Solis Alludes to Recess Appointment for Craig Becker

Craig BeckerAccording to a report by the Associated Press, Labor Secretary Hilda Solis hinted during the AFL-CIO annual meeting that President Obama would institute controversial nominee Craig Becker as a member of the National Labor Relations Board (NLRB) by means of a recess appointment, possibly during the Easter recess. On February 9, the Senate failed to pass a cloture motion on his nomination, fueling speculation that Obama would appoint Becker – who currently serves as Associate General Counsel to both the Service Employees International Union (SEIU) and the AFL-CIO – during the President’s Day recess. According to the AP story, Solis told AFL-CIO members that they would be “very pleased” with how the stalled nomination issue would be resolved. The Senate is set to adjourn for the Easter recess from March 29 through April 9.

Cloture Vote on Craig Becker's Nomination to the NLRB Set for Monday

Craig BeckerSen. Harry Reid (D-Nev.) has filed cloture on the nomination of Craig Becker to be a member of the National Labor Relations Board (NLRB).  According to the Hill.com’s Blog Briefing Room, Sen. Richard Shelby (R-Ala.) has put a hold on all of Obama’s nominations pending before the Senate, including Becker’s. Therefore, at least 60 Senators must vote to end debate on the nomination – a feat likely made more difficult now that Republican Scott Brown has been sworn in as a Massachusetts senator. The Senate House, Education, Labor and Pensions (HELP) Committee cleared Becker’s nomination on Thursday on a party-line vote. Becker’s cloture vote is scheduled for Monday at 5:00 pm.

HELP Committee Approves Craig Becker's NLRB Nomination

Emblem of the National Labor Relations BoardOn Thursday, the Senate Committee on Health, Education, Labor and Pensions (HELP) voted 13-10 along party lines in favor of Craig Becker’s nomination to be a member of the National Labor Relations Board (NLRB). This vote follows a contentious hearing over Becker’s nomination that was held on Tuesday. It was widely believed that once the HELP Committee cleared Becker’s nomination, it would be sent quickly to the Senate floor for a final vote before Republican Scott Brown was sworn in as senator, an event originally scheduled for next Thursday. This plan might be derailed, however, as it was announced yesterday that Brown could be sworn in as early as 5:00 pm today, raising the chances that Senate Republicans will be able to stop Becker’s confirmation.

Unfair Labor Practice Charges Increased Slightly, Representation Election Petitions Decreased Significantly in 2009, According to NLRB Report

Spiral-bound document on blue surfaceOn Tuesday, the National Labor Relations Board (NLRB) released its year-end report detailing its summary of operations for fiscal year 2009. A copy of this report can be downloaded from the agency’s press release (pdf) on this subject. According to this report, while the agency’s caseload remained steady, union representation election petitions dropped dramatically from the previous year, while unfair labor practices increased slightly. Specifically, the total number of unfair labor practice (ULP) charges and representation petitions filed for FY 2009 came to 25,853, compared to 25,901 in FY 2008. Of the overall case intake, unfair labor practice case intake was 22,941, a 1.96 percent increase from the previous year. However, the total intake for representation cases this year equaled 2,912, a 14.4 percent decline from the previous year’s tally of 3,400. In addition, the NLRB conducted 1,690 initial representation elections in FY 2009, 395 fewer than in 2008, amounting to a nearly 19 percent decrease. The drop in petitions is likely due, at least in part, to the proposed Employee Free Choice Act (EFCA), which, if enacted as currently written, would make it substantially easier for unions to be certified as the employees’ collective bargaining representative. It is possible that unions are holding out hope for EFCA’s passage before initiating any new organizing drives.

Of special note in the report was the fact that 95.5 percent of all initial elections in FY 2009 were conducted within 56 days of the filing of the petition. Additionally, initial elections in union representation elections were conducted in a median of 37 days from the filing of the petition.

Littler Shareholder Ilyse Schuman commented that: “The report is particularly telling in that unfair labor cases only marginally increased while the Board saw more dramatic decreases in representation cases, suggesting both a continued decline in union organizing as well as the prospect of EFCA passage to facilitate these organizing efforts.”

The NLRB claims that it reached all three of its over overarching goals, closing 84.35 percent of all representation cases within 100 days, 70.93 percent of all unfair labor practice cases within 120 days, and 79.69 percent of all meritorious unfair labor practice cases within 365 days. The agency intends to increase its target goals for FY 2010.

Other highlights of the report include the following:

  • A 95.2 percent settlement rate was achieved in the Regional Offices in meritorious unfair labor practice cases.
  • NLRB Regional Offices won 89.8 percent of Board and Administrative Law Judge unfair labor practice and compliance decisions in whole or in part in FY 2009.
  • A total of $77,611,322 was recovered on behalf of employees as backpay or reimbursement of fees, dues, and fines, with 1,549 employees offered reinstatement.

More details of the NLRB’s year-end activities can be found in the agency’s Performance & Accountability Report for Fiscal Year 2009 (pdf).

Photo credit:  timmy

NLRB Order Provides Insight into How UNITE HERE, Workers United Representation Disputes Will be Handled

A recent order issued by the National Labor Relations Board (NLRB or Board) may herald the agency’s handling of other petitions seeking to resolve questions of union representation brought about by the UNITE HERE / Workers United split. The Board’s Order, issued July 21, 2009, affirmed the Regional Director’s decision issued July 12 dismissing the employer’s petition. Although the Board’s apparent adoption of a unified response to petitions filed in the wake of the UNITE HERE / Workers United split may provide some guidance as to how the Board will address these questions in the future, its chosen course of action avoids any discussion of whether a schism in the union occurred, and should lay the groundwork for potential federal court challenges.

In the case at issue, the employer, Royal Laundry, was faced with competing claims by UNITE HERE and the Western States Regional Joint Board (WSRJB) to represent its employees. Each union claimed to be the legitimate union representative of the bargaining unit. Prior to this, the employees had been members of Local 75 of UNITE HERE, but their executive board chose to endorse a petition to disaffiliate from UNITE HERE and join other Joint Boards and Locals to form a new union, Workers United. In the process, the local’s executive board retained its shop stewards and Joint Board staff representatives.

Royal Laundry filed a petition for an election to determine which union it needed to recognize. In this type of election, the employees also could choose not to be represented by a union at all. The Regional Director, as affirmed by the Board, ultimately denied Royal Laundry’s petition on the grounds that Local 75 (now of Workers United) remained the employees’ certified bargaining representative. The decision reasoned that the same standard used to determine whether an employer must recognize a union in the event of a union affiliation or merger, should be applied. According to the decision, the choice to disaffiliate from a union is “merely the flip side of the affiliation coin.” In the case at hand, because Local 75 continued to operate much as it had before deciding to disaffiliate, it would remain the bargaining representative.

By using this rationale, the Board avoided any discussion as to whether a schism had occurred in the union, which would entitle employees to hold an election to determine which union would represent them. If the Board were to rule that a schism had occurred, it would likely face hundreds of such elections throughout the country, which would be tremendously disruptive to the Board and employers alike.

As a result of this week’s NLRB order, the Board presumably will uphold decisions by other Regional Directors, which have been fairly uniform and have come to the same conclusion with respect to UNITE HERE / Workers United employer petitions. Additionally, on June 18, the Board issued an operations-management (OM) memorandum to NLRB regional directors and officers on how to process unfair labor practice charges arising out the UNITE HERE, Workers United and SEIU dispute. In essence, this OM stated that decisions related to the UNITE HERE dispute must be cleared by the NLRB General Counsel’s office. On a related note, the above affirmation also may allow the field offices to begin processing the Unfair Labor Practice charges filed in connection with the UNITE HERE split.

In the longer term, employers may have recourse in the event the Board certifies a bargaining unit and orders an election. At least one employer will likely challenge the certification or “test cert” before a Federal Circuit Court of Appeals. Given the Board has avoided any discussion of schism, a federal court may be more willing to overrule the Board’s decision based upon prior Board law. Moreover, although the decisions by NLRB Regional Directors have been fairly consistent in deciding that disaffiliation is the flip side of affiliation, this argument is somewhat thinly supported by the law, and is ripe for challenge.
 

 

This article was written by H. Tor Christensen.

Obama Nominates Brian Hayes as Member of the NLRB

President Obama has announced his nomination of Brian E. Hayes, Republican Labor Policy Director for the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP), to be a Member of the National Labor Relations Board (NLRB or Board). If confirmed, Hayes would join current member Peter Schaumber as the second Republican to serve on the five-member Board. Board Members are appointed to five-year terms, with the term of one member expiring each year. The Board traditionally consists of three members selected by the party controlling the White House, and two from the opposing party. In April, Obama named Democrats Craig Becker and Mark Pearce as his other picks to fill the three vacant seats. Current NLRB Chairman Wilma Liebman is also a Democrat. On July 9, the White House sent the nominations of Becker, Pearce and Hayes to the Senate for confirmation.

According to information provided by the White House announcement, before serving as a Senate staffer, Hayes worked for 25 years in private practice as a management-side labor and employment attorney. Prior to entering the private sector, Hayes clerked for the Chief Judge of the National Labor Relations Board and then as Counsel to the Chairman of the NLRB. While working in private practice, Hayes taught classes in Labor Law, Collective Bargaining, Arbitration and Employment Litigation at Western New England Law School. Has earned his undergraduate degree at Boston College and his law degree from Georgetown University Law Center.

It is not yet clear when confirmation proceedings will occur, or whether the three pending nominees will be considered as a package or individually.

Court of Appeals Holds 2-Member NLRB Panel Had No Authority to Issue Orders

The U.S. Court of Appeals for the District of Columbia Circuit has held that the National Labor Relations Board (“NLRB” or “Board”) acted without authority in entering an order against a company for alleged unfair labor practices, as the two-member panel did not constitute a quorum as required by the National Labor Relations Act (NLRA). In Laurel Baye Healthcare of Lake Lanier, Inc. v. NLRB (pdf), the only issue before the appellate court was whether the Board had the statutory authority make its decision, not whether its findings, conclusions and remedies were justified.

Prior to issuing its order in the underlying decision, one Board member’s term had expired. The remaining four members of the five-member Board voted to delegate its powers to a three-member group, pursuant to Section 3(b) of the NLRA, which reads:

The Board is authorized to delegate to any group of three or more members any or all of the powers which it may itself exercise. . . . A vacancy in the Board shall not impair the right of the remaining members to exercise all of the powers of the Board, and three members of the Board shall, at all times, constitute a quorum of the Board, except that two members shall constitute a quorum of any group designated pursuant to the first sentence hereof.

29 U.S.C. § 153(b).

As two additional members’ terms were set to expire on December 31, 2007, it was anticipated that the Board would be left with only two members due to the Senate’s failure to confirm any new nominees for the open and expiring positions; and President Bush’s inability to make recess appointments for procedural reasons. Thus, according to the D.C. Circuit, the purpose of delegating powers to a three-member group was to ensure that the remaining two Board members whose terms had not yet expired would be able to operate as a fully-functioning Board. The question before the D.C. Circuit, therefore, was whether two members constituted an effective quorum. Finding that they did not, the court reasoned that had Congress intended a two-member Board to be able to function as a quorum “the existing statutory language would be an unlikely way to express that intention.” Thus, according to the D.C. Circuit, three members are necessary for the Board to exercise any real authority. Under that reasoning, any order issued by the two-member Board would be unenforceable.

This issue is far from resolved. The Seventh Circuit also issued a decision today, New Process Steel, L.P. v NLRB (pdf) that upholds a two-member Board decision. In March, the First Circuit similarly upheld the two-member panel’s authority to issue orders in Northeastern Land Services, Ltd. v. NLRB. It is anticipated that other circuit courts that address this question will differ as to the ability of a two-member Board to issue enforceable decisions.

The practical implications of the D.C. Circuit’s decision will be few for employers. President Obama recently announced his decision to nominate Democrats Craig Becker and Mark Pearce to fill two of the three remaining open Board seats.  Obama, however, failed to announce the nomination of a Republican member to fill the remaining seat which may cause Senate Republicans to put a hold on the expected nominations of Becker and Pearce until a Republican is named as well. The longer it takes to fill the vacant seats, the longer it will be until the Board’s orders are deemed legitimate by every appellate court. Assuming Becker and Pearce are eventually seated, they – along with Democratic Chair Wilma Liebman – will constitute a quorum able to re-issue or adopt all of the decisions made by the 2-member Board, including the immediate decision in Laurel Baye.

New NLRB Rule Allows for Electronic Service of Process

Parties who file documents with the National Labor Relations Board (NLRB) may now serve such documents on other parties via e-mail, according a final rule published in today’s Federal Register. This represents a departure from previous NLRB policy, requiring a party who filed a document electronically with the Agency to notify all other parties via telephone about the filing, then serve them with a physical copy of the document the following day at the latest.

Under the new rule, if a document is filed electronically and if e-mail service is not possible, a party must notify the other party(ies) by phone, then provide a copy of the document via personal service no later than the next day, by overnight delivery service, or with consent, via facsimile.