National Labor Relations Board v. F & A Food Sales, Inc.

202 F.3d 1258, 2000 Colo. J. C.A.R. 520, 163 L.R.R.M. (BNA) 2327, 2000 U.S. App. LEXIS 1040
CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 28, 2000
DocketNo. 98-9522
StatusPublished
Cited by6 cases

This text of 202 F.3d 1258 (National Labor Relations Board v. F & A Food Sales, Inc.) 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. F & A Food Sales, Inc., 202 F.3d 1258, 2000 Colo. J. C.A.R. 520, 163 L.R.R.M. (BNA) 2327, 2000 U.S. App. LEXIS 1040 (10th Cir. 2000).

Opinion

TACHA, Circuit Judge.

The National Labor Relations Board (NLRB or “Board”) petitions for enforcement of the Decision and Order it issued to Respondent F & A Food Sales, Inc. (“F & A”) on March 27, 1998. We exercise jurisdiction under 29 U.S.C. § 160(e) and grant the enforcement.

I. Background

In August 1992, the NLRB certified the International Association of Machinists and Aerospace Workers, District Lodge 70, AFL/CIO (“Union”) as the exclusive collective bargaining representative of a unit of F & A employees (“Unit”). The Unit comprised various subclassifications of employees associated with F & A’s Con-cordia, Kansas transportation department. F & A and the Union entered into a collective bargaining agreement (CBA) effective from September 4, 1993 to September 4, 1996. The CBA memorialized F & A’s recognition of the Union as sole collective bargaining agent for the Unit. The CBA also reserved F & A’s right to subcontract work as the company deemed necessary.

In December 1993, F & A decided to permanently close all trucking operations and subcontract the services performed by the Unit to Ryder Dedicated Logistics, Inc. (“Ryder”). F & A and the Union then entered into a supplemental agreement. Pursuant to this agreement, the Union formally recognized the subcontracting arrangement and declined to object to it. The subcontracting arrangement took effect in February 1994. Ryder operated from the same facility, used the same trucks, and employed substantially the same employees as had F & A. The Union did not represent or seek to represent the transport workers while Ryder employed them.

[1260]*1260In July 1995, Ryder terminated its subcontracting agreement, thereby forcing F & A to resume its own trucking operations in August. Again, the facility and the trucks remained the same. In addition, F & A hired a majority of Ryder’s employees. The Union then asserted its right to represent the transport employees under the CBA, which by its terms remained in effect. F & A refused to recognize the Union because (1) the Union did not represent the workers during their employment with Ryder and (2) less than a majority of the original F & A employees hired by Ryder returned to F & A when Ryder ended the subcontracting arrangement.

The Union filed a charge of unfair labor practices with the NLRB in January 1996. It alleged that F & A had violated § 8(a)(1) and § 8(a)(5) of the National Labor Relations Act (NLRA or “Act”), 29 U.S.C. § 158(a)(1), (a)(5), by failing to apply the terms of the CBA and refusing to recognize the Union’s bargaining rights. An Administrative Law Judge (ALJ) decided in favor of the Union.

The ALJ found that ordinary contract-bar principles precluded F & A’s claim that the Ryder hiatus effectively terminated the CBA. The ALJ also found that F & A did not succeed to Ryder’s nonunion status under the successorship doctrine when F & A resumed operation of its transportation department. Finally, the ALJ rejected F & A’s assertion that the Union waived its right to represent the employees because it did not seek to represent them during the Ryder hiatus.

The ALJ ordered F & A to, inter alia, (1) recognize and bargain with the Union, (2) abide by the CBA until the parties could negotiate another agreement, (3) compensate the employees for any losses that they might have sustained as a consequence of F & A’s violations, and (4) prominently post copies of a notice stating that it would comply with the ALJ’s decision. F & A filed exceptions with the NLRB, and the Board affirmed. The Board then petitioned this court for enforcement of its order.

II. Standard of Review

We review the NLRB’s legal determinations de novo and “uphold the NLRB’s factual findings if they are supported by substantial evidence in the record as a whole.” Albertson’s, Inc. v. NLRB, 161 F.3d 1231, 1235 (10th Cir.1998). We must bear in mind that Congress delegated primary responsibility for interpretation of the NLRA to the NLRB. Colorado-Ute Elec. Ass’n v. NLRB, 939 F.2d 1392, 1400 (10th Cir.1991). Thus, we will enforce an NLRB order unless the Board’s judgment (1) “has no reasonable basis in the law,” (2) “is fundamentally inconsistent with the NLRA and an attempt to usurp” Congress’s policymaking authority, or (3) indicates that “the Board has moved into a new area of regulation which Congress has not committed to it.” Id. (internal quotation marks and citation omitted).

III. The Contract Bar Doctrine

F & A asserts that the contract bar doctrine does not apply to this case. Under the NLRB’s contract bar rule, “if an employer and a union have entered into a[CBA], the agreement constitutes a bar to the holding of a representation election for the life of the agreement, up to a maximum of three years.” NLRB v. Arthur Sarnow Candy Co., 40 F.3d 552, 557 (2d Cir.1994); see Osteopathic Hosp. Founders Ass’n v. NLRB, 618 F.2d 633, 638 (10th Cir.1980) (acknowledging the existence of the contract bar rule).1 Thus, the contract bar rule “prohibits employers from petitioning the Board for decertification of a union and from repudiating the contract or withdrawing recognition from and refusing [1261]*1261to bargain with a union during the term of the [CBA].” NLRB v. Rock Bottom Stores, Inc., 51 F.3d 366, 370 (2d Cir.1995).

The purpose of the contract bar rule is “to promote industrial peace by stabilizing, for a reasonable term, a contractual relationship between employer and union.” Rock Bottom Stores, Inc., 51 F.3d at 370. Consequently, “[t]he rule applies in the absence of unusual circumstances” and “even when a union has lost majority support.” Rock Bottom Stores, Inc., 51 F.3d at 370; see Osteopathic Hosp. Founders Ass’n, 618 F.2d at 638 (“When a[CBA] is in effect between the parties, an incumbent union enjoys a virtually irrebuttable presumption of majority status as long as the agreement is entitled to ‘contract bar’ protection.”); id. (“[The contract bar] rule applies even though a majority of the employees in the unit have freely abandoned the union.”)

However, “[t]he Board has recognized an exception to the contract bar rule where, after an indefinite period of closing, an employer resumes operations with new employees.” El Torito-La Fiesta Restaurants, Inc. v. NLRB, 929 F.2d 490, 493 (9th Cir.1991). “[T]he essential factor in finding a valid CBA to be a bar after a shutdown in operations is the continuing existence of the bargaining unit.” Id.

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202 F.3d 1258, 2000 Colo. J. C.A.R. 520, 163 L.R.R.M. (BNA) 2327, 2000 U.S. App. LEXIS 1040, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-f-a-food-sales-inc-ca10-2000.