Recon Refractory & Construction Inc. v. National Labor Relations Board

424 F.3d 980, 177 L.R.R.M. (BNA) 3339, 2005 U.S. App. LEXIS 19709
Procedural entryThis page is a short order in Recon Refractory & Construction Inc. v. National Labor Relations Board. Read the opinion of the Court — 424 F.3d 980
Court of Appeals for the Ninth Circuit·Decided September 13, 2005·No. 03-73064·Published

Opinion

424 F.3d 980

RECON REFRACTORY & CONSTRUCTION INC., Petitioner,
Industrial Professional & Technical Workers International Union, Suina, AFL-CIO, Petitioner-Intervenor,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent,
International Union, International Union of Bricklayers and Allied Craftworkers, and the International Union of Bricklayers and Allied Craftsworkers, Local 4, Respondent-Intervenor.

No. 03-73064.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted March 7, 2005.

Filed September 13, 2005.

Steven D. Atkinson, Thomas A. Lenz, and Scott K. Dauscher, Cerritos, CA, for the petitioner.

Howard Z. Rosen, Los Angeles, CA, for petitioner-intervenor Industrial, Professional and Technical Workers International Union.

Margery E. Lieber, Eric G. Moskowitz, and Corinne E. Yourman, Washington, DC, for the respondent.

Daniel T. Purtell and Jeffrey B. Demain, San Francisco, CA, for respondent-intervenor International Union of Bricklayers and Allied Craftworkers, Local 4.

On Petition for Review of an Order of the National Labor Relations Board. NLRB Nos. 21-CD-635, 21-CD-637.

Before HALL, WARDLAW, and PAEZ, Circuit Judges.

PAEZ, Circuit Judge.

We are called upon to resolve a dispute between Recon Refractory & Construction Inc. ("Recon") and the International Union of Bricklayers & Allied Craftworkers, Local 4 ("Bricklayers" or "Local 4"). To decrease its labor costs, Recon reassigned work previously performed by Bricklayers members, and protected by the Bricklayers' collective bargaining agreement ("CBA"), to employees represented by the Industrial, Professional and Technical Workers International Union ("IPTW"). The dispute at issue is fundamentally a work-preservation dispute between Recon and the Bricklayers, not an inter-union jurisdictional dispute between the Bricklayers and the IPTW. Because Recon itself precipitated the dispute in an attempt to avoid its obligations to the Bricklayers, we deny Recon's petition for review of the National Labor Relations Board's ("Board") decision quashing notice of hearing under section 10(k) of the National Labor Relations Act ("NLRA"), 29 U.S.C. § 160(k). Indus., Prof'l & Technical Workers Int'l Union (Recon Refractory), 339 N.L.R.B. 825 (2003).

I.1

Dan Bellamy founded Recon, a refractory installation company,2 in 1990. Shortly thereafter, the company signed on to the National Refractory Agreement ("NRA"), the Bricklayers' CBA, with the International Union of Bricklayers & Allied Craftworkers ("International"). Recon used Local 4 members to perform all refractory work for the next decade. Specifically, pursuant to the explicit terms of the NRA, Local 4 Bricklayers installed not just refractory brick, but "all refractory materials" including ceramic fiber (also known as Kao Wool), plastics, and spray insulation (or gunite). The NRA also included a clause preserving the Bricklayers' right to perform "all work which has been historically or traditionally assigned" to Bricklayers.3

In early 1995, the Bricklayers eliminated its class of unskilled members, or "bricklayers' helpers." Recon, however, needed a union to represent those unskilled employees for a job at U.S. Borax Company, which required that its contractors use union labor. Rather than using more expensive journeyman Bricklayers to do the unskilled work, Recon sought another union. On November 1, 1996, Recon entered into a site-specific "project deal" with the IPTW to provide unskilled laborers who would work with Bricklayers on the U.S. Borax job. The IPTW-represented laborers performed only unskilled support tasks, and did not install brick or nonbrick refractory materials. Furthermore, Recon's contract with the IPTW did not include a thorough work assignment or preservation clause. To the contrary, the IPTW contract simply stated: "Work assignments shall be entirely at the discretion of the Company without regard to seniority or classification." For the first several years of this arrangement, Recon assigned IPTW laborers support tasks, such as demolition, cleanup, and supply of refractory materials to Bricklayers for installation.

Recon's agreement with the IPTW was, as the Bricklayers describe it, "unusual." Bellamy testified that the company itself "pursued" the union to represent its unskilled laborers. Executives at Recon "made several phone calls, talked to some other contractors that were covered by collective bargaining agreements and eventually ended up with the IPTW." The IPTW-represented laborers were required to join the union and required to sign withdrawal cards to "deactivate" themselves from membership at the end of each job. Recon essentially paid those employees' union dues, increasing their pay to offset the added cost. Through these maneuvers, Recon ensured that its laborers were not represented by any union on any job other than U.S. Borax.

Prompted by its customer Arco Refinery's demand for wage caps, Recon began negotiating with the Bricklayers in 1999 to decrease wage rates. On March 30, 1999, Bellamy requested that the Bricklayers International freeze the $0.75 per hour annual wage increase. The Bricklayers would not agree to concessions and would not do the work at the rates Recon proposed. In August, Recon again sought concessions, this time in the form of a 20% wage reduction, which the Bricklayers similarly refused. On August 16, Bellamy notified the Bricklayers of his intent to terminate the CBA effective November 14, 1999, or "as soon as permitted by law or contract." After negotiations reached an impasse on October 14, Bellamy reaffirmed his intent to terminate the CBA the following month. The NRA expired on November 14, 1999. On December 7, Frank Collins, president of Bricklayers Local 4, notified the union membership that Recon had refused to sign the current NRA and therefore left "no choice but to regard Recon as a non-signatory contractor."

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Recon Refractory & Construction Inc. v. National Labor Relations Board, 424 F.3d 980, 177 L.R.R.M. (BNA) 3339, 2005 U.S. App. LEXIS 19709 (9th Cir. 2005).

424 F.3d 980 (Recon Refractory & Construction Inc. v. National Labor Relations Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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