N.L.R.B. v. Dredge Operators, Inc.

CourtCourt of Appeals for the Fifth Circuit
DecidedApril 21, 1994
Docket93-04847
StatusPublished

This text of N.L.R.B. v. Dredge Operators, Inc. (N.L.R.B. v. Dredge Operators, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N.L.R.B. v. Dredge Operators, Inc., (5th Cir. 1994).

Opinion

United States Court of Appeals,

Fifth Circuit.

No. 93-4847.

NATIONAL LABOR RELATIONS BOARD, Petitioner,

v.

DREDGE OPERATORS, INC., Respondent.

April 21, 1994.

Application for Enforcement of an Order of the National Labor Relations Board.

Before HIGGINBOTHAM and WIENER, Circuit Judges, and KAUFMAN*, District Judge.

FRANK A. KAUFMAN, District Judge:

Respondent-appellant Dredge Operators, Inc. ("DOI") is a

Louisiana corporation which operates an ocean-going, United States

flag vessel known as the dredge Stuyvesant. On April 8, 1991, the

National Maritime Union ("NMU" or "Union") filed a representation

petition with the National Labor Relations Board ("NLRB"), seeking

to represent a bargaining unit composed of the unlicensed members

of the crew of the Stuyvesant, which was based at that time in

Galveston, Texas.1 In mid-April the vessel sailed to San

Francisco, from which it departed on April 27, 1991, for Hong Kong

where it arrived on May 23, 1991. Since that time, the Stuyvesant

has been engaged in dredging work for the new Hong Kong

international airport pursuant to a contract with the government of

Hong Kong.

* District Judge of the District of Maryland, sitting by designation. 1 The Stuyvesant employs about 20 to 22 unlicensed seamen who work in rotating crews of 10 to 12. On April 30, 1991, the representation hearing was held with

regard to the aforementioned April 8, 1991, petition. Following

the hearing, the Regional Director ordered, on May 28, 1991, that

an election be held by mail ballot. DOI's request for review of

the direction of election was denied on July 29, 1991. After the

August 7, 1991 election, the Board certified the NMU as the

statutory collective bargaining representative of the unlicensed

seamen employed aboard the Stuyvesant on April 14, 1992.2 On April

28, 1992, the union requested collective bargaining negotiations

with DOI which request DOI subsequently refused in a letter dated

May 18, 1992. In that letter, DOI stated that the NLRB lacked

jurisdiction over the Stuyvesant and that Hong Kong labor laws

requiring the hiring of a certain percentage of Hong Kong employees

conflicted with United States labor laws mandating that a United

States flag vessel employ only Americans.

Currently, the Stuyvesant employs 12 Hong Kong crewmembers and

14 American crewmembers. DOI had obtained work permits from the

Hong Kong government in July 1991 and April 1992 to employ American

crew members. The work permits were conditioned upon DOI's

agreement to retain the 12 Hong Kong crew members and to lay off

American workers before Hong Kong workers in the event of a

reduction in force. In a letter dated November 5, 1991, the Coast

Guard notified DOI that the requirement of U.S. Shipping Act, 46

2 Prior to the certification, DOI challenged the election results. The Board held a hearing concerning the election results on October 8, 1991, and shortly thereafter issued a report with regard to the challenged ballots rejecting DOI's contentions. On March 30, 1992, the Board adopted the report's findings and recommendations. The controversy with regard to the election results are not relevant to the instant appeal. U.S.C. § 8103(b)(1)(A), that a United States flag-vessel carry a

full American crew would be suspended for the time being. The

Coast Guard subsequently wrote to the Department of State

explaining that DOI had hired Hong Kong workers with Coast Guard

permission. According to DOI, the Department of State has not

responded to that letter.

Following DOI's refusal to negotiate with the union, NMU filed

a refusal to bargain charge against DOI on June 8, 1992. The NLRB

then issued, on July 10, 1992, a "Complaint and Notice of Hearing"

charging DOI with violations of sections 8(a)(5) and (1) of the

National Labor Relations Act, 29 U.S.C. §§ 158(a)(5) and (1),

("NLRA" or "the Act"),3 by refusing to bargain with the union.

Apparently, the NLRB set no hearing date, nor did it give an actual

notice of any hearing date with regard to the July 10, 1992,

complaint.

General Counsel for the NLRB filed a motion for summary

judgment on November 9, 1992, to which DOI responded on December 3,

1992, along with a cross-motion for summary judgment. In the

meantime, on November 12, 1992, the Board had transferred the

proceeding from the Regional Director to the NLRB in Washington

D.C. for resolution. On December 16, 1992, the Board granted the

Board's motion for summary judgment and ordered DOI to cease and

desist and to bargain with the Union. 309 NLRB No. 159 (December

3 Section 8(a)(5) of the Act makes it an unfair labor practice for an employer "to refuse to bargain collectively with the representatives of his employees." Section 8(a)(1) makes it an unfair labor practice for an employer "to interfere with, restrain, or coerce employees in the exercise of" their statutory rights. 29 U.S.C. §§ 158(a)(5) and (1). 16, 1992). The Board determined that DOI had adduced no additional

evidence requiring a reexamination of the prior April 30, 1991,

representation hearing and that accordingly, DOI's refusal to

bargain with the Union violated the NLRA. The Board also rejected

as lacking merit DOI's contention that the July 19, 1992, complaint

must be dismissed because it did not include a notice of hearing.

In response to DOI's contention that it was no longer engaged in

commerce, the Board found that DOI is an employer engaged in

commerce within the meaning of the Act, noting that DOI received

over $1 million at its Louisiana headquarters from the government

of Hong Kong. The NLRB brings an application for enforcement of

the NLRB's order, which DOI opposes.4

We uphold the Board's findings of fact if they are supported

by substantial evidence. NLRB v. Houston Bldg. Serv. Inc., 936

F.2d 178, 180 (5th Cir.1991), cert. denied, --- U.S. ----, 112

S.Ct. 1159, 117 L.Ed.2d 407 (1992) (citing Universal Camera Corp.

v. NLRB, 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1951)). The

Board's interpretation of the statutes it is charged with

administering is upheld if reasonable and "is entitled to

considerable deference." NLRB v. City Disposal Systems, Inc., 465

U.S. 822, 829, 104 S.Ct. 1505, 1510, 79 L.Ed.2d 839 (1984) (citing

NLRB v. Iron Workers, 434 U.S. 335, 350, 98 S.Ct. 651, 660, 54

L.Ed.2d 586 (1978)). For the reasons stated herein, we enter

judgment enforcing the Board's order.

I.

DOI first asserts that the NLRB lacks jurisdiction over this

4 The NMU is an intervenor in this appeal. case because the Stuyvesant operates in Hong Kong territorial

waters under contract with the Hong Kong government and has no

present intention of returning to the United States. In addition,

DOI contends that it is not engaged in "commerce" within the

meaning of section 2(6) of the NLRA, 29 U.S.C.

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