National Labor Relations Board v. Hmo International/california Medical Group Health Plan, Inc.

678 F.2d 806, 110 L.R.R.M. (BNA) 2745, 1982 U.S. App. LEXIS 18791
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 2, 1982
Docket79-7083
StatusPublished
Cited by31 cases

This text of 678 F.2d 806 (National Labor Relations Board v. Hmo International/california Medical Group Health Plan, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth 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. Hmo International/california Medical Group Health Plan, Inc., 678 F.2d 806, 110 L.R.R.M. (BNA) 2745, 1982 U.S. App. LEXIS 18791 (9th Cir. 1982).

Opinions

KENNEDY, Circuit Judge:

This is an application to enforce an order of the NLRB requiring respondent HMO International [HMO] to cease and desist from unfair labor practices and to bargain with the California Medical Registered Nurses Association, United Nurses Association of California [UNAC]. UNAC represented a unit composed of all registered nurses at HMO’s many California facilities.

In this court, HMO’s response to the petition is that the bargaining unit was constituted too narrowly, contrary to the law applicable to health facilities. HMO argues that the unit should have included licensed vocational nurses [LVNs] in addition to registered nurses [RNs].

HMO employs about 90 RNs and 30 LVNs at 19 California facilities. The LVNs are within a bargaining unit that includes other clerical and technical job categories. The representative for this larger unit is the Service Employees International Union [SEIU]. The particular RNs and LVNs in question are similar in some respects and different in others; the former job category generally involves more education, prestige, responsibility, etc. than the latter, but neither the similarities nor the differences are compelling on their face. The record reveals that, as to the functions of the two groups of specific employees in question, they are virtually identical.

In March, 1978, following a representation election, UNAC was certified as the representative for a unit of RNs only, and HMO refused to bargain.1 A complaint against HMO was issued in May, 1978, and in September, 1978, the NLRB granted summary judgment against HMO because the appropriateness of the bargaining unit had been fully litigated in proceedings from December, 1977, to February, 1978, preceding the election. Therefore, HMO’s refusal to bargain was held an unfair labor practice in violation of section 8 of the National Labor Relations Act [NLRA], 29 U.S.C. § 158 (1976).

From this order, the Board petitions our court for enforcement.

In deciding whether HMO’s refusal to bargain violated the NLRA, or was on the contrary justified because the bargaining unit was defined too narrowly, three questions must be answered.

1. What deference is to be paid to the NLRB’s unit definition?

2. Did the Board apply the law correctly in upholding the definition of the RN-only unit?

3. If the Board did not apply the correct legal standard, may the order be enforced because a correct interpretation of the NLRA would have permitted certification of the RN-only unit in any event?

Before these questions can be answered individually, the background and import of the 1974 National Labor Relations Act Amendments must be discussed in a general way.

[808]*808Congress amended the NLRA in 1974 to cover nonprofit hospitals. In so doing, the legislature extended the protection of the Act to health care workers, but it insisted as well that recognition be given to the particular dangers that the public faced from potential disruption of health care services. One potent way to minimize disruption, Congress found, was to avoid the proliferation of bargaining units characteristic of other trades and resulting from the NLRB’s traditional approach to defining units, the community-of-interest analysis, according to which homogeneity among the job descriptions within a bargaining unit is paramount. Broader units mean fewer units, and by allowing fewer units Congress sought to provide fewer occasions for work interruptions.

The committee reports of both the House and Senate admonished that “[d]ue consideration should be given by the Board to preventing proliferation of bargaining units in the health care industry.”2 This legislative purpose is remarkable and important in that the Board is directed to consider a public interest factor in the settling of private labor disputes; this purpose makes it even more important that the Board develop a reasoned, non-conclusory method of implementing the statutory intent by articulation of specific criteria.3

Because this legislative commitment to nonproliferation is explicit in the legislative history leading to the repeal of the

prior exemption, it is binding on the NLRB and must be implemented by it. So our court has expressly held, in a decision which examines the pertinent history. See NLRB v. St. Francis Hospital of Lynwood, 601 F.2d 404, 411-12 (9th Cir. 1979).

The policy does not include specific guidelines. It is not stated how many units may be tolerated in a given facility without trenching on “proliferation.” Senator Taft proposed an archetypical limitation of four units per facility, the units to be divided along the lines of professional, technical, clerical, and service and maintenance. These divisions were not enacted, and it is not clear whether they were thought to be too broad, too narrow, or merely too rigid. What is clear, however, is that the Board is required to develop explicit criteria for affirmative implementation of the nonproliferation policy in health care facilities. This it has not done. In St. Francis Hospital, we defined the inquiry which the NLRB must pursue as “focusing upon the disparity of interest between employee groups which would prohibit or inhibit their representation of employee interests.” 601 F.2d at 419.

The Board’s treatment of RN units is instructive in this respect. Having abandoned its earlier presumption in favor of RN-only units, the Board reverted to the traditional community-of-interest analysis,4 still heedless of the requirement that it develop a distinct approach responsive to [809]*809the congressional mandate to attend carefully to a particular public interest, i.e., minimizing disruptions of health care service delivery. It is ironic that the Board’s community-of-interest analysis became even more mechanical and categorical after the 1974 Amendments.5 This has in turn led to a nearly perfect record of reversals of the NLRB by the Court of Appeals in review of health care bargaining units.6

1. Appropriate Standard of Review

The Board’s unit decisions ordinarily will not be overturned absent an abuse of discretion. See, e.g., Beck Corp. v. NLRB, 590 F.2d 290, 292-93 (9th Cir. 1978) (per curiam):

The issue of unit determination is within the particular expertise of the Board, vested in that body by statute, and a Board decision is rarely disturbed. Hence, judicial intervention should be confined to instances where there has been an abuse of discretion. It is not necessary that the Board choose the most appropriate bargaining unit; it is sufficient if the unit chosen is within the range of units appropriate under the circumstances.

(Citations omitted). This deference is not appropriate, however, when the Board has ignored a controlling legal standard. That has occurred in this and similar cases. The Board has repeatedly tried to follow a traditional community-of-interest analysis in spite of the mandate to consider the public interest of nonproliferation in the health care industry.

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Bluebook (online)
678 F.2d 806, 110 L.R.R.M. (BNA) 2745, 1982 U.S. App. LEXIS 18791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-hmo-internationalcalifornia-medical-ca9-1982.