U-Haul Co. of Nevada, Inc. v. National Labor Relations Board

490 F.3d 957, 377 U.S. App. D.C. 4, 2007 U.S. App. LEXIS 14826
Court of Appeals for the D.C. Circuit·Decided June 22, 2007·No. 05-1464, 06-1195·Published·Cited by 9 cases

Opinion

Opinion for the Court filed by Chief Judge GINSBURG.

GINSBURG, Chief Judge:

U-Haul Company of Nevada, Inc. petitions for review of a Decision and Order of the National Labor Relations Board directing the Company to recognize and bargain with the International Association of Machinists and Aerospace Workers Local Lodge 845, AFL-CIO. U-Haul claims (1) the General Counsel of the Board abused his discretion in refusing to consolidate this case with another case involving the same parties and, (2) because the Union upset the “laboratory conditions” necessary for a valid representation election, U-Haul’s refusal to bargain with the Union did not violate the National Labor Relations Act. The Board has cross-applied for enforcement of its Order and the Union *960 has intervened in support of the Board. We uphold the Board’s Decision and Order in all respects.

I. Background

In March 2003 the Union petitioned for a representation election at U-Haul’s repair facilities in Henderson and Las Vegas, Nevada. When the election was held that May, 77 ballots were cast, 47 for the Union, 25 against the Union, and 5 that were challenged.

U-Haul filed objections to the election, arguing that the Union had:

• Promised to waive the initiation fees for employees who joined the Union before the election;
• Misrepresented the extent of its support among employees by forging signatures on a petition and making “last minute representations” to employees in the form of a document erroneously “guaranteeing” the Company could not lawfully close or threaten to close the shop if the Union won the election;
• Created the appearance that the Board favored the Union when an active Union supporter greeted the Board’s agent overseeing the election like a long-lost friend; and
• Engaged in unlawful electioneering when the Union’s election observer smiled at and made “thumbs-up” gestures to voters in the polling place, and when Union officials conversed with six or seven voters in a parking lot near the polling place immediately before they went in to vote.

The Company also objects that, even if no one of the foregoing activities was sufficient to upset the laboratory conditions necessary for a valid election, in the aggregate they surely were. See Gen. Shoe Corp., 77 NLRB 124, 127 (1948) (holding representation elections should be held in “laboratory ... conditions as nearly ideal as possible, to determine the uninhibited desires of the employees”), enfd, 192 F.2d 504 (6th Cir.1951).

A hearing officer, after taking testimony, recommended that the Board overrule U-Haul’s objections and certify the Union as the exclusive bargaining representative of the employees. U-Haul filed exceptions with the Board, which rejected them, adopted the findings and recommendations of the hearing officer, and certified the Union.

When U-Haul thereafter refused to bargain, the Union filed an unfair labor practice charge alleging the Company had violated Sections 8(a)(1) and (5) of the Act, 29 U.S.C. § 158(a)(1), (5). The General Counsel filed a complaint, which U-Haul answered with the argument that it had no obligation to bargain because the election was invalid. The General Counsel moved for summary judgment, which U-Haul opposed on the grounds that the hearing officer was biased and this ease should have been consolidated with another proceeding involving the Union, the Company, and its parent, U-Haul International, Inc.

The Board concluded the hearing officer was not biased and the General Counsel had not abused his discretion because the other proceeding against U-Haul involved separate and distinct violations. Accordingly, the Board held the Company had “engaged in unfair labor practices ... within the meaning of Section[s] 8(a)(5) and (1)” and ordered U-Haul to cease and desist from refusing to bargain and to bargain with the Union upon request.

II. Analysis

In its petition for review, U-Haul renews its arguments that (1) the General Counsel abused his discretion by failing to consolidate this proceeding with the other unfair labor practice case against the Com *961 pany, (2) the Company did not unlawfully refuse to bargain because the election was invalid for each of the reasons epitomized above, and (3) the hearing officer was biased to the point of depriving U-Haul of due process.

We review the Board’s Decision and Order for abuse of discretion. See Canadian Am. Oil Co. v. NLRB, 82 F.3d 469, 473 (D.C.Cir.1996). “On questions regarding representation, we accord the Board an especially wide degree of discretion.” Id. (internal quotation marks and citation omitted). We review the Board’s factual findings for substantial evidence. See Allegheny Ludlum Corp. v. NLRB, 104 F.3d 1354, 1358 (D.C.Cir.1997). We will set aside a representation election only if the petitioning party “demonstrate^] that the conduct complained of interfered with the employees’ exercise of free choice to such an extent that it materially affected the election.” C.J. Krehbiel Co. v. NLRB, 844 F.2d 880, 882 (D.C.Cir.1988).

A. Consolidation

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U-Haul Co. of Nevada, Inc. v. National Labor Relations Board, 490 F.3d 957, 377 U.S. App. D.C. 4, 2007 U.S. App. LEXIS 14826 (D.C. Cir. 2007).

490 F.3d 957 (U-Haul Co. of Nevada, Inc. v. National Labor Relations Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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