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Labor Relations News Update February 6, 2014

Today’s Labor Update:

Summary of NLRB Decisions for Week of January 27-31, 2014

Labor Board Moves to Expedite Union Votes

Kuwait prepares for oil worker strike

Select events and news from the world of organized labor

 

Summary of NLRB Decisions for Week of January 27-31, 2014

The Summary of NLRB Decisions is provided for informational purposes only and is not intended to substitute for the opinions of the NLRB.  Inquiries should be directed to the Office of Public Affairs at Publicinfo@nlrb.gov or 202‑273‑1991.

Summarized Published Board Decisions

Evolution Mechanical Services, Inc. and Murray Mechanical Services  (21-CA-039887; 360 NLRB No. 33) Buena Park, CA, January 27, 2014.

The Board found no merit in the Respondent’s exceptions, and adopted the Administrative Law Judge’s decision that the Respondent unlawfully terminated Robert Schoepfer under the mistaken belief that he engaged in protected activity by disclosing company jobsites to a union attempting to organize the workers.  The Board found that the judge correctly applied the Wright Line standard.  In addition, the Board adopted the judge’s decision that Respondent unlawfully threatened two employees.  Administrative Law Judge William L. Schmidt issued his decision on March 19, 2013.  Charge filed by Sheet Metal Workers’ International Association, Local Union 105, AFL-CIO.  Members Hirozawa, Miscimarra, and Schiffer participated.

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Sheet Metal Workers Local 88 (A. W. Farrell)  (28-CD-096857, 360 NLRB No. 34)  Las Vegas, NV, January 30, 2014.

The Board granted Roofers Local 162’s motion to quash the notice of hearing in this 10(k) proceeding. The Board found that there was no reasonable cause to believe that Section 8(b)(4)(D) had been violated because the dispute in this case is not over the assignment of work to one group of employees rather than to another group.  Instead, as asserted by Local 162, the dispute concerns which union will represent the employees who are currently performing the Employer’s roofing work.  The Board pointed out that none of the parties has raised any objection to the performance of the roofing work by the Employer’s current employees.  Local 162’s position was that it only sought to be recognized as the Sec. 9(a) representative of the employees currently performing the work in dispute.   Accordingly, the Board concluded that this was not a jurisdictional dispute within the meaning of Section 10(k), and it quashed the notice of hearing.  Charge filed by A. W. Farrell & Son, Inc.  Chairman Pearce and Members Miscimarra and Hirozawa participated.

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United States Postal Service  (24-CA-090192, 360 NLRB No. 35)  Cantaño, PR, January 30, 2014.

The Board affirmed the judge’s, rulings, findings, and conclusions and adopted the recommended Order as modified.  The Respondent contended that the Order was overbroad.  Although the judge limited the notice posting requirement to Respondent’s facilities in San Juan, Puerto Rico, he inadvertently neglected to include “San Juan” before “Puerto Rico” in the introductory sentence of the Order.  The Board modified the Order accordingly and to conform to the judge’s findings and the Board’s standard remedial language.  Administrative Law Judge Michael A. Rosas issued his decision on September 30, 2013.  Charges filed by American Postal Workers Union, Local 1070, AFL-CIO.  Chairman Pearce and Members Johnson and Schiffer participated.

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NY-FV, Inc. d/b/a Hassel Volvo of Glen Cove  (29-CA-116941; 360 NLRB No. 36)  Glen Cove, NY, January 31, 2014.

The Board granted the General Counsel’s motion for summary judgment in this refusal-to-bargain test-of-certification case on the ground that the Respondent did not raise any issues that were not, or could not have been, litigated in the underlying representation case in which the union was certified as the bargaining representative.  Charge filed by International Association of Machinists and Aerospace Workers, District Lodge 15, Local Lodge 447.  Chairman Pearce and Members Miscimarra and Hirozawa participated.

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Ace Masonry, Inc., d/b/a Ace Unlimited and Bella Masonry, LLC, alter egos and Bella Furniture Solutions, Inc.  (03-CA-073540; 360 NLRB No. 32)  Ithaca, NY, January 31, 2014.

