National Labor Relations Board v. Eugene Iovine, Inc.

371 F. App'x 167
CourtCourt of Appeals for the Second Circuit
DecidedMarch 30, 2010
Docket09-0217-ag
StatusUnpublished
Cited by2 cases

This text of 371 F. App'x 167 (National Labor Relations Board v. Eugene Iovine, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Eugene Iovine, Inc., 371 F. App'x 167 (2d Cir. 2010).

Opinion

SUMMARY ORDER

The National Labor Relations Board (“Board” or “NLRB”) petitions for enforcement of its September 30, 2008 order ruling that respondent Eugene Iovine, Inc. (“Iovine”), violated sections 8(a)(1) and (5) of the National Labor Relations Act (the “NLRA” or “Act”), 29 U.S.C. §§ 158(a)(1), (5), by unilaterally firing employees without first providing their union with timely notice and an opportunity to bargain over the layoffs. Iovine, an electrical contractor, opposes enforcement on the grounds that the Board (1) had no authority to decide the case because it lacked a quorum; (2) irrationally ignored evidence of Iovine’s past practice of notifying an employee benefit fund following layoffs; (3) erred, in any event, in concluding that Iovine failed to provide timely notice to the union; and (4) imposed an arbitrary remedial order unwarranted by the alleged violation. We assume the parties’ familiarity with the facts and record of prior proceedings, which we reference only as necessary to explain our decision to grant the Board’s petition.

1. Standards and Scope of Review

Under our highly deferential review of NLRB orders, see International Union, United Auto., Aerospace, and Agrie. Implement Workers of Am. v. NLRB, 520 F.3d 192, 196 (2d Cir.2008), we uphold the Board’s findings of fact “if supported by substantial evidence and [its] legal determinations if not arbitrary and capricious,” Cibao Meat Prods., Inc. v. NLRB, 547 F.3d 336, 339 (2d Cir.2008) (internal quotation marks omitted). Congress has delegated to the Board primary responsibility for determining the scope of an employer’s statutory duty to bargain, and we will affirm the Board’s statutory construction so long as it is “reasonably defensible.” Ford Motor Co. v. NLRB, 441 U.S. 488, 497, 99 S.Ct. 1842, 60 L.Ed.2d 420 (1979); see also NLRB v. Town & Country Elec., Inc., 516 U.S. 85, 89-90, 116 S.Ct. 450, 133 L.Ed.2d 371 (1995) (observing that we afford “a degree of legal leeway” to Board interpretations of NLRA).

Because the Board adopted the ALJ’s findings of fact and conclusions of law in part, we review both the ALJ’s opinion and the Board’s. See NLRB v. Special Touch Home Care Servs., Inc., 566 F.3d 292, 297 (2d Cir.2009).

2. Quorum Challenge

Iovine’s argument that the Board lacked the quorum necessary to issue a valid order is foreclosed by Snell Island SNF LLC v. NLRB, 568 F.3d 410 (2d Cir.2009), in which this court held that two members of the Board may issue enforceable decisions. Here, as in Snell, two active Board members issued the challenged order, acting as a quorum of the three-member group to which the Board had *170 previously delegated all of its powers, as permitted by the Act. See 29 U.S.C. § 153(b). Accordingly, we consider the merits of the Board’s petition.

3. The Alleged Violation and Iovine’s Defenses

a. The Duty to Bargain

It is well-established that where, as here, an employer and a representative union are negotiating toward a collective bargaining agreement pursuant to section 8(a)(5) of the NLRA, the employer may not “alter terms and conditions of employment without first giving notice to and conferring in good faith with the union.” Firch Baking Co. v. NLRB, 479 F.2d 732, 735 (2d Cir.1973). Such unilateral action “amount[s] to a refusal to negotiate about the affected conditions of employment under negotiation, and must of necessity obstruct bargaining, contrary to the congressional policy.” NLRB v. Katz, 369 U.S. 736, 747, 82 S.Ct. 1107, 8 L.Ed.2d 230 (1962); see also Olivetti Office U.S.A., Inc. v. NLRB, 926 F.2d 181, 186 (2d Cir.1991) (observing that economically motivated action by employer that does not cause “change in basic business operations ... is subject to mandatory bargaining”); In re Tri-Tech Servs., Inc., 340 N.L.R.B. 894, 894 (2003) (“It is well established that the layoff of unit employees is a change in terms and conditions of employment over which an employer must bargain.”).

b. Past Practice Exception

Iovine submits that the Board irrationally rejected its argument that an established practice of notifying a benefit fund administrator following layoffs relieved it of any obligation to provide advance notice to the Union. See The COURIER-JOURNAL, 342 N.L.R.B. 1093, 1094 (2004) (observing that “unilateral change made pursuant to a longstanding practice is essentially a continuation of the status quo — not a violation of Section 8(a)(5)”). We disagree. The Board concluded that “[ajbsent evidence of when or how frequently or under what circumstances the asserted unilateral layoffs occurred,” EUGENE IOVINE, INC., 353 N.L.R.B. No. 36, slip op. at 1 (Sept. 30, 2008), vague testimony from Iovine’s president that the practice was in place from 1971 to 1998 was insufficient to demonstrate that “employees could reasonably expect [it] to continue or reoccur on a regular and consistent basis,” SUNOCO, INC., 349 N.L.R.B. 240, 244 (2007). This conclusion, grounded in the record, cannot be deemed irrational. See Salmon Run Shopping Ctr. LLC v. NLRB, 534 F.3d 108, 113 (2d Cir.2008) (observing that reversal based on factual findings is warranted only if “no rational trier of fact could reach the conclusion drawn by the Board” (internal quotation marks omitted)).

c.Timely Notice and Economic Necessity

Iovine next submits that the notice it provided, generally within a week of each layoff, was sufficient to meet its obligations under the Act in light of the exigent circumstances beyond its control that caused the layoffs — specifically, inclement weather or last-minute logistical problems precluding electrical work at a given job site and requiring prompt action lest workers sit idle at high cost to the company. We are not persuaded. First, “[t]o be timely, the notice must be given sufficiently in advance of actual implementation of the change to allow a reasonable opportunity to bargain.”

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Bluebook (online)
371 F. App'x 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-eugene-iovine-inc-ca2-2010.