CUDAHY, Circuit Judge.
Here, the National Labor Relations Board (Board) applies for enforcement of its order against cross-petitioner Spurlino Materials, LLC (Spurlino),
Spurlino is a construction materials supplier doing business in several states including Indiana. This case arises from events at the company's concrete distribution center on Kentucky Avenue in Indianapolis, which is a base of operations for approximately fifteen concrete truck drivers. The relevant facts consist of various discrete episodes of hostility on the part of Spurlino managers toward the Kentucky Avenue employees' efforts to unionize, and toward individual truckers who conspicuously supported the Union.
In 2005 a number of the Kentucky Avenue truckers began an effort to unionize. In January of 2006 the Kentucky Avenue truckers elected to be represented by the Coal, Ice, Building Material and Supply Drivers, Riggers, Heavy Haulers, Warehousemen, and Helpers Local Union No. 716 (Union). Truck drivers Matthew Bales, Ron Eversole and Gary Stevenson were vocal supporters of the Union at the Kentucky Avenue center. All three served on the Union's organizing committee and as election observers, and after the Union was certified they served on its bargaining committee.
The company's established practice was to dispatch the Kentucky Avenue concrete truckers in order of seniority, such that earlier-hired truckers were the first dispatched
In February of 2006, Spurlino began supplying concrete for the construction of what is now the Lucas Oil Stadium,
Spurlino did not initially follow its regular seniority practice when dispatching its Kentucky Avenue truckers to the lucrative stadium project. Instead, in early dispatches to the stadium project (a period from February 16 to March 24, 2006), Spurlino routinely dispatched several more junior truckers bypassing Eversole, Stevenson and Bales. At the end of that period, the records as credited by the administrative law judge (ALJ) indicated a return (more or less) to the regular seniority order.
In May of 2006, Spurlino established a temporary plant near the stadium construction site. The company determined to staff this temporary plant with four truckers from the Kentucky Avenue center ("portable plant drivers"). Under the company's plan, these "portable plant drivers" would work at the portable plant unless they were not needed there, in which case they would work from the Kentucky Avenue facility but would be dispatched last (i.e., they would lose their seniority on the Kentucky Avenue dispatch list). The company did not bargain with the Union in connection with the creation of this new portable plant role. Instead, the company posted a notice at the Kentucky Avenue facility of the new position seeking volunteers for the position. The company informed the Union about its solicitation of volunteers for the position on the same day. Despite the loss of seniority, the portable plant driver position was an attractive opportunity, and thirteen of the fifteen Kentucky Avenue drivers volunteered.
The company purported to use a formal evaluation process to select the four portable plant drivers. The process included a test of proficiency with driving rear-discharge trucks, the type in use at the stadium project. Bales, Eversole and Stevenson each volunteered for the position, but the company did not invite Bales or Eversole to take the driving test and did not select Stevenson despite his proficient test performance. In contrast, Spurlino selected one driver who refused to take the test and another whose performance was incompetent.
Later, the company created an "alternate portable plant driver" position for days when the stadium project required more concrete than the four regular portable plan drivers could deliver. Unlike the regular portable plant drivers, these alternates were allowed to retain their seniority at the Kentucky Avenue facility. Spurlino did not notify or bargain with the Union in advance over the creation of this additional position, nor did it offer the alternate position to Bales, Eversole or Stevenson.
In October of 2006, Spurlino secured a contract to supply concrete for a large warehouse project in Plainfield, Indiana. Instead of using its existing employees and making new hires to accommodate the large project, Spurlino hired subcontractors and used Spurlino employees from Ohio who were not part of the Kentucky Avenue bargaining unit. After reaching an agreement with the subcontractors, Spurlino informed the Union of the arrangement. The Union's attorney objected to the unilateral decision to hire outside subcontractors, and insisted that the company was required to bargain with the Union. The company refused to reconsider.
