NOTICE:  This opinion is subject to formal revision before publication in the bound  volumes of NLRB decisions.  Readers are requested to notify the Executive Secretary, National Labor Relations Board, Washington, D.C.  20570, of any typographical or other formal errors so that corrections can be included in the bound volumes.

The Raymond F. Kravis Center for the Performing Arts and International Alliance of Theatrical Stage Employees and Moving Picture Technicians and Allied Crafts of the United States, Its Territories and Canada, IATSE, AFL–CIO, Local 623. Case 12–CA–21361

September 28, 2007

DECISION AND ORDER

By Chairman Battista and Members Liebman and Kirsanow

This case presents the question of whether, in light of the Supreme Court’s decision in NLRB v. Financial Institution Employees of America Local 1182 (Seattle-First), 475 U.S. 192 (1986), the Board should modify its standard for determining under what circumstances a union merger or affiliation may relieve an employer of its obligation to recognize and bargain with the incumbent union.  In view of the Court’s decision, we have determined that an employer is not relieved of its bargaining obligation merely because the merger or affiliation is accomplished without due process safeguards.

i. background

The Respondent, The Kravis Center for the Performing Arts, is a theatrical performance complex located in West Palm Beach, Florida.  In September 1992, the Respondent entered into an initial collective-bargaining agreement with the International Alliance of Theatrical Stage Employees and Moving Picture Technicians and Allied Crafts of the United States, its Territories and Canada (IATSE), Local 623 (Local 623).  The agreement provided for an exclusive hiring hall arrangement under which the Respondent utilized employees referred by Local 623 to perform backstage work for all productions at the Respondent’s facility.

In March 1998, the parties entered into a second agreement, which lasted through June 30, 2000.  This agreement provided that the Respondent would use the hiring hall exclusively for its own productions in the facility’s concert hall, but that the Respondent could use other sources of labor in addition to the hiring hall for stagehand work at other theaters in the complex, or for productions by outside companies.

On April 27, 2000, the Respondent notified Local 623 that it was terminating the collective-bargaining agreement on its expiration date.  The Respondent failed to notify the Federal Mediation and Conciliation Service (FMCS) of its intention as required by Section 8(d)(3) of the Act.

The parties began negotiating for a successor agreement in late May.  Approximately 3 months later, on September 11, the Respondent declared impasse and unilaterally implemented the terms of its final bargaining proposal, which included use of the hiring hall on a nonexclusive basis, the right to subcontract stagehand work at the Respondent’s discretion, and the application of the collective-bargaining agreement only to those workers referred from the hiring hall.  The Respondent withdrew recognition from the Union on September 24, 2000.  Except in one instance, when an orchestra specifically requested IATSE stagehands, the Respondent did not request any referrals from the Union’s hiring hall after that date.

On February 1, 2002, several days before the hearing in this case began, Local 623 merged with five other south Florida IATSE locals to form Local 500.  The merger was conducted in accordance with the International Union’s constitution;[1] however, members of Local 623 were not given an opportunity to vote on the merger.  The General Counsel contends that as a result of the merger, Local 500 is the successor of Local 623 and has inherited the right to represent the Respondent’s employees.

ii. the judge’s decision[2]

The judge found that the Respondent violated Section 8(a)(5) and (1) by unilaterally changing terms and conditions of employment without first having given notice to the FMCS as required under Section 8(d)(3) of the Act.  The judge further found that the Respondent violated Section 8(a)(5) and (1) by declaring impasse over a change in the scope of the unit, and by withdrawing recognition from Local 623.  He also found that the Respondent violated Section 8(a)(3) and (1) by discharging unit employees who were classified as department heads, and by refusing to use the Union’s hiring hall after declaring impasse.

Applying current Board law, the judge rejected the General Counsel’s contention that Local 500 was the successor to Local 623.  Accordingly, the judge found that the Respondent had no obligation to recognize and bargain with Local 500, and that any bargaining obligation the Respondent had with Local 623 was terminated as of the date of the merger.  He therefore ordered that any remedy due the alleged discriminatees as a result of the Respondent’s unilateral changes should be cut off as of the merger date.

iii. discussion

A. The Unfair Labor Practices

We affirm the judge’s findings of the violations, except as discussed below.[3]

First, we agree with the judge that the Respondent violated Section 8(a)(5) and (1) by implementing changes to terms and conditions of employment, including the refusal to use the hiring hall, without having given prior notice to FMCS pursuant to Section 8(d)(3).[4]  See Days Hotel of Southfield, 306 NLRB 949, 956 (1992) (and cases cited therein).[5]

