Spectrum Health—Kent Community Campus v. National Labor Relations Board

647 F.3d 341, 396 U.S. App. D.C. 226
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 5, 2011
Docket10-1260, 10-1270
StatusPublished
Cited by20 cases

This text of 647 F.3d 341 (Spectrum Health—Kent Community Campus 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
Spectrum Health—Kent Community Campus v. National Labor Relations Board, 647 F.3d 341, 396 U.S. App. D.C. 226 (D.C. Cir. 2011).

Opinion

Opinion for the Court filed by Circuit Judge GARLAND.

GARLAND, Circuit Judge:

Spectrum Health — Kent Community Campus withdrew recognition from its employees’ union after receiving a petition indicating that the union no longer had majority support. The National Labor Relations Board found this action unlawful *343 because it occurred within the first three years of the parties’ collective bargaining agreement, during which time a union enjoys a conclusive presumption of majority support. Spectrum argues that the term of the collective bargaining agreement began more than three years before it withdrew recognition, and that the conclusive presumption had therefore lapsed. Spectrum also objects to the Board’s imposition of an affirmative bargaining order.

We conclude that the Board properly interpreted the term of the collective bargaining agreement, and that Spectrum waived its objections to the bargaining order by failing to raise them in a timely manner before the Board. Accordingly, we deny Spectrum’s petition for review and grant the Board’s cross-application for enforcement.

I

Spectrum operates a hospital in Grand Rapids, Michigan. In late 1999, the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW), and its Local 2600, became the exclusive bargaining representative for a sizeable unit of Spectrum’s employees. In November 2004, Spectrum and the union began to negotiate a successor to a 2002 collective bargaining agreement set to expire on December 31, 2004. During the course of negotiations, the parties extended the 2002 agreement to January 15, 2005, but did not agree on a second extension. As a consequence, the agreement expired on that date. It was not until late March 2005 that the parties reached a tentative agreement on a new collective bargaining agreement. The union’s members ratified that agreement on April 13, and it was executed two days later, on April 15, 2005.

The following statement was written at the bottom of the cover of the 2005 agreement: “DATE OF AGREEMENT: JANUARY 1, 2005 THROUGH MARCH 31, 2008.” Agreement Between Spectrum & Local 2600, UAW (J.A. 272) [hereinafter CBA]. However, the first paragraph of the document, under the heading “AGREEMENT,” stated: “This is an Agreement by and between [Spectrum and the union], effective April 13, 2005.” CBA para. 1. The final section of the contract, under the heading “TERMINATION,” stated: “This Agreement shall remain in force until 12:01 a.m., April 1, 2008.” Id. § 77. Among other provisions, the agreement provided for annual wage increases for both “future hires” and “incumbent employees.” Future hires, defined as those hired on or after April 13, 2005, were to receive wage reclassifications “[e]ffective with the first payroll periods beginning after April 13, 2005, April 13, 2006, and April 13, 2007.” Id. § 69(a)(i). Incumbent employees, defined as those hired on or prior to April 12, 2005, were to receive an initial 4.5 percent raise “[d]uring the first year of the contract, ... retroactive to January 1, 2005,” and additional raises “[a]t the beginning of the second and third contract years.” Id. § 69(a)(ii). The agreement contained two other provisions, relating to changes in Spectrum’s retirement and health plans, that were also specifically made retroactive to January 1, 2005. 1

*344 On January 7, 2008, Spectrum withdrew recognition from the union based upon its receipt of a petition, signed by a majority of the bargaining unit employees, stating that they no longer wanted to be represented by the union. The next day, Spectrum announced to employees that the UAW contract was no longer in effect. Top Spectrum officials began a series of meetings with employees in which they announced that recognition of the union had been withdrawn due to a loss of majority support and that the company was considering annual spring wage and benefit adjustments. In late February, Spectrum posted a notice of “Town Hall Meetings” to be held on March 3 and March 7, promising “Exciting News for Former UAW Staff.” At those meetings and in subsequent mailings to employees, the company announced a series of wage and benefit improvements, effective March 2, and suggested that further wage adjustments would occur in October 2008. The company also denied a grievance filed under the collective bargaining agreement, taking the position that grievances would instead be handled under Spectrum’s non-bargained “fair treatment” policy.

In response to these actions, the union filed an unfair labor practice charge against Spectrum, and the General Counsel of the National Labor Relations Board (NLRB) subsequently issued a complaint. On September 4, 2008, an Administrative Law Judge (ALJ) found that Spectrum had violated sections 8(a)(1) and 8(a)(5) of the National Labor Relations Act (NLRA). 2

As Spectrum acknowledges, under longstanding NLRB precedent a union enjoys “a conclusive presumption of majority status during the term of any collective-bargaining agreement, up to three years.” Auciello Iron Works, Inc. v. NLRB, 517 U.S. 781, 786, 116 S.Ct. 1754, 135 L.Ed.2d 64 (1996); see Raymond F. Kravis Ctr. for the Performing Arts, Inc. v. NLRB, 550 F.3d 1183, 1188 (D.C.Cir.2008); Shaw’s Supermarkets, 350 N.L.R.B. 585, 587-88 (2007); Spectrum Br. 13, 15. “This conclusive presumption ... arises not from an absolute certainty that the union continues to enjoy majority status, but from the National Labor Relations Act’s purpose of fostering industrial peace by promoting stable collective bargaining relationships.” McDonald Partners, Inc. v. NLRB, 331 F.3d 1002, 1005-06 (D.C.Cir.2003) (citing Auciello, 517 U.S. at 785-90, 116 S.Ct. 1754). The Board has clarified that this irrebuttable presumption becomes rebuttable after the agreement expires or after the third year of an agreement of longer duration. Shaw’s Supermarkets, 350 N.L.R.B. at 587-88. At that point, an employer may withdraw recognition if it has untainted evidence of a union’s actual loss of majority support. Id.; see Raymond F. Kravis, 550 F.3d at 1189 n. 1.

It is undisputed that the petition Spectrum received would have constituted sufficient evidence to rebut the presumption if the three-year period had passed. Thus, as the ALJ recognized and Spectrum agreed, Spectrum’s liability depends en *345 tirely on whether the term of the 2005 agreement began more or less than three years before January 7, 2008, the date of the employer’s withdrawal. See Spectrum Health — Kent Community Campus, 353 N.L.R.B. No. 99, at 5 (Feb. 26, 2009) (ALJ Op.); Spectrum Br. 13, 15. Spectrum argued that the term began on January 1, 2005, the date inscribed on the cover of the agreement.

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Bluebook (online)
647 F.3d 341, 396 U.S. App. D.C. 226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spectrum-healthkent-community-campus-v-national-labor-relations-board-cadc-2011.