PUBLISH
UNITED STATES COURT OF APPEALS Filed 4/26/96 TENTH CIRCUIT
READY MIXED CONCRETE COMPANY,
Petitioner, v. No. 95-9533 NATIONAL LABOR RELATIONS BOARD,
Respondent.
PETITION FOR REVIEW OF AN ORDER OF THE NATIONAL LABOR RELATIONS BOARD (Board Case No. 27-CA-13393)
Janet L. Durkin of Janet L. Durkin, P.C., Denver, Colorado, for Petitioner.
Howard E. Perlstein (Nancy B. Hunt; Frederick L. Feinstein, General Counsel; Linda R. Sher, Associate General Counsel; and Aileen A. Armstrong, Deputy Associate General Counsel with him on the briefs) of National Labor Relations Board, Washington, D.C., for Respondent.
Before PORFILIO, BARRETT and LUCERO, Circuit Judges.
LUCERO, Circuit Judge.
Ready Mixed Concrete Company petitions for review of a National Labor
Relations Board order finding that it violated the National Labor Relations Act (the “Act”) by suspending and discharging its employee, Terry Teter, for his protected union
activities. 29 U.S.C. § 158(a)(1), (3). The order requires Ready Mixed to reinstate Teter
with backpay, expunge from Teter’s record any reference to the suspension or discharge,
and cease and desist from discriminating against employees for union activities. The
Board has filed a cross-application for enforcement. Our jurisdiction to review the order
arises under sections 10(e) and (f) of the Act. 29 U.S.C. §§ 160(e), (f). We deny Ready
Mixed’s petition and grant enforcement of the Board’s order.
I
Ready Mixed manufactures and supplies concrete to the Denver area building and
construction trade, employing approximately fifty drivers. Teter was hired as a driver in
1991, and worked for Ready Mixed until his discharge on September 15, 1994. The facts
leading up to Teter’s discharge are disputed by the parties, but both agree that the bulk of
the relevant conduct took place in the summer of 1994. In August and early September,
Teter discussed with other drivers the possibility of seeking union representation and
arranged union organizational meetings. The drivers had previously been represented by
the Teamsters union, ending in 1988 when the unit was decertified. On August 31, while
delivering a load of concrete, Teter ran over a manhole cover at the site of one of Ready
Mixed’s customers. On September 15, Teter was suspended and then discharged,
allegedly because of the August 31 accident, failing to report the accident, and failing to
wear his hardhat on the job. Later, during the hearing before the Administrative Law
-2- Judge (“ALJ”), Ready Mixed added Teter’s bad attitude as a justification for his
discharge.
After the discharge, the Board’s General Counsel issued a complaint, charging
Ready Mixed with suspending and discharging Teter in violation of sections 8(a)(1) and
(3) of the Act.1 Following a two-day hearing, the ALJ made the following findings:
Teter had engaged in protected union activity by speaking about unionizing with his
coemployees, approaching the Teamsters about an organizational drive, and conducting a
unionization meeting for Ready Mixed drivers; Ready Mixed harbored antiunion animus,
demonstrated by remarks of a senior supervisor later involved in Teter’s discharge; and
Ready Mixed knew about Teter’s union activities at the time of his suspension and
discharge. The ALJ determined from these findings that the General Counsel had made a
prima facie showing that protected conduct was a motivating factor for Teter’s
suspension and discharge.
Ready Mixed presented evidence at the hearing contesting the prima facie case, as
well as rebuttal evidence showing that regardless of his protected activities it would have
fired Teter based on the justifications it gave in his discharge letter, as well as his general
bad attitude. Although the General Counsel labeled these purported justifications
1 Section 8(a) makes it an unfair labor practice “(1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 157 of this title [establishing the right to collective bargaining]; . . . (3) by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization . . .” 29 U.S.C. § 158(a).
-3- “pretexts,” the ALJ nevertheless considered them carefully. The ALJ concluded that
Ready Mixed would not have suspended or discharged Teter for the reasons it advanced.
It found that Ready Mixed violated sections 8(a)(1) and (3) of the Act, and ordered Teter
reinstated with backpay. The Board, in an order dated July 17, 1995, affirmed the ALJ’s
decision and adopted her recommended order. Ready Mixed Concrete Co., 317 N.L.R.B.
