.2d 1410, 116 L.R.R.M. (BNA) 2748, 1984 U.S. App. LEXIS 21677, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-babcock-wilcox-company-dba-b-w-ca10-1984.