Federal Circuits, 3rd Cir. (December 30, 1999)
Docket number: 97-7450
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U.S. Court of Appeals for the 4th Cir. - American Automatic Sprinkler Systems, Incorporated, Petitioner, v. National Labor Relations Board, Respondent, Road Sprinkler Fitters Local Union No. 669, U.A., Afl-Cio, Intervenor. National Labor Relations Board, Petitioner, v. American Automatic Sprinkler Systems, Incorporated, Respondent, Road Sprinkler Fitters Local Union No. 669, U.A., Afl-Cio Intervenor., 163 F.3d 209 (4th Cir. 1998) Incorporated, Petitioner, v. National Labor Relations Board, Respondent, Road Sprinkler Fitters Local Union No. 669, U.A., Afl-Cio, Intervenor. National Labor Relations Board, Petitioner, v. American Automatic Sprinkler Systems, Incorporated, Respondent, Road Sprinkler Fitters Local Union No. 669, U.A., Afl-Cio Intervenor.
US Code - Title 29: Labor - 29 USC 158 - Sec. 158. Unfair labor practices
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On Appeal from the United States District Court for the Middle District of Pennsylvania D.C. Civil Action No. 95-cv-02131 (Honorable Sylvia H. Rambo) Argued April 26, 1999[Copyrighted Material Omitted][Copyrighted Material Omitted][Copyrighted Material Omitted]
Ronald M. Katzman, Esquire (Argued) Steven E. Grubb, Esquire Goldberg, Katzman & Shipman, P.C. 320 Market Street Strawberry Square P. O. Box 1268 Harrisburg, PA 17108 Thomas R. Davies, Esquire (Argued) Harmon & Davies, P.C. 2306 Columbia Avenue Lancaster, PA 17603 Attorneys for AppellantBruce E. Endy, Esquire (Argued) Spear, Wilderman, Borish, Endy, Spear and Runckel 230 South Broad Street -Suite 1400 Philadelphia, PA 19102 Attorney for AppelleeBefore: Scirica, Roth and Mckay,* Circuit JudgesOPINION OF THE COURTMCKAY, Circuit Judge.This appeal arises from a dispute between Plaintiff Sheet Metal Workers' International Association Local 19 [Union], Defendant Herre Bros., Inc., and a third party, Sheet Metal Contractors Association of Central Pennsylvania[SMCA] concerning the enforcement of a collective bargaining agreement. Herre Bros. attempted to revoke its bargaining rights in the SMCA with the intent that it would not be bound by a later-negotiated collective bargaining agreement between the SMCA and the Union. The Union sued Herre Bros., taking the position that Herre Bros. was bound to the Union's 1995 agreement with the SMCA. The district court granted summary judgment to the Union, ruling that Herre Bros. was bound to the 1995 collective bargaining agreement, and ordered specific performance of that agreement after a trial on damages. Herre Bros. appeals the district court's rulings.I.Herre Bros. is a mechanical and electrical contractor in Enola, Pennsylvania, engaged in the construction of sheet metal, piping, plumbing, heating, and air conditioning. Beginning in at least 1992, Herre Bros. joined the SMCA, a multiemployer bargaining association comprised of sheet metal and air conditioning contractors. The parties agree that as a result of that membership Herre Bros. was a party to the collective bargaining agreement between the Union and the SMCA which was effective from June 1, 1992, through May 31, 1995. In February 1995, Herre Bros. notified the SMCA that it no longer authorized the association to bargain on its behalf. Subsequently, the SMCA sent, and the Union received, notice that the association no longer had the bargaining authorization of Herre Bros. This notification was signed by Anthony J. Forlizzi, who was both president of the SMCA and vice-president of Herre Bros. In the meantime, the 1992 collective bargaining agreement was nearing expiration and the parties set about negotiating a new agreement.The SMCA and the Union entered into a new agreement effective June 1, 1995, to May 31, 1998, but Herre Bros. and the Union failed to negotiate any agreement. Near the end of the bargaining between Herre Bros. and the Union, in August and September 1995, the Union allegedly discovered that Herre Bros. was still an active member of the SMCA despite its revocation of bargaining rights. The Union took the position that Herre Bros. was bound by the 1995 agreement because of Herre Bros.' continuing membership in the SMCA. Herre Bros. then withdrew its membership from the SMCA and refused to be bound by the 1995 agreement. For its part, the SMCA refused to either provide the Union with a copy of its by-laws and constitution or convene a Joint Adjustment Board to hear a grievance against Herre Bros. In response, counsel for the Union indicated that the Union would file unfair labor practice charges with the National Labor Relations Board.In December 1995, the Union filed a complaint pursuant