Federal Circuits, 7th Cir. (January 18, 1978)
Docket number: 77-1413
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US Code - Title 29: Labor - 29 USC 158 - Sec. 158. Unfair labor practices
US Code - Title 29: Labor - 29 USC 160 - Sec. 160. Prevention of unfair labor practices
US Code - Title 29: Labor - 29 USC 159 - Sec. 159. Representatives and elections
U.S. Supreme Court - Connell Constr. Co. v. Plumbers, 421 U.S. 616 (1975)
U.S. Supreme Court - Perry v. Sindermann, 408 U.S. 593 (1972)
U.S. Court of Appeals for the 2nd Cir. - Local 851, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Petitioner-Cross-Respondent, v. National Labor Relations Board, Respondent-Cross-Petitioner, Purolator Courier Corporation, Intervenor., 732 F.2d 43 (2nd Cir. 1984) International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Petitioner-Cross-Respondent, v. National Labor Relations Board, Respondent-Cross-Petitioner, Purolator Courier Corporation, Intervenor.
Kenneth R. Loebel, Milwaukee, Wis., for petitioner.
Elliott Moore, Deputy Associate Gen. Counsel, John G. Elligers, Joseph P. Norelli, Attys., N.L.R.B., Washington, D. C., Harry Sangerman, Chicago, Ill., for respondent.Before SPRECHER and TONE, Circuit Judges, and GRANT, Senior District Judge.*SPRECHER, Circuit Judge.At issue in this appeal is the statutory and constitutional validity of the National Labor Relations Board's (NLRB) determination that it is an unfair labor practice for a union composed of guard and non-guard employees to picket in order to force an employer to recognize that union as the bargaining agent for a unit of driver-guard employees.* This case arises on a petition of the International Brotherhood of Teamsters, Local 344 (the Union) to set aside a decision of the NLRB, 228 NLRB No. 172 (Apr. 12, 1977), ordering the Union to cease and desist from picketing Purolator Security, Inc. (Purolator or employer) in violation of section 8(b) (7)(C) of the National Labor Relations Act, 29 U.S.C. § 158(b)(7)(C). The Board has filed a cross-application requesting this court to enforce its order. The court's jurisdiction is based on sections 10(e) and (f) of the NLRA, 29 U.S.C. § 160(e), (f).Purolator, a Texas corporation, provides armored car services for customers in the metropolitan Milwaukee, Wisconsin area. Its employees there pick up and deliver money, cash receipts, daily receipts, securities and valuable personal property for its customers. The general procedure is for the driver of a Purolator truck to stop at a customer's location and remain in the truck. A fellow driver-guard picks up the package from the customer and signs a receipt. The two driver-guards deliver the package to its designated destination and obtain a receipt for the delivery. On a typical route the total items picked up during a run will value as much as $2 to $3 million.Purolator employs in Milwaukee ten full-time driver-guards, ten part-time driver-guards, one mechanic who occasionally drives and a vault man. All driver-guards wear uniforms, insignias and shields indicating that they are employees of Purolator and they carry firearms issued by Purolator. Although the employees are not deputized, they carry their guns to protect the customer's property, to protect themselves against possible assault and to deter attacks.Purolator is responsible for any losses caused by its employees. It carries insurance against loss of cargo up to $50 million and for injuries caused by its employees up to some unspecified amount.On July 28, 1976, the Union notified Purolator that it had been authorized by a majority of the employees at Purolator's Milwaukee facility to represent them for purposes of collective bargaining. Purolator did not respond and so the Union filed a petition on July 30 with the NLRB seeking an election in a unit of "all driver guards, driver messengers, guard messengers, and mechanics."The Acting Regional Director dismissed the petition on August 4. He decided that the employees were "guards" within the meaning of section 9(b)(3) of the NLRA (quoted in text infra ); and since the Union admits to membership employees other than guards, he concluded that the Board was barred by that provision from certifying an election with that Union. The Union requested the Board to review the Acting Director's decision to dismiss its petition. The Board, with one member dissenting, affirmed the Director's decision.Subsequent to the Acting Regional Director's decision but prior to the Board's affirmance, the Union again contacted Purolator asking it to recognize the Union as the bargaining representative of the driver-guards, and offering to prove its majority status either through signed authorization cards or a secret election. The Union also threatened that if Purolator did not accept the Union as the bargaining representative of the driver-guards, then the Union would engage in peaceful picketing to publicize the dispute with the employer.On