Scott v. Stephen Dunn & Associates

241 F.3d 652
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 2, 2001
DocketNo. 00-15416
StatusPublished
Cited by11 cases

This text of 241 F.3d 652 (Scott v. Stephen Dunn & Associates) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott v. Stephen Dunn & Associates, 241 F.3d 652 (9th Cir. 2001).

Opinions

Opinion by Judge PAEZ; Dissent by Judge SNEED

PAEZ, Circuit Judge:

The Regional Director of the National Labor Relations Board appeals the district court’s refusal to enter an interim bargaining order pursuant to section 10(j) of the National Labor Relations Act, 29 U.S.C. § 160© (“NLRA”). The Regional Director contends that the district court abused its discretion in finding that (1) the Union did not have the support of a majority of the employees of Stephen Dunn & Associates (“SD & A”) prior to the employer’s commission of numerous unfair labor practices; (2) the full Board is not likely to issue a bargaining order upon conclusion of the underlying administrative proceeding; and (3) the balance of hardships does not favor issuing the requested equitable relief.

In considering this appeal, we are mindful that the purpose of a section 10© injunction is to preserve the authority of the National Labor Relations Board (“Board”) pending final administrative adjudication.

If an employer faced with a union demand for recognition based on a card majority may engage in an extensive campaign of serious and pervasive unfair labor practices, resulting in the union’s losing an election, and is then merely enjoined from repeating those already successful violations until final Board action is taken, the Board’s adjudicatory machinery may well be rendered totally ineffective.

Seder v. Trading Port, Inc., 517 F.2d 33, 37-38 (2d Cir.1975). Additionally, we have explained that “the public interest is an important factor in the exercise of equitable discretion.... In § 10© cases, the public interest is to ensure that an unfair labor practice will not succeed because the Board takes too long to investigate and adjudicate the charge.” Miller v. California Pacific Med. Ctr., 19 F.3d 449, 460 (9th Cir.1994) (en banc). Guided by these principles, we find that the district court applied the wrong legal standard under our decision in Miller and that the balance of the hardships tips in favor of the Regional Director. Therefore, we reverse and direct the district court to enter an interim bargaining order.

I

SD & A is a California corporation engaged in telemarketing and telefundraising activities. It operates a facility located in Berkeley, California. Most of the 97 non-managerial employees at the Berkeley location work as callers who solicit donations from people they contact by telephone on behalf of SD & A’s client organizations. Other employees work as verifiers who confirm the donations solicited by the callers or monitors who listen in on fundrais-ing calls in order to rate the caller’s performance. SD & A also employs four data processors.

Harlan Cross, an employee of SD & A, was dissatisfied with the pay and benefits offered by the company. Cross had heard that the employees of one of SD & A’s competitors were represented by a union. [658]*658In January 1999, after discussing with “about 15 or 20 of his coworkers” his concerns about working conditions and unionization, Cross contacted Jerome Martin, an organizer for the International Longshore and Warehouse Union, Local 6 (“ILWU” or “Union”).

The employees of SD & A held their first union organizing meeting on January 28, 1999. Shortly thereafter, the employees formed an “organizing committee” that ranged from six to fourteen SD & A workers. This committee had the primary responsibility for soliciting union authorization cards from their coworkers.

Throughout the organizing campaign, SD & A vigorously contested the Union’s efforts to represent its employees. In fact, the company’s antiunion campaign began within a week of the Union’s first organizing meeting. In an effort to dissuade employees from joining the Union, SD & A held weekly “captive audience” meetings from early February 1999, through the date of the election.1. The presentations made at these meetings were the basis for many of the unfair labor practices alleged by the Regional Director. The uneontradicted record establishes, and the district court found, that at these meetings, SD & A management

(1)“threaten[ed] employees with more onerous working conditions if the [UJnion became their representative;”
(2) “impliedly promise[d] to remedy employee work complaints if they voted against representation;”
(3) and “impliedly promise[d] to increase benefits if the employees voted against Union representation.”

In addition to these weekly meetings, the company also engaged in more serious antiunion behavior. First, SD & A attempted to “pack” the bargaining unit and dilute the strength of the pro-union majority by rapidly hiring additional unneeded employees, including 24 in the month before the cutoff date for voting eligibility.2 Second, SD & A unilaterally granted an across the board wage increase for the first time in two and a half years to discourage unionization. Finally, on the day of the election, SD & A provided new ergonomic chairs to all employees.3

The company also engaged in the other isolated unfair labor practices detailed in the district court’s order. These included instances of interrogation of employees regarding their union sympathies, refusal to allow the distribution of union literature, enforcing dormant work rules in order to discourage employees from supporting the Union, and at least one instance of surveillance of Union activities.

By March 24, 1999, the Union nevertheless had secured majority support. The Union presented 56 signed authorization cards from a bargaining unit of 97 employees. SD & A contends that eight of these cards are invalid because six of the cards [659]*659were secured through misrepresentation, two of the cards were revoked (including that of one employee who also alleged improper solicitation) and one of the cards was signed by a supervisor. SD & A supported these contentions with affidavits of the card signers. If the company were to succeed on all of its challenges (i.e., if all eight of the disputed cards were held invalid), the Union would be one card short of a majority. On the other hand, then, the Regional Director need only show that one of the disputed cards is arguably valid to establish a majority.

Upon asserting majority status, the Union proposed a procedure whereby a neutral, third party would verify the validity of the authorization cards and, upon verification, SD & A would recognize the Union. The company declined. In April 1999, the Union demanded that SD & A recognize the Union and begin the process of collective bargaining. Again, the company refused. A representation election was held on June 3, 1999. Although 56 employees had signed authorization cards, only 31 voted in favor of union representation. Fifty-three employees voted against.

On June 10, 1999, the Union filed charges with the Board alleging that SD & A’s antiunion campaign violated sections 8(a)(1), (3), and (5) of the NLRA.4 On July 30, 1999, the Regional Director issued an unfair labor practice complaint.

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Bluebook (online)
241 F.3d 652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-stephen-dunn-associates-ca9-2001.