to 29 U.S.C. S 195 against Herre Bros. claiming that it had breached the 1995 collective bargaining agreement with the Union by failing to recognize that agreement and adhere to its terms.1 Meanwhile, a panel of the National Joint Adjustment Board unanimously decided on March 21, 1996, that Herre Bros. was bound to the existing collective bargaining agreement effective from June 1, 1995, through May 31, 1998, because Herre Bros. "did not follow the procedures required to properly withdraw their bargaining rights[ ] and Association membership."2 App., Vol. II at 236A.On cross-motions for summary judgment on the issue of liability, the district court granted partial summary judgment to the Union in an order filed September 16, 1996. See id. at 256A. The court determined that Herre Bros. had not effectively withdrawn from the SMCA and therefore was bound to the terms of the new agreement. The court, however, deferred entry of judgment until the conclusion of the case. It also denied Herre Bros.' motion for reconsideration of the summary judgment decision. On November 18, 1996, the district court conducted a bench trial on the issue of damages. On August 27, 1997, the court entered an Order and Memorandum that disposed of some of the damages issues in the case and granted specific performance of the 1995 agreement but which again deferred entry of judgment until the conclusion of the case. See id., Vol. I at 12A, 14A.II.As a threshold issue, we must determine whether the district court's order, or a portion thereof, is appealable or whether the appeal should be dismissed for lack of jurisdiction. The August 27, 1997 Order from which the appeal is taken granted judgment to the Union in the amount of $325,203.98; required Herre Bros. to provide the Union with an accounting of all hours worked by nonunion workers between September 27, 1996, and the date of the order; allowed the Union to file a supplemental brief requesting damages to union funds resulting from Herre Bros.' failure to utilize union workers after September 27, 1996, and allowed Herre Bros. to file a reply brief thereto; directed Herre Bros. to specifically perform the 1995 contract between the Union and the SMCA until it expired in 1998; and directed the clerk of the court "to defer entry of judgment until the conclusion of the case." Id. at 12A-13A. Herre Bros. filed its notice of appeal from this order on September 14, 1997.In a letter dated September 16, 1997, this court notified the parties that the appeal would be submitted for possible dismissal due to a jurisdictional defect, namely, that the order filed August 27, 1997, did not appear to be final within the meaning of 28 U.S.C. 1291. In response, both parties contend that the August 27 Order is appealable because the portion of it which directs specific performance of the 1995 agreement is an appealable interlocutory order. It seems clear and is beyond dispute that the August 27 Order is not a final judgment in that it does not dispose of all of the damages issues in the case and because it defers entry of judgment until a later undetermined time. Nonetheless, we believe the parties are correct in arguing that the specific performance portion of the August 27 Order is appealable under 28 U.S.C. 1292(a)(1) based on the following analysis.In its Memorandum accompanying the August 27 Order, the district court made findings of fact and conclusions of law concerning damages. The court found that the Union sought various money damages, "a declaratory judgment that Herre [Bros.] [was] bound by the 1995 agreement," and "specific performance requiring Herre [Bros.] to honor the 1995 agreement." Id. at 18A-19A. In analyzing monetary damages, the court stated that the Union "[was] entitled to" damages for work performed by union members and nonunion members after June 1, 1995, id. at 19A, 32A, and also to liquidated damages. See id. at 31A, 33A. In its discussion of declaratory relief, the court explained that because it had previously determined that Herre Bros. was bound by the 1995 agreement "the clerk of [the] court [would] enter judgment in favor of [the Union] on the issue of liability" at the conclusion of the case. Id. at 31A. The court then discussed the Union's demand of specific performance which would require Herre Bros. "to hire all of its workers from the union hiring hall." Id. at 32A. The district court granted this relief, concluding that Herre Bros. "[would] be directed to specifically perform the 1995 contract for the remainder of its term." Id. at 33A. In contrast to the court's language in the Memorandum determining that the Union was entitled to certain damages and a declaratory judgment, the court clearly stated