N.L.R.B. v. Cal-Maine Farms, Inc.

Court of Appeals for the Fifth Circuit·Decided August 25, 1993·No. 92-4741·Published

Opinion

United States Court of Appeals, Fifth Circuit.

No. 92-4741.

NATIONAL LABOR RELATIONS BOARD, Petitioner, v.

CAL-MAINE FARMS, INC., Respondent.

Sept. 1, 1993.

Application for Enforcement of an Order of the National Labor Relations Board. Before KING, HIGGINBOTHAM and DeMOSS, Circuit Judges.

KING, Circuit Judge:

This case is before us on the application of the National Labor Relations Board (the "NLRB")

for enforcement of its order against Cal-Maine Farms, Inc. The NLRB's order issued on April 30, 1992. We have jurisdiction under § 10(e) of the National Labor Relations Act, 29 U.S.C. §§ 151 et seq., 160(e). After a thorough review of the record, we enter judgment enforcing the NLRB's order.

I. BACKGROUND

Cal-Maine Farms, Inc., is a large commercial agricultural operation that produces and processes hen-laid eggs in its plants located in various southern states. In a NLRB election conducted on March 30, 1988, employees of Cal-Maine Farms' 4000-acre Edwards, Mississippi plant voted 60-4 in favor of having the United Food and Commercial Workers International Union, Local 1529, AFL- CIO-CLC ("the union") represent employees. Following the NLRB's certification of the union shortly thereafter, Cal-Maine's management refused to recognize or bargain with the union. The management claimed it was justified in refusing to bargain on the ground that the workers at the Edwards plant were not "employees" within the meaning of the National Labor Relations Act ("the Act") and instead were "agricultural laborers." "Agricultural laborers" are explicitly excluded from the coverage of the Act. See 29 U.S.C. § 152(3).1

1 Since 1946, in riders to the NLRB's annual appropriations acts, Congress has provided that the term "agricultural laborer" shall be defined in accordance with Section 3(f) of the Fair Labor Standards Act, 29 U.S.C. § 203(f). Bayside Enterprises, Inc. v. NLRB, 429 U.S. 298, 300 and n.

In May 1988, the union filed a charge with the NLRB stating that Cal-Maine had failed to recognize the union or bargain with it in good faith, as required by the Act. General Counsel for the NLRB agreed with the union, and a complaint issued in June 1988. After an administrative hearing in May 1989, the administrative law judge ("the ALJ") found that Cal-Maine violated §§ 8(a)(1) & (5) of the Act. At the time of that hearing, the rule governing the exemption of agricultural workers had been set forth by the NLRB in DeCoster Egg Farms, 223 NLRB 884, 1976 WL 6879 (1976). The so-called "single-egg test" of DeCoster "limit[ed] the exemption to those processors who deal exclusively with their own goods." Id. (emphasis added). That is, the procurement of even a single egg produced from outside sources would preclude classification of a commercial farming operation's workers as "agricultural laborers." In light of DeCoster, the ALJ defined the issue for adjudication at the May 1989 hearing as "whether [Cal-Maine's] employees at the Edwards egg packi ng plant processed only eggs produced at that facility after April 1, 1988, or also processed [any] eggs produced elsewhere." The ALJ found that outside eggs had been processed at Cal-Maine's Edwards plant and thus held that Cal-Maine's management had violated the Act by refusing to recognize or bargain in good faith with the union.

While Cal-Maine's appeal of the ALJ's initial decision was pending with the NLRB, the agency issued its decision in Camsco Produce Co., 297 NLRB 905, 1990 WL 122306 (Mar. 15, 1990), which overruled DeCoster to the extent it was inconsistent with the formulation of the rule

