Thryv v. NLRB

102 F.4th 727
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 24, 2024
Docket23-60132
StatusPublished
Cited by10 cases

This text of 102 F.4th 727 (Thryv v. NLRB) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thryv v. NLRB, 102 F.4th 727 (5th Cir. 2024).

Opinion

Case: 23-60132 Document: 94-1 Page: 1 Date Filed: 05/24/2024

United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit

FILED No. 23-60132 May 24, 2024 ____________ Lyle W. Cayce Thryv, Incorporated, Clerk

Petitioner/Cross-Respondent,

versus

National Labor Relations Board,

Respondent/Cross-Petitioner. ______________________________

Petition for Review of an Order of the National Labor Relations Board Agency Nos. 20-CA-250250, 20-CA-251105 ______________________________

Before King, Jones, and Oldham, Circuit Judges. Andrew S. Oldham, Circuit Judge: Thryv, Inc. had a long-running dispute with the union representing some of its sales employees. The union complained to the National Labor Relations Board, alleging Thryv engaged in several unfair labor practices. The Board agreed with the union and ordered Thryv to take draconian steps to remedy the alleged violations. Thryv petitioned us for review. We grant Thryv’s petition and vacate the Board’s order in part. Case: 23-60132 Document: 94-1 Page: 2 Date Filed: 05/24/2024

No. 23-60132

I. This action is the culmination of a multiyear standoff between Thryv and Local 1269 (“the Union”). We (A) explain the legal context for that standoff. Then we (B) describe the facts that gave rise to the present controversy. Lastly we (C) summarize the agency proceedings. A. Section 8(a)(5) of the National Labor Relations Act imposes a duty upon employers and recognized unions to bargain in good faith with respect to mandatory subjects of bargaining—that is, “wages, hours, and other terms and conditions of employment . . . .” 29 U.S.C. § 158(d); see id. § 158(a)(5) (“[I]t shall be an unfair labor practice . . . for an employer to refuse to bargain collectively with the representatives of his employees . . . .”). Ordinarily, an employer violates that duty if it imposes a unilateral change on a mandatory subject of bargaining. Comau, Inc. v. NLRB, 671 F.3d 1232, 1237 (D.C. Cir. 2012). But the NLRA compels only bargaining; it does not obligate employers and unions to reach any form of agreement. See 29 U.S.C. § 158(d) (noting the obligation to bargain “does not compel either party to agree to a proposal or require the making of a concession”). Thus, employers must bargain in good faith, but they are never required to agree to any particular terms. So what happens when an employer insists on a term that is a nonstarter for the union? “[T]he [NLRA] does not encourage a party to engage in fruitless marathon discussions . . . .” NLRB v. Am. Nat’l Ins., 343 U.S. 395, 404 (1952). So if the employer demands a term that the union refuses to accept, labor law must provide a tool to pretermit an endless cycle of go-nowhere negotiations.

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That tool is the impasse doctrine. Under that doctrine, employers can declare an impasse with a union “if there is no realistic possibility that continuation of discussions would [be] fruitful.” TruServ Corp. v. NLRB, 254 F.3d 1105, 1114 (D.C. Cir. 2001) (quotation omitted). Once the employer declares an impasse, it does not violate the NLRA by making unilateral changes so long as the “changes [it makes] are reasonably comprehended within [the employer’s] pre-impasse proposals.” Comau, 671 F.3d at 1237 (quotation omitted). “The rationale for this rule is that . . . [i]t moves the [bargaining] process forward by giving one party, the employer, economic leverage.” Ibid. (quotation omitted). When employers and unions reach impasse with respect to a collective bargaining agreement—an overall impasse—employers generally make unilateral changes by imposing their last best, final offer (“LBFO”). Once implemented, the LBFO governs relations between the employer and the union until the overall impasse breaks. See Raven Servs. Corp. v. NLRB, 315 F.3d 499, 506 (5th Cir. 2002). But the point of the impasse doctrine is only to jumpstart bargaining by forcing the union into concessions. See Comau, 671 F.3d at 1237. So unions may break an overall impasse at any point—and thus suspend an employer’s entitlement to rely on an LBFO—by demonstrating that a resumption in bargaining might be fruitful. See Gulf States Mfg. Inc. v. NLRB, 704 F.2d 1390, 1399 (5th Cir. 1983). B. Thryv sells Yellow Pages advertising. For decades, the structure of the telephone industry ensured Yellow Pages companies like Thryv were essentially monopolists in their respective jurisdictions. The companies earned supra-competitive profits and employed an army of sales representatives to drive business. But the internet changed that. While Yellow Pages companies still exist in this digital age, they do a fraction of the

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business they once did, and they need fewer representatives to drive new business. In 2019, Thryv had a small group of sales representatives that was responsible for selling business to customers who did not already have accounts with the Company. These New Business Advisors (“NBAs”) “were not bringing in sufficient revenues to cover [even] their base salaries,” ROA.3106, likely because there were not a lot of new Yellow Pages customers to go around. So in July of 2019 Thryv started to discuss laying them off. But Thryv could not simply lay off the NBAs because they were part of a union. Ordinarily, when a company wants to lay off unionized employees, it follows the procedures prescribed in the parties’ collective bargaining agreement (“CBA”). Thryv and the Union, however, were not operating under a CBA because their CBA had expired, and they had not yet reached agreement on a successor. The absence of a new agreement was not for want of trying; the parties negotiated for over a year before Thryv declared impasse and implemented its LBFO in September of 2018. The Union filed an unfair labor practice charge related to Thryv’s impasse declaration, but the NLRB’s General Counsel dismissed it. So, as of summer 2019, it appears undisputed that Thryv had properly implemented its LBFO and was operating under it. Article 30 of the LBFO prescribed the procedures Thryv would follow in the event of an economic layoff: Whenever conditions are considered by the Company such as to warrant layoffs, part-timing, reclassifications or a combination thereof, the Company agrees to give the Union designee IBEW 1269 or his/her authorized representative thirty (30) calendar days’ notice of its intended plan, together with a description of work locations, job titles (levels within

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channels) and work groups so affected as determined by the Company. After such notice and discussion with the Union designee IBEW 1269 or his/her authorized representative, the plans developed by the Company shall be implemented subject to the following procedural steps: 1. Temporary employees in the affected work locations, job titles and work groups shall be separated from the payroll. 2. The Company shall, in order of seniority, offer to the employees in such job titles considered to be surplus, if qualified, transfers to other positions in the Company if there are any openings that the Company determines are to be filled.

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102 F.4th 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thryv-v-nlrb-ca5-2024.