that it was directing Herre Bros. to specifically perform the 1995 agreement until its expiration in May 1998. See id. at 32A-33A. Further, while the declaratory relief portion of the Memorandum clearly deferred entry of judgment until the conclusion of the case, see id. at 31A, the paragraph granting specific performance contained no such limitation. See id. at 32A. These differences in the court's use of language leads us to conclude that the court intended the order of specific performance to be an injunctive order that was effective immediately. In addition, we believe that the specific enforcement of the 1995 agreement falls under the definition of an injunctive order because it was "directed to a party, enforceable by contempt, and designed to accord or protect some or all of the substantive relief sought" by that party. Cohen v. Board of Trustees, 867 F.2d 1455, 1465 n.9 (3d Cir. 1989) (citations and quotation marks omitted); see also Allegheny Energy, Inc. v. DQE, Inc., 171 F.3d 153, 154 (3d Cir. 1999) (characterizing the denial of specific performance as a preliminary injunction).Our treatment of the specific performance portion of the August 27 Order as an appealable injunctive order also is supported by a subsequent order filed by the district court. In this later order, filed September 19, 1997, the district court stayed pending appeal the portion of the August 27 Order that directed specific performance.3 See Attach. to Appellant's Br. (September 19, 1997 Order at 2). The court's decision to grant a stay pursuant to Fed. R. Civ. P. 62(c) reveals that it had intended the injunctive order compelling specific performance to be enforceable immediately upon filing the August 27 Order. See Cohen, 867 F.2d at 1466.For these reasons, we conclude that the August 27, 1997 Order is an appealable interlocutory order under 28 U.S.C. 1292(a)(1), see id. at 1468 (holding that an order of specific performance of a contract has been regarded as a classic form of equitable relief and falls within S 1292(a)(1)), and we have jurisdiction over the specific performance portion of that Order.To review this appeal, i.e., to determine whether specific performance is merited, we need to review the question of liability. Clearly, the court's grant of injunctive relief was predicated on its prior summary judgment determination that Herre Bros. was bound to the 1995 contract. See id. As a result, and to avoid having to re-examine this issue after entry of final judgment, we conclude that our jurisdiction over the specific performance question necessarily requires us to address whether the district court correctly granted summary judgment to the Union by determining that Herre Bros. was bound to the 1995 agreement.III.Our resolution of this appeal turns first on whether Herre Bros. is bound to the 1995 collective bargaining agreement executed by the Union and the SMCA. If Herre Bros. is so obligated, we also must determine whether the court properly ordered specific performance of the 1995 agreement. We therefore first examine whether the district court erred in granting partial summary judgment to the Union by determining that Herre Bros. was bound to the 1995 collective bargaining agreement.We review the court's partial grant of summary judgment de novo, applying the same standards used by the district court. See Salley v. Circuit City Stores, Inc., 160 F.3d 977, 980 (3d Cir. 1998) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 322-23 (1986)). We must determine whether the record, when viewed in the light most favorable to the non-moving party, namely, Herre Bros., shows that there are no genuine issues of material fact and that the moving party was entitled to judgment as a matter of law. See Fed. R. Civ. P. 56(c); Salley, 160 F.3d at 980; Antol v. Perry, 82 F.3d 1291, 1294-95 (3d Cir. 1996).A.At the heart of this dispute is the distinction between two types of multiemployer bargaining relationships.4 Under S 9(a) of the National Labor Relations Act, 29 U.S.C. 159(a), a union may become the exclusive bargaining representative of an appropriate unit of employees if a majority of employees designate the union as the representative. It is well established that an employer with a S 9(a) relationship to a union has an obligation to negotiate a successor contract with the union in good faith and that the union enjoys a presumption of majority status. See James Luterbach Constr. Co., 315 N.L.R.B. 976, 979 (1994). Accordingly, neither an employer nor a union governed by S 9(a) may unilaterally withdraw from the multiemployer bargaining unit or the collective bargaining agreement; instead, withdrawal is subject to specific requirements. See Retail Assocs., