Oil, Chemical & Atomic Workers International Union v. National Labor Relations Board

806 F.2d 269, 256 U.S. App. D.C. 370, 123 L.R.R.M. (BNA) 3129, 1986 U.S. App. LEXIS 33936
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 2, 1986
DocketNos. 85-1459, 85-1740
StatusPublished
Cited by2 cases

This text of 806 F.2d 269 (Oil, Chemical & Atomic Workers International Union v. National Labor Relations Board) 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
Oil, Chemical & Atomic Workers International Union v. National Labor Relations Board, 806 F.2d 269, 256 U.S. App. D.C. 370, 123 L.R.R.M. (BNA) 3129, 1986 U.S. App. LEXIS 33936 (D.C. Cir. 1986).

Opinion

HARRY T. EDWARDS, Circuit Judge:

In this case, we are called upon to review a series of orders by the National Labor Relations Board (“NLRB” or the “Board”). Over the objection of the Board’s General Counsel, the NLRB approved private settlement agreements disposing of certain unfair labor practice charges against TNS, Inc. (the “Company”). The settlement agreements were signed by TNS and fifty-six individual employees, all of whom were members of a bargaining unit represented by the petitioner, the Oil, Chemical and Atomic Workers International Union, AFL-[371]*371CIO (the “Union”). The Union neither participated in the negotiations leading to the settlement agreements nor approved the terms of settlement. Because we find that the Board failed to explain its departure from established precedent in approving the private settlements, we remand the case to the Board for further proceedings.

I.Background

A. Factual Background

TNS, Inc., an intervenor in this appeal, operates a plant in Jonesboro, Tennessee. In 1981, when the present dispute arose, TNS produced various forms of ammunition made from depleted uranium. Approximately one-hundred employees of TNS were members of the bargaining unit represented by the Union.

On May 1, 1981, bargaining unit employees began a work stoppage allegedly in protest over health and safety conditions at the TNS plant. After closing down operations for several months, the Company hired permanent replacements for the “striking" workers. This action prompted the Union to file unfair labor practice charges with the NLRB.

The Union charges to the Board alleged that the permanent replacement of workers engaged in a work stoppage under section 502 of the Labor Management Relations Act1 violated sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (“NLRA” or the “Act”).2 Section 502 provides that the good faith “quitting of labor” because of abnormally dangerous working conditions shall not be deemed a “strike” under the Act. Under established principles of labor law, workers who strike in response to an employer’s unfair labor practices normally may not be permanently replaced.3 Under the Union’s theory of the case, workers who engaged in a work stoppage pursuant to section 502 should be deemed the equivalent of unfair labor practice strikers, in which ease the employer would violate the Act by hiring permanent replacements. In August of 1982, the NLRB’s General Counsel adopted the Union’s theory and brought an unfair labor practice complaint against TNS.4

While the General Counsel was presenting its case before an Administrative Law Judge (“AU”), seventy of the “striking” employees, represented by attorney William Shaw, moved to intervene in the proceedings. Intervention was granted for the limited purpose of allowing Shaw to question certain employees about working conditions at the TNS plant, and perhaps to introduce an expert witness.5

At some point thereafter, however, Shaw and TNS began negotiations on a possible settlement of the unfair labor practice charges. At the conclusion of the hearings, Shaw and counsel for TNS presented signed settlement agreements to the AU for her approval.6 Under the terms of the settlement agreements, the employees were each to receive a lump-sum payment of between $2,000 and $12,000. In- return, the employees agreed to withdraw from the unfair labor practice proceedings, to waive all future legal claims against the Company, and to waive any right to reinstatement. The monetary payments plainly were not to be considered backpay within the meaning of the Act. Rather, by agreement, the Company and employees specified that the settlement payments were given solely in consideration for the employees’ releases of potential personal injury claims arising from their exposure to hazardous conditions at the TNS plant. The Company also agreed to pay Shaw [372]*372attorney’s fees of $450 for each employee who signed a settlement agreement.7

The AU refused to approve the settlement agreements. She found that Shaw, in being permitted to intervene, had not been granted “standing” to settle the claims of the individual employees.8 Nor did the employees themselves have “standing” apart from their exclusive representative, the International Union.9 The AU also expressed “very serious concerns” regarding the content of the agreements and the manner in which they had been negotiated; in particular, she questioned the propriety of Shaw’s attorney’s fees and the adequacy of Shaw’s legal representation.10

B. The Board’s Orders

In its first in a series of three orders, the Board reversed the AU’s decision to reject the settlements, and approved them “in principle.” 11 It remanded for an additional hearing, however, on the issue of whether the employees had entered into the agreements with voluntary and informed consent. In approving the agreements in principle, the Board rejected the Union’s request to examine whether Shaw’s actions in negotiating the settlements had been unethical, reasoning that it was not the Board’s “function or responsibility to pass on the ethical propriety of an attorney’s conduct.”12

Two months later, the Union, the Company and the individual employees filed a joint motion with the Board stipulating that the employees had executed the settlement agreements with voluntary and informed consent.13 Accordingly, the parties asked the Board to approve the agreements without a further hearing. The General Counsel objected, arguing, inter alia, that the agreements did not meet the standards articulated by the Board in Community Medical Services, Inc. (“Clear Haven’’), 236 N.L.R.B. 853 (1978).14

On May 16,1985, the Board approved the settlement agreements over the General Counsel’s objections.15 On October 23, 1985, however, the Board amended its two earlier orders sua sponte. In its amended order, the Board elaborated on its reasons for approving the settlements. Citing its decisions in Combustion Engineering Inc.16 and Coca-Cola Bottling Co.,17 the Board explained that it had a “long-standing policy of encouraging resolution of disputes without resort to Board processes.” 18 Approval of the agreements was thus “in effect” a deferral to private, non-Board settlements, fully consistent with the “general principle which favors settlement over litigation wherever possible.” 19

The Board went on to cite four reasons why giving effect to the proposed settlement agreements would “effectuate the policies of the Act.”20 First, the legal and policy issues raised by the unfair labor [373]*373practice complaint were “novel.”21 Second, the parties had stipulated that the agreements were executed with voluntary and informed consent. Third, the legal issue presented by the unfair labor practice complaint was preserved because not all of the employees had agreed to the settlement.22

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
806 F.2d 269, 256 U.S. App. D.C. 370, 123 L.R.R.M. (BNA) 3129, 1986 U.S. App. LEXIS 33936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oil-chemical-atomic-workers-international-union-v-national-labor-cadc-1986.