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,
Local 79, Laborers International Union of
Local 79, Laborers International Union of North
America, AFL–CIO and
April 30, 2009
DECISION AND ORDER
By Chairman Liebman and Member Schaumber
On October 16, 2008, Administrative Law Judge Raymond P.
Green issued the attached decision. The Respondent, the General Counsel, and Charging
Party Marathon Asset Management, LLC (
The National Labor Relations Board1 has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the judge’s rulings, findings,2 and conclusions and to adopt the recommended Order as modified.3
The judge found that the Respondent violated Section 8(b)(4)(ii)(B) of the Act by threatening to picket the JMH jobsite. We agree for the following reasons. The Respondent made unqualified threats to picket neutral employer JMH’s jobsite, where primary employer Northeast Interiors was working, without providing assurances that such picketing would be conducted lawfully in accordance with Moore Dry Dock, 92 NLRB 547 (1950). The judge correctly applied Board precedent holding that such unqualified threats to picket at a common situs are unlawful. See, e.g., Electrical Workers Local 98 (MCF Services), 342 NLRB 740, 749 (2004), enfd. mem. 251 Fed. Appx. 101 (3d Cir. 2007).
We recognize, as did the judge, that two Federal Circuits
have rejected that precedent, concluding that a violation of Section
8(b)(4)(ii)(B) cannot be established merely by a union’s failure to provide
advance assurances that threatened picketing would be conducted lawfully. See Sheet Metal Workers Local 15 v. NLRB, 491 F.3d 429 (D.C. Cir. 2007); United Assn of Journeymen,
Local 32 v. NLRB, 912 F.2d 1108, 1110 (9th Cir. 1990). Even without relying on the unqualified
nature of the Respondent’s threats, however, we would find a violation in this
case based on direct evidence of the Respondent’s unlawful secondary objective.
The judge found that, on at least two occasions, union
agents told JMH that the Respondent would picket “unless” demolition work at
the jobsite was performed by a union contractor instead of Northeast
Interiors. Those statements clearly
demonstrated the Respondent’s objective of forcing JMH to cease doing business
with Northeast Interiors. See Electrical Workers Local 369 (Garst-Receveur
Construction Co.), 229 NLRB 68 (1977) (secondary objective shown by union’s
statement that “[i]f the job was run 100 percent union and then if [primary
employer] is off this job, then everything can be cleared up”), enfd. 609 F.2d
266 (6th Cir. 1979).
In view of the direct evidence of the Respondent’s prohibited
secondary objective, we find that a violation has been established
independently of the unqualified nature of the Respondent’s threats to picket. See, e.g., Service Employees Local 254 (
ORDER
The National Labor Relations Board adopts the recommended
Order of the administrative law judge and orders that the Respondent, Local 79,
Laborers International Union of North America, AFL–CIO,
1. Substitute the following for the first sentence of the recommended Order
“The Respondent, Local 79, Laborers International Union of
North America, AFL–CIO,
2. Substitute the attached notice for that of the administrative law judge.
Dated,
Wilma B.
Liebman, Chairman
![]()
Peter
C. Schaumber,
Member
(seal) National
Labor Relations Board
APPENDIX
Notice to Members And 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 the National Labor Relations Act and has ordered us to post and obey by this notice.
We will not threaten, coerce, or restrain JMH Development, LLC, where an object thereof is to force or require JMH Development, LLC to cease doing business with Northeast Interiors or any other person.
local 79, Laborers International Union of
Nancy K. Reibstein, Esq., for the General Counsel.
Richard I. Milman, Esq., for JMH Development, LLC.
Charles H. Kaplan, Esq., for
Joseph J. Vitale, Esq., for the
DECISION
Statement of the Case
Raymond P. Green,
Administrative Law Judge. I heard this
case in
1. That in
connection with a construction site at
2. That
3. That at all
times material herein Local 79 has had a labor dispute with Northeast Interiors
and has not had any primary dispute with either JMH or
4. That on or about
February 19 and March 18, 2008, the
5. That on or about
March 6, 2008, the Union blocked Bruce Richards, president of
6. That in or about
the week of March 17, 2008, the
7. That on or about
March 4, 2008, the Union induced employees of
Based on these alleged facts, the General Counsel contends
that the
On the entire record,[1] including my observation of the demeanor of the witnesses, and after considering the briefs filed, I make the following
i. jurisdiction
JMH Development, LLC is a real estate development company
doing business in
Marathon Asset Management LLC is a financial enterprise,
with its main office and place of business in
Northeast Interiors is a
Based on the above, it is concluded that JMH, Marathon, and Northeast are persons and employers engaged in interstate commerce within the meaning of Section 2(2), (6), and (7) and Section 8(b)(4)(B) of the Act.
It is conceded and I find that Local 79, Laborers International
Union of
ii. the alleged unfair labor practices
The building involved in this case is located at
Initially, JMH hired a general contractor who in turn
hired Breeze to do the demolition work. The employees of Breeze were
represented by the
In December 2007, JMH became dissatisfied with the work done by Breeze and decided to terminate its contract with both the general contractor and with Breeze. Subsequently, JMH set up a subsidiary company to manage the construction and Northeast was engaged to finish the demolition work. Northeast is a nonunion company.
In or about late January or early February 2008, Northeast brought its own employees onto the jobsite. At or about the same time, representatives of Local 79 became aware that Breeze’s contract had been terminated and that a nonunion demolition contractor had been engaged to do the work.
There is no dispute and the evidence clearly establishes
that the Union sought to have JMH cease doing business with Northeast and to
put pressure on
a. Alleged Conduct vis a vis JMH
The evidence shows that on or about February 19, a union
representative (either John Modika, a business agent, or Jerry Kraft, an
organizer), had a conversation with representatives of JMH and stated that
unless the demolition work was done by a union contractor, the
The evidence also shows that on at least one other
occasion in March 2008, Kraft admittedly told representatives of JMH that the
The General Counsel alleges that these statements to JMH
constituted “threats, restrain or coercion” within the meaning of Section
8(b)(4)(ii) and as they were designed to force or require JMH (a secondary person/employer),
to cease doing business with Northeast (the primary employer), the
The Respondent argues that the statement to JMH that it would engage in picketing cannot be construed as a “threat” because the Union would legally be entitled to picket at a common situs under the rationale of Sailors’ Union of the Pacific (Moore Dry Dock), 92 NLRB 547 (1950). In that case the Board established the following criteria for determining if picketing at primary situs is primary or secondary:
(a) The picketing is strictly limited to times when the situs of the dispute is located on the secondary employer’s premises;
(b) At the time of the picketing the primary employer is engaged in its normal business at the situs;
(c) The picketing is limited to places reasonably close to the location of the situs; and
(d) The picketing discloses clearly that the dispute is with the primary employer.
The Board’s position on this is that an unqualified threat
to picket a primary employer at a secondary’s common situs is a violation of
the Act because the
The Respondent cites NLRB v. Ironworkers Local 433, 850 F.3d 551 (9th Cir. 1988); United Assn. of Journeymen Local 32 v. NLRB, 912 1108, 1110 (9th Cir. 1990), and Sheet Metal Workers’ Local 15 v. NLRB, 491 F.3d 429 (D.C. Cir. 2007), for the proposition that at least two reviewing Circuit Courts have rejected the Board’s view on this point.
As I am bound to follow the Board in its interpretation of the law, I conclude that in this respect the Respondent violated Section 8(b)(4)(ii)(B) of the Act.
The Respondent also contends that the alleged threat made
to JMH to “shut you down,” cannot be construed as a threat under subsection
(ii) of 8(b)(4). It asserts that this is
no more than a statement expressing the “hope” of what would be the consequence
of any legal picketing activity that occurred and is therefore not a
description of any particular kind of action itself. There is no evidence to suggest that either
JMH or any other contractor at the common site employed people who were
represented by the Respondent and who therefore would likely have refused to
work or honor a lawful picket line if one had been put up by Local 79. There is, I must say, something to be said
for the
Nevertheless, the Board has on several occasions, concluded that a statement made to a secondary employer that a union would “shut it down” is to be construed as a threat for purposes of the secondary boycott provisions of the Act. See Operating Engineers Local 3 (Westar Marine Services), 340 NLRB 1053, 1053 fn. 1 (2003), and Teamsters Local 456 (Peckham Materials), 307 NLRB 612, 612 fn. 2 and 619 (1992).