1140 (1995). Ready Mixed petitioned this court to review the Board’s order.2
Petitioner raises two issues regarding the Board’s conclusions. First, it argues that
the General Counsel failed to prove a prima facie case that Teter’s union activity was a
motivating factor in his discharge. Second, it contends the Board incorrectly concluded
that Teter would not have been fired for legitimate reasons. Although Ready Mixed
characterizes the Board’s error as misapplication of the legal test for retaliatory
discharges, it is in reality alleging that the record neither supports a prima facie case nor
the ALJ’s failure to credit its rebuttal evidence. In particular, Ready Mixed takes issue
with adverse inferences the ALJ drew from the failure of two Ready Mixed supervisors to
2 After filing its complaint with the Board, the Regional Director applied for a temporary injunction in the district court for the District of Colorado, under section 10(j) of the Act, 29 U.S.C. § 160(j). The district court denied the injunction in a ruling from the bench. Clements v. Ready Mixed Concrete Co., 94-x-93 (D. Colo. Feb. 1, 1995). The Regional Director appealed the district court’s denial, Clements v. Ready Mixed Concrete Co, 95-1133, which we dismissed as moot in light of the Board’s order. Although Ready Mixed cites to the section 10(j) proceedings in support of its arguments, factual findings made by the district court in that context have no application to our review of the Board’s order. NLRB v. Acker Indus., Inc., 460 F.2d 649, 652 (10th Cir. 1972).
-4- testify at the hearing. The adverse inferences were relevant to findings the ALJ made
both with respect to the General Counsel’s prima facie case, and Ready Mixed’s rebuttal.
II
It is an unfair labor practice to “interfere with, restrain, or coerce the exercise” of
employees’ rights to “form, join, or assist labor organizations,” 29 U.S.C. §§ 157,
158(a)(1), or to discriminate in hire or tenure “to encourage or discourage membership in
any labor organization,” 29 U.S.C. § 158(a)(3). It is a violation of the Act to fire an
employee for having engaged in protected activities when there is no legitimate reason for
the discharge, or the reasons offered are only pretexts. NLRB v. Transportation Mgmt.
Corp., 462 U.S. 393, 398 (1983). If, however, “any antiunion animus that he might have
entertained did not contribute at all to an otherwise lawful discharge for good cause,” an
employer does not violate the Act. Id. This rule is consistent with section 10(c) of the
Act, stating that “[n]o order of the Board shall require the reinstatement of any individual
as an employee who has been suspended or discharged, or the payment to him of back
pay, if such individual was suspended or discharged for cause.” 29 U.S.C. § 160(c); see
Transportation Mgmt., 462 U.S. at 401, n.6.
Following the Supreme Court’s lead in Mt. Healthy City School District Board of
Education v. Doyle, 429 U.S. 274 (1977), the Board has developed a two-part framework
for analyzing “dual motivation” cases. Initially, the General Counsel must establish that
the employee’s protected conduct was a “substantial” or “motivating” factor in the
-5- discharge decision; thereafter the burden shifts to the employer to show that it “would
have reached the same decision absent the protected conduct.” Wright Line, a Division of
Wright Line, Inc., 251 N.L.R.B. 1083, 1086-87 (1980), enf’d, 662 F.2d 899 (1st Cir.
1981), cert. denied, 455 U.S. 989 (1982); see also Mt. Healthy, 429 U.S. at 285-87. By
shifting the burden, the employer’s justification becomes an affirmative defense. The
Supreme Court and this circuit have both approved the Wright Line test. See
Transportation Mgmt., 462 U.S. at 403; Monfort, Inc. v. NLRB, 965 F.2d 1538, 1540
(10th Cir. 1992).
III
Here, the ALJ applied the Wright Line test in first determining that the evidence
supported the General Counsel’s contention that Teter’s protected activities were a
motivating factor in his discharge. An employer’s antiunion motivation often may be
proven only by circumstantial evidence. Intermountain Rural Elec. Ass’n v. NLRB, 732
F.2d 754, 759 (10th Cir.), cert. denied, 469 U.S. 932 (1984); McLane/Western, Inc. v.
NLRB, 723 F.2d 1454, 1459 (10th Cir. 1983). Proof of an employer’s specific intent to
discriminate is unnecessary; the evidence may provide a presumption of intent.
Presbyterian/St. Luke’s Medical Ctr. v. NLRB, 723 F.2d 1468, 1476 (10th Cir. 1983). On
the evidence before it, the Board found that Teter was engaged in union activities at the
time of his discharge, that Ready Mixed knew about his activities, that Joe Moseley,
Ready Mixed’s operations manager, exhibited antiunion animus, and that Teter was
-6- subjected to harsher discipline for his transgressions than were past employees who
similarly violated the company rules.
