Raymond Interior Systems, Inc. v. National Labor Relations Board

812 F.3d 168, 421 U.S. App. D.C. 108, 205 L.R.R.M. (BNA) 3372, 2016 U.S. App. LEXIS 1997
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 5, 2016
Docket12-1011, 12-1047, 12-1012, 12-1013
StatusPublished
Cited by4 cases

This text of 812 F.3d 168 (Raymond Interior Systems, Inc. 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
Raymond Interior Systems, Inc. v. National Labor Relations Board, 812 F.3d 168, 421 U.S. App. D.C. 108, 205 L.R.R.M. (BNA) 3372, 2016 U.S. App. LEXIS 1997 (D.C. Cir. 2016).

Opinion

Opinion for the Court filed by Senior Circuit Judge EDWARDS.

EDWARDS, Senior Circuit Judge:

This case involves petitions for review filed by Raymond Interior Systems, Inc. (“Raymond”), and the United Brotherhood of Carpenters and Joiners of America, Local Union No. 1506, an affiliate of the Southwest Regional Council of Carpenters (the “Carpenters Union” or “Carpenters”), and a cross-application to enforce filed by the National Labor Relations Board (“Board” or “NLRB”). The dispute here focuses on orders issued by the Board on September 30, 2010, Raymond Interior Sys., 355 NLRB 1278 (2010), and December 30, 2011, Raymond Interior Sys., 357 NLRB No. 166 (Dec. 30, 2011). The Southern California Painters and Allied Trades District Council No. 36, International Union of Painters and Allied Trades, AFL-CIO (the “Painters Union” or “Painters”), the charging party before the Board, also petitions for review because, in its view, the sanctions issued by the Board against Raymond and the Carpenters are insufficient.

For many years, Raymond was a party to collective bargaining agreements with the Painters, the most recent of which was entered into pursuant to Section 8(f) of the *172 National Labor Relations Act (the “Act” or “NLRA”), 29 U.S.C. § 158(f). Section 8(f) allows construction-industry employers to recognize a union as the bargaining agent of its employees before a majority of employees have designated the union as their representative. On September 30, 2006, Raymond lawfully terminated its 8(f) •agreement with the Painters.

On September 12, 2006, Raymond and the Carpenters executed a Confidential Settlement Agreement providing that, upon expiration of the Painters agreement, Raymond would apply the Carpenters 2006 Drywall/Lathing Master Agreement (“2006 Master Agreement”) to Raymond’s drywall-finishing work and employees “to the fullest extent permitted by law.” The Confidential Settlement Agreement incorporating the 2006 Master Agreement took effect on October 1, 2006. On October 2, Raymond allegedly told its drywall-finishing employees that they needed to join the Carpenters Union “that day” if they wanted to continue working. Later that day, after the union had secured authorization cards from the employees, the Carpenters and Raymond signed an agreement recognizing the Carpenters as the majority representative of these employees pursuant to Section 9(a) of the Act, 29 U.S.C. § 159(a).

The Painters filed an unfair labor practice charge with the NLRB challenging Raymond’s recognition of the Carpenters Union. A complaint was issued and the matter was heard by an Administrative Law Judge (“ALJ”). Regarding the conduct of Raymond- and the Carpenters on October 2, 2006, the Board adopted the findings of the ALJ that Raymond violated Section 8(a)(1), (2), and (3) of the Act, 29 U.S.C. § 158(a)(1), (2), and (3), by conditioning continued employment of the drywall-finishing employees on their immediate membership in the Carpenters Union, and by unlawfully assisting the union in obtaining authorization cards. The Board also agreed that, on October 2, Raymond violated 8(a)(1) and (2) by granting recognition to the Carpenters, and that the union violated Section 8(b)(1)(A) of the Act, 29 U.S.C. § 158(b)(1)(A), by accepting recognition, at a time when the Carpenters did not represent an uncoerced majority of the drywall-finishing employees. The Board additionally agreed that, on October 2, Raymond violated Section 8(a)(3) of the Act, and the Carpenters violated Section 8(b)(2), 29 U.S.C. § 158(b)(2), by applying the Carpenters 2006 Master Agreement to the employees when the union did not represent an uncoerced majority of the employees. Finally, the Board agreed that, on October 2, the Carpenters violated Section 8(b)(1)(A) of the Act by failing to properly inform the drywall-finishing employees of their rights to decline union membership, NLRB v. Gen. Motors Corp., 373 U.S. 734, 742, 83 S.Ct. 1453, 10 L.Ed.2d 670 (1963), and ,to seek a reduction in union fees for monies spent on activities not germane to the collective bargaining, contract administration, and grievance adjustment, Commc’n Workers of Am. v. Beck, 487 U.S. 735, 745, 108 S.Ct. 2641, 101 L.Ed.2d 634 (1988). The Board found it unnecessary to consider the ALJ’s findings that Raymond violated the Act on October 1 when the Confidential Settlement Agreement took effect. Following a motion for reconsideration, the Board again refused to rule on the legality of the Confidential Settlement Agreement, but clarified that its orders should not be interpreted as requiring a Board certification before Raymond could lawfully recognize the Carpenters pursuant to Section 8(f).

Raymond and: the Carpenters contend that the Board’s findings with respect to the October 2 unfair labor practices are not supported by substantial evidence. We disagree for the reasons set forth be *173 low. Raymond and the Carpenters also contend that the Board erred in failing to address their contention that, on October 1, by virtue of their Confidential Settlement Agreement, the company and union had a lawful Section 8(f) agreement that could not, without more, be vitiated by unfair labor practices that allegedly occurred on October 2. We agree. The Board’s failure to address this matter cannot withstand review. We therefore grant in part the Board’s application for enforcement, grant in part the petitions for review filed by Raymond and the Carpenters, and remand the case for further consideration by the Board.

Finally, we decline to consider the Painters’ principal claim that the Board abused its discretion in declining to require Raymond to provide alternate benefits coverage because our decision to remand on the remedy issue may render the claim moot. We find no merit in the other claims raised by the Painters Union.

I. Background

Raymond is a California-based specialty wall and ceiling contractor in the building and construction industry. Raymond’s employees include its drywall-finishing employees, who perform drywall-finishing services in connection with Raymond’s various commercial and residential projects.

Since at least the 1960s, Raymond has been an employer-member of the Western Wall and Ceiling Contractors Association, Inc. (“the Association”), a multi-employer association of companies in the building and construction industry. Employer-members choose to join various “conferences” within the Association, and each conference then negotiates and executes collective bargaining agreements with various unions on behalf of the employer-members. At all relevant times, Raymond was an employer-member of the Drywall/Lathing Conference, which negotiates with the Carpenters Union.

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Bluebook (online)
812 F.3d 168, 421 U.S. App. D.C. 108, 205 L.R.R.M. (BNA) 3372, 2016 U.S. App. LEXIS 1997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raymond-interior-systems-inc-v-national-labor-relations-board-cadc-2016.