Tubari Ltd., Inc. v. National Labor Relations Board, National Labor Relations Board v. Tubari Ltd., Inc.

959 F.2d 451, 139 L.R.R.M. (BNA) 2809, 1992 U.S. App. LEXIS 4701
CourtCourt of Appeals for the Third Circuit
DecidedMarch 19, 1992
Docket91-3434, 91-3490
StatusPublished
Cited by62 cases

This text of 959 F.2d 451 (Tubari Ltd., Inc. v. National Labor Relations Board, National Labor Relations Board v. Tubari Ltd., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tubari Ltd., Inc. v. National Labor Relations Board, National Labor Relations Board v. Tubari Ltd., Inc., 959 F.2d 451, 139 L.R.R.M. (BNA) 2809, 1992 U.S. App. LEXIS 4701 (3d Cir. 1992).

Opinions

OPINION OF THE COURT

GREENBERG, Circuit Judge.

This case, before us on a petition for review and application for enforcement of a decision and order of the National Labor Relations Board, requires us to determine whether unlawfully-discharged, unskilled employees satisfied their duty to mitigate damages by accepting from their union 66% of their former salary as “wages” for picketing without otherwise searching for interim employment. We will grant the petition for review and will set aside the decision and order which found that the discrimina-tees had reasonably mitigated their damages.

I.

BACKGROUND

The case is not complicated and the historical facts are not in dispute. Inasmuch as the employer, Tubari Ltd., Inc., violated sections 8(a)(1), (2) and (3) of the National Labor Relations Act (the Act), 29 U.S.C. §§ 158(a)(1), (2) & (3), by unlawfully discharging and/or refusing to reinstate 19 of its employees, the Board ordered the employees’ reinstatement and further ordered Tubari to pay them lost earnings and benefits, 287 N.L.R.B. 1273 (1988). We entered a judgment enforcing its order. NLRB v. Tubari Ltd., 869 F.2d 590 (3d Cir.1989) (table). Because the parties disputed the amount of backpay due the discriminatees, a hearing was held on the issue before an administrative law judge. The Board issued a compliance specification deducting from the backpay monies received by the discriminatees for picketing activities. Tu-bari then filed an answer asserting that the [453]*453discriminatees were not entitled to any backpay since they failed to conduct a diligent search for suitable interim employment.

At the hearing, a Board compliance officer testified that the discriminatees each received $150.00 per week from the Fur Workers Union Local 3, United Food and Commercial Workers, AFL-CIO, together with $25 per week lunch money. As a condition for receiving the money, the union required the discriminatees to picket from 7:30 a.m. to 3:00 p.m. every day, a circumstance that led the compliance officer to deem the $150 as “interim earnings” rather than strike benefits. While the Board’s General Counsel stipulated that none of the discriminatees searched for other interim employment, the administrative law judge nevertheless determined that they had reasonably mitigated damages and were thus entitled to backpay.

On June 26, 1991, the Board issued a supplemental decision and order agreeing with the administrative law judge. Tubari Ltd., Inc., 303 N.L.R.B. No. 86 (1991). The Board found that the picketing “was true employment in the sense that the discrimi-natee/picketers worked regular hours and were paid a specific weekly wage plus lunch expenses. These were not mere strike benefits.” Id. at 6. In finding that the discriminatees had properly mitigated their losses, the Board deemed it significant that they were unskilled laborers and opined that picketing would not excuse skilled workers from seeking employment in another trade. Id. at 4-5.

Tubari has filed a petition to review the Board’s order pursuant to 29 U.S.C. § 160(f) and the Board has filed a cross-petition for enforcement of its order pursuant to section 160(e).

II.

DISCUSSION

A.

The Board may “take such affirmative action including reinstatement of employees with or without back pay, as will effectuate the policies of [the Act]” to remedy an employer’s unfair labor practices. 29 U.S.C. § 160(c). Because of its expertise in resolving labor disputes, see NLRB v. Seven-Up Bottling Co., 344 U.S. 344, 346-47, 73 S.Ct. 287, 289, 97 L.Ed. 377 (1953), the Board enjoys wide discretion in fashioning remedial orders. Fibreboard Paper Products Corp. v. NLRB, 379 U.S. 203, 216, 85 S.Ct. 398, 406, 13 L.Ed.2d 233 (1964); Kenrich Petrochemicals, Inc. v. NLRB, 907 F.2d 400, 405 (3d Cir.) (in banc), cert. denied, — U.S. -, 111 S.Ct. 509, 112 L.Ed.2d 522 (1990). In particular, a reviewing court will not disturb a backpay order “ ‘unless it can be shown that the order is a patent attempt to achieve ends other than those which can fairly be said to effectuate the policies of the Act.’ ” Fibreboard, 379 U.S. at 216, 85 S.Ct. at 406 (quoting Virginia Elec. & Power Co. v. NLRB, 319 U.S. 533, 540, 63 S.Ct. 1214, 1218, 87 L.Ed. 1568 (1943)); Phelps Dodge Corp. v. NLRB, 313 U.S. 177, 194, 61 S.Ct. 845, 852, 85 L.Ed. 1271 (1941).

While the Board is entitled to deference, we exercise plenary review over questions of law. NLRB v. Louton, Inc., 822 F.2d 412, 414 (3d Cir.1987). The Board’s findings of fact will be overturned if there is no substantial evidence in the record, considered as a whole, to support them. Id.; see also 29 U.S.C. § 160(e) (“findings of the Board with respect to questions of fact if supported by substantial evidence on the record considered as a whole shall be conclusive”). While we do not substitute our judgment for that of the Board, we may modify an order to ensure that it effectuates the policies of the Act. NLRB v. Future Ambulette, Inc., 903 F.2d 140, 144 (2d Cir.1990).

After the amount of backpay has been established, the burden shifts to the employer to produce evidence that would mitigate its liability. Lundy Packing Co. v. NLRB, 856 F.2d 627, 629 (4th Cir.1989); Iron Workers Local 118, etc. v. NLRB, 804 F.2d 1100, 1102 (9th Cir.1986); NLRB v. Pilot Freight Carriers, Inc., 604 F.2d 375, 377 (5th Cir.1979). An employer may meet this burden (and thus be entitled to a de[454]*454duction from gross backpay) by, inter alia, establishing that the employee has willfully incurred losses through unjustifiably refusing adequate interim employment. Phelps Dodge, 313 U.S. at 198-200, 61 S.Ct. at 854-55. Further, an employer need not establish that the employee would have secured such employment, for the employer meets its burden on the mitigation issue by showing that the employee has withdrawn from the employment market. Accordingly, where the employer demonstrates that an employee did not exercise reasonable diligence in his or her efforts to secure employment, then it has established that the employee has not properly mitigated his or her damages.

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959 F.2d 451, 139 L.R.R.M. (BNA) 2809, 1992 U.S. App. LEXIS 4701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tubari-ltd-inc-v-national-labor-relations-board-national-labor-ca3-1992.