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

Court of Appeals for the Fifth Circuit·Decided April 21, 1994·No. 93-04847·Published

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. § 152(6).5 The Supreme Court "has consistently declared that in passing the National Labor Relations Act, Congress intended to and did vest in the Board the fullest jurisdictional breadth constitutionally permissible under the Commerce Clause." NLRB v. Reliance Fuel Oil Corp., 371 U.S. 224, 226, 83 S.Ct. 312, 313, 9 L.Ed.2d 279 (1963). DOI concedes that the NLRB is not constitutionally barred from exercising jurisdiction over the Stuyvesant, but argues that comity concerns should prevent such an exercise of jurisdiction.

DOI relies almost exclusively on a series of Supreme Court cases concerning labor disputes aboard foreign flag vessels. In Benz v. Compania Naviera Hidalgo, S.A., 353 U.S. 138, 77 S.Ct. 699, 1 L.Ed.2d 709 (1957), the Supreme Court declined to apply the NLRA

5 The terms "commerce" and "affecting commerce" are defined in §§ 2(6) and (7), 29 U.S.C. §§ 152(6) and (7) as follows:

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

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