The General Counsel filed a motion for partial summary judgment in this compliance proceeding, involving the determination of backpay and benefit fund contributions arising from a 2013 Board Order imposing a make-whole remedy for unlawful activity.  The Board granted the General Counsel’s motion on the ground that the Respondents failed to file legally sufficient answers to the compliance specification.  Charges filed by International Union of Bricklayers and Allied Craftworkers, Local No. 3, Laborers International Union, Local No. 785, and Northeast Regional Council of Carpenters.  Chairman Pearce and Members Johnson and Schiffer participated.

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Edifice Restoration Contractors, Inc.  (08-CA-090945; 360 NLRB No. 29)  Holland, OH, January 31, 2014.

The Board adopted the administrative law judge’s finding, in the absence of exceptions, that the Respondent violated Section 8(a)(1) of the Act by unlawfully directing the Charging Party not to discuss his pay rate and agreed with the judge that it was unnecessary to reach two additional allegations of pay-related comments.  The Board also adopted the judge’s dismissal of the allegation that the Respondent unlawfully discharged the Charging Party, but did not rely on the judge’s discussion of the test to be applied under Wright Line, reasoning that, even assuming the Acting General Counsel met his initial burden of proving discriminatory motivation, the Respondent successfully rebutted it by establishing that it would have discharged the Charging Party in the absence of his protected activity.  Member Johnson agreed with his colleagues but found it unnecessary to comment on the judge’s discussion of the Wright Line test.  Administrative Law Judge David I. Goldman issued his decision on May 20, 2013.  Charge filed by an individual.  Chairman Pearce and Members Johnson and Schiffer participated.

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Unpublished Board Decisions in Representation and Unfair Labor Practice Cases

R Cases

Rhee Bros., Inc.  (05-RC-115948)  Hanover, MD, January 28, 2014.  No exceptions having been filed, the Board adopted the Acting Regional Director’s overruling of Employer’s objections to an election held December 4, 2013, and let stand the December 12, 2013 certification of Petitioner Teamsters Local 570 a/w International Brotherhood of Teamsters as the exclusive collective-bargaining representative of the unit employees.

NStar Electric & Gas Company, Inc.  (01-RC-112623)  Dorchester, Massachusetts, January 29, 2014.  Order denying the Employer’s request for review as not raising any substantial issues regarding whether the Regional Director erred in finding that the Transmission System Supervisors and the Senior Transmission Outage Coordinators were not excluded from the election unit in a self-determination election as either supervisory or managerial employees.  Member Miscimarra stated that he would grant review regarding whether the transmission system supervisors and senior transmission outage coordinators are statutory supervisors on the basis that they possess the authority to assign and responsibly direct within the meaning of Sec. 2(11) of the Act.   Petitioner—Utility Workers Union of America, AFL-CIO, Local 369.

Chairman Pearce, and Members Miscimarra and Schiffer participated.

C Cases

All American School Bus Corp.  (29-CA-100827)  Long Island City, NY, January 28, 2014.  The Board granted the General Counsel’s Motion to Strike from the Respondent’s brief in support of exceptions any references to post-hearing events and documents not admitted into evidence.  The Board stated that such matters were not part of the record and therefore would not be considered by the Board in deciding the case.  Charges filed by Local 1181-1061, Amalgamated Transit Union, AFL-CIO.

Sodexo America LLC  (21-CA-39086)  Los Angeles, CA, January 29, 2014.  Order denying the Respondent’s motion for reconsideration of the Board’s June 13, 2013 Supplemental Decision and Order in this case reported at 359 NLRB No. 135.  The Board, however, revised the Supplemental Decision and Order to conform with the Board’s standard remedial language regarding the Respondent’s violation of Section 8(a)(1) of the Act by disciplining four employees pursuant to an unlawfully overbroad off-duty no-access rule.  Charges filed by Service Workers United, the National Union of Healthcare Workers, and an individual.  Chairman Pearce and Members Hirozawa and Schiffer participated.