Second, we affirm the judge’s finding that the Respondent violated Section 8(a)(5) and (1) by declaring impasse in September 2000.  As explained more fully in the judge’s decision, the Respondent insisted to impasse that, inter alia, the collective-bargaining agreement would apply only to those workers referred from the Union’s hiring hall.  The judge found, and we agree, that this constituted an insistence by the Respondent on changing the scope of the bargaining unit, which included all workers performing stagehand work.  The scope of the bargaining unit is a permissive subject of bargaining over which a party may not insist to impasse.  See, e.g., Grosvenor Resort, 336 NLRB 613, 616–617 (2001) (citing cases).  Thus, we find that the Respondent’s declaration of impasse was unlawful.[6]

Third, we affirm the judge’s finding that the Respondent violated Section 8(a)(5) and (1) by withdrawing recognition from Local 623.  The applicable standard here for determining whether the withdrawal of recognition was lawful is that set forth in Allentown Mack Sales & Service v. NLRB, 522 U.S. 359, 361 (1998).[7]  Pursuant to that standard, an employer may not lawfully withdraw recognition from a union unless the employer demonstrates that it had a good-faith reasonable doubt or uncertainty as to the union’s majority support at the time of withdrawal.

The Respondent does not contend that it withdrew recognition from Local 623 because it had a good-faith doubt or uncertainty that the Union no longer had majority support. Rather, the Respondent argues that it was privileged to withdraw recognition when the 1998 collective-bargaining agreement expired because the parties’ bargaining relationship was not initially based on a claim or showing that the Union represented a majority of the unit employees.  We agree with the judge that this argument is time barred,[8] and that the relationship between the parties is governed by Section 9(a).[9]  Accordingly, the Respondent was not privileged to withdraw recognition from Local 623 without demonstrating a good-faith reasonable doubt or uncertainty as to the Union’s support among employees.[10]  Because the Respondent failed to meet this burden, the withdrawal of recognition was unlawful.  See Strand Theatre of Shreveport Corp., 346 NLRB No. 51 (2006), enfd. 493 F.3d 515 (5th Cir. 2007).

Finally, we find it unnecessary to pass on the judge’s findings that the Respondent violated Section 8(a)(3) and (1) by discharging employees who were classified as department heads, and by refusing to utilize the hiring hall.  Because both actions constituted unilateral changes in violation of Section 8(a)(5), as discussed above, the additional findings would not materially affect the remedy.  See, e.g., 675 West End Owners Corp., 345 NLRB No. 27, slip op. at 1 fn. 3 (2005).     

B. The Union Merger

1. The due process issue

The judge concluded that Local 500 was not the successor to Local 623 because the members of Local 623 had not been given the opportunity to vote on the merger, and the merger had therefore not been conducted with the appropriate “due process” safeguards as required under Board law.[11]  The Union argues that the Board’s due process requirement is no longer viable in light of the Supreme Court’s Seattle-First decision, and that the merger raised no question concerning representation that would require Local 500 to seek an election before it could represent the Respondent’s employees.  The Respondent contends that Seattle-First is inapplicable, as all that Seattle-First decided was that the due process standard requiring a vote could not be extended to nonmembers.  As explained below, we find merit in the Union’s argument.

As set forth in the judge’s decision, the Board has traditionally applied a two-prong test, examining both continuity of representation and “due process,” when a union’s representational status has been challenged following a union merger or affiliation.[12]  The Union’s exceptions and brief present the issue of whether the latter prong—the requirement that union members must have an opportunity to vote, with adequate due process safeguards, on union affiliations—remains valid in light of the Court’s decision in Seattle-First.  Although Seattle-First was decided 21 years ago, the Board has not previously resolved this issue.[13]  We do so now.

a. The Supreme Court’s decision in Seattle-First

In Seattle-First, the Supreme Court held that the Board had exceeded its statutory authority by denying a union’s postaffiliation petition to amend its certification, based on the union’s failure to comply with a Board rule requiring that all bargaining unit members, including nonunion members, be allowed to vote on the affiliation.  The Court rejected the Board’s argument that the rule was a reasonable means of protecting the right of unit employees to select a bargaining representative under Section 7 of the Act.  Rather, the Court found that, under the system for employee representation prescribed by the Act, “the Board cannot discontinue [a certified union’s] recognition without determining that the affiliation raises a question of representation and, if so, conducting an election to decide whether the certified union still is the choice of a majority of the unit.”[14]

The Court further found that the Act “authoriz[es] the Board to conduct a representation election only where affiliation raises a question of representation. Conversely, where affiliation does not raise a question of representation, the statute gives the Board no authority to act.”[15]  Thus, the Court concluded that the Board’s rule “upsets the accommodation drawn by the statute by effectively decertifying the reorganized union even where affiliation does not raise a question of representation.”[16] Finding that the Board’s rule also violated congressional policy against outside interference in union decisionmaking, the Court stated:

 

[T]he Act establishes a specific election procedure to decide whether the employees desire a change in a certified union’s representative status.  While the Board is charged with responsibility to administer this procedure, the Act gives the Board no authority to require unions to follow other procedures in adopting organizational changes.[[17]]

 

The Court cited the Board’s acknowledgment that the union’s failure to allow nonunion employees to vote in the affiliation election was insufficient to present a question of representation.[18]  Because no question of representation was raised, the Court found that by refusing to order the employer to bargain with the union, “the Board effectively circumvented the decertification procedures provided for by statute.”[19]

b. Seattle-First’s impact on the Board’s traditional
 “due process” test

The rule held invalid in Seattle-First is not precisely the rule at issue in the present case.[20] Nevertheless, we find that the Court’s reasoning in Seattle-First is persuasive here.  Seattle-First’s rationale was not based on a distinction between union members and nonmember unit employees voting on affiliations.[21]  Rather, the Court’s essential holding was that the Board cannot discontinue an employer’s obligation to recognize a union based on the union’s affiliating with another union unless the Board determines that the affiliation raises a question concerning representation.  Thus, it is clear that under the Act, as explicated in Seattle-First, an employer’s duty to recognize an incumbent union following affiliation cannot be discontinued on the basis that union members were not allowed to vote on the affiliation, unless the Board determines that depriving union members of an opportunity to vote raises a question concerning representation.

c. Does the absence of a vote of union members
on a merger or affiliation raise a question
concerning representation?

The Court in Seattle-First addressed the circumstances in which a union affiliation may raise a question concerning representation:

 

[A] new affiliation may substantially change a certified union’s relationship with the employees it represents.  These changed circumstances may in turn raise a “question of representation,” if it is unclear whether a majority of employees continue to support the reorganized union. . . .  In many cases, [however,] a majority of employees will continue to support the union despite any changes precipitated by affiliation.[[22]]

 

A majority of employees often will continue to support the union because, as the Court noted:

 

The Board has recognized that “affiliation does not directly involve the employment relation.  The status of wages, working conditions, benefits, and grievance procedures is unaffected by the affiliation vote; the collective-bargaining agreement between the union and the employer remains effective until the stated expiration date.”[[23]] 

 

More generally, a question concerning representation in relation to an incumbent union is presented when the employer has a good-faith reasonable uncertainty whether a majority of unit employees continues to support the union.[24] Evidence to show such uncertainty can include antiunion petitions signed by unit employees, statements by employees concerning personal opposition to the union, employees’ statements regarding other unit employees’ antiunion sentiments, and employees’ statements expressing dissatisfaction with the union’s performance as the bargaining representative.[25]

We find that the lack of a membership vote concerning union affiliation is insufficient to raise a question concerning representation, that is, to make it “unclear whether a majority of employees continue to support the reorganized union.”[26]  A membership vote reveals employees’ sentiments on an issue.  By the same token, when there is no vote, the employees’ sentiments remain unstated.  Thus, unlike antiunion petitions or other expressions of employee dissatisfaction with the union, the absence of a vote indicates nothing about employee sentiment regarding support for the incumbent union.

Further, even if held, a vote limited to union members would not necessarily reflect the sentiment of a majority of the bargaining unit employees because the bargaining unit employees may not all be union members.  Indeed, in some cases, only a small portion of the bargaining unit belongs to the union.  When only a portion of unit employees are union members, there is less reason to think that their vote regarding affiliation would be indicative of the sentiments of the bargaining unit employees as a whole.[27]  Thus, the fact that not all unit employees—and, sometimes, very few—are union members further reinforces our conclusion that the absence of a vote solely of union members on affiliation can raise no question concerning representation.[28]

Moreover, the other prong of the Board’s standard regarding union affiliations—that the employer’s duty to recognize the union does not continue when the organizational changes are so dramatic that the postaffiliation union lacks substantial continuity with the preaffiliation union—remains intact.[29]  Thus, if it is determined that the postaffiliation union lacks substantial continuity with the preaffiliation union, a question concerning representation is thereby raised and the employer’s obligation to recognize the union ceases.  In such an instance, the due process prong of the Board’s standard—requiring that union members vote on the affiliation—becomes irrelevant because a question concerning representation is raised regardless of such a vote.

In cases in which there is substantial continuity between the preaffiliation and postaffiliation union, the postaffiliation union is largely unchanged from the preaffiliation entity—i.e., nothing has happened to the union that would lead one reasonably to think that the employees no longer support it.  Thus, when there is substantial continuity, the absence of a vote of the union members on the affiliation would not seem to render unit employee support for the union unclear, as the union has remained largely the same.  Accordingly, no question concerning representation would be raised.

In sum, the absence of a vote of union members on a union affiliation does not raise a question concerning representation.  Further, the requirement that union members vote on a union affiliation serves no useful purpose in light of the Board’s separate requirement that the preaffiliation union and the postaffiliation union have substantial continuity.

Accordingly, we have decided to abandon the Board’s due process requirement for union affiliations in light of the Supreme Court’s decision in Seattle-First.  We therefore overrule our prior law and hold that, when there is a union merger or affiliation, an employer’s obligation to recognize and bargain with an incumbent union continues unless the changes resulting from the merger or affiliation are so significant as to alter the identity of the bargaining representative.

2. Substantial continuity

For the reasons discussed above, we reject the judge’s finding that Local 500 was not the successor of Local 623 because the merger was conducted without a vote of the members.  Because the judge found that the Board’s due process requirement had not been met, he found it unnecessary to reach the question of whether lack of substantial continuity between the premerger and postmerger unions, Local 623 and Local 500, was shown.[30]  We find that it was not.[31]

In determining whether there is a lack of continuity of representation after a merger or affiliation, the Board considers whether the merger or affiliation resulted in a change that is “sufficiently dramatic” to alter the union’s identity.  May Department Stores, 289 NLRB 661, 665 (1988), enfd. 897 F.2d 221 (7th Cir. 1990).  This may occur where “the changes are so great that a new organization comes into being—one that should be required to establish its status as a bargaining representative through the same means that any labor organization is required to use in the first instance.”  Western Commercial Transport, Inc., 288 NLRB 241, 217 (1988).  In assessing continuity, the Board considers the totality of the circumstances.  Mike Basil Chevrolet, Inc., 331 NLRB 1044 (2000).

Applying those principles here, we find that the evidence does not show that there was a lack of continuity of representation between Local 623 and Local 500, as discussed below.

Upon the merger, members of Local 623 became members of Local 500 without having to pay any initiation or transfer fees.  Referral fees remained the same as they had before the merger, and there was no change in members’ status concerning their place on the work list, their date of hire, or their date of membership.  Although postmerger dues were adjusted to reflect the average dues of several of the former locals, this adjustment resulted in only a $10 increase for members of former Local 623.[32]

The hiring hall/referral system is administered in the same manner as it had been before the merger.[33]  Members who had served on Local 623’s hiring hall/referral committee serve on Local 500’s referral committee, which is made up of two representatives from each of the former locals’ respective hiring hall committees.

Former Local 623 business agent John Dermody continues to serve in that role, which includes negotiating contracts, handling grievances, and servicing unit members.  Dermody also continues to be the contact person for employers, and he is a member of Local 500’s hiring hall procedures committee.  Dermody maintains his home office as he had before the merger, but also operates out of Local 500’s office in Fort Lauderdale.  Former members of Local 623 are able to contact Dermody by using the same telephone number as they had used before the merger.

At the time of the hearing, International Representative Louis Falzarano was in charge of Local 500’s day-to-day operations.  Both before and after the merger, Falzarano assisted Local 623 with organizing and contract negotiations.  Falzarano testified that a constitution and bylaws for Local 500 had been drafted and were awaiting approval by International President Thomas Short. Once approved, the constitution and bylaws would be subject to approval by a vote of the membership, and an election of officers would be held.[34]  Pursuant to the constitution and bylaws, each of the crafts would have a representative vote on an executive board and a delegate to the Union’s national convention.

Finally, employers continue to make benefit contributions to the Union’s vacation and pension funds as they had before the merger.  These independent trust funds are jointly administered by the same premerger Local 623 representatives and employers.

We conclude from this evidence that merger did not result in such a dramatic change to the Union as to raise a question concerning representation.  Consequently, we reverse the judge and find that Local 500 is the successor to Local 623, and that the Respondent was therefore required to recognize and bargain with Local 500 as the representative of its employees.  We further reverse the judge’s findings that the Respondent’s obligation to remedy its violations of Section 8(a)(5) terminated as of the date of the merger, and we shall modify the judge’s order accordingly.

