Visiting Nurses v. NLRB

Court of Appeals for the First Circuit·Decided May 26, 1999·No. 98-1993·Published

Opinion

USCA1 Opinion
                 United States Court of Appeals
For the First Circuit

No. 98-1993

VISITING NURSE SERVICES
OF WESTERN MASSACHUSETTS, INC.,

Petitioner, Cross-Respondent,

v.

NATIONAL LABOR RELATIONS BOARD,

Respondent, Cross-Petitioner,

and

LOCAL 285, SERVICE EMPLOYEES INTERNATIONAL UNION,
AFL-CIO, CLC,

Intervenor.

PETITION FOR REVIEW OF A DECISION AND ORDER BY THE

NATIONAL LABOR RELATIONS BOARD

Before

Torruella, Chief Judge,
Stahl, Lynch, Circuit Judges.

Albert R. Mason for petitioner, cross-respondent.
Julie B. Broido, with whom Margaret A. Gaines was on brief,
for respondent, cross-petitioner.

May 24, 1999

LYNCH, Circuit Judge. This petition by the Visiting
Nurse Services of Western Massachusetts, Inc. ("VNS") seeks review
of an order by the National Labor Relations Board dated July 20,
1998. The NLRB has filed a cross-petition for enforcement of its
order. Local 285 of the Service Employees International Union
("the Union"), was permitted to intervene on the side of the Board.
Of most significance here is VNS's attempt to read the National
Labor Relations Act ("NLRA" or "the Act"), 29 U.S.C. 158 (1994),
as permitting an employer who has not reached general impasse on
the package of collective-bargaining issues to nonetheless take
unilateral action on particular issues after declaring there was
impasse on those specific issues. The Board has rejected that
argument, as do we.
I
VNS is a corporation based in Holyoke, Massachusetts,
which provides home-based nursing home services. The last
collective bargaining agreement between VNS and the Union expired
on October 31, 1992; between July 1995 and March 1997, the parties
attempted to negotiate a successor agreement. We recite the facts
as taken from the stipulated facts before the Board. See Visiting
Nurse Servs. of W. Mass., Inc., 324 N.L.R.B. No. 212, 59 L.R.R.M.
(BNA) 1298, 1998 WL 414982, at *15 n.2 (July 20, 1998) (hereinafter
"Visiting Nurse Servs.").
The parties met to negotiate on November 2, 1995. VNS
then presented a written proposal which stated, in pertinent part,
that:
All proposals are and will be set forth based on a
package bargaining basis. This means that if any portion
of the package is unacceptable then the whole package is
subject to revision. In this respect . . . if there are
tentative agreements in a package but the whole package
is not accepted then the tentative agreements are also
subject to revision, deletion, addition, change etc. . .
. [A]ll agreements will be subject to an acceptable
total "final package" agreement . . . .

(Emphasis in original.) VNS's package proposal provided for a two-
percent wage increase and for a change from a weekly to a bi-weekly
payroll system, to become effective on November 6, 1995. The Union
did not accept the proposal but expressed a willingness to bargain
about various proposed alterations to the job classifications for
employee nurses. VNS presented a "substantially identical"
proposal on December 6, 1995, but this proposal also granted VNS
"the sole and unqualified right to designate [job] classifications
as it deemed necessary based on operational needs." Visiting Nurse
Servs., 1998 WL 414982, at *4.
On February 29, 1996, VNS again offered the Union a two-
percent wage increase, effective retroactively to November 6, 1995,
in return for the Union's agreement to its proposals for a bi-
weekly payroll system and the job classification changes. The
Union, acknowledging the broad opposition (within its membership)
to the bi-weekly payroll system, rejected the proposal. See id.
Nevertheless, on March 21, 1996, VNS notified the Union that "based
on operational and economic realities [VNS] intend[ed] to implement
'both' the wage increase and the bi-weekly pay proposals that, to
date, [VNS and the Union had] been unable to agree on." Five days
later, the Union replied: "We oppose the unilateral implementation
of the bi-weekly payroll system. . . . You have decided to tie
your proposed two percent increase in employee wages to the
implementation of a bi-weekly payroll system and we have rejected
that combined proposal." VNS implemented the wage increase on
April 7, 1996, and the bi-weekly payroll system on May 3, 1996.
On June 18, 1996, VNS presented another "package
proposal." This proposal retained the earlier proposed job
classification changes and included a second two-percent wage
increase (to become effective July 7, 1996). The proposal also
added three new provisions: 1) the transformation of three holidays
into "floating" holidays to be taken at a time requested by the
employee; 2) the implementation of a "clinical ladders" program;
and 3) the adoption of an enterostomal therapist classification and
program. On the same day, VNS also proposed a smaller,
alternative package (the "mini package") which also included a
second two-percent wage increase along with the above proposals on
floating holidays and the clinical ladders and enterostomal
therapist and classification programs.
The parties did not reach agreement on either proposal.
In a letter dated August 20, 1996, VNS advised the Union that as of
September 6, 1996, it was contemplating implementing the "mini
package" and that "all of the above items [were] the 'positives'
that [the parties] discussed that could be implemented while
bargaining for a successor agreement continued." The Union
responded on September 5, 1996: "We oppose the unilateral
implementation of these proposals. The Union request[s] that you
not make any changes to wages, hours or working conditions. Please
do not hesitate to call me to arrange a meeting as soon as possible
to discuss this and other outstanding issues." (Emphasis in
original.)
VNS then sent a memorandum, dated September 13, 1996, to
the bargaining unit employees (but not to the Union) informing them
that it had implemented the mini package with the wage increase to
be applied retroactively to July 7, 1996. Ten days later, VNS
advised the Union that the wage increase had already been
implemented and that the other programs (floating holidays,
clinical ladders, and enterostomal therapist and classification)
were "already in process." After emphasizing its view that these
were "only 'positive items'" meant to enhance the staff's economic
conditions while bargaining continued, VNS declared that "it [was]
the Agency's position that the mini package involved ha[d] been
properly implemented."
The Union filed a charge with the NLRB on September 30,
1996; it amended that charge on November 12, 1996. Based on these
charges, the General Counsel of the NLRB issued a complaint against
VNS on December 31, 1996, and amended that complaint on April 24,
1997.
II
The NLRB order found that VNS violated 8(a)(1) and (5)
of the Act by unilaterally implementing 1) a bi-weekly payroll
system on or about May 3, 1996; 2) changes in holidays on or about
September 6, 1996; 3) a clinical ladder program on or about
September 6, 1996; 4) an enterostomal therapist classification

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