TIMOTHY J. KELLY, United States District Judge.
Plaintiff Road Sprinkler Fitters Local Union No. 669, U.A., AFL-CIO ("Local 669") brings this action challenging an order of Defendant National Labor Relations Board (the "Board") affirming a decision to order a union decertification election. Through that election, sprinkler fitters employed by construction company AFP Specialties Inc. ("AFP") decisively voted out Local 669 as their representative for collective-bargaining
"The National Labor Relations Act of 1935 (`NLRA'), 29 U.S.C. §§ 151-169, establishes a federal regime for managing labor relations and generally authorizes the [Board] to resolve disputes between labor organizations and employers." Dist. No. 1, Pac. Coast Dist., Marine Eng'rs' Beneficial Ass'n v. Liberty Mar. Corp., 815 F.3d 834, 839 (D.C. Cir. 2016). One of the Board's principal duties is to determine whether employees want to be represented for collective-bargaining purposes. See 29 U.S.C. § 159. A decertification election provides employees with "an opportunity to choose no longer to be represented by a union." Brooks v. NLRB, 348 U.S. 96, 100-01, 75 S.Ct. 176, 99 S.Ct. 125 (1954). Under certain circumstances, incumbent unions are protected from decertification elections for a period of time by the Board's "contract bar" rule. In this case, the question of whether the "contract bar" rule applies turns on whether the employees at issue have a relationship with Local 669 that is governed by Section 9(a) or Section 8(f) of the NLRA.
Under Section 9(a), "a union that obtains the support of `the majority of the employees in a unit' will become the recognized representative of those employees, and the employer will be obligated to communicate and negotiate with it on the terms and conditions of employment." Colo. Fire Sprinkler, Inc. v. NLRB, 891 F.3d 1031, 1035 (D.C. Cir. 2018) (quoting 29 U.S.C. § 159(a)). "[T]he scope of the bargaining unit is determinative of what employees the unit represents." Boise Cascade Corp. v. NLRB, 860 F.2d 471, 474 (D.C. Cir. 1988) (emphasis omitted). If a collective bargaining agreement reflects a Section 9(a) relationship between a unit of employees and a union, it triggers the three-year "contract bar." See Shepard Convention Servs., Inc. v. NLRB, 85 F.3d 671, 672 n.2 (D.C. Cir. 1996). Under the "contract bar rule," the Board "will generally refuse decertification elections, whether requested by the employer, the employees or another union," for three years from the effective date of the collective bargaining agreement, except during a brief window that opens shortly before the three years are up. NLRB v. Dominick's Finer Foods, Inc., 28 F.3d 678, 683 (7th Cir. 1994). The "contract bar" rule "is well established in NLRB adjudications though it appears nowhere in statute and is not the result of judicial mandate." Hill v. WMATA, 309 F.Supp.2d 63, 68 (D.D.C. 2004).
Section 8(f) of the NLRA "creates a limited exception to this majority support requirement for the construction industry." Nova Plumbing, Inc. v. NLRB, 330 F.3d 531, 534 (D.C. Cir. 2003). Under Section 8(f), an employer that is a construction-industry contractor "may sign a `pre-hire' agreement with a union regardless of how many employees authorized the union's representation." Id. (citing 29 U.S.C. § 158(f)). These agreements "respond
Local 669 is a "national labor organization" as defined in the NLRA. ECF No. 1 ("Compl.") ¶ 3; ECF No. 11 ("Def.'s MTD") at 6. In 1954, it was certified by a national election pursuant to Section 9(a) of the NLRA as the exclusive collective bargaining representative of "sprinkler fitter employees" who, through their employer, belonged to the National Fire Sprinklers Association, Inc. (the "Association") — "an association of construction employers in the fire protection industry." Compl. ¶¶ 4, 7.
AFP is a company in the construction industry that installs, repairs, and dismantles fire protection and control systems. Compl., Ex. E ("Decision") at 1. In 2005, AFP executed an acknowledgment with Local 669 (the "2005 Acknowledgment") that recognized Local 669 as its sprinkler fitters' exclusive collective bargaining representative. Id. at 5; Def.'s MTD at 6. The 2005 Acknowledgment states in relevant part:
Decision at 5; Def.'s MTD at 6.