Service Employees International Union, United Healthcare Workers-West (Lakewood Regional Medical Center)  (21-CB-015007)  Lakewood, CA, January 30, 2014.  The Board denied National Union of Healthcare Workers’ request for review of the Acting General Counsel’s decision affirming the Regional Director’s compliance determination.  Charge filed by National Union of Healthcare Workers.  Chairman Pearce and Members Miscimarra and Schiffer participated.

American Red Cross  (33-CA-015821)  Peoria, IL, January 31, 2014.  The Board granted the General Counsel’s request to remand the cases to the Regional Director for Region 25 (Subregion 33).  Charges filed by American Federation of State, County and Municipal Employees (AFSCME), Council 31, AFL-CIO.

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Appellate Court Decisions

No Appellate Court Decisions to report

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Administrative Law Judge Decisions

Management & Training Corporation d/b/a Keystone Job Corp Center  (04-CA-095456; JD-05-14)  Drums, PA.  Administrative Law Judge Arthur J. Amchan issued his decision on January 30, 2014.  Charges filed by Service Employees International Union Local 668.

William Beaumont Hospital  (07-CA-093885; JD-04-14)  Royal Oak, MI.  Administrative Law Judge Susan A. Flynn issued her decision on January 30, 2014.  Charge filed by an Individual.

United Hoisting & Scaffolding, Inc.  (29-CA-105701; JD(NY)-08-14)  Long Island City, NY.  Administrative Law Judge Lauren Esposito issued her decision on January 31, 2014.  Charge filed by International Union of Elevator Constructors, Local No. 1, AFL-CIO.

 

Labor Board Moves to Expedite Union Votes

Business Groups Opposed Same Measure in 2011

By Melanie Trottman

Updated Feb. 5, 2014 7:31 p.m. ETWASHINGTON—The National Labor Relations Board on Wednesday revived a sweeping proposal to streamline and speed union-organizing elections at companies, positioning the agency for a fight with business groups, which stymied the original 2011 measure in court on a technicality.

The NLRB said the proposed rule is aimed at updating the election process, increasing transparency and efficiency, and reducing unnecessary litigation and delay. The rule would usher in some of the biggest procedural changes for union-organizing elections in decades, and would mark a major victory for unions that often complain it takes too long to schedule a vote.

The changes would delay employers’ legal challenges, including whether certain workers are eligible to vote, until after the election occurs. Unions say that would eliminate litigation used to stall elections, but business groups say it would limit employers’ ability to launch timely challenges and counter union-organizing campaigns. The NLRB says many challenges become moot when unions lose elections.

Employers would also be required to give the union email addresses of employees eligible to vote, and the proposal would allow for electronic filing of election documents.

The proposal drew quick criticism from business groups and praise from unions.

“This proposal is a solution in search of a problem,” said Geoff Burr, vice president of government affairs for the Associated Builders and Contractors trade group, who said shortening elections doesn’t ensure more fairness and “denies employers their rights to free speech and employees the opportunity to make a fully informed decision.”

Randel Johnson, senior vice president of labor for the U.S. Chamber of Commerce, which sued the board over its previous proposal, said the latest version was nearly identical. “We’re looking at all our options to block it,” he said.

National Association of Manufacturers President Jay Timmons said the trade group is also prepared “to fight this battle” on all fronts, including litigation.

Richard Trumka, president of union federation AFL-CIO, said in a statement: “We applaud the National Labor Relations Board for proposing these common-sense rules.…When workers petition for an NLRB election, they should receive a timely opportunity to vote.”

NLRB Chairman Mark Pearce said in a statement that “no final decisions have been made.” He added that the changes would help employers and employees, including unionized workers seeking to oust their workplace union.

Some legal experts have said the proposal would shorten the time between the filing of a vote petition with the NLRB and the actual election to 25 days or fewer. That is nearly two weeks less than last year’s median of 38 days. In contested cases, the median was 59 days.

Unions appear to have a good chance of seeing the rule adopted because the proposal was backed by the board’s three Democrats. But its two Republicans dissented, underscoring the partisan divide at the agency, which has become a symbol of political clashes over workplace regulation and unionization.

