HARDIMAN, Circuit Judge.
In these consolidated appeals, Newark Portfolio JV, LLC seeks review of an order of the National Labor Relations Board (NLRB or Board) certifying Local 55 of the Laborers' International Union of North America as the collective bargaining representative for a unit of Newark Portfolio's employees, and the Board seeks enforcement of an order compelling Newark Portfolio to bargain with the Union. Because the Board's decision to certify the Union was not supported by substantial evidence, we will grant Newark Portfolio's Petition for Review and deny the Board's Cross-Application for Enforcement.
Newark Portfolio employs live-in superintendents, porters, and other maintenance workers at two buildings it owns at 585 and 595 Elizabeth Avenue in Newark, New Jersey. Pursuant to a stipulated election agreement, Newark Portfolio agreed to conduct an election for the Union to represent a bargaining unit comprising ten of its employees. The representation election was scheduled to occur on the morning of July 27, 2012, in the first-floor laundry room of 595 Elizabeth.
Despite the relatively small size of the bargaining unit, in the hour before and during the election, dozens of Union members gathered in front of the buildings, including on the steps leading to the front entrance of 595 Elizabeth.
Just before the voting started, the Board Agent conducting the election held a conference in the laundry room of 595 Elizabeth that included Newark Portfolio's attorney and the Union's business manager, Hector Fuentes. Also present were Union organizers Martinique Whaley and Manuel Escobar, as well as the Union's election observer (Roberto Jiminez) and Newark Portfolio's superintendent for 595 Elizabeth.
The parties dispute what happened at the pre-election conference. Newark Portfolio contends that in response to a complaint from its attorney, the Board Agent instructed the electioneering in front of 595 Elizabeth to cease. For its part, the Board insists that the Agent issued, at most, a "general[]" no-electioneering directive. App. 13. Regardless, the Union continued its campaign even as voting began and Philbert testified that as he walked from 585 Elizabeth to 595 Elizabeth to cast his vote, an unknown person in a bright orange t-shirt shouted at him: "These Jews don't care about you, they only care about the money." App. 38; see also App. 96-100. It was widely known that the owners of Newark Portfolio are Jewish.
The Union won the election by a single vote, with six in favor and four opposed. Newark Portfolio filed objections to the election, specifically pointing to the anti-Semitic slur and electioneering in front of 595 Elizabeth as sufficient reasons for setting aside the election. Two days of hearings were conducted before an NLRB Hearing Officer in August 2012. Philbert, Hodge, and Bonilla testified for the employer. Jiminez and two other Newark Portfolio employees—Gelmy Villagran and José Rosa—testified on behalf of the Union, along with Fuentes, Escobar, and Whaley.
The Hearing Officer issued a report overruling Newark Portfolio's objections and recommending the Union's certification. The Hearing Officer credited the testimony of Philbert, Hodge, Bonilla, Jiminez, Villagran, and Rosa, finding that each "individual[`s] testimony was internally consistent and plausible, and was substantially corroborated by the other credited witnesses." App. 33-34. With respect to Fuentes, Escobar, and Whaley, however, the Hearing Officer did not credit their testimony "where it contradicts or conflicts with the testimony of the credited witnesses or where their own testimony is inconsistent." Id. Based on this evidence, the Hearing Officer found that the anti-Semitic remark was insufficient to set aside the election under the Board's rule addressing appeals to racial and religious prejudice articulated in Sewell Manufacturing, Inc., 138 N.L.R.B. 66 (1962). The Hearing Officer also overruled Newark Portfolio's objection to the Union's electioneering, finding both that the per se rule against speaking to employees in the polling area under Milchem, Inc., 170 N.L.R.B. 362 (1968), was inapplicable and that the Union's campaign did not violate the general standard for electioneering under Boston Insulated Wire & Cable Co., 259 N.L.R.B. 1118 (1982). After considering Newark Portfolio's exceptions, the Board upheld the Hearing Officer's determinations and certified the Union.
Under Boston Insulated Wire, the Board assesses electioneering conduct under a multifactor, totality-of-the-circumstances test.
259 N.L.R.B. at 1118-19.
In considering the last factor of Boston Insulated Wire, the Board found as a factual matter that "the Board [A]gent stated generally that electioneering would not be permitted, but the [A]gent did not designate a specific `no electioneering' area." App. 13 (emphasis added).
"When the Board purports to be engaged in simple factfinding, unconstrained by substantive presumptions or evidentiary rules of exclusion, it is not free to prescribe what inferences from the evidence it will accept and reject, but must draw all those inferences that the evidence fairly demands." Allentown Mack, 522 U.S. at 378. Nor may the Board "disregard[]" evidence contrary to its factual conclusions. Id. at 369. Here, not only is there no evidence to support the Board's finding that the Agent did not designate a no-electioneering zone, the record points to the contrary.
Escobar's testimony strongly supports the inference that the Board Agent did, in fact, designate the front of 595 Elizabeth as a no-electioneering zone during the pre-election conference. A Union organizer who testified on behalf of Local 55, Escobar agreed with the statement that the Board Agent told "both sides, the union and the employer, that there should be no electioneering taking place out in front of the building." App. 479 (emphasis added).
The Board argues that it properly disregarded Escobar's testimony because the Hearing Officer discredited him as "unreliable." NLRB Br. 20-21; App. 34. But the Hearing Officer did not discredit Escobar's testimony in its entirety; it was discredited only "where it contradicts or conflicts with the testimony of the credited witnesses or where [his] testimony [was] inconsistent." App. 34. And because Escobar's admission was neither internally inconsistent nor conflicted with the testimony of a credited witness—it was among the evidence that the Board should have considered. Id. Along with Jiminez—who testified that the Board Agent said "something like" that "there should be no electioneering," App. 249-50—Escobar's testimony is the only probative evidence as to whether the Board Agent designated the front of 595 Elizabeth as a no-electioneering zone during the pre-election conference.
Accordingly, the Board's conclusion that its Agent "did not designate a specific `no-electioneering' area" did not evaluate Escobar's testimony properly, App. 13, and its finding that she only "stated generally that that electioneering would not be permitted," id., was contrary to the inference "fairly demand[ed] by the weight of the evidence," Allentown Mack, 522 U.S. at 378. The Board's analysis of Boston Insulated Wire was therefore not supported by substantial evidence. And because the Board did not consider the anti-Semitic remark overheard by Philbert in the context of the Union's violation of the Agent's prohibition on electioneering outside of 595 Elizabeth, we cannot know whether that remark could be found harmless under either Boston Insulated Wire or Sewell. We therefore cannot conclude that the Board's certification order was supported by substantial evidence on the record as a whole.
For the stated reasons, we will grant Newark Portfolio's Petition for Review and deny the Board's Cross-Application for Enforcement.
We review the Board's findings of fact for substantial evidence based on the entire record before the agency. See 29 U.S.C. § 160(e); Universal Camera Corp. v. NLRB, 340 U.S. 474, 488 (1951). Thus "we must decide whether on [the] record [as a whole] it would have been possible for a reasonable jury to reach the Board's conclusion." Allen-town Mack Sales & Serv., Inc. v. NLRB, 522 U.S. 359, 366-67 (1998). The Hearing Of-ficer's credibility determinations are given substantial deference. NLRB v. St. George Warehouse, Inc., 645 F.3d 666, 671-72 (3d Cir. 2011).