6, 97 S.Ct. 576, 579 and n. 6, 50 L.Ed.2d 494 (1977); see also Amalgamated Meat Cutters & Butcher Workmen v. McCulloch, 428 F.2d 396, 399 (5th Cir.1970). That section defines "agriculture" to encompass "farming in all its branches," including "the raising of ... poultry, and any practices ... performed by a farmer or on a farm as an incident to or in conjunction with such farming operations...." 29 U.S.C. § 203(f); see Bayside Enterprises, 429 U.S. at 300, 97 S.Ct. at 579. That provision defines agriculture "in both a primary and a secondary sense." Id. The primary meaning encompasses "farming in all its branches," including such practices as the cultivation and tillage of the soil, dairying, the cultivation of agricultural and horticultural commodities, and the raising of poultry. Farmers Reservoir & Irrigation Co. v. McComb, 337 U.S. 755, 762, 69 S.Ct. 1274, 1278, 93 L.Ed. 1672 (1949); Bayside Enterprises, 429 U.S. at 300 n. 7, 97 S.Ct. at 579 n. 7; Camsco Produce Company, Inc., 297 NLRB 905, 906, 1990 WL 122, 306 (1990). The secondary meaning "includes any practices, whether or not themselves farming practices, which are performed either by a farmer or on a farm, incidentally to or in conjunction with "such' farming operations." Farmers Reservoir & Irrigation Co. v. McComb, 337 U.S. at 762-763, 69 S.Ct. at 1279; Bayside Enterprises, 429 U.S. at 300-301 & n. 7, 97 S.Ct. 579 & n. 7; Chapman v. Durkin, 214 F.2d 360, 361-362 (5th Cir.), cert. denied, 348 U.S. 897, 75 S.Ct. 218, 99 L.Ed.2d 704 (1954).

announced in Camsco. Camsco held that the Act's exemption for "agricultural laborers" would be based on whether the employees in question "regularly" handle "any" amount of the products of outside producers.2 Thus, the "single egg test" of DeCoster was replaced by Camsco 's "regularity" standard. Camsco also required that the party seeking exemption from the Act—in this case, Cal- Maine—has the burden to establish that outside produce is not regularly handled by the employees seeking representation. Camsco, 297 NLRB 905. The NLRB subsequently remanded the case to the ALJ to consider the impact of the new rule in Camsco on the result in this case.

The ALJ issued his supplemental decision after a supplemental hearing in October 1990. In that decision, the ALJ reaffirmed his original position. On appeal to the NLRB, the ALJ's decision was affirmed by a vote of three to one. See Cal-Maine Farms, Inc., 307 NLRB No. 66, 1992 WL 101249, 1992 NLRB NEXIS 609 (April 30, 1992). The NLRB then applied to this court for a judgment enforcing its order.

II. STANDARD OF REVIEW

A) Legal determinations It is the NLRB's "special duty" to apply the National Labor Relation Act's exemption for agricultural laborers "to varying fact patterns." Bayside Enterprises, Inc. v. NLRB, 429 U.S. 298, 304, 97 S.Ct. 576, 581, 50 L.Ed.2d 494 (1977). In performing that duty, the NLRB is charged with construing the Act—including its incorporation of the term "agricultural laborer" as used in the Fair Labor Standards Act—"liberally in favor of the workers" for whose protecti on those laws were designed, and that any exemption from the terms of those laws must be "narrowly construed." Wirtz v. Ti Ti Peat Humus Company, Inc., 373 F.2d 209, 212 (4th Cir.), cert. denied, 389 U.S. 834, 88

2 Although the dictionary definition of "regularity" is "customary," "usual," or "normal," see AMERICAN HERITAGE DICTIONARY 1041 (2d ed. 1982), the NLRB in Camsco intended "regularity" to mean only non-aberrational, i.e., more than one or two isolated instances not part of a larger pattern. See Camsco, 297 NLRB 905 ("[I]t makes no sense, given the framework of our statute, to find the agricultural exemption inapplicable simply because on a single occasion, under circumstances that might never occur again, a few commodities from another employer's operation were handled by the employees at issue.... [In the instant case,] the Employer has not demonstrated that its handling of [outside produce] occurred very rarely, on only an emergency basis."). Camsco also makes it clear that any amount of outside produce, so long as handled "regularly," will cause the agricultural exemption to be lost. See id.

S.Ct. 37, 19 L.Ed.2d 94 (1967); see also NLRB v. Security Guard Service Inc., 384 F.2d 143, 147 (5th Cir.1967) (recognizing "the standard reluctance to apply [a statutory] exception broadly").

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N.L.R.B. v. Cal-Maine Farms, Inc., (5th Cir. 1993).

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