Last year, unions represented 11.3% of U.S. workers, down from about 20% in 1983. They have blamed the decline in part on voting delays they say allow employers to intimidate workers from supporting the union; business groups say the value unions bring to workers has declined.

Mr. Pearce, a Democrat, is the only current board member who was serving when the measure was first proposed in June 2011. The agency voted on a scaled-back version months later so the Democratic majority could pass it before one member’s term would expire and leave the board without a quorum of three people. The Republican member, who opposed the rule, didn’t vote on the measure.

A judge in the U.S. District Court for the District of Columbia, ruling in the U.S. Chamber case challenging the rule’s merits, decided the board lacked a quorum. He didn’t address the merits but said nothing appeared to prevent a proper quorum from voting again.

—Kris Maher contributed to this article.

 

Kuwait prepares for oil worker strike

February 06 2014 11:40

Oil Minister Ali Al Omair says a contingency plan will be put in place early next week if 19,000 workers do not cancel a threat to strike over bonus cuts

By Courtney Trenwith Thursday, 6 February 2014 11:40 AM

Kuwaiti Oil Minister Ali Al Omair has moved to ensure the Gulf state’s oil output is not disrupted if workers carry out a threat to strike in two weeks. The Kuwait Oil Workers Union, which represents some of the industry’s 19,000 workers, says its members will stop work after the government-owned oil companies refused to reinstate a bonus scheme previously paid each year.

Known as the ‘success partnership bonus’, the payment was made annually according to profits recorded above expectations.  But last month the state-owned Kuwait Petroleum Corporation said the payments had become too excessive and would be cut.  Meetings between representatives of the union and KPC have not reached any agreement.  Kuwait Oil Workers Union boss Abdulaziz Al Sharthan said the average wages of Kuwaiti oil workers were only half those of counterparts in neighbouring Saudi Arabia, UAE and Qatar.

However, three other oil worker unions have said they will not participate in the strike, Kuwait Times reported.  Al Omair said the OPEC country’s 3m barrels per day (bpd) output would not be affected. A one-quarter of its oil is exported in the form of refined products.  “We will not wait for too long, and if the oil trade unions do not call off the strike [threat] by the beginning of next week, we will take all measures to protect our employees and installations,” he said, according to AFP.

“We will seek the assistance of all state agencies, including the national guard [and] interior ministry. “[If the workers do strike], we have employees… to operate refineries and production lines for Kuwait to meet its commitments internally and abroad.”

The minister also said the decision to cut bonuses would not be reversed.  “There is no turning back from the [KPC] board of director’s decision to reduce the ‘Success Partnership bonus’,” Al Omair was quoted as saying.  “In the meantime, we hope that workers and unions understand that a strike will not be in anyone’s best interest as we plan to review all allowances and financial privileges with the Supreme Petroleum Council and the Civil Services Commission.”

 

JANUARY 2014

Select events and news from the world of organized labor

Organizing

Members of the Mississippi Alliance for Fairness at Nissan appeared at the North American International Auto Show in Detroit as part of their continuing push for union representation at Nissan’s Canton, Miss. plant. Alliance members including workers, elected officials, and other community leaders passed out flyers and held a press conference, arguing that Nissan consistently ignores or denies requests to allow workers to vote on representation by the United Auto Workers (UAW). The Canton plant employs 5,000 workers, and Nissan claims that the UAW has not been able to gather enough support for its call for a vote.

Attorneys, paralegals, legal assistants, and support staff at Gulfcoast Legal Services in St. Petersburg, Fla., voted in favor of representation by the National Organization of Legal Services Workers-United Auto Workers Local 2320. Only nonsupervisory attorneys at the nonprofit will be represented. Negotiations for a collective bargaining agreement are expected to begin in February.

The International Association of Machinists (IAM) will no longer represent employees at Angeles Composite Technologies in Port Angeles, Wash. Members of the bargaining unit voted 2-to-1 against continued representation in the decertification election run by the National Labor Relations Board (NLRB).

