National Labor Relations Board v. Seedorff Masonry, Inc.

812 F.3d 1158, 205 L.R.R.M. (BNA) 3365, 2016 U.S. App. LEXIS 2268
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 10, 2016
Docket15-1302, 15-2039
StatusPublished
Cited by4 cases

This text of 812 F.3d 1158 (National Labor Relations Board v. Seedorff Masonry, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth 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. Seedorff Masonry, Inc., 812 F.3d 1158, 205 L.R.R.M. (BNA) 3365, 2016 U.S. App. LEXIS 2268 (8th Cir. 2016).

Opinion

LOKEN, Circuit Judge.

On September 7, 2012, with an arbitrator selected to hear a pending grievance, *1161 Local 150 of the International Union of Operating Engineers (“Local 150”) filed an unfair labor practice charge, alleging that Seedorff Masonry, Inc. (“Seedorff’), a masonry contractor based in Strawberry Point, Iowa, violated the National Labor Relations Act (“NLRA”) “by repudiating the parties’ collective bargaining agreement” (“CBA”). The National Labor Relations Board’s General Counsel filed a Complaint alleging that Seedorff had violated NLRA §§ 8(a)(1) and (5), 29 U.S.C. §§ 158(a)(1), (5), by repudiating a CBA between the Quad Cities Builders Association (“QCBA”) and Local 150 to which Seedorff had agreed to be bound.

After an evidentiary hearing, the Board’s Administrative Law Judge (“ALJ”) ruled that Seedorff violated §§ 8(a)(1) and (5) by repudiating a valid pre-hire CBA with Local 150 and by failing “to abide by the hiring hall and benefit provisions of the contract.” The ALJ rejected as largely irrelevant See-dorffs claim that its actions were a lawful response to a jurisdictional dispute between Local 150 and the Laborers’ International Union of North America (“the Laborers”) over whether Seedorff was properly assigning masonry work that fell within the overlapping coverages of the two unions’ pre-hire CBAs to members of the Laborers. The Board affirmed the ALJ’s analysis and issued a Decision and Order requiring Seedorff to pay Local 150’s members “for any loss of earnings and other benefits suffered as a result of [Seedorffs] failure to honor” its CBA with Local 150. Seedorff Masonry, Inc., 360 N.L.R.B. No. 107, at *2 (2014). At oral argument, counsel for the Board confirmed that this back pay remedy could include work that had been performed by Laborers consistent with that

union’s CBA. The Board petitions to enforce its Decision and Order. Seedorff cross-petitions to review and vacate the Order. Local 150 has intervened in support of the Board. Concluding that the Board’s analysis was contrary to the NLRA and pre-hire CBAs as construed in prior judicial decisions and the Board’s own precedent, we deny enforcement and vacate the Decision and Order.

I. Background.

A. Section 8(f) Pre-Hire Agreements.

Based on established practice in the construction industry, Congress enacted § 8(f) of the NLRA to modify the rule that an employer may not enter into a CBA with a union that does not represent a majority of the employees in the bargaining unit. See 29 U.S.C. § 159(a); McKenzie Eng’g Co. v. NLRB, 303 F.3d 902, 906 (8th Cir.2002). Section 8(f) “allows construction industry employers and unions to enter into agreements setting the terms and conditions of employment for the workers hired by the signatory employer without the union’s majority status first having been established in the manner provided for under § 9 of the Act.” Jim McNeff, Inc. v. Todd, 461 U.S. 260, 266, 103 S.Ct. 1753, 75 L.Ed.2d 830 (1983).

For many years, the Board held that a construction industry employer could unilaterally repudiate a § 8(f) pre-hire agreement any time before the union attained majority status. However, the Board overturned this rule in John Deklewa & Sons, Inc. 1 Under Deklewa, § 8(f) agreements are “binding, enforceable, and not subject to unilateral repudiation” throughout their term. 275 N.L.R.B. at 1389. We expressly upheld the Deklewa rule in NLRB v. W.L. Miller Co., 871 F.2d 745, *1162 747-48 (8th Cir.1989). Although the rule provides that neither party may be compelled to negotiate a successor agreement after expiration of a § 8(f) agreement, the Board has ruled that an automatic renewal provision in a § 8(f) agreement extends the no-unilateral-repudiation rule, a holding we upheld in Cedar Valley Corp. v. NLRB, 977 F.2d 1211, 1219 (8th Cir.1992), cert. denied, 508 U.S. 907, 113 S.Ct. 2334, 124 L.Ed.2d 246 (1993).

Under Deklewa, an employer’s unilateral repudiation of a § 8(f) agreement before its expiration violates the employer’s § 8(a)(5) duty to bargain, just as repudiation of a CBA with a majority-status union has long been held to violate § 8(a)(5). 2 McKenzie Eng’g, 303 F.3d at 908. However, the Board has carved a “single-employee unit” exception to its no-unilateral-repudiation rule for § 8(f) CBAs which is critical in this case:

[Wjhen a unit consists of no more than a single permanent employee at all material times, an employer has no statutory duty to bargain and thus, will not be found in violation of the Act for disavowing a bargaining agreement and refusing to bargain.

Haas Garage Door Co., 308 N.L.R.B. 1186, 1187 (1992). The Board has explained that this exception is based on a fundamental tenet of the NLRA: “[T]he principle of collective bargaining presupposes that there is more than one eligible person who desires to bargain. The Act therefore does not empower the Board to certify a one-man unit.” Foreign Car Ctr., Inc., 129 N.L.R.B. 319, 320 (1960); see Stack Elec., Inc., 290 N.L.R.B. 575, 577 (1988).

B. The Union/Employer Relationships at Issue. Seedorff is a union contractor with an office in the Quad-Cities area that seasonally employs “between ten and thirty Bricklayers all of the time, and ten to thirty Laborers all of the time.” Seedorffs President, Robert Marsh, testified that Seedorff as a masonry subcontractor only enters into § 8(f) pre-hire CBAs; it has § 8(f) CBAs with the Laborers Union and the Bricklayers Union. The administrative hearing record includes a multi-employer § 8(f) agreement with the Laborers, to which Seedorff was a party; a § 8(f) agreement between Seedorff and Operators Local 234; a multi-union § 8(f) Project Labor Agreement (“PLA”) governing construction of a state prison in Iowa, to which Local 150 and Seedorff were parties; and the QCBA agreement here at issue.

In June 1988, the multi-employer QCBA and its contractor members entered into a Building Agreement with Local 150’s predecessor in which each contractor recognized Local 150 as the sole collective bargaining agent for employees engaged in construction work covered by the agreement. Though not a member of QCBA, Seedorff signed an individual Building Agreement in July 1988 agreeing that it “hereby becomes a signatory employer” and further reciting:

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812 F.3d 1158, 205 L.R.R.M. (BNA) 3365, 2016 U.S. App. LEXIS 2268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-seedorff-masonry-inc-ca8-2016.