Scomas of Sausalito, LLC v. National Labor Relations Board

849 F.3d 1147, 2017 WL 894472, 208 L.R.R.M. (BNA) 3416, 2017 U.S. App. LEXIS 3975
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 7, 2017
Docket15-1412 Consolidated with 15-1476
StatusPublished
Cited by5 cases

This text of 849 F.3d 1147 (Scomas of Sausalito, LLC 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
Scomas of Sausalito, LLC v. National Labor Relations Board, 849 F.3d 1147, 2017 WL 894472, 208 L.R.R.M. (BNA) 3416, 2017 U.S. App. LEXIS 3975 (D.C. Cir. 2017).

Opinions

Concurring opinion filed by Circuit Judge HENDERSON.

KAREN LeCRAFT HENDERSON, Circuit Judge:

Scomas of Sausalito (Scomas) operates a seafood restaurant in northern California.1 From 2000 to 2013, it recognized UNITE HERE! Local 2850 (Union) as the exclusive collective-bargaining representative for the restaurant’s bartenders, bussers, cooks, dishwashers, hostesses and servers. In 2013, 29 of the bargaining unit’s 54 employees signed a decertification petition asking Scomas to “withdraw recognition from [the Union] immediately” if the petitioners “make up 50% or more of the bargaining unit.” Joint Appendix (JA) 131-32. One of the employees gave the petition to Scomas. Another filed it with the National Labor Relations Board (NLRB or Board) because the petition asked the Board to conduct a decertification election if the petitioners “make up 30% or more (and less than 50%) of the bargaining unit.” Id. Without telling Scomas,.the Union persuaded six of the petitioners to revoke their signatures. Two days later, still unaware that six employees had a change of heart, Scomas withdrew recognition from the Union. The remaining petitioners, apparently believing they were free of the Union, withdrew the decertifi-cation petition from the Board. Only then did the Union spring back into action: it filed an unfair labor practice (ULP) charge with the Board, claiming that Scomas had violated the National Labor Relations Act (Act), 29 U.S.C. §§ 151 et seg., by with[1151]*1151drawing recognition from the Union when it in fact had majority support.

The Board sided with the Union and ordered Scomas to recognize and bargain with it. The bargaining order includes a “bar to raising a question concerning the Union’s continuing majority status for a reasonable time,” on the theory that such delay is “necessary” to “dissipate[ ]” the “taint” of Scomas’s violation. 362 NLRB No. 174, at 7 (Aug. 21, 2015).

Scomas petitions for review of the Board’s order. The Board cross-petitions for enforcement. We grant the former petition and deny the latter. Under Board law, “an employer with objective evidence that the union has lost majority support— for example, a petition signed by a majority of the employees in the bargaining unit — withdraws recognition at its peril” and can stave off a ULP charge only by establishing that “the union had, in fact, lost majority support at the time the employer withdrew recognition.” Levitz Furniture Co., 333 NLRB 717, 725 (2001). Applying Levitz, the Board concluded that the six revocation signatures prevented Scomas from proving the Union lacked majority support at the time of withdrawal. Although we do not disturb that conclusion, the Board’s remedy does not follow from it. A bargaining order is an extraordinary remedy that, on these facts, is out of keeping with the Act’s purposes. It rewards the Union for sitting on its hands. It punishes Scomas for acting unwarily but in good faith. And it “give[s] no credence whatsoever to employee free choice,” Skyline Distribs. v. NLRB, 99 F.3d 403, 411 (D.C. Cir. 1996) (internal quotation omitted), unduly delaying an election to determine majority status. We therefore vacate the bargaining order and remand to the Board for further proceedings.

I. BACKGROUND

Before recounting why and how Scomas withdrew recognition from the Union, we summarize the legal context of its actions.

A. The Law Op Withdrawal

“The Act’s twin . pillars” are “freedom of choice and majority rule in employee selection of representatives.” Conair Corp. v. NLRB, 721 F.2d 1355, 1381 (D.C. Cir. 1983). Section 1 declares a policy of “protecting the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing, for the purpose of negotiating the terms and conditions of their employment or other mutual aid or protection.” 29 U.S.C. § 151. Under section 9, a “majority of the employees in a unit appropriate for” collective bargaining selects an exclusive bargaining representative. 29 U.S.C. § 159(a). Once an employee unit has selected a union to represent it, the law presumes the union enjoys “continuing majority support.” NLRB v. Curtin Matheson Scientific, Inc., 494 U.S. 775, 794, 110 S.Ct. 1542, 108 L.Ed.2d 801 (1990). The presumption fosters “industrial peace” and “stability in collective-bargaining relationships, without impairing the free choice of employees.” Id. (internal quotation omitted).

The presumption, however, is only that: except during certain periods not at issue here, employees are not bound to be represented by a union they no longer want. Auciello Iron Works, Inc. v. NLRB, 517 U.S. 781, 786, 116 S.Ct. 1754, 135 L.Ed.2d 64 (1996) (presumption is “rebut-table” except for one year following union’s initial certification and when any collective-bargaining agreement is in effect for up to three years). Employees have two ways of severing union representation. First, if 30 per cent of the unit employees agree, they can obtain an election by filing a decertifi-cation petition with the Board, which de[1152]*1152cides majority status based on the election. See 29 U.S.C. § 169(c)(1)(A)(ii); NLRB Ca-sehandling Manual, Pt. 2, Representation Proceedings § 11023.1 (Jan. 2017). Or, second, the employees can go directly to the employer, presenting it with a petition or other evidence that the union has lost majority support. See, e.g., Pac. Coast Supply, LLC v. NLRB, 801 F.3d 321, 324, 326 (D.C. Cir. 2015); Vincent Indus. Plastics, Inc. v. NLRB, 209 F.3d 727, 730 (D.C. Cir. 2000).

When presented with evidence that the union no longer has majority backing, the employer “has three options: to request a formal, Board-supervised election, to withdraw recognition from the union and refuse to bargain, or to conduct an internal poll of employee support for the union.” Allentown Mack Sales & Serv., Inc. v. NLRB, 522 U.S. 359, 361, 118 S.Ct. 818, 139 L.Ed.2d 797 (1998). Only the first two options are relevant here. If the employer opts for an election, it must file a petition with the Board. NLRB Casehandling Manual, supra, § 11042; cf. Parkwood Dev. Ctr., Inc. v. NLRB,

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849 F.3d 1147, 2017 WL 894472, 208 L.R.R.M. (BNA) 3416, 2017 U.S. App. LEXIS 3975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scomas-of-sausalito-llc-v-national-labor-relations-board-cadc-2017.