The first ever NLRB-supervised union election was held at a Middletown, Del. Amazon.com facility. In the vote, only 22 percent of maintenance technicians at the Amazon warehouse voted in favor of IAM representation. Amazon has also faced recent complaints about working conditions at facilities in Pennsylvania.

Football players at Northwestern University have petitioned the NLRB to form a new labor organization intended to negotiate on their behalf with colleges and universities and with the NCAA. If the petition is granted, the College Athletes Players Association will focus on preventing claimed financial exploitation of college athletes and on athletes’ safety. Northwestern’s quarterback Kain Colter spearheaded the effort along with National College Players Association President Ramogi Huma.

By a more than 2-to-1 margin, approximately 125 warehouse personnel and truck drivers at Ginsberg’s Foods in New York rejected a representation bid by Albany’s Teamsters Local 294. Ginsberg’s employees have been without union representation since 2002, when they voted to decertify the union at the company.

According to recent Labor Department statistics, unions represented 16 million American workers in 2013. Union representation of private-sector employees increased over 3 percent from 2012, with about 8.1 million represented. For the first time since 2008, more private-sector employees were union-represented than public-sector employees. Still, just 12.4 percent of employees were represented, down from 23.3 percent in 1983.

 

Strikes & Labor Disputes

A lockout of workers at a Kellogg cereal plant in Memphis, Tenn., has entered its third month. The workers, represented by Bakery, Confectionery, Tobacco Workers and Grain Millers Local 252-G, were locked out beginning in October after the union and Kellogg failed to reach an agreement over Kellogg’s ability to create alternative crewing schedules and to hire so-called casual workers. The union has filed an unfair labor charge with the NLRB, alleging that the issues were already settled by a contract that runs through 2015.

After a strike and 90-day cooling off period, the International Longshoremen’s Association (ILA) Local 333 failed to reach a labor accord with employers at the port of Baltimore. Members participated in a work stoppage from October 16-18, a move later held invalid by an arbitrator, and agreed to eight bargaining meetings in the ensuing 90-day period. Although the employers’ latest proposal included wage increases, members rejected the offer because it did not address issues such as work hours, training, grievance procedures, vacancies, job duties, and subcontracting. Local 333 President Riker McKenzie has requested negotiation assistance from the ILA’s Atlantic Coast district leadership.

 

Major Contract Settlements & Negotiations

American Airlines and the union representing 3,000 American Eagle pilots reached an agreement in principle on a 10-year collective bargaining agreement. The agreement with the Airline Pilots Association would freeze wages until 2018, give each pilot a $1,500 signing bonus, and provide a quicker way for American Eagle pilots to apply for pilot positions at American Airlines. The deal also would allow American Eagle to upgrade its fleet of regional jets beginning in 2015.

The Teamsters have ratified a five-year collective bargaining agreement covering 13,000 UPS Freight proposal. The agreement provides for wage increases over five years, improves pension terms and protections, allows more part-time workers to become full-time, and lowers insurance co-pays. The Teamsters rejected a similar deal in June 2013.

Tyson Fresh Meats will increase hourly wages for production and maintenance workers under a five-year agreement approved by the United Food and Commercial Workers. The deal provides for an increase of $1.60 in hourly rates over five years for production employees. Maintenance workers will also see increases, as will new employees if they work scheduled hours and comply with work safety expectations.

Boeing’s 777X jetliner will be manufactured in Washington state after members of the Machinists Union District Lodge 751 voted to approve an eight-year extension of their current collective bargaining agreement with Boeing Co. Boeing considered moving the 777X project to another state, but relented after the contract extension and after receiving state tax breaks worth $8.7 billion. At least 10 charges have been filed with the NLRB challenging the agreement. The charges allege that the ratification vote took place over the holidays when many senior workers were on vacation, resulting in only 75 percent of eligible members participating in the vote. The extension passed with 51 percent of the vote.

Film and television workers represented by the Directors Guild of America have ratified a three-year collective bargaining agreement with the Alliance of Motion Picture and Television Producers (AMPTP). The agreement includes a first-year 2.5 percent wage increase for directors, and provides for a 3 percent increase each year thereafter. Among other provisions, it requires the establishment of a diversity program at every major television studio. AMPTP contracts with the Writers Guild of America and Screen Actors Guild expire in 2014.