The Union filed charges involving a number of matters with the NLRB General Counsel, who issued a complaint against Spurlino. In December of 2007, an ALJ ruled in favor of the Union on numerous grounds. In so doing, the ALJ found testimony by several of Spurlino's witnesses, including majority owner Jim Spurlino, general manager Gary Matney and operations manager Jeff Davidson, to be lacking in credibility. On the other hand, the ALJ credited the testimony of five Spurlino drivers that Matney made anti-union statements around the time of the election. The ALJ further credited testimony that Matney engaged in a campaign to dissuade the employees from unionizing and made statements to the effect that the employees would lose desirable benefits or be fired for unionizing and that the company would intentionally prolong union bargaining. The ALJ credited testimony that after the Union election, Matney stated that things would "get uglier than what they were," that the union "makes [him] want to do mean things," and that they would "lose... bonuses and more money and vacations and stuff like that...." The ALJ issued an order finding the company to have engaged in several unfair labor practices and imposing several remedial sanctions.
Both parties filed exceptions to the ALJ's decision, and in March of 2009, a two-member panel of the NLRB issued an order affirming the ALJ's decision, with only one notable modification.
This appeal presents the following questions:
1. Whether the Board was supported by substantial evidence in ruling that Spurlino violated National Labor Relations Act (NLRA) §§ 8(a)(1) and 8(a)(3) by failing to dispatch Bales, Eversole and Stevenson to the stadium project in accordance with seniority.
2. Whether the Board was supported by substantial evidence in ruling that Spurlino violated §§ 8(a)(1) and 8(a)(5) by creating the positions of portable plant driver and portable plant alternate driver, and in implementing a test to fill these positions.
3. Whether the Board was supported by substantial evidence in ruling that Spurlino violated NLRA §§ 8(a)(1) and 8(a)(3) by failing to select Bales, Eversole and Stevenson as portable plant drivers.
4. Whether the Board was supported by substantial evidence by ruling that Spurlino violated Gary Stevenson's Weingarten rights, and violated NLRA §§ 8(a)(1) and 8(a)(3) by suspending and firing him.
5. Whether the Board was supported by substantial evidence in ruling that Spurlino violated NLRA §§ 8(a)(1) and 8(a)(5) by assigning warehouse project work to individuals outside the bargaining unit.
We note at the outset that Spurlino's petition for review raises only a few legal arguments against granting enforcement of the Board's order. Otherwise, the company's brief consists of reiterating its own account of the facts. But Spurlino has done nothing to discredit the ALJ's factual findings as adopted by the Board, nor to rehabilitate the company witnesses the ALJ disbelieved. And even if Spurlino's alternative account is plausible, this is insufficient for the company to prevail given the deferential standard of review at this stage of the litigation.
We apply a deferential standard of review to NLRB rulings. Our inquiry is confined to asking whether the Board's factual findings are supported by substantial evidence, and whether its legal conclusions have "a reasonable basis in law." Local 65-B v. N.L.R.B., 572 F.3d 342, 347 (7th Cir.2009). Moreover, "[w]here, as here, the Board adopted the ALJ's findings of fact and conclusions of law, it is the ALJ's determinations that we review." Sheehy Enterprizes, Inc. v. N.L.R.B., 602 F.3d 839, 843-44 (7th Cir.2010) (citing FedEx
Substantial evidence supports the Board's conclusion that Spurlino violated NLRA §§ 8(a)(1) and 8(a)(3) by deviating from its regular seniority system in dispatching drivers to the stadium project.
Under § 8(a)(1), it is an unfair labor practice for an employer to "interfere with, restrain, or coerce employees" in connection with their right to organize.
The Board relied on evidence sufficient to show an antiunion motive for purposes of § 8(a)(3): the ALJ concluded that at all times relevant to this appeal, the company had knowledge that Bales, Eversole and Stevenson were active Union supporters. And General Manager Matney's multiple anti-union statements demonstrated an atmosphere of hostility toward the Union. The Board further adopted the ALJ's observation that witness testimony corroborates the departure from seniority and pointed to dispatch ticket records documenting a disparity in seniority-based assignments.
Changing the dispatch order to disfavor union adherents had a "reasonable tendency to interfere" with labor organization under § 8(a)(1), in that it subjected union sympathizers to economic pressure.
Substantial evidence supports the Board's conclusion that Spurlino violated NLRA §§ 8(a)(1) and 8(a)(5) in creating the portable plant driver and alternate driver positions.
Under § 8(a)(5), an employer may not "refuse to bargain collectively with the representatives of his employees." This obligation on the part of the employer arises on the date the union is validly elected. See Livingston Pipe & Tube, Inc. v. N.L.R.B., 987 F.2d 422, 428 (7th Cir. 1993). Mandatory subjects over which the employer must bargain are set forth in § 8(d), and include "wages, hours, and other terms and conditions of employment." However, "[w]hen a legally cognizable impasse occurs the employer is free to implement changes in employment terms unilaterally...." Beverly Farm Found., Inc. v. N.L.R.B., 144 F.3d 1048, 1052 (7th Cir. 1998) (citation omitted). Typically, a violation of § 8(a)(5) will also amount to a violation of § 8(a)(1), since a refusal to bargain will also interfere with the employees' collective bargaining rights. See, e.g., Naperville Ready Mix v. N.L.R.B., 242 F.3d 744, 755 (7th Cir.2001).
The Board accepted the ALJ's finding that the portable plant positions were new positions because they involved different pay and benefits, and that their creation affected the wages, hours and other terms and conditions of bargaining unit employees. Therefore, the portable plant positions were the subject of mandatory bargaining under § 8(a)(5).
Spurlino again points to the PLA, arguing that it liberated the company from any obligation to follow seniority or to bargain with the Union when staffing the stadium project, including the temporary portable plant (which, again, was established to service the stadium project). This conclusion,
First, contrary to Spurlino's argument, we see nothing in the PLA or Construction Agreement that expressly establishes an independent bargaining unit the rules of which prevail over existing collective bargaining agreements.
(Emphasis added.) Finally, as the ALJ noted, Spurlino refused to arbitrate the Union's grievance under the procedures established in Article 14 of the PLA. The company thereby denied itself its best opportunity to urge its expansive interpretation of the PLA.
In short, the Board was supported by substantial evidence in rejecting Spurlino's strained PLA-based argument, in concluding that the portable plant drivers remained within the Kentucky Avenue bargaining unit and in holding Spurlino to its obligation to bargain with the Union over the terms and conditions of employment.
We further agree with the Board that Spurlino violated §§ 8(a)(1) and 8(a)(5) in unilaterally implementing employee evaluations to allocate the portable plant driver positions. Establishing a new system of employee evaluations is ordinarily
The Board was supported by substantial evidence in concluding that by excluding Bales, Eversole and Stevenson as portable plant drivers,
As noted, the ALJ credited testimony tending to show that the company purposely avoided placing Bales, Eversole and Stevenson in the portable plant positions. The Board adopted the ALJ's factual conclusions unmodified. Specifically, the ALJ found that Bales, Eversole and Stevenson all indicated their interest in the portable plant position as did at least ten others. Of the entire group, only Bales and Eversole submitted the written, signed notification of interest that the company had requested. Nevertheless, the company selected four other, newer employees. Jeff Davidson, the company operations manager who made the assignment decisions, testified inconsistently as to the process and criteria used to select for the position. For instance, he stated that rear-discharge truck experience was one criterion, but two of the four drivers selected had absolutely no experience with this type of truck. He stated that performance, including attitude, was a criterion, but two of the drivers selected had performance reviews indicating a poor attitude. He stated that a driving test was an important criterion, but one of the drivers selected refused to take the test, and one performed incompetently. Bales and Eversole were not allowed to take the test, and Stevenson performed well. In sum, the ALJ found Davidson's testimony in defense of the company to have been "laced with inconsistencies, contradicted by driver testimony, and unsupported by any underlying documents or even specifics."
These ALJ factual findings as to the pretextual nature of Spurlino's justifications, together with the evidence of antiunion animus described above, amounted to substantial evidence for the Board to conclude that Spurlino violated §§ 8(a)(1) and 8(a)(3) by excluding Union adherents from a new and better-paid position.
The matter of Stevenson's termination implicates his Weingarten rights, a convention established in N.L.R.B. v. J. Weingarten, Inc., 420 U.S. 251, 95 S.Ct. 959, 43 L.Ed.2d 171 (1975). In that case, the Supreme Court held that an employer violates § 8(a)(1) by denying an employee union representation upon request during an interview that the employee reasonably believes may lead to disciplinary action. Id. at 256-57, 95 S.Ct. 959; see also Rock-Tenn Co. v. N.L.R.B., 69 F.3d 803, 808 n. 2 (7th Cir.1995).