Amended Remedy

Having found that Local 500 is the successor to Local 623, we shall order the Respondent to recognize and bargain with Local 500 as the representative of its employees in the unit set forth in the Order.  We adhere to the view, for the reasons fully set forth in Caterair International, 322 NLRB 64 (1996), that an affirmative bargaining order is “the traditional, appropriate remedy for an 8(a)(5) refusal to bargain with the lawful collective-bargaining representative of an appropriate unit of employees.”  The United States Court of Appeals for the District of Columbia, however, has required the Board to justify its imposition of the order on the facts of each case.  In NLRB v. Vincent Industrial Plastics, 209 F.3d 727 (D.C. Cir. 2000), the court required the Board to balance: (1) the employees’ Section 7 rights; (2) whether other purposes of the Act override the rights of employees to choose their bargaining representatives; and (3) whether alternative remedies are adequate to remedy the violation of the Act.  Having done so, we find that an affirmative bargaining order is warranted in the instant case.[35]

An affirmative bargaining order here vindicates the Section 7 rights of the unit employees who were denied the rights of collective bargaining by the Respondent’s unlawful withdrawal of recognition.  An affirmative bargaining order, with its attendant bar to challenging the Union’s continued majority status for a reasonable time, does not unduly prejudice the Section 7 rights of those employees who may oppose continued union representation because the duration of the order is no longer than is reasonably necessary to remedy the effects of the violations.

The affirmative bargaining order also serves the policies of the Act by fostering meaningful collective bargaining and industrial peace.  That is, it removes the Respondent’s incentive to delay bargaining in the hope of further discouraging support for the Union.  It also ensures that the Union will not be pressured, by the possibility of a decertification petition, to achieve immediate results at the bargaining table following the Board’s resolution of its unfair labor practice charges and issuance of a cease-and-desist order. 

A cease-and-desist order without a temporary decertification bar would be inadequate to remedy the Respondent’s violations because it would permit a decertification petition to be filed before the Respondent had afforded the employees a reasonable time to regroup and bargain through their representative in an effort to reach a collective-bargaining agreement.  Such a result would be particularly unfair in circumstances such as those presented here, where the Respondent’s unfair labor practices are of a continuing nature and are likely to have a continuing effect.

Having unlawfully declared impasse over a change in the scope of the bargaining unit, the Respondent made numerous unilateral changes, including the elimination of certain unit positions and the refusal to utilize the Union’s hiring hall.  These violations are likely to have a long lasting and negative impact on union support, effects that will not be remedied without the Union being offered time to prove itself to employees—an event that is less likely absent a decertification bar.  We find that these circumstances outweigh the temporary impact the affirmative bargaining order will have on the rights of employees opposed to continued union representation.

For these reasons, we find that an affirmative bargaining order with its temporary decertification bar is necessary to fully remedy the violations in this case.  

We shall also order the Respondent to rescind any unilateral changes made after September 11, 2000, including the elimination of the department head positions and the refusal to use the hiring hall, and to make employees whole for any loss of wages or benefits that they may have suffered as a result of those changes.  See, e.g., Strand Theatre of Shreveport Corp., supra.  Whatever backpay is found to be due the former department heads and the stagehands who likely would have been hired from the Union’s hiring hall in the absence of the Respondent’s unfair labor practices shall be calculated in accordance with F. W. Woolworth Co., 90 NLRB 289 (1950).  Backpay resulting from other unilateral changes in terms and conditions of employment shall be calculated as prescribed in Ogle Protection Service, 183 NLRB 682 (1970), enfd. 444 F.2d 502 (6th Cir. 1971).  Interest on backpay shall be computed in accordance with New Horizons for the Retarded, 283 NLRB 1173 (1987).

We shall leave to compliance the task of determining the identity of those individuals who likely would have been referred to the Respondent had it continued to utilize the hiring hall in accordance with the 1998–2000 agreement.

ORDER

The National Labor Relations Board adopts the recommended Order of the administrative law judge as modified and set forth in full below, and orders that the Respondent, The Raymond Kravis Center for the Performing Arts, West Palm Beach, Florida, its officers, agents, successors and assigns, shall

1. Cease and desist from

(a) Refusing to recognize and bargain in good faith with the Union, International Alliance of Theatrical Stage Employees and Moving Picture Technicians and Allied Crafts of the United States, its Territories, and Canada, IATSE, AFL–CIO, Local 500, as the exclusive collective-bargaining representative of its employees in the following appropriate unit:

 

All employees performing work described in Article I, Section B of the collective-bargaining agreement between the Respondent and the Union, effective from March 4, 1998, to June 30, 2000.

 

(b) Unilaterally ceasing the application of the terms and conditions set out in the 19982000 collective-bargaining agreement to unit employees, including the elimination of the department heads and the refusal to use the Union’s hiring hall, without complying with the requirements of Section 8(d)(3) and without having first lawfully bargained to impasse with respect to the terms and conditions of employment that were implemented.

(c) Insisting on changing the scope of the bargaining unit as a condition of reaching a collective-bargaining agreement.

(d) In any like or related manner interfering with, restraining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act.

2. Take the following affirmative action necessary to effectuate the policies of the Act.

(a) Within 14 days from the date of this Order, restore the terms and conditions of employment that were in effect and applicable to employees in the bargaining unit before the Respondent unilaterally changed the terms and conditions of employment on September 11, 2000, including the exclusive use of the Union’s hiring hall and restoration of the department head positions.

(b) Make whole all unit employees for losses suffered as a result of the unlawful changes in the manner set forth in the amended remedy section of this decision.

(c) Within 14 days from the date of this Order, offer reinstatement to the department head positions to the following employees: John LeBlance, Bob Davis, Daniel McMenamin, Russ Baron, Rick Hearth, and Maureen Pena. 

(d) Recognize and, on request, bargain in good faith with the Union as the exclusive collective-bargaining representative of unit employees with respect to wages, hours, and other terms and conditions of employment and, if an understanding is reached, embody such understanding in a signed agreement.

(e) Preserve and, within 14 days of a request, or such additional time as the Regional Director may allow for good cause shown, provide at a reasonable place designated by the Board or its agents, all payroll records, social security records, timecards, personnel records and reports, and all other records, including an electronic copy of such records if stored in electronic form, necessary to analyze the amount of backpay due under the terms of this Order.

(f) Within 14 days after service by the Region, post at its West Palm Beach, Florida facility copies of the attached notice marked “Appendix.”[36]  Copies of the notice, on forms provided by the Regional Director for Region 12, after being signed by the Respondent’s authorized representative, shall be posted by the Respondent and maintained for 60 consecutive days in conspicuous places including all places where notices to employees are customarily posted.  Reasonable steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or covered by any other material.  In the event that, during the pendency of these proceedings, the Respondent has gone out of business or closed the facility involved in these proceedings, the Respondent shall duplicate and mail, at its own expense, a copy of the notice to all current employees and former employees employed by the Respondent at any time since September 11, 2000.

(g) Within 21 days after service by the Region, file with the Regional Director a sworn certification of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply.

    Dated, Washington, D.C.   September 28, 2007

 

 

Robert J. Battista,                                Chairman

 

Wilma B. Liebman,                          Member

Peter N. Kirsanow                            Member

 

 (seal)            National Labor Relations Board

APPENDIX

Notice To Employees

Posted by Order of the

National Labor Relations Board

An Agency of the United States Government

 

The National Labor Relations Board has found that we violated Federal labor law and has ordered us to post and obey this notice.

 

federal law gives you the right to

 

Form, join, or assist a union

Choose representatives to bargain with us on your behalf

Act together with other employees for your benefit and protection

Choose not to engage in any of these protected activities.

 

We will not refuse to recognize and bargain in good faith with the Union, International Alliance of Theatrical Stage Employees and Moving Picture Technicians and Allied Crafts of the United States, its Territories, and Canada, IATSE, AFL–CIO, Local 500, as the exclusive collective-bargaining representative of our employees in the following appropriate unit:

 

All employees performing work described in Article I, Section B of our collective-bargaining agreement with the Union, effective from March 4, 1998, to June 30, 2000.

 

We will not unilaterally cease the application of the terms and conditions set out in the 19982000 collective-bargaining agreement to unit employees, including the elimination of the department heads and the refusal to use the Union’s hiring hall, without complying with the requirements of Section 8(d)(3) of the Act, and without having first lawfully bargained to impasse with respect to the terms and conditions of employment that were implemented.

We will not insist on changing the scope of the bargaining unit as a condition of reaching a collective-bargaining agreement.

We will not in any like or related manner interfere with, restrain, or coerce employees in the exercise of the rights listed above.

We will, within 14 days from the date of the Board’s Order, restore the terms and conditions of employment that were in effect and applicable to employees in the bargaining unit before we unilaterally changed the terms and conditions of employment on September 11, 2000, including the exclusive use of the Union’s hiring hall and restoration of the department head positions.

We will make whole all unit employees for losses suffered as a result of our unlawful changes in the manner set forth in the amended remedy section of the Board’s decision.

We will, within 14 days from the date of the Board’s Order, offer reinstatement to the department head positions to the following employees: John LeBlance, Bob Davis, Daniel McMenamin, Russ Baron, Rick Hearth, and Maureen Pena. 

We will recognize and, on request, bargain in good faith with the Union as the exclusive collective-bargaining representative of unit employees with respect to wages, hours, and other terms and conditions of employment and, if an understanding is reached, embody such understanding in a signed agreement.

 

The Kravis Center for the Performing Arts

 

Karen Thornton, Esq., Jennifer Burgess-Solomon, Esq., and Hector Nava, Esq., for the General Counsel.

Robert J. Janowitz, Esq., Jeffrey Pheterson, Esq., and Kimberly Seten, Esq., for the Respondent.