Members of the Culinary Workers Local 226 and Bartenders Union Local 165 ratified a five-year contract with Caesars Entertainment. The contract covers 13,000 employees at Caesars properties in Las Vegas. Among other provisions, the agreement requires Caesars to increase its contributions to workers’ hourly earnings. Employees will be able to use the increase either to maintain health coverage or to increase wages.

The International Brotherhood of Teamsters (IBT) has ratified a collective bargaining agreement with the YRC Worldwide, Inc., the Overland Park, Kan. trucking company. The ratification vote reversed an earlier poll in which union members rejected a tentative agreement that included a four-year wage freeze for some workers. The agreement provides for a lump-sum ratification bonus, limits YRC’s ability to hire nonunion workers for certain positions, and includes protections from layoffs.

Figures compiled by BNA show that the average first- and second-year wage increases in 2013 were 2.1 percent and 2 percent, respectively, figures larger than those reported in 2012. Average third-year increases held steady at 2.1 percent. Wage freezes were included in 22 percent of all contracts. Average first-year increases were the largest in the nonmanufacturing sector (2.8 percent), and were smallest in government contracts (1.6 percent). Contracts in the manufacturing sector saw average first-year increases of 2.1 percent. Some 67 percent of contracts that specified insurance coverage changes included provisions designed to control health care costs.

BNA has also compiled figures for settlements reached so far in 2014. According to its analysis, average first-year increases are 1.8 percent. The number is down from the 2.7 percent BNA reported for the same period in 2013. Manufacturing-sector first-year increases were 2.1 percent compared to 1.7 percent last year, while nonmanufacturing-sector first-year increases were 2.7 percent compared to 4.3 percent last year.

According to Labour Canada, major collective bargaining agreements reached during 2013 produced average base rate wage increases of 1.4 percent, less than the 1.7 percent average in 2012. The 2013 figure was based on 432 collective agreements covering 1,014,210 employees, with durations averaging 36 months. By comparison, 265 agreements were reached in 2012, covering 735,721 employees and with durations averaging 36.6 months. The average duration of agreements has been gradually decreasing over the prior five years. On a sectoral basis, the top greatest wage growth in 2013 was in primary industries (3.1 percent), followed by finance and professional services (2.5 percent), utilities (2.3 percent), construction (2.2 percent), and manufacturing (1.9 percent).

 

Administrative, Court & Other Decisions

The U.S. Supreme Court has clarified whether the Fair Labor Standards Act (FLSA) requires employers to pay employees for the time they spend changing clothes. In a unanimous opinion authored by Justice Scalia, the Court held that the phrase “changing clothes” as used in the FLSA means substituting or altering “items that are both designed for and used to cover the body and are commonly regarded articles of dress”. Under the Court’s opinion, employers do not have to compensate employees for the time. Sandifer v. U.S. Steel Corp. For more information on this decision see client briefing.

The U.S. Court of Appeals for the Seventh Circuit reversed a lower court holding that Title VII of the Civil Rights Act of 1964 did not apply to labor unions. The plaintiff, Robert Green, had argued that his union should have represented him in a wrongful termination lawsuit. Mr. Green alleged that the union refused to represent him in retaliation for an earlier discrimination complaint he raised, but the lower court held that Title VII does not protect union employees from actions taken by their union. The Seventh Circuit held that the lower court’s ruling would make Title VII pointless. Robert Green v. American Federation of Teachers/Illinois Federation of Teachers Local 604.

The U.S. Court of Appeals for the Ninth Circuit affirmed a 2012 district court ruling that stopped aircraft refueling workers at Seattle-Tacoma International Airport from striking. The district court held that the workers had not exhausted dispute resolution procedures required under the Railway Labor Act. The Act applies to all carrier employees, and requires them to appoint a representative and engage in collective bargaining before striking. The Appeals Court held that the requirements apply even if the employees are not unionized. Aircraft Service International v. International Brotherhood of Teamsters Local 117.

A Ninth Circuit panel has refused to rehear a decision in which it held that Ernst & Young had not waived its right to arbitrate by delaying its decision to move to compel arbitrations. The plaintiff argued that by the time the company moved to compel arbitration, a court had already dismissed certain claims and the parties had engaged in expensive discovery. The Ninth Circuit held that this state of affairs did not prejudice the plaintiff. The petition was circulated to the full court, but no judge asked for the case to be heard en banc. Richards v. Ernst & Young.

An NLRB Administrative Law Judge (ALJ) deemed unlawful several provisions of a Honda dealership’s employee handbook, even though the handbook had been revised in response to an earlier claim that it was too restrictive. Boch Honda had already revised multiple provisions, including those related to confidential information, social media, and personal hygiene, but it retained a dress code provision that prohibited employees from wearing insignias and other so-called “message clothing”. The ALJ held that each of the challenged provisions were unlawful under the National Labor Relations Act (NLRA), but required no remedy except as to the too-restrictive dress code. Boch Honda and IAM District Lodge 14, Local Lodge 447.

An NLRB ALJ held that a Kansas hospital’s peer review confidentiality policy violated the NLRA despite being modeled on a state statute. The provision prohibited employees from disclosing information concerning reportable risk-management issues except to specific hospital officials. The ALJ held the provision was overbroad and facially unlawful because it prohibited an employee targeted in a peer review investigation from bringing a union representative to peer review meetings. The hospital had denied two nurses’ requests for union representation at peer review meetings in which they believed they were being investigated. Midwest Division-MMC d/b/a Menorah Medical Center.

The NLRB will not petition the U.S. Supreme Court to review two cases that invalidated its rule requiring that employers inform their employees of their right to unionize. The rule would have required employers to hang an informational poster in the workplace, with a failure to do so being deemed an unfair labor practice. The D.C. Circuit Court of Appeals held that the NLRA gives employers a right to free speech so long as the speech does not contain threats of retaliation or promises of benefits. The U.S. Court of Appeals for the Fourth Circuit held that the NLRB’s proper role is reactive to unfair labor practices charges and requests to conduct union elections. Nat’l Assoc. of Mfrs. v. NLRB; Chamber of Commerce v. NLRB.

NLRB Administrative Law Judges continue to apply the Board’s controversial D.R. Horton opinion. ALJ Lisa Thompson found an arbitration agreement illegal because it limited an employee’s right to bring a class action even though the agreement in question was silent as to the issue. When an employee filed a class-action lawsuit, however, the employer argued that its intent in having employees sign arbitration agreements was to have the employees waive the right to a class proceeding. The ALJ rebuffed a request that the case be stayed pending the U.S. Supreme Court’s decision in the Noel Canning case. Cunningham v. Leslie’s Poolmart, Inc.

The NLRB’s Division of Advice has concluded that Volkswagen Group of America did not violate the NLRA by threatening employees and improperly assisting the UAW. Employees brought the charge in October 2013 alleging that the UAW coerced and made misrepresentations to Volkswagen employees during the union’s push for recognition at Volkswagen’s Chattanooga, Tenn., plant. The employees also alleged that Volkswagen threatened employees by conditioning future growth of the plant on union representation.

On January 15, the NLRB filed a complaint against Wal-Mart Stores. The NLRB contends that Walmart threatened, disciplined, or fired more than 60 employees in 13 states after the employees went on strike or committed to do so. The NLRB also alleges that Walmart used televised national news programs to threaten retaliation against employees who participated in protected concerted activity. Walmart denies that it violated federal law.

A California Court of Appeals held that workers covered by a collective bargaining agreement that provides bargained-for wage terms are exempt from the state’s wage-and-hour laws. Two former employees were covered by a contract that provided for seven 12-hour days with no overtime followed by seven days off. The employees filed a class action that claimed that arrangement violated California law requiring overtime to be paid when an employee works more than eight hours a day. The Court of Appeals held that, under the CBA, Exxon was not required to pay overtime as defined in the California Labor Code. Vranish v. Exxon Mobil Corp.