The General Counsel need not follow a rote formula to establish a prima facie
case of discriminatory discharge. The totality of the evidence presented must establish
directly or circumstantially that the employer had knowledge of employees’ protected
activities. See NLRB v. American Spring Bed Mfg., 670 F.2d 1236, 1245 (1st Cir. 1982).
Beyond that, we and our sister circuits have approved many combinations of factors in
concluding that the General Counsel carried its burden See, e.g., Intermountain Rural
Elec., 732 F.2d at 759 (evidence showed union activist was “more than adequate”
employee, supervisor made comments demonstrating hostility to her union activity, and
incident prompting discharge seemed pretextual); Presbyterian/St. Luke’s, 723 F.2d at
1476-77 (disciplined employees were known union activists and Board found the
employer’s explanation for discharge not credible); Hanlon & Wilson Co. v. NLRB, 738
F.2d 606, 614-15 (3d Cir. 1984) (prima facie burden met based solely on one statement by
supervisor to union advocate that his union activity was bad for the company). The
Board’s findings in this case are all relevant to demonstrate a prima facie case of
discrimination. We thus review whether the Board was entitled to make these factual
findings, and whether upon the evidence in the record its conclusions are permissible.
Our review of the Board’s factfinding is quite narrow. We must uphold the
Board’s factual findings if they are supported by substantial evidence in the record as a
-7- whole. Universal Camera Corp. v. NLRB, 340 U.S. 474, 487-88 (1951); Monfort, 965
F.2d at 1540. Substantial evidence is defined as “‘such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion.’” Presbyterian/St. Luke’s, 723
F.2d at 1471 (quoting Universal Camera, 340 U.S. at 477) (further quotation omitted).
We may not overturn a Board decision just because we might have decided the matter
differently; rather, our function is to ascertain that “the Board acts within reasonable
bounds and that the supporting evidence is truly substantial.” Id. at 1472.
Credibility determinations are particularly the province of the ALJ and the Board.
Id. at 1477. We “refuse to substitute our judgment on the credibility of witnesses for that
of the ALJ, absent ‘extraordinary circumstances.’” McLane/Western, 723 F.2d at 1458
(quoting NLRB v. Dillon Stores, 643 F.2d 687, 692 (10th Cir. 1982)). “[We] do not sit as
a super trial examiner, and do not weigh the credibility of one witness against another, nor
do we search for contradictory inferences.” Osteopathic Hosp. Founders Ass’n v. NLRB,
618 F.2d 633, 636 (10th Cir. 1980) (quotations omitted).
Ready Mixed does not contest that Teter was engaged in protected activity at the
time of his discharge. There is substantial evidence supporting the finding that Teter
spoke to perhaps half of the drivers about seeking union representation. Ready Mixed
does contest the Board’s finding that it knew about Teter’s union activities and that it
exhibited antiunion animus. In particular, Ready Mixed argues that Harrison, the
-8- supervisor who fired Teter, had no knowledge of his union activities and exhibited no
antiunion animus.
Viewing the record as a whole, we conclude that substantial evidence supports the
Board’s findings regarding Ready Mixed’s knowledge. At the administrative hearing,
Teter testified that he spoke with Joe Moseley, Harrison’s superior, about the union.
Curtis Jones, another supervisor, admitted he was aware of Teter’s union activity. In
addition, another driver testified that he told Moseley that Teter was soliciting union
support from the drivers. While Harrison denied knowledge of Teter’s union activities on
direct examination, on cross-examination he admitted that he might have heard that
“Terry Teter was pushing the union and Terry Teter was going to the union.” Moreover,
Ready Mixed did not call Moseley to testify about management’s knowledge of Teter’s
union activities. From this failure to testify, the Board drew an adverse inference that
Harrison had knowledge of Teter’s activities, and found that Harrison was not credible in
denying such knowledge.
The evidentiary rule that permits “adverse inferences” is a familiar one. It has
been long accepted by the Board, “that when a party fails to call a witness who may
reasonably be assumed to be favorably disposed to the party, an adverse inference may be
drawn regarding any factual question on which the witness is likely to have knowledge.”