September 21, 1976, the Union picketed the premises of Purolator in Milwaukee and distributed handbills to passers-by explaining that Purolator refused to recognize the Union. On September 22, 23 and 29, the Union engaged in ambulatory picketing and handbilling of Purolator at the premises of some of its customers at times when Purolator's vehicles were present at those locations.The Regional Director filed a complaint on September 22, 1976, alleging that the Union's picketing violated section 8(b)(7)(C) of the National Labor Relations Act (quoted in note 1 infra ). The case was tried before an Administrative Law Judge who held that the Union's conduct did constitute an unfair labor practice and ordered the Union, inter alia, to cease and desist from picketing the employer. A three member panel of the Board, with one member dissenting, affirmed the ALJ's decision and adopted his recommended Order. The Union now appeals that decision.IIThe Board's theory in this case is that Congress in section 8(b)(7)(C)1 by its reference to picketing for a reasonable period of time up to thirty days prior to the filing of a petition under section 9(c)2 intended by implication to forbid all subsequent recognitional picketing if the Board determines that it cannot or will not hold a representation election. Since the Board decided that section 9(b)(3) restricts it from certifying these driver-guards in a unit to be represented by a union with non-guard members, it concluded that the Union was forbidden after the Acting Regional Director's certification decision from engaging in recognitional picketing. This theory has been approved, with one judge dissenting, by the District of Columbia Circuit in Drivers, Chauffeurs, Warehousemen & Helpers Local 71 v. NLRB, 553 F.2d 1368 (D.C.Cir.1977) (Wells Fargo ).3The Union in this appeal presents several arguments for reversing the NLRB's determination that the Union committed an unfair labor practice. First, the Union contends that the driver-guard employees of Purolator are not "guards" within the meaning of section 9(b)(3) of the NLRA, 29 U.S.C. § 159(b)(3). That section provides:The Board shall decide in each case . . . in order to assure to employees the fullest freedom in exercising the rights guaranteed by this subchapter, the unit appropriate for the purposes of collective bargaining. . . . Provided, That the Board shall not (3) decide that any unit is appropriate for such purposes if it includes, together with other employees, any individual employed as a guard to enforce against employees and other persons rules to protect property of the employer or to protect the safety of persons on the employer's premises; but no labor organization shall be certified as the representative of employees in a bargaining unit of guards if such organization admits to membership, or is affiliated directly or indirectly with an organization which admits to membership, employees other than guards.(Emphasis added).The Union argues that since the employer's driver-guards are not "guards" for purposes of section 9 the Board erred in not certifying immediately the driver-guard unit and holding an election. Although we recognize that the propriety of the Board's interpretation of section 9 is not beyond dispute, we still decline to overturn it. See Humphrey v. Drivers, Chauffeurs & Helpers Local 639, 369 F.Supp. 730, 735 n. 15 (D.Md.1974).It is important to recognize that we are not being asked to review a new Board interpretation. Since 1953, the NLRB in the few cases in which the issue has arisen has consistently ruled that driver-guards such as those at Purolator are "guards" under 9(b)(3).4 Armored Motor Service Co., 106 N.L.R.B. 1139 (1953); Drivers, Chauffeurs, Warehousemen & Helpers Local 71, 221 N.L.R.B. 1240, enforced, 553 F.2d 1368 (D.C.Cir.1977); Drivers, Chauffeurs & Helpers Local 639, 211 N.L.R.B. 686 (1974).In so holding the Board in Armored Motor Service initially determined that one of the policies that underlay Congress' decision to treat guards differently from other employees was a general concern for the problem of divided loyalties in employees primarily responsible for the protection of the employer's property. Then the Board, based presumably upon its expertise, found that "(t)he danger of divided loyalty which Congress sought to eliminate may not be quite so far-reaching in the case of armored-car guards, but it is nevertheless, present." Armored Motor Service, supra at 1140.In reviewing the Board's decision in this case, we can consider the two parts of the Board's Armored Motor Service analysis separately. First, we are of the opinion that there is support in the language of the Act and in its legislative history5 for the Board's view of the policy to be advanced by section 9(b) (3)'s treatment of "guards." It would seem that the language of the Act referring to guards as "individual(s) employed . . . to enforce against employees and other persons rules to protect property of the employer . . ." (emphasis added) demonstrates a congressional concern for divided loyalties in employees given the particularly sensitive task of protecting the employer's property.6Second, we believe that the Board could reasonably conclude that the problem of divided loyalty is relevant to the driver-guard situation. See Wells Fargo, supra at 1374. In support of its view, the Board cited the following example:A conflict of loyalty could arise, for example, if the guards should be called upon to deliver money or valuables to one of their customers whose employees were represented by the same union as represented the armored-car guards and the employees of the customer were on strike and picketing the premises of the customer.Armored Motor Service Co., 106 N.L.R.B. 1139, 1140 (1953). We agree with the District of Columbia Circuit that the Board could reasonably determine that this is a type of divided loyalty that Congress sought to avoid in section 9(b) (3). We therefore decline to hold that the Board's interpretation is in error.IIINext, the Union argues that even if section 9(b)(3) does forbid the Board from certifying the Union as the representative of this unit it should nevertheless have held an election for the employees in the unit and certified the arithmetical results.7 In the Union's view had an election been held in which a majority of the employees had voted for the Union, its recognitional picketing would not have been an unfair labor practice under section 8(b)(7) (C). While this view is not without some substance given the policy underlying that provision,8 we hold that the Board was not required to hold an election and thus we decline to consider whether the Union's theory is correct.The Board apparently does have the power to conduct an election in which nonqualifying unions appear on the ballot. See Burns Int'l Detective Agency, Inc., 138 N.L.R.B. 449 (1962); Rock-Hills-Uris, Inc. v. McLeod,236 F.Supp. 395, 398 (S.D.N.Y.1964), aff'd per curiam, 344 F.2d 697 (2d Cir. 1965); M. Forkosch, A Treatise On Labor Law § 320 (1965). However, the decision whether to conduct an election in any given situation is in the Board's discretion. Wells Fargo, supra, 553 F.2d 1376; Rock-Hills-Uris, Inc., supra, 236 F.Supp. at 398.Although we recognize that a Board-conducted election might provide a better indication of the majority will of the employees and thereby promote stable labor relations, 236 F.Supp. at 398, we note that an election is a substantial expense both to the employer and to the Board. 553 F.2d at 1376. The Board is in the best position to decide whether the benefits from the election justify the expense. We cannot say that the Board in declining to hold an election in this case abused its discretion.9IVThe Union argues that even if the Board correctly interpreted section 9(b)(3) and properly used its discretion in declining to hold an election, the Board nevertheless erred in holding that the Union's picketing was an unfair labor practice in violation of section 8(b)(7)(C). The Union reasons that all that the Act does is deprive it of the Board's power to compel the employer to bargain with it even though a majority of the employees might wish to be represented by the Union. Since nothing in the Act forbids the employer from voluntarily recognizing the Union as the bargaining representative, the Union concludes that it should be able to employ economic pressure to attain that status. In this conclusion the Union relies primarily on United Mine Workers v. Arkansas Oak Flooring Co., 351 U.S. 62, 76 S.Ct. 559, 100 L.Ed. 941 (1956);10 Rock-Hills-Uris, Inc. v. McLeod, 236 F.Supp. 395 (S.D.N.Y.1964), aff'd per curiam, 344 F.2d 697 (2d Cir. 1965);11 and Vila Barr, 157 N.L.R.B. 588 (1966).12While it is not altogether clear how Congress intended section 8(b)(7)(C) to apply to these facts, we conclude that that provision bars recognitional picketing after it is determined that no Board-conducted election will be held. That conclusion is supported by the language of the provision and by the policies underlying it.The provision itself refers to a petition under section 159(c) which is the initial step in the Board-conducted election process. We believe that the District of Columbia Circuit accurately read the import of that provision when it held: "8(b)(7)(C) . . . appears to contemplate picketing by way of prelude to an election." Thus, absent the possibility of an election,13 recognitional picketing would appear to be proscribed. 553 F.2d at 1377.There appear to be two policies served by section 8(b)(7)(C) which could be undermined by the Union's interpretation. First, the Act's preference for elections supports a policy favoring the orderly settlement of labor disputes. NLRB v. Local 542, Int'l Union of Operating Eng., 331 F.2d 99, 107 (3d Cir.), cert. denied,Try vLex for FREE for 3 days
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