Mathew J. Mierzwa Jr., Esq., for the Union.

DECISION

Statement of the Case

Raymond P. Green, Administrative Law Judge. This case was tried before me in Miami, Florida, on various dates commencing on February 4, 2002, and continuing until August 7, 2002. 

The charge was filed on March 7, 2001, and the complaint was issued on August 31, 2001. 

In substance, the complaint alleges as follows:

1. That the Kravis Center has, since September 1992, recognized and bargained with the Union in a unit consisting of

 

All department heads and theatrical stage employees, (including riggers, electricians, carpenters, lighting technicians, sound technicians, fitters, loaders, unloaders, and other technicians performing work in connection with sets, props, costumes, wardrobes, audio visuals, motion pictures, radio broadcasts, commercials and rehearsals) involved in presentations at Dreyfoos Hall.

 

2. That the Respondent and the Union were engaged in negotiations for a new contract from May 22 through September 9, 2000, when the Respondent withdrew recognition.

3. That during the above described negotiations, the Respondent:

(a) Insisted that it was not required to bargain about the assignment of bargaining unit to persons outside the unit.

(b) Insisted on the elimination of the exclusive hiring hall provision while taking the position that employees not referred by the hiring hall would not be part of the bargaining unit.

(c) Insisted on changing the scope of the unit.

(d) Declared an impasse when no valid impasse had occurred.

(e) Engaged in surface bargaining with no intention of reaching an agreement.

4. That on or about September 11, 2000, the Respondent implemented its final proposal and made unilateral changes including the elimination of performance pay, premium pay, guaranteed minimum pay, turnaround pay, meal penalty allowance, overtime pay for hours worked over 8 during 1 day, fringe benefit contributions and the use of the Union’s referral system, and changes in timekeeping, breaktimes, and holiday pay.

5. That on or about September 11, 2000, the Respondent eliminated certain unit classifications, including department heads, truck loaders, and truck unloaders.

6. That since on or about September 24, 2000, the Respondent transferred and/or assigned bargaining unit work from stage employees and department heads to other employees and/or independent contractors.

7. That since on or about September 24, 2000, the Respondent has failed and refused to use theatrical stage employees and department heads referred by the Union.

8. That since on or about September 24, 2000, the Respondent withdrew recognition from the Union.

9. That since September 24, 2000, the Respondent has changed terms and conditions of employment, has made changes in the assignment of workers and has refused to hire people referred by the Union because of their union membership and activities.

The complaint alleges that the changes made above, were both violations of Section 8(a)(3) and (5), as being not merely unilaterally implemented, but also discriminatorily motivated.

On the entire record, including my observation of the demeanor of the witnesses, and after considering the briefs filed, I make the following

Findings of Fact

i. jurisdiction

There is no dispute and I find that the Respondent, the Raymond F. Kravis Center for the Performing Arts, is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act.

Nor is there is a dispute that up until January 30, 2002, International Alliance of Theatrical State Employees and Moving Picture Technicians and Allied Crafts of the United States, its Territories and Canada, IATSE, AFL–CIO, Local 623 was a labor organization within the meaning of Section 2(5) of the Act.  (That organization will be referred to as Local 623).

At the hearing, all parties were notified that Local 623 and various other local unions of IATSE were merged by the International Union into a new local union, designated as Local 500.  This event was consummated effective on February 1, 2002.  The General Counsel takes the position, and amended the complaint accordingly, that Local 500 is the successor to Local 623 and that it therefore inherited the legal right to represent the employees of the Respondent. 

The Respondent denied that Local 500 is a labor organization within the meaning of the Act.  It also denied that Local 500 has any rights to represent its employees.  The Respondent’s argument is that the procedure by which Local 623 and the other five locals were merged into Local 500, did not provide for notice to their memberships or for an opportunity to vote on the issue. 

In order to maintain the continuity of this story line, I will deal with the merger issue later in the decision.  Suffice it to say at this point, that if it is concluded that Local 500 is not the “successor” to Local 623, then upon the latter’s cessation of business, there would be no prospective bargaining order even if it is concluded that the Respondent violated Section 8(a)(5) of the Act.

ii. alleged unfair labor practices

A. Background

The Kravis Center is a concert hall and theatrical complex located in Palm Beach, Florida.  The concert hall, which has a seating capacity of about 2100, was completed in 1992.  At that time, it entered into a 5-year contract with Local 623.  That Agreement was made without either an election or pursuant to any demonstration by Local 623 that it represented a majority of the employees who were going to be covered by the contract.  It was, in essence, a prehire agreement, which because the Kravis Center was not an employer engaged in the construction industry, was not one permitted by Section 8(f) of the Act.1

Nevertheless, the agreement was never challenged by the filing of any unfair labor practice charge within 6 months of its execution and under Board law that agreement no longer can be challenged under either Section 8(a) or (b) of the Act as being unlawful because not supported by majority employee support at the time it was made.  Route 22 Auto Sales, 337 NLRB 84 (2001).  As such, the agreement, which may have originally been built on a pile of sand, has matured into a 9(a) collective-bargaining relationship pursuant to which the Employer may not withdraw recognition, in the absence of a Board election, without a showing that the Union no longer represents a majority of the employees who are covered by the agreement. Levitz Furniture Co of the Pacific, 333 NLRB 717 (2001).

At the time that the initial agreement was executed in September 1992, there existed plans to construct additional venues for the Kravis Center.  The original agreement took account of these but it covered only the main concert hall, which is called Dreyfoos Hall.  At that time, the agreement covered all backstage work performed at Dreyfoos Hall, whether a production was presented by the Kravis Center or by other producers who rented the hall for their shows. 

The original contract, which ran from September 1, 1992, to August 31, 1997, provided for an exclusive hiring hall to provide various categories of backstage employees to Dreyfoos Hall.  But although the Respondent seems to argue that the agreement, and its successor agreement, covered only those people who Local 623 referred for employment that is not how I read the contract.  The initial contract covers certain job classification and work descriptions within a defined geographic space, and in this sense is typical of most labor contracts.  It also provides for an exclusive hiring hall arrangement by which those jobs will be filled as the need arises.  But the fact that a contract contains such a mechanism for manning jobs, hardly means that it covers only those people who are referred to those jobs and there is nothing in either the original contract or its successors which suggest otherwise.

The agreement covers the categories of carpenters (making and/or assembling sets), electricians (dealing with sound and light), loaders (who unload and unload trucks), flymen/riggers (dealing with the operation of sets and scenery during a performance), props (dealing with relatively small objects used by performers during a show), and wardrobe (self-explanatory).  All of these people, as opposed to front of house people, such as ushers, box office people, ticket takers, are covered by the agreement.

The original and successor agreement cover essentially two types of people.  The agreement provides for utilization of six department heads, one for each of the above noted categories.  The department heads, although they originally got their jobs through Local 623’s hiring hall, have in fact evolved into regular part-time employees who worked on a steady basis at the Kravis Center.  These are particular individuals who, according to Business Agent Dermody, were approved and appointed by the Employer and if one leaves Kravis for one reason or another, a different person will be chosen by the Employer to take his or her place.  During the time that they were department heads, they worked every production produced. 

All other stagehands, during the period before 2001, had been sent from Local 623’s hiring hall and none hade any expectation of regular employment at this particular venue. They may work 1 day, a year, or many days a year depending on the luck of the draw.  In fact, they are sent to many other theatres and concert halls within the Palm Beach and southern Florida area.  Thus, when a production is put on at Kravis, it will use at least four of the department heads (for a small and unelaborate production), to more than 100 stagehands for a large production such as a traveling broadway show.  A typical show which is presented by the Kravis Center might utilize somewhere between 15 and 25 stagehands including the department heads.

The season for Kravis Center performances begins in late September or early October and ends around the end of May.  Therefore, the bulk of stagehand work is done within that 8-month window and any work done in the summer (June through August) would be minimal and done only by the five or six department heads.  This would be normal maintenance or repair of stage equipment or some work for a summer camp run by the Center. 

Local 623, as noted above, operated a hiring hall but not all of the people it refers for employment were union members.  Indeed because Florida is a right-to-work State, less than half of the people on its referral lists were union members. 

With respect to the hiring hall, Local 623 had a group of about 300 people who are placed on an A list, a B list, and a C list.  The A list consists of persons who have worked at least 2000 hours within the craft and jurisdiction of Local 623 during a preceding 2-year period.  These people, of whom there are about 100, are referred to jobs first.  The B list consists of persons who have worked at least 1000 hours within the craft and jurisdiction of Local 623 during the same period.  This group, which consists of about 30 people, is referred after the A list is exhausted.  The C list consists of everyone else who applies and who has shown qualifications for one or more of the job classifications covered.  The C list people are referred after the A and B lists are exhausted.

It should be noted that there also exist a number of nonunion companies who contract with theaters and concert halls in Florida and who employ stagehands.  One, PTT, for example, has provided stagehands to Kravis since around October 2000.  It, like Local 623, draws from a pool of people who it can call upon and its pool consists of people, (of about 300), who in many instances are also on one or more of Local 623’s referral lists.

During the term of the first 5-year contract between Kravis and Local  623, the Cohen Pavilion was finished in or