In 2010, AFP and Local 669 executed an "Assent and Interim Agreement" (the "2010 Assent"). Decision at 5; Def.'s MTD at 6. It provides that:
Decision at 5; Def.'s MTD at 6.
In 2011, AFP settled a lawsuit with four funds regarding unpaid fringe benefit contributions. Compl. ¶ 8; see also id., Ex. B (the "2011 Settlement Agreement"). As part of the 2011 Settlement Agreement, AFP agreed that, if it did not pay the funds what it owed by March 31, 2013, it would "designate ... [the Association] to act on its behalf as representative in national collective bargaining for, and to be bound by any successor Collective Bargaining Agreement or Agreements with[,] [Local 669]." Compl. ¶ 8 (quoting 2011 Settlement Agreement ¶ 12). AFP did not meet the March 31 deadline, and so it designated the Association as its representative
On November 4, 2016, an AFP employee filed a petition under Section 9(c) of the NLRA seeking to decertify Local 669 as the exclusive bargaining representative for a unit of AFP sprinkler fitters. Decision at 2; Def.'s MTD at 7. AFP argued, among other things, that the "contract bar" rule did not apply because the unit had a Section 8(f), not a Section 9(a), relationship with Local 669. Decision at 2. Local 669, for its part, argued that the "contract bar" rule did apply because, by designating the Association to be its collective bargaining representative in 2013, AFP "agreed to be bound to the terms of its multi-employer contract" reached in 2016, which was governed by the Board's 1954 certification of Local 669 pursuant to Section 9(a). Id.; see also id. (noting Local 669's position that "the single employer unit sought ... does not exist").
On January 11, 2017, a Regional Director of the Board issued a Decision and Direction of Election, in which she concluded that the "contract bar" rule did not apply. Decision; see Compl. ¶ 11. As a preliminary matter, she explained that the bargaining unit for the purposes of the Decision encompassed "[a]ll journeymen sprinkler fitters and apprentices in the employ of AFP" who perform certain enumerated tasks (the "AFP Unit"). Decision at 2; see id. at 2 n.1. She noted that this definition was "taken from the 2016-2021 collective bargaining agreement between the Union and the [Association]," and that "[a]ll parties stipulated that this unit is `an appropriate unit within the meaning of Section 9(b) of the [NLRA].'" Id. at 2 n.1.
Most significantly, the Regional Director found that Local 669 had failed to establish that a Section 9(a) relationship that would bar a decertification election existed between it and the AFP Unit. Referencing the well-established maxim that "[m]ajority status is the sine qua non for contract bar in the construction industry," she pointed out that "there [had] never been a union election of any kind or nature" involving AFP's sprinkler fitters. Id. at 3, 6. Moreover, she concluded that "[n]ot the 2005 Acknowledgement, not the 2010 Assent, not the 2011 Settlement Agreement — not one of these documents establishe[d] that [AFP] recognized [Local 669] based on [Local 669] having shown or offered to show evidence of majority support as required in [Staunton Fuel & Material, Inc., d/b/a Central Illinois Construction, 335 N.L.R.B. 717 (2001)]." Id. at 6. She contrasted the language in those documents — which say nothing about whether Local 669 had the majority support of AFP's sprinkler fitters — with other contractual language that the Board determined had formed a Section 9(a) relationship in other cases. See id.
The Regional Director also explained that under Board precedent:
Id. at 4 (citing Comtel Sys. Tech., Inc., 305 N.L.R.B. 287 (1991)). In other words, the mere fact that AFP designated the Association
On May 18, 2017, the Board denied Local 669's request to review the Decision, concluding that it raised "no substantial issues warranting review." Compl. ¶ 12; see also Compl., Ex. F (the "Order"). In a footnote, however, the Board affirmed the conclusion of the Regional Director that the bargaining relationship between AFP and Local 669 was governed by Section 8(f), not Section 9(a), and held that the Decision "correctly rejected [Local 669's] arguments regarding the multiemployer unit and contract bar in directing an election in the single-employer unit." Order at 1 n.1.
On June 19, 2017, Local 669 filed the instant lawsuit. See Compl. The complaint alleges that the Board violated Section 9(a) of the NLRA and the terms of the 1954 certification (which it alleges applies to AFP's sprinkler fitters through their employer's membership in the Association's multi-employer unit) by allowing the election and subsequent decertification of Local 669. Id. ¶¶ 17-18. Local 669 seeks a declaratory judgment that the Board violated Section 9(a) of the NLRA and the terms of the 1954 certification by ordering the election. Id. at 7. It also requests that the Court vacate the "NLRB's order of election," vacate the results of the election, and order the Board to notify AFP that it remains part of the multi-employer unit. Id.
On October 3, 2017, the Board moved to dismiss Local 669's complaint for lack of subject matter jurisdiction. Def.'s MTD; see also ECF No. 20 ("Def.'s Reply"). Local 669 opposed and cross-moved for summary judgment. See ECF No. 13; ECF No. 17 ("Corr. Cross-Mot."); ECF No. 25 ("Pl.'s Reply").
"Federal courts are courts of limited jurisdiction." Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). The law presumes that "a cause lies outside [the Court's] limited jurisdiction" unless the party asserting jurisdiction establishes otherwise. Id. On a motion to dismiss for lack of subject matter jurisdiction under Rule 12(b)(1), "plaintiffs bear the burden of establishing jurisdiction." Knapp Med. Ctr. v. Hargan, 875 F.3d 1125, 1128 (D.C. Cir. 2017). To determine its subject matter jurisdiction, "where necessary, the court may consider the complaint supplemented by undisputed facts evidenced in the record, or the complaint supplemented by undisputed facts plus the court's resolution of disputed facts." Coal. for Underground Expansion v. Mineta, 333 F.3d 193, 198 (D.C. Cir. 2003) (quoting Herbert v. Nat'l Acad. of Scis., 974 F.2d 192, 197 (D.C. Cir. 1992)).
The parties agree that the dispositive issue for purposes of the Board's motion is whether Local 669 has met its burden of demonstrating that the narrow exception announced in Leedom provides this Court with subject matter jurisdiction. Def.'s MTD at 1; Corr. Cross-Mot. at 1, 9; Def.'s
"The cases are legion holding that, as a general rule, Board orders emanating from representation proceedings are not directly reviewable in court." Hartz Mountain Corp. v. Dotson, 727 F.2d 1308, 1310 (D.C. Cir. 1984). But "the Supreme Court has established one important and extremely narrow exception to the general rule that Board representation orders are not subject to direct judicial review." Id. at 1311 (citing Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210 (1958)). "[I]n order to justify the exercise of Leedom jurisdiction, a plaintiff must show, first, that the agency has acted `in excess of its delegated powers and contrary to a specific prohibition' which `is clear and mandatory,' and, second, that barring review by the district court `would wholly deprive [the party] of a meaningful and adequate means of vindicating its statutory rights.'" Nat'l Air Traffic Controllers Ass'n v. Fed. Serv. Impasses Panel, 437 F.3d 1256, 1263 (D.C. Cir. 2006) (second alteration in original) (citations omitted) (quoting Leedom, 358 U.S. at 188, 79 S.Ct. 180; Bd. of Governors of Fed. Reserve Sys. v. MCorp Fin., Inc., 502 U.S. 32, 43, 112 S.Ct. 459, 116 L.Ed.2d 358 (1991)). Thus, the Leedom exception is "extraordinarily narrow" and only available in the "rarest of circumstances." Hartz, 727 F.2d at 1311-12; see also Ass'n of Civilian Technicians, Inc. v. FLRA, 283 F.3d 339, 344 (D.C. Cir. 2002) ("The invocation of Leedom jurisdiction ... is extraordinary." (quoting Council of Prison Locals v. Brewer, 735 F.2d 1497, 1501 (D.C. Cir. 1984))). Indeed, the limitations on Leedom jurisdiction are "nearly insurmountable." DOJ v. FLRA, 981 F.2d 1339, 1343 (D.C. Cir. 1993).
Here, Local 669 has not met the first requirement to establish Leedom jurisdiction: it has failed to "identify a specific provision of the [NLRA] which, although it is `clear and mandatory,' has nevertheless been violated by the Board." Physicians Nat'l House Staff Ass'n v. Fanning, 642 F.2d 492, 496 (D.C. Cir. 1980) (en banc) (citation omitted) (quoting Leedom, 358 U.S. at 188, 79 S.Ct. 180).
Local 669 argues that the Order is "directly contrary to the statutory mandates of NLRA Section 9(a)." Corr. Cross-Mot. at 7. Section 9(a) provides that "[r]epresentatives designated or selected for the purposes of collective bargaining by the majority of the employees in a unit appropriate for such purposes, shall be the exclusive representatives of all the employees in such unit. ..." 29 U.S.C. § 159(a). According to Local 669, because (1) it was certified by the Board as the collective bargaining representative of the Association's multi-employer unit in 1954, (2) AFP joined that unit in connection with the 2011 Settlement Agreement, and (3) Local 669 entered into a collective bargaining agreement with the Association in 2016, the statute commands that it "shall be the exclusive representative[]" of the AFP employees at issue. Corr. Cross-Mot. at 8 (emphasis omitted) (quoting 29 U.S.C. § 159(a)); see id. at 5, 7-8.
But Local 669's argument cannot carry the day because Section 9(a) does not place a "clear and mandatory" duty upon the Board. In fact, Section 9(a) does not impose any obligation on the Board at all. Instead, it "imposes on the employer a `negative duty to treat with no other,'" which is "a consequence of the fact that `[t]he majority-rule concept is today unquestionably at the center of our federal labor policy.'" Children's Hosp. & Research Ctr. of Oakland, Inc. v. NLRB, 793 F.3d 56, 57 (D.C. Cir. 2015) (emphasis added) (alteration in original) (quoting Medo Photo Supply Corp. v. NLRB, 321 U.S. 678, 684, 64 S.Ct. 830, 88 S.Ct. 1007
Local 669 repeatedly notes that the term "shall" in Section 9(a) is mandatory. See, e.g., Corr. Cross-Mot. at 11; Pls.' Reply at 6-7. To be sure, "[o]rdinarily, legislation using `shall' indicates a mandatory duty." Anglers Conservation Network v. Pritzker, 809 F.3d 664, 671 (D.C. Cir. 2016). But this argument overlooks the key questions: a mandatory duty on whose part, to do what? By its terms, Section 9(a) merely states that a representative enjoying majority support "shall be" the exclusive bargaining representative of those employees. 29 U.S.C. § 159(a). Ultimately, the gravamen of Local 669's allegations is that the Board misapplied Section 9(a) to the facts of this case. Corr. Cross Mot. at 6-9. But that is insufficient to create jurisdiction in this Court under the Leedom exception.
Local 669 also claims that the Board violated Section 9(a) by "purporting to carve out the employees of AFP" from the Association's multi-employer unit. Corr. Cross-Mot. at 8. Section 9(a), however, places no requirement on the Board to recognize a particular bargaining unit. In fact, the next subsection of the NLRA, Section 9(b), specifically provides that "[t]he Board shall decide in each case ... [which] unit [is] appropriate for the purposes of collective bargaining. ..." 29 U.S.C. § 159(b). And "[i]t is well-established that `the Board need only select an appropriate unit, not the most appropriate unit.'" Rhino Nw., LLC v. NLRB, 867 F.3d 95, 99 (D.C. Cir. 2017) (quoting Dodge of Naperville, Inc. v. NLRB, 796 F.3d 31, 38 (D.C. Cir. 2015)). Thus, the NLRA does not, as Local 669 claims, require the Board to conduct elections only at the level of the Association's multi-employer unit.
Tellingly, Local 669 concedes that it has not located a single case where a court has found subject matter jurisdiction under Leedom on the theory that the Board allegedly violated Section 9(a) of the NLRA. Pl.'s Reply at 7 n.4. Instead, it cites two cases where courts have exercised Leedom jurisdiction where the Board allegedly violated Section 9(c). Corr. Cross-Mot. at 6 (citing Miami Newspaper Printing Pressmen's Union Local 46 v. McCulloch, 322 F.2d 993, 996 (D.C. Cir. 1963); Int'l Union of Elec., Radio & Mach. Workers v. NLRB, No. 2758-67, 1968 U.S. Dist. LEXIS 8513 (D.D.C. Jan. 17, 1968)).
