National Labor Relations Board v. Siren Retail Corporation Dba Starbucks

99 F.4th 1118
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 24, 2024
Docket22-1969
StatusPublished
Cited by5 cases

This text of 99 F.4th 1118 (National Labor Relations Board v. Siren Retail Corporation Dba Starbucks) 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. Siren Retail Corporation Dba Starbucks, 99 F.4th 1118 (9th Cir. 2024).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

NATIONAL LABOR RELATIONS No. 22-1969 BOARD, National Labor Relations Board Petitioner, OPINION v.

SIREN RETAIL CORPORATION DBA STARBUCKS,

Respondent,

----------------------------------------

WORKERS UNITED,

Intervenor.

On Petition for Review of an Order of the National Labor Relations Board

Argued and Submitted December 6, 2023 Seattle, Washington

Filed April 24, 2024 2 NLRB V. SIREN RETAIL CORPORATION

Before: M. Margaret McKeown, N. Randy Smith, and Gabriel P. Sanchez, Circuit Judges.

Opinion by Judge McKeown

SUMMARY *

Labor Law

The panel granted the National Labor Relations Board’s application for enforcement of its order directing Starbucks Reserve Roastery in Seattle to “cease and desist from failing and refusing to recognize and bargain with the Union.” In February 2022, Workers United filed a petition seeking to represent 90 employees at the Seattle Roastery. Citing rising COVID-19 cases in the area, the Regional Director ordered a mail-ballot election, which took place in April 2022. Starbucks refused to recognize and bargain with the union, claiming that the Regional Director should have ordered an in-person election instead. The Regional Director overruled the objection and certified the results. The Board held that by refusing to recognize and bargain with the Union, Starbucks engaged in unfair labor practices in violation of Section 8(a)(5) of the National Labor Relations Act. The panel rejected Starbucks’s claim that the court lacked jurisdiction over the enforcement application because

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. NLRB V. SIREN RETAIL CORPORATION 3

the Board severed the question of whether to adopt a compensatory remedy. The panel held that the Board’s order was final and reviewable under 29 U.S.C. § 160(e). Nothing in the order suggested that the severed issue would have any effect on the Board’s conclusion regarding the underlying charge, nor on the order to bargain. The panel held that the Regional Director did not abuse his discretion when he faithfully applied Aspirus Keweenaw, 370 N.L.R.B. 45 (2020), and ordered a mail-ballot election. Accordingly, the panel held that the Board correctly applied its own law in determining that the Regional Director appropriately exercised its discretion to hold a mail-ballot election. The certification of the union’s representative was proper, and the Board correctly found that Starbucks violated Section 8(a)(5) by refusing to bargain.

COUNSEL

Michael R. Hickson (argued), Senior Attorney; Elizabeth A. Heaney, Supervisory Attorney; David Habenstreit, Assistant General Counsel; Ruth E. Burdick, Deputy Associate General Counsel; Peter S. Ohr, Deputy General Counsel; Jennifer A. Abruzzo, General Counsel; National Labor Relations Board, Washington, D.C.; for Petitioner National Labor Relations Board. Benjamin Berger (argued) and Dmitri Iglitzin, Barnard Iglitzin & Lavitt LLP, Seattle, WA, for Intervenor Workers United. Gregory S. Fisher (argued), Littler Mendelson PC, Anchorage, Alaska; Ryan P. Hammond, Littler Mendelson 4 NLRB V. SIREN RETAIL CORPORATION

PC, Seattle, Washington; Maury Baskin and Stefan Marculewicz, Littler Mendelson PC, Washington, D.C.; for Respondent Siren Retail Corporation dba Starbucks.

OPINION

McKEOWN, Circuit Judge:

Starbucks’s strained relationship with its unionized workers has been much in the news over the past few years. This case, which concerns a prolonged battle over the union election at the first Starbucks Reserve Roastery in Seattle, is no exception. In February 2022, Workers United filed a petition seeking to represent 90 employees at the Seattle Roastery. Citing rising COVID-19 cases in the area, the Regional Director ordered a mail-ballot election, which took place in April 2022. Starbucks refused to recognize and bargain with the union, claiming that the Regional Director should have ordered an in-person election instead. The Board disagreed, ordering Starbucks to “cease and desist from failing and refusing to recognize and bargain with the Union,” while severing the issue of whether the Board would order an additional compensatory remedy for the lost opportunity to bargain. This application for enforcement followed. We initially address Starbucks’s claim that we lack jurisdiction over the application because the Board severed a remedial issue; we then consider whether the Regional Director abused his discretion by ordering a mail-ballot election, rather than a manual election. Because we have jurisdiction, and because the Regional Director properly NLRB V. SIREN RETAIL CORPORATION 5

exercised his discretion to order a mail-ballot election, we grant the Board’s application for enforcement. I. BACKGROUND Following the filing of the representation petition, Workers United and Starbucks stipulated to most details regarding the union election. The major point of contention was that Workers United requested a mail-ballot election while Starbucks requested a manual election. On March 17, 2022, the Regional Director issued his opinion, ordering a mail-ballot election because the 14-day trend in the number of new confirmed COVID-19 cases in King County, Washington—where the Roastery is located—was increasing. Specifically, the opinion explains that “[a]s of March 16, the Johns Hopkins University & Medicine Coronavirus Resource Center reports a -14 day case count in King County of 663 cases and a -2 day case count, the most recent report, of 742 cases, an increase.” Starbucks requested Board review of the Regional Director’s conclusion, arguing that he misapplied Aspirus Keweenaw, a key Board decision involving COVID-19 and election protocols. Aspirus Keweenaw, 370 N.L.R.B. 45 (2020), 2020 WL 6594972. In a 2–1 decision, the Board denied the request. See Siren Retail Corp., No. 19-RC- 290608, 2022 WL 1002006, at *1 (Apr. 1, 2022). Chairman McFerran noted that she would hold that the Regional Director did not abuse his discretion “for the reasons given in her separate opinion 1 in Aspirus,” but “even under the majority opinion in Aspirus, the Regional Director’s

1 Chairman McFerran’s “separate opinion” in Aspirus was a concurring opinion which argued that the Board should abandon the general rule that elections should be conducted manually. Aspirus, 2020 WL 6594972, at *13–15. 6 NLRB V. SIREN RETAIL CORPORATION

decision should be affirmed based on the increasing 14-day trend in the number of new Covid-19 cases in King County.” Siren, 2022 WL 1002006, at *1 n.1. Member Kaplan dissented, noting that because the Regional Director compared “two data points” instead of accounting for the “14-day trend as required by Aspirus,” he would have granted Starbucks’s request. Id. The mail-ballot election was conducted on April 21, 2022. Out of 104 eligible voters, 69 ballots were returned, for a participation rate of 66 percent. The union won the election by a margin of 11 ballots. Starbucks objected to the election, but the Regional Director overruled the objection and certified the results. As is common in cases where the employer seeks to test election certification, 2 Starbucks refused to bargain with the Union, and the General Counsel filed a complaint alleging unfair labor practices. In November 2022, 3 the Board held that by refusing to recognize and bargain with the Union, Starbucks engaged in unfair labor practices in violation of Section 8(a)(5) of the National Labor Relations Act. In the “Remedy” section of

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Bluebook (online)
99 F.4th 1118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-siren-retail-corporation-dba-starbucks-ca9-2024.