International Automated Machs., Inc., 285 N.L.R.B. 1122, 1123 (1987), enf’d, 861 F.2d
720 (6th Cir. 1988); see also United Auto Workers Int’l Union v. NLRB, 459 F.2d 1329,
-9- 1339 (D.C. Cir. 1972) (decision whether to draw the adverse inference lies with the
factfinder). The rule has been applied in other civil contexts. See, e.g., Interstate Circuit,
Inc. v. United States, 306 U.S. 208, 225-26 (1939) (failure of antitrust defendant to call
company officers as witnesses “is itself persuasive that their testimony, if given, would
have been unfavorable”). We conclude that in this case, the Board reasonably drew the
adverse inference. Ready Mixed did not present any reason why it did not call Moseley,
the record suggests Moseley should have known whether Harrison knew about Teter’s
union activities, and his testimony appears to be within the control of Ready Mixed. See
NLRB v. Norbar, Inc., 752 F.2d 235, 240 (6th Cir. 1985) (inappropriate to draw adverse
inference when absent witness no longer worked for employer). As an alternative basis
for finding a prima facie case, the Board properly imputed Moseley’s knowledge of
Teter’s activities to Ready Mixed. See Pinkerton’s, Inc., 295 N.L.R.B. 538 (1989)
(knowledge of a supervisor is attributable to the employer where the employer does not
negate imputing such knowledge).
Substantial evidence also supports the finding that Ready Mixed exhibited
antiunion animus. The only direct evidence of Ready Mixed’s antiunion animus involves
a conversation between Moseley and Teter in June 1994. According to Teter, he told
Moseley that “somebody was liable to go to the union and try to get them to come back
in,” to which Moseley responded, “as long as he was there, those scum-sucking, lazy,
sorry-ass son of a bitches wouldn’t get back in.” After Teter persisted, Moseley
- 10 - purportedly told Teter that he did not want to hear “any more of your shit.” The ALJ
found Teter’s account credible, particularly in light of Ready Mixed’s failure to call
Moseley to rebut Teter’s testimony. These statements alone sufficiently indicate
antiunion animus. Harrison admitted that the decision to discharge Teter, though based
on his recommendation, was jointly made by him and Moseley.
Based on the evidence in the record as a whole, the Board’s conclusion that Teter’s
protected union activity motivated his suspension and discharge is well supported. Much
of the evidence supporting the Board’s conclusions derives from the ALJ making
credibility determinations from conflicting testimony. Each of these determinations is
reasonably supported in the ALJ’s decision. While there is evidence pointing both ways,
“it is not our function to retry this case on a cold record.” NLRB v. Blue Hills Cemetery,
567 F.2d 529, 530 (1st Cir. 1977).
IV
Once the General Counsel establishes a prima facie case, the burden shifts to the
employer to prove “by a preponderance of the evidence that it would have discharged the
employee, even if he had not engaged in the protected conduct.” McLane/Western, 723
F.2d at 1459 (citing Transportation Mgmt., 462 U.S. at 398-99). Ready Mixed argues
before us that Teter was discharged for his general bad attitude, his failure to wear a
hardhat after many admonitions, his accident of August 31, and his failure to report the
accident immediately. However, based on substantial testimony and exhibits
- 11 - documenting Ready Mixed’s response to accidents and safety infractions by other drivers,
the Board found that Teter would not have been suspended or fired for the accident itself
or for his failure to wear a hardhat. Because Teter had never in the past been disciplined
for his attitude, and it was not a reason given in his discharge letter, the Board concluded
that Teter’s attitude was not a reason for his discharge. The Board also found that Teter
received five raises before his discharge and he was assigned one of five new mixer
trucks even though he was low in line of seniority. Substantial evidence supports each of
these findings.
