Warshawsky & Co. v. National Labor Relations Board

182 F.3d 948, 337 U.S. App. D.C. 149, 161 L.R.R.M. (BNA) 2772, 1999 U.S. App. LEXIS 15135
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 9, 1999
Docket98-1277
StatusPublished
Cited by7 cases

This text of 182 F.3d 948 (Warshawsky & Co. 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
Warshawsky & Co. v. National Labor Relations Board, 182 F.3d 948, 337 U.S. App. D.C. 149, 161 L.R.R.M. (BNA) 2772, 1999 U.S. App. LEXIS 15135 (D.C. Cir. 1999).

Opinions

Opinion for the Court filed by Circuit Judge SILBERMAN.

Dissenting Opinion filed by Circuit Judge WALD.

SILBERMAN, Circuit Judge:

Warshawsky & Company petitions for review of an order of the National Labor Relations Board dismissing a secondary boycott complaint filed against Ironwork-ers Local 386. We grant the petition.

I.

Warshawsky (the Company) sells automobile parts and accessories and is currently constructing a warehouse and mail order facility in LaSalle, Illinois. The Company retained G.A. Johnson & Sons, Inc. as its general contractor for the project. Johnson in turn subcontracted with various other companies, all of whom maintained collective bargaining contracts with the building trade unions that represent their employees. Throughout the period relevant to this case, Johnson and the subcontractors worked at the LaSalle site from approximately 7 a.m. to 3:30 p.m. every weekday, and occasionally on Saturday. In March of 1997, Warshawsky retained Automotion, Inc. to install rack and conveyor systems at the site. In response, Iron Workers Local 386, which represents Automotion’s employees and had no dispute with Johnson or any of the subcontractors, engaged in “area standards” picketing of Automotion at the construction site on March 5. The union stopped later that day after being told that Automotion was not yet working at the site. One week later, Warshawsky’s Vice President of Human Resources sent the union’s business agent a letter stating that a “reserve gate” had been established at the site for Auto-motion, and that any subsequent picketing of Automotion should be conducted only when Automotion was working on the site: Monday through Friday from 4 p.m. to 6 a.m., and all day Sunday. Automotion began work at the site according to this schedule on the same day.

The next morning, at around 6:40 a.m., various union agents stationed themselves in close proximity to the LaSalle site on a road that was used primarily by persons going to and from the site. The sitq itself was not open to members of the general public. As employees of Johnson and its subcontractors approached the construction site in their automobiles, the union [950]*950agents distributed the following handbill:1

AUTOMOTION, INC. IS DESTROYING THE STANDARD OF WAGES FOR HARD-WORKING UNION MEMBERS

AUTOMOTION, INC. PAYS SUBSTANDARD WAGES AND FRINGE BENEFITS.

IGNORING THE AREA STANDARDS THREATENS THE EFFORTS AND SACRIFICES OF ALL UNION MEMBERS.

Iron Workers Local 386 is currently engaged in a labor dispute concerning the failure of Automotion, Inc. to pay ihe area standard wages and fringe benefits. We are appealing only to the general public. We are not seeking any person to cease work or to stop making deliveries.

The union agents also spoke briefly with the employees to whom they gave the handbill, although we have no direct evidence of what was said.

This activity lasted for about four hours, and resulted in the employees of Johnson and its subcontractors refusing to enter the site and refusing to perform services for their employers. The union agents engaged in the same conduct at the same times on four of the next six days, resulting each day in employees of Johnson and its subcontractors refusing to work. None of that conduct occurred while Automotion, or any of its employees, suppliers, or subcontractors, were working at the site.

The General Counsel, responding to an unfair labor practice charge filed by War-shawsky, issued a complaint alleging that the union’s conduct violated § 8(b)(4)(i) and (ii)(B) of the National Labor Relations Act.2 The union’s answer admitted that its agents handbilled and spoke to employees of Johnson and its subcontractors, but characterized that conduct as a “lawful informational picket.” The parties subsequently stipulated to the facts as set forth above and agreed that those facts would serve as the complete record of the case to be submitted to the ALJ for his decision without a hearing. The ALJ granted the union’s motion to amend its answer two days before briefs were to be filed, which Warshawsky but not the General Counsel [951]*951opposed, to substitute the word “handbill-ing” for “picket.”3

The ALJ determined that because there was no direct testimony as to what was said by the union agents to the neutral employees and nothing else in the record supported an inference that the union “induced” or “encouraged” the work stoppage, the General Counsel had not met his burden of proof. The ALJ’s decision appears to have been strongly influenced by his conclusion that the handbilling engaged in by the union — as opposed to picketing— was “pure expressive” activity and is therefore entitled to some measure of First Amendment protection. Although he described the handbill as strident in tone, according to him it did no more than truthfully advise members of the “public” (■ie., the neutral employees of Johnson and its subcontractors) of Automotion’s wages and benefits. He accordingly discounted the suspicious timing of the handbilling— that it took place when Automotion’s employees were not present. And he also concluded that the apparent connection between the handbilling and the work stoppage was insufficient as a matter of law to prove inducement.

The Board affirmed the ALJ’s findings and conclusions and adopted the order dismissing the complaint. See Iron Workers Local 386 (Warshawsky & Co.), 325 N.L.R.B. No. 141, 1998 WL 251581 (May 14, 1998). Chairman Gould concurred separately. He thought that the case was a close one; the evidence arguably could support an inference that the union “was indeed making an appeal, through a careful wink and a nod, for the employees to engage in a work stoppage.” He noted particularly the timing of the handbilling when the only recipients would be neutral employees, the text of the handbill, and the resulting work stoppage. But based on Board precedent limiting the “nod, wink, and a smile” theory, see Building & Constr. Trades Council of Tampa (Tampa Sand & Material Co.), 132 N.L.R.B. 1564, 1565-66, 1961 WL 15896 (1961), he concluded that the facts of the instant case, involving a handbill with a disclaimer, together with an absence of evidence as to the content of the conversations between the union and the employees, did not satisfy the General Counsel’s burden of proving unlawful inducement or encouragement.

II.

As noted, the ALJ (whose opinion the Board adopted) relied significantly on the First Amendment in concluding that the union did not induce or encourage the employees of the neutral employers to engage in a secondary strike. In the ALJ’s words, the looming constitutional issue meant that “analysis must proceed with care.” The ALJ’s reasoning is not all that clear to us; it is as if the First Amendment acts as a deus ex machina directing his factfinding.4 He presumably thought that to prohibit a union from engaging in “area standards” handbilling of neutral employees might violate the union’s First Amendment rights, and therefore the constitutional avoidance canon suggests that the words “induce or encourage” in [952]*952§ 8(b)(4)(i) should be interpreted, and applied, narrowly so as not to proscribe the handbilling involved in this case.

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Bluebook (online)
182 F.3d 948, 337 U.S. App. D.C. 149, 161 L.R.R.M. (BNA) 2772, 1999 U.S. App. LEXIS 15135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warshawsky-co-v-national-labor-relations-board-cadc-1999.