Substantial evidence supports the Board's ruling that Spurlino violated Stevenson's Weingarten rights in connection with Stevenson's refusal to return certain errant paperwork. The ALJ found, and the Board accepted, that Stevenson's interview by manager Jeff Davidson was "investigatory" and that Stevenson had an objectively reasonable belief he might be subjected to punishment. The ALJ further credited Stevenson's testimony that he had asked to contact a union representative during the interview with Davidson, but his request was denied. This is sufficient to establish a violation of Weingarten.
The Board was also supported by substantial evidence in concluding that Spurlino violated §§ 8(a)(1) and 8(a)(3) by suspending and terminating Stevenson. The ALJ concluded, and the Board accepted the conclusion, that Stevenson was terminated because of his support for the Union. The ALJ disbelieved the justification Spurlino offered below and now on appeal: Stevenson was terminated for refusing to cooperate with the company's efforts to mitigate the unintended publication of employee social security numbers. The ALJ also noted that the company witnesses were evasive as to who made the decisions to suspend and terminate Stevenson, and that this evasiveness further indicated to the ALJ that their justifications were pretextual. Retaliating against a pro-union employee by firing the employee violates § 8(a)(3) and § 8(a)(1). See FedEx Freight E., Inc. v. N.L.R.B., 431 F.3d 1019, 1025 (7th Cir.2005) (citing Vulcan Basement Waterproofing of Ill., Inc. v. N.L.R.B., 219 F.3d 677, 684 (7th Cir.2000)).
Here in particular, we rely on our deferential standard of review. The Board might well have come to a different conclusion, since Stevenson admittedly obstructed management's efforts to correct what appears to have been an honest mistake, including by lying to a superior about discarding his paperwork. One member of the Board, in fact, noted a similar caveat about his reliance on the ALJ's factual findings. The ALJ himself acknowledged that Stevenson behaved "imprudently [and] perhaps childishly," but nevertheless concluded Stevenson's union support was the cause of his termination.
We, like the Board, properly rely on the ALJ's firsthand consideration of the evidence. See Slusher v. N.L.R.B., 432 F.3d 715, 727 (7th Cir.2005) ("`[O]n matters which the [ALJ], having heard the evidence and seen the witnesses, is best qualified to decide, the agency should be reluctant to disturb his findings unless error is clearly shown.'") (quoting Universal Camera v. N.L.R.B., 340 U.S. 474, 494, 71 S.Ct. 456, 95 L.Ed. 456 (1951)). The ALJ's discussions of the credibility of witnesses and of the company's motive in firing Stevenson were extremely thorough and well-reasoned, and together are sufficient support for the Board's conclusion that the company violated §§ 8(a)(1) and 8(a)(3) by firing Stevenson because of his allegiance to the Union.
Substantial evidence supports the NLRB's holding that Spurlino violated NLRA §§ 8(a)(1) and 8(a)(5) by assigning warehouse project work to individuals outside the Kentucky Avenue bargaining unit.
Ordinarily, "the `contracting out' of ... work previously performed by members of an existing bargaining unit is a subject about which the [NLRA] requires employers and the representatives of their employees to bargain collectively." Fibreboard Paper Prods. Corp. v. N.L.R.B., 379 U.S. 203, 209, 85 S.Ct. 398, 13 L.Ed.2d 233 (1964); see also N.L.R.B. v. Joy Recovery Tech. Corp., 134 F.3d 1307, 1315 (7th Cir. 1998).
The ALJ found, and the Board agreed, that Spurlino never offered to bargain over the use of subcontractors. The ALJ further discredited Spurlino's contention that it had a past practice of using non-unit employees from Ohio, and because of Spurlino's non-production of records, concluded that the company's use of non-unit labor for the warehouse project was a change of its business practice. The ALJ believed that this use of subcontractors
On appeal, Spurlino does not challenge these conclusions, but argues that it was faced with a "sudden business need" to subcontract and asserts that the ALJ recognized this. This is a strained, selective reading of the ALJ's memorandum. The ALJ stated that Spurlino "has never contended the existence of a financial emergency or shown that the use of subcontractors... was based on compelling economic reasons," and that Spurlino "would be hard pressed to make such an argument." Two members of the Board also noted that the company had failed to raise the matter of "economic exigency" before the ALJ, and thus it was waived.
The Board properly adopted the reasoning of the ALJ to conclude that Spurlino engaged in unfair labor practices.
For the foregoing reasons, we DENY Spurlino's cross-petition for review and GRANT the NLRB's application for enforcement in its entirety.