Ready Mixed’s remaining justification for the discharge is Teter’s failure to report
his August 31 accident, which violated the strict company rule to report such events
immediately. The parties advance different accounts of how and when the accident was
reported. Harrison testified that he was unaware of the accident until a quality control
inspector reported it to him on September 1, and that Teter’s failure exhibited dishonesty
for which he was fired. According to Teter, after he broke the manhole cover, the
customer’s supervisor at the job site called Ready Mixed about the accident in Teter’s
presence; Teter himself reported the accident to Harrison either that day or the next, and
Harrison did not raise any concern about Teter’s failure to report the accident personally
when it occurred. The incident report prepared by Harrison on September 1 notes that the
accident was reported by the customer, not by the driver. Teter’s letter of suspension also
states that the accident was reported on August 31, although Harrison testified that the
- 12 - date in the letter was a typographical error. Based on ready Mixed’s failure to call the
quality control employee who purportedly first reported the accident to Harrison, the ALJ
made an adverse inference that the employee would not have corroborated Harrison’s
testimony. To the extent Teter and Harrison’s testimony conflicted on this point, the ALJ
found Teter’s version the more credible. The Board determined that the accident had
been reported and that, consequently, Ready Mixed did not carry its burden of proving
that Teter would have been fired regardless of his protected activity. From our review of
the record, crediting Teter’s testimony over Harrison’s is reasonable.3
As noted above, our review is limited to ascertaining whether substantial evidence
supported the Board’s conclusion that Ready Mixed did not carry its burden. It is not for
Ready Mixed to prove that it “could have discharged [Teter for his actions], but whether
it would have done so regardless of [his] union activities.” Presbyterian/St. Luke’s, 723
F.2d at 1480. Based on the record as a whole, substantial evidence supports the Board’s
conclusion that Ready Mixed failed to prove by a preponderance of the evidence that it
would have fired Teter in the absence of his protected activities.4
3 In the alternative, the Board determined that even had Ready Mixed’s version of events been credited, it still would not have discharged Teter for failing to report the accident in person and immediately. At least one other driver had failed to call in an accident immediately and had not been discharged. Moreover, a former dispatcher testified that sometimes accidents were reported by the customer, not the driver. 4 Petitioner misunderstands the nature of the Wright Line test when it suggests that engaging in protected activities improperly insulates a bad employee from discharge for legitimate reasons. Such a formulation would be inconsistent with the Act, but that is not how the Wright Line test operates. If the employer can prove that it did discharge the employee for
- 13 - V
We have considered all of Ready Mixed’s arguments in this case and find them
unpersuasive. The Board’s findings and conclusions are supported by substantial
evidence in the record as a whole. The decision and order of the Board is ENFORCED in
all respects.
legitimate, nondiscriminatory reasons no violation may be found. Here, Ready Mixed simply did not meet its burden.
- 14 - No. 95-9533, Ready Mix Concrete Company v. National Labor Relations Board
BARRETT, Senior Circuit Judge, dissenting:
I respectfully dissent. My review of the entire record
on appeal leads me to conclude that the Board’s factual
findings and conclusions are not supported by substantial
evidence in the record as a whole.
In my view, there is not substantial evidence to support
the ALJ’s and the Board’s finding that Ready Mix engaged in
unfair labor practices when it suspended and then discharged
employee Teter for repeated violations of safety and work
rules. Furthermore, Teter was belligerent and vulgar in the
workplace. There is no evidence that the company used Teter’s
activities to form a union as a reason for his termination.
None of the other drivers came forward to support Teter before
the Board.
The Board relied on Teter’s testimony and inferences
drawn therefrom to support its order. Ready Mix had some 50
drivers. Teter testified that he had spoken to some 29 of them
about the union; however, only one driver, John Novak, turned
up at the September 13th organizational meeting and even he
did not sign a card indicating an interest in the union. A
second meeting was called at the union hall on September 15th. Attending were Teter and a Mr. Fraunenfeld, the union
organizer. Only one driver, David Fleishman, showed up. No
further organization meeting was called. The only possible
employee support for the union, other than Teter, was that
indicated by Novak. Thus, the “activity” involved in this
case is exclusively that of Teter. After Teter’s discharge,
there were no other attempts made to organize the union.
There were no witnesses that Teter’s discharge had any
chilling effect on employees’ attitude toward unions or union
activity. There was no evidence of any action taken by the
company concerning union activity. The burden of proving that
a discharge was unlawfully motivated is upon the Board. “A
finding of discrimination by the Board must be supported by
substantial evidence; it may not rest upon flimsy evidence,
mere inference or guesswork.” N.L.R.B. v. First Nat. Bank of
Pueblo, 623 F.2d 686, 693 (10th Cir. 1980). Even if we treat
this as a “mixed motive” case, the company has carried its
burden of showing that Teter would have been discharged absent
any protected union activity. See Miera v. N.L.R.B., 982 F.2d
441, 446 (10th Cir. 1992)., cert. granted in part sub nom.,
ABF Freight Sys., Inc. v. N.L.R.B., ___ U.S. ___ (1993), and
aff’d, ___ U.S. ___ (1994). Certainly, there is no evidence
-16- here of any company coercion, threats or restraints. See
Presbyterian/St. Luke’s Medical Ctr. v. N.L.R.B., 723 F.2d
1468, 1475 (10th Cir. 1983).
The company’s actions taken toward Teter were not a
pretext for anything Teter did in relation to union activity.
In my opinion, the record supports the conclusion that Teter’s
termination was fully justified.
I would set aside and vacate the Board’s order and deny
enforcement.