Local 669 also argues that the Board violated the terms of its 1954 order certifying Local 669 as the collective bargaining representative of employees whose employers are members of the Association. See, e.g., Corr. Cross-Mot. at 4. But even assuming the Board did violate the terms of its 1954 order (which the Court highly doubts for reasons discussed below), that,
For similar reasons, Local 669 also cannot allege a violation of the Board's "contract bar" rule to establish Leedom jurisdiction because it "appears nowhere in statute." Hill, 309 F.Supp.2d at 68; cf. United Food & Commercial Workers, Local 400 v. NLRB, 694 F.2d 276, 278-79 (D.C. Cir. 1982) (rejecting Leedom jurisdiction because the Board's Excelsior requirement — which was allegedly violated — "does not specifically appear in the [NLRA]"). That is, the Board's alleged failure to comply with its own rules and orders — such as the "contract bar" — is insufficient to establish Leedom jurisdiction.
In sum, Local 669 has failed to identify a "specific prohibition" in the NLRA that is "clear and mandatory" which the Board violated, Nat'l Air Traffic Controllers, 437 F.3d at 1263, that could form the basis of Leedom jurisdiction.
Here, to the extent that the above precedent suggests that even after concluding that there is no claim that the Board violated an "unequivocal and compelling" statutory mandate, the Court should also evaluate whether there is "any colorable support" for the Board's action, it is clear that such supports exists.
The Board affirmed the Decision on two major issues. First, the Board agreed that the relationship between AFP and Local 669 was governed by Section 8(f), not Section 9(a). More than "colorable support" exists for this conclusion. "[A] construction-industry contract will be presumed to be governed by section 8(f) unless the employer and union clearly intended to create a section 9(a) agreement." Colo. Fire Sprinkler, 891 F.3d at 1038 (quoting Nova Plumbing, 330 F.3d at 537). "A Section 8(f) relationship can convert into a Section 9(a) relationship only if the union `either petition[s] for a representation election or demand[s] recognition from the employer by providing proof of majority support.'" Id. at 1035 (alterations in original) (quoting M & M Backhoe Serv., Inc. v. NLRB, 469 F.3d 1047, 1050 (D.C. Cir. 2006)). "[T]o rebut the presumption of
The Board agreed with the Regional Director that the language in the 2005 Acknowledgment, the 2010 Assent, and the 2011 Settlement was insufficient to rebut the presumption of Section 8(f) status. The 2005 Acknowledgment, for instance, states that a "clear majority" of AFP sprinkler fitter employees are "represented by [Local 669]." Decision at 5; Def.'s MTD at 6. But "there is a significant difference between a contractual statement that the union `represents' a majority of union employees — which would be accurate under either an 8(f) or a 9(a) agreement — and a statement to the effect that, for example, the union `has the support' ... of a majority to represent them." Rd. Sprinkler Fitters Local Union No. 669, U.A. v. NLRB, 637 F. App'x 611, 612 (D.C. Cir. 2016) (per curiam) (emphases added) (quoting Staunton Fuel, 335 N.L.R.B. at 720). Notably, the Circuit recently affirmed two Board decisions that concluded that language similar to the 2005 Acknowledgment was insufficient to establish a Section 9(a) relationship. See id.; Rd. Sprinkler Fitters Local Union No. 669, U.A. v. NLRB, 637 F. App'x 613, 614 (D.C. Cir. 2016) (per curiam); see also Colo. Fire Sprinkler, 891 F.3d at 1036, 1040 (holding that contract language providing that "the Union has offered to provide the Employer with confirmation of its support by a majority of such employees" was insufficient to establish a Section 9(a) relationship because "[t]he record is bereft of evidence either confirming or controverting majority support"). As reflected by these authorities, there is clearly "colorable support" for the Board's conclusion that the relationship between Local 669 and AFP's sprinkler fitters was governed by Section 8(f), not Section 9(a), because the documents governing the relationship between the parties did not demonstrate "evidence of majority support."
Second, after determining that Local 669 and AFP's sprinkler fitters formed a Section 8(f) relationship, the Board also concluded that the Regional Director "correctly rejected [Local 669's] arguments regarding the multiemployer unit and contract bar in directing an election in the single-employer unit." Order at 1 n.1 (citing John Deklewa & Sons, Inc., 282 N.L.R.B. 1375, 1385 (1987), enforced
For all of the above reasons, the Court will, in a separate Order, grant the Board's Motion to Dismiss, ECF No. 11, and deny as moot Local 669's Cross-Motion for Summary Judgment and Corrected Cross-Motion for Summary Judgment, ECF Nos. 13 and 17.