The Supreme Court of Alaska held that residents of Anchorage may vote to overturn an ordinance that restricts public workers unions’ bargaining rights. The ordinance eliminated strike rights, limited annual wage increases, and ended police and fire unions’ right to binding arbitration of contract claims. Supporters of the vote have collected more than 20,000 signatures in their effort to qualify the referendum for the ballot, and the Anchorage Assembly previously voted to place the referendum on the ballot. However, Anchorage Mayor Dan Sullivan vetoed the Assembly vote. Municipality of Anchorage v. Holleman.

 

Legislation & Politics

The NLRB dismissed its appeal of a district court decision that invalidated the agency’s revised union election rules on the grounds that the revised rules were approved without a valid quorum. The Board further voted to rescind the invalided revised rules and to restore its union election rules to the version that existed prior to the approval of the final rule.

 

Crime, Corruption & Other Misdeeds

Approximately 100 witnesses were expected to testify in a Buffalo, N.Y. trial of former leaders of the Operating Engineers Local 17. Union leaders are accused of using death threats, violence, and vandalism over a decade in which union members worked on many Buffalo-area construction projects, including at the home stadium of the Buffalo Bills. Witnesses are expected to testify that union members sent threatening mail, stabbed an executive in the neck, glued shut the locks on work sites, poured sand into the engines of heavy machinery, and participated in other violence and vandalism.

A former business agent and trustee of IBT Local 337 in Detroit pleaded guilty to conspiracy in a bribery scheme. Michael Townsend was accused of accepting about $18,000.00 in cash in exchange for promising not to organize employees at LaGrasso Brothers Produce. LaGrasso Brothers had previously pleaded guilty and agreed to cooperate with the investigation.

The general president of the IBT agreed with an Independent Review Board (IRB) recommendation to place IBT Local 36 in San Diego, Calif. under trusteeship because of alleged embezzlement and fund mismanagement by union leaders. Local 36 represents about 1,000 workers in San Diego County under more than 40 collective bargaining agreements. The IRB’s recommended sanctions pertain to allegations against Arthur Cantu, the local’s former secretary-treasurer, Michael Witek, its current secretary-treasurer, and Marilyn Rawlins, a former Local 36 business agent and officer manager. Specifically, the IRB said the union leaders breached their fiduciary duties and violated the local’s bylaws by improperly using union funds to buy a car for Cantu after he destroyed his union vehicle while driving drunk. Cantu and Rawlins also are accused of falsifying Local 36 records to conceal meals for which there was no union purpose and failing to submit numerous itemized receipts.

 

Miscellaneous

The AFL-CIO held its annual civil and human rights conference from January 16-20 in San Antonio, Texas. Holding the conference in Texas is part of the federation’s push to diversify and grow the labor movement in areas like the South where, it contends, wages are depressed and voters are disenfranchised. Unions are increasingly active in voting-rights issues that were not traditionally part of the labor movement’s focus. By advocating for nonlabor issues, federation unions hope to build a broader movement than one dedicated solely to workers’ rights.

Leaders of Laborer’s International Union of North America and Unite Here wrote and published a letter outlining their concerns with the Affordable Care Act (Obamacare). The two unions sent the letter to the two Democratic leaders in the House and Senate, Rep. Nancy Pelosi and Sen. Harry Reid. The letter says, among other things, that Obamacare: “undermines fair marketplace competition in the health care industry”; introduces unfair subsidies; creates “overwhelming” temptation to drop existing health care plans and coverage; and creates “unbalanced competition” that will allow some employers to act irresponsibly and dump their workers onto Obamacare’s exchanges. The unions further note their “bitter disappointment” that despite trying to work with the Obama administration for three years, their concerns about Obamacare were never heeded.

The UAW will hold its convention June 1-4 in Detroit. UAW President Bob King said that members will be asked to vote on an increase in membership dues. Current dues amount to two hours of pay per month. The proposal would increase the dues to an amount equal to 2.5 hours of pay per month. The increase is said to be needed in order to assist organizing efforts currently underway at Volkswagen, Nissan, and Mercedes-Benz manufacturing plants.

 

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