National Labor Relations Board v. The Gateway Theatre Corporation D/B/A Senator Theatre, Capitol Hill Cinemas

818 F.2d 971, 260 U.S. App. D.C. 322
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 27, 1987
Docket86-1368
StatusPublished
Cited by8 cases

This text of 818 F.2d 971 (National Labor Relations Board v. The Gateway Theatre Corporation D/B/A Senator Theatre, Capitol Hill Cinemas) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. 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. The Gateway Theatre Corporation D/B/A Senator Theatre, Capitol Hill Cinemas, 818 F.2d 971, 260 U.S. App. D.C. 322 (D.C. Cir. 1987).

Opinion

Opinion for the Court by Circuit Judge HARRY T. EDWARDS.

HARRY T. EDWARDS, Circuit Judge:

In an unfair labor practice proceeding before the National Labor Relations Board (“NLRB” or the “Board”), it was found that management officials at Gateway Theatre Corporation (“Gateway”) had violated sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (the “Act”), 29 U.S.C. § 158(a)(1), (3) (1982), by terminating the services of three motion picture projectionists and making an allegedly coercive statement to one of the projectionists. The NLRB ordered Gateway to offer to reinstate the three projectionists, with back pay and full restoration of seniority and benefits. The Board now seeks enforcement of its order.

We are utterly astonished that the Board found violations of the Act on the facts of this case. There is absolutely no evidence in the record that the projectionists’ discharges were motivated by anti-union animus, or that the statement made by Gateway’s officer was coercive. Rather, the evidence clearly shows that the services of two of the three projectionists were terminated because they were incompetent and had repeatedly violated Gateway’s work rules. The third “discharged” projectionist was offered a position with Gateway within three days of the date of “discharge,” and, in fact, currently works for Gateway. Because we find that the Board’s findings are not supported by substantial evidence, we have no choice but to deny the application for enforcement.

I. Background

In June of 1983, Gateway, a firm with no prior experience running motion picture theaters, undertook the operation of three motion picture theaters in Washington, D.C. On June 16, 1983, Gateway management met with representatives of Local 224 of the Moving Picture Machine Operators’ Protective Union (the “Union”), seeking to make arrangements to obtain the services of qualified projectionists. During their discussions, which recognized Gateway’s lack of experience in theater management, the parties reached the following oral agreement: “the Union would select and provide all the projectionists needed to staff [Gateway’s] theaters; that if [Gateway] had problems with any of the projectionists it would contact the Union which would attempt to resolve the problem with the projectionists; and that [Gateway] would pay the projectionists certain hourly wages and premium pay for work after midnight. They also agreed that this ... arrangement was temporary and that after the expiration of 6 months ... [Gateway] was free to discontinue it entirely.” Gateway Theatre Corp., 277 N.L.R.B. No. 186, at 2 (1986) (“Board Op.”). Gateway “ ‘absolutely’ had a right to ‘walk away’ [from the arrangement] for any reason at the end of 6 months.” Id. at 3 (quoting Union official).

Thereafter, Gateway commenced operation of its theaters. Pursuant to the oral agreement, Gateway notified the Union of *973 the times at which films would be shown, the Union assigned and scheduled projectionists to meet Gateway’s requirements, and Gateway paid the projectionists at the agreed-upon wage rates. “Also pursuant to the agreement, although [Gateway] had numerous disciplinary problems with projectionists, it took no action against [them] but repeatedly complained to the Union about them.” Id. Some time later, a dispute arose between Gateway and a former projectionist (Hughes) over wages. Although the Union had assured Gateway that it would support Gateway’s position at a hearing before the local Wage and Hour Board, the Union sided with Hughes at the hearing. On March 20,1984, the Wage and Hour Board found that there was no contractual relationship between the Union and Gateway, and ruled in favor of Gateway on Hughes’ claim.

That same day, Gateway terminated its relationship with the Union, writing that it had “decided to employ independent projectionists for the immediate future,” and asking the Union to so notify any projectionists who would suffer a loss of work. Letter from Gateway to the Union (Mar. 20, 1984), reprinted in Joint Appendix (“J.A.”) 726. Gateway then hired projectionists, offering lower wages than had been paid under the Union arrangement. Gateway extended an offer to Hunt, one of the Union-referred projectionists, on or about March 23, 1984. He did not accept the offer at that time, but ultimately returned to Gateway at the same terms that he had enjoyed under the Union agreement. Gateway did not make offers to the other Union-referred projectionists. The record does not indicate whether or not the projectionists who were hired to replace the Union-referred projectionists were Union members.

On March 26, 1984, the Union filed a charge against Gateway with the Board. The General Counsel issued a complaint on June 25, 1984. The complaint alleged that: (1) Gateway officials had made certain coercive statements to some of the projectionists in violation of section 8(a)(1) of the Act; 1 (2) Gateway had discharged projectionists Hunt, Blair, Dixon and Mark-en in violation of sections 8(a)(1) and (3) of the Act; 2 and, (3) by unilaterally reducing the wages of projectionists after March 20, 1984, Gateway had refused to bargain with the Union in violation of sections 8(a)(1) and (5) of the Act. 3

The matter was heard before an administrative law judge (“AU”) on September 18, 19 and 20, 1984. The AU dismissed the case in its entirety. Gateway Theatre Corp., 277 N.L.R.B. No. 186 (1984) (“ALJ Op.”). The AU found that, on March 20, “the Company exercised its right to terminate the entire agreement and told the Union to stop ‘scheduling’ employees on its behalf. It decided to hire projectionists itself.” Id. at 3. Therefore, no violation of section 8(a)(5) took place when, after March 20, Gateway began paying projectionists wages different from those set by the agreement with the Union. As for the discharge of the four projectionists, the AU found that one of them, Marken, had voluntarily left his job at Gateway more than a month before March 20, 1984. Accordingly, it could not be said that he had been discharged as a result of anti-Union animus. The AU further found that, with regard to “the three men who lost their jobs on March 20 because the Company chose no longer to have the Union do the hiring, as to two of them — Blair and Dixon — there is a perfectly convincing affirmative, defense of discharge for just cause— *974 plain, continuing flouting of the work rules. As to [Hunt], the competent man, the Company offered to keep him.” Id. at 10. As for the allegedly coercive statements, the AU found that one such statement had not been made, based on credibility assessments of the witnesses. However, there was no explicit discussion of an allegedly coercive statement made by Dacey, an officer of Gateway, to Dixon.

The Board agreed with the AU that “when [Gateway] terminated its relationship with the Union on 20 March 1984, it was exercising a right created by its agreement with the Union and did not thereby violate Section 8(a)(5) and (1) of the Act.

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Bluebook (online)
818 F.2d 971, 260 U.S. App. D.C. 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-the-gateway-theatre-corporation-dba-cadc-1987.