Accordingly, I shall conclude that in this respect the Respondent violated Section 8(b)(4)(ii)(B) of the Act.
b. Alleged Conduct vis a vis
In connection with this construction project, the
The
SHAME
ON BRUCE RICHARDS
CEO of MARATHON MANAGEMENT for allowing
Workers to be
exploited at
Allowing contractors to pay workers in a fashion which permits them to bypass the City, State and Federal tax structure is not only against the law, it costs taxpayers millions of dollars in lost tax revenue.
Untrained and unskilled workers will always lead to an unsafe workplace, shoddy workmanship and a lower quality finished product.
While
Does BRUCE RICHARDS think it’s worthwhile to exploit workers just so he can save a little money?
Call BRUCE RICHARDS at 212 –381–4400 and tell him that all workers deserve a living wage.
This leaflet is directed at the public and is not an inducement for anyone to stop working or make deliveries. [4]
The General Counsel points to an incident that occurred on
March 6, 2008, in front of Cipriani’s restaurant located on
The General Counsel’s theory is that the action described
by Avis Richards constitutes a “threat, restraint or coercion” vis a vis
Based on the testimony of those who participated in this event, including Brian Grodin, it is my opinion, that union agents merely approached Avis Richards and attempted to hand her one of the leaflets that have been described above. At most, the evidence establishes a degree of rudeness on the part of union agents. On the other hand, the evidence does not, in my opinion, show that union agents attempted to physically block the Richards family from moving from the vehicle to the entrance of the restaurant. I therefore do not conclude that any union agents attempted to block her way or that they otherwise physically attempted to impede her or her family from going to the charity event.
There was also testimony by Melissa Davis who is employed
by
The General Counsel asserts that these statements constitute a threat of physical harm to the Richards family. In the context of this case, I do not agree.
From early March 2008, the
The General Counsel alleges that the Union violated
Section 8(b)(4)(i)(B) by inducing or encouraging an individual (Greg Florio),
employed by Marathon to engage in a strike or a refusal in the course of his
employment to use, manufacture, process, transport, or otherwise handle or work
on any goods, articles, materials, or commodities or to perform any services.
In this regard, the General Counsel presented the testimony of Greg Florio, who
is employed as the de facto General Counsel for
Florio testified that on or about March 4, he had a
conversation with a union representative outside the office building and that
this person said to him: “[T]his asshole, Bruce Richards can afford a fancy
apartment, but he doesn’t want to pay workers in
In my opinion, there is nothing in this conversation that
could reasonably be construed as an attempt to actually induce or encourage
Florio, Marathon’s counsel, to engage in a work stoppage or a refusal to work
for
Conclusions of Law
1. By threatening, coercing, or restraining JMH Development, LLC, with an object of forcing it to cease doing business with Northeast Interiors, the Respondent, Local 79, Laborers International Union of North America, AFL–CIO, has violated Section 8(b)(4)(ii)(B) of the Act.
2. The acts by of the Respondent have affected commerce within the meaning of Section 2(2), (6), and (7) of the Act and Section 8(b)(4)(ii)(B) of the Act.
3. The Respondent has not violated the Act in any other manner alleged in the consolidated complaint.
The Remedy
Having found that the Respondent has engaged in unfair labor practices proscribed by Section 8(b)(4)(ii)(B) of the Act, I shall recommend that it take certain affirmative action necessary to effectuate the purposes of the act.
ORDER
The Respondent, Local 79, Laborers International Union of North America, AFL–CIO, its officers, agents, and representatives, shall
1. Cease and desist from
(a) Threatening, coercing, or restraining JMH Development LLC, where an object thereof is to force or require JMH Development LLC to cease doing business with Northeast Interiors or any other person.
2. Take the following affirmative action necessary to effectuate the policies of the Act.
(a) Within 14 days after service by the Region, post at
its office, copies of the attached notice marked “Appendix.”[5] Copies of the notice, on forms provided
by the Regional Director for Region 29, after being signed by the Respondent’s
authorized representative, shall be posted by the Respondent immediately upon
receipt and maintained for 60 consecutive days in conspicuous places including
all places where notices to members are customarily posted. Also, if the
(b) Sign and mail a copy of the notice to JMH Development LLC and to Northeast Interiors.
(c) 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,
APPENDIX
Notice to Members and Employees
Posted by Order of the
National Labor Relations Board
An Agency of the
The National Labor Relations Board has found that we violated the National Labor Relations Act and has ordered us to post and obey by 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 threaten, coerce, or restrain JMH Development LLC, where an object thereof is to force or require JMH Development LLC to cease doing business with Northeast Interiors or any other person.
Local 79, Laborers International Union of
1 Effective midnight December 28, 2007, Members
Liebman, Schaumber, Kirsanow, and Walsh delegated to Members Liebman,
Schaumber, and Kirsanow, as a three-member group, all of the Board’s powers in
anticipation of the expiration of the terms of Members Kirsanow and Walsh on
December 31, 2007. Pursuant to this
delegation, Chairman Liebman and Member Schaumber constitute a quorum of the
three-member group. As a quorum, they
have the authority to issue decisions and orders in unfair labor practice and
representation cases. See Sec. 3(b) of
the Act.
2 The Respondent, the General Counsel, and
Charging Party Marathon have excepted to some of the judge’s credibility findings. The Board’s established policy is not to
overrule an administrative law judge’s credibility resolutions unless the clear
preponderance of all the relevant evidence convinces us that they are
incorrect. Standard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362
(3d Cir. 1951). We have carefully
examined the record and find no basis for reversing the findings.
There are no
exceptions to the judge’s dismissal of the allegation that the Respondent
violated Sec. 8(b)(4)(i)(B) of the Act by engaging in signal picketing at the
JMH jobsite.
The General Counsel
has excepted to the judge’s failure to find that the Respondent violated Sec.
8(b)(1)(A) of the Act by blocking Marathon CEO Bruce Richards’ family from
entering a restaurant. We agree with the
judge for the reasons given in his decision.
Among those reasons, the judge cited the fact that the alleged conduct,
even if it occurred, was not directed at any “employee.” Although the judge did not cite any authority
for that point, it is well supported by Board precedent holding that Sec.
8(b)(1)(A) protects the rights of statutory “employees” only. See Sheet
Metal Workers Local 104 (Losli International), 297 NLRB 1078 (1990); see
also Service Employees Local 525 (General
Maintenance Co.), 329 NLRB 638, 638 fn. 9 (1999), enfd. mem. 52 Fed. Appx.
357 (9th Cir. 2002). There is also no
evidence that employees witnessed the alleged conduct. See Teamsters
Local 115 (Oakwood Chair), 277 NLRB 694, 698 (1985) (it has long been
settled that restraint and coercion directed against supervisors and management
personnel under circumstances where the conduct became or was sure to become
known to employees may violate Sec. 8(b)(1)(A)).
3 We shall modify the judge’s recommended Order
to conform to the Board’s standard remedial language. We shall also substitute a new notice.
[1]
I am going to grant the respective motions to correct the record except to the
extent described below. The
[2] Kraft’s title is “Market Development Representative.” He is what used to be called an organizer. It is probable that he, and not Modika was the person who spoke to JMH representatives on or about February 19, 2008.
[3] In its brief, JMH contends that union representatives, on a couple of occasions, parked outside the construction site and handed out leaflets. It contends that the Union thereby engaged in picketing which induced or encouraged individuals to cease working for JMH or other persons in violation of Sec. 8(b)(4)(i)(B) of the Act. This is rejected. Firstly, I note that the complaint does not make such an allegation and a Charging Party does not have any authority to amend the complaint. GPS Terminal Services, 333 NLRB 968, 969–970 (2002), and Kaumagraph Corp., 313 NLRB 624 (1993). Secondly, the theory that this conduct constituted “signal” picketing is not, in my opinion, supported by the evidence.
[4] This font is chosen here because it is similar to the font used in the leaflet.
[5] If this Order is enforced by a Judgment of the United States Court of Appeals, the words in the notice reading “Posted by Order of the National Labor Relations Board” shall read “Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board.”