West Coast Sheet Metal, Inc. v. National Labor Relations Board

938 F.2d 1356, 291 U.S. App. D.C. 97, 137 L.R.R.M. (BNA) 2853, 1991 U.S. App. LEXIS 14986
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 16, 1991
Docket90-1420
StatusPublished
Cited by7 cases

This text of 938 F.2d 1356 (West Coast Sheet Metal, Inc. 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
West Coast Sheet Metal, Inc. v. National Labor Relations Board, 938 F.2d 1356, 291 U.S. App. D.C. 97, 137 L.R.R.M. (BNA) 2853, 1991 U.S. App. LEXIS 14986 (D.C. Cir. 1991).

Opinion

Opinion for the Court filed by Circuit Judge RUTH BADER GINSBURG.

*1357 RUTH BADER GINSBURG, Circuit Judge:

An “interest arbitration” clause in a collective-bargaining agreement authorizes binding arbitration of deadlocks that occur during renewal negotiations. In International Brotherhood of Electrical Workers, Local No. 113 (“Collier Electric”), 296 N.L.R.B. No. 144 (Oct. 4, 1989), the National Labor Relations Board held that a union does not commit an unfair labor practice by seeking in good faith to enforce an interest arbitration clause against an employer who has withdrawn, mid-term, from the multiemployer association that negotiated the clause. According to Collier Electric, in such circumstances, a union lawfully may submit disputed issues to interest arbitration, seek to compel arbitration through a suit in federal court, or attempt to enforce any arbitration award in federal court, provided that (1) the employer at least arguably remained bound by the interest arbitration clause, and (2) the union, prior to invoking interest arbitration, negotiated in good faith. 1

In this petition for review, we consider an employer’s challenge to the Board’s Collier Electric doctrine. We conclude that Collier Electric is consistent with the National Labor Relations Act (“NLRA,” “the Act”) and that the Board did not err in applying to this case the precedent set in Collier Electric. Accordingly, we deny the petition for review.

I. BACKGROUND

A. The 1983 Bargaining Agreement

In 1983, intervenor Local 206 of the Sheet Metal Workers’ International Association (“Local 206”) and the San Diego chapter of the Sheet Metal and Air Conditioning Contractors’ National Association (“SMAC-NA-San Diego”) entered into a three-year collective-bargaining agreement (“CBA”). The parties — including petitioner West Coast Sheet Metal, Inc. (“West Coast”), then a member of SMACNA — executed copies of the agreement that included both the “Standard Form of Union Agreement,” governing national matters, and the “Local 206 Addenda,” which set local standards.

Two provisions of the 1983 CBA sparked this controversy. First, Article X, Section 8 of the national agreement — the “interest arbitration” clause 2 — provided that “any controversy or dispute arising out of the failure of the parties to negotiate a renewal of this agreement shall be settled” by submitting the dispute to the National Joint Adjustment Board (“NJAB”), consisting of four members from the Sheet Metal Workers’ International Association and four from SMACNA’s national organization. To break deadlocks, the NJAB had authority under this provision to impose contractual terms, but only by unanimous decision. 3 *1358 Second, the Local 206 Addenda to the 1983 CBA contained a “most favored nation” provision, according to which “[a]ny agreements entered into by Local 206 which are more favorable than those included herein will be offered to the employers signatory to this agreement.”

B. 1984-86 Negotiations and the Interest Arbitration Clause

In May 1984, the Executive Manager of SMACNA-San Diego, Chuck Baxter, wrote Local 206, asserting that the union had entered into agreements with employers outside SMACNA that did not include the Article X, Section 8 interest arbitration provision. Baxter stated that SMACNA-San Diego “ha[d] voted to ... accept this exclusion as part of the agreement” with Local 206, citing the “most favored nation” clause. Local 206 did not respond to this letter. The matter soon resurfaced, however, during June 1984 wage reopener negotiations: the minutes of the June 18 meeting between SMACNA-San Diego and Local 206 show that Baxter “reminded” the union negotiating committee that the mul-tiemployer association “had invoked the ‘favored nations clause’ of the contract to remove Article X, Section 8,” whereupon a union representative, Jerry Thompson, orally “acknowledged that this is true.”

The status of the interest arbitration clause next came to the fore almost two years later, when negotiations for a new contract began in May 1986. By that time, West Coast had notified Local 206 of its withdrawal from SMACNA and its intention to negotiate a new agreement independent of the multiemployer association. At the first negotiating session, according to the testimony of a West Coast witness in the Board proceedings, union representative Thompson said that Article X, Section 8 “is out because of the earlier actions of SMACNA.” On June 27, however, nine days after the negotiations stalled, Local 206 wrote West Coast that the talks were deadlocked and that it intended to invoke the interest arbitration procedures of Article X, Section 8. 4 On July 2, two days after the contract expired, West Coast protested Local 206’s invocation of the interest arbitration provision and put into effect its last offer; that same day, the union submitted the dispute to the NJAB for hearing and decision.

West Coast refused to attend the NJAB hearing. It did, however, set forth its objections to the arbitration proceedings in a three-page letter (plus attachments) sent to the NJAB’s management members. West Coast urged, in conclusion: “If the management members of the NJAB are willing to take instructions, this letter is to be considered as instructions to deadlock so that the NJAB not purport to impose any contract upon West Coast Sheet Metal....” 5 The NJAB rejected West Coast’s arguments 6 and imposed a new contract upon the parties that provided for journeymen’s wage increases of $1.00, $.50, and $.50 per hour over the three years of the agreement’s term. 7

*1359 C. Unfair Labor Practice Proceedings Before the ALJ

By the time of its letter to the NJAB, West Coast had already filed an unfair labor practice charge with the NLRB; it filed an additional charge one week after receiving notification of the NJAB award. The Board’s General Counsel issued a complaint, in which West Coast’s charges were consolidated with virtually identical charges made by other San Diego sheet metal companies. The General Counsel alleged that Local 206’s declaration of a deadlock and submission of the dispute to the NJAB violated the union’s duty under section 8(b)(3) of the NLRA to bargain in good faith, 8 and “coerce[d] and restrained” West Coast “in the selection of [its] representatives for the purposes of collective bargaining,” thus violating section 8(b)(1)(B). 9 After Local 206 filed suit in the District Court for the Southern District of California to confirm the NJAB award, the General Counsel amended the complaint to assign that action as an additional violation of sections 8(b)(1)(B) and 8(b)(3).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
938 F.2d 1356, 291 U.S. App. D.C. 97, 137 L.R.R.M. (BNA) 2853, 1991 U.S. App. LEXIS 14986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-coast-sheet-metal-inc-v-national-labor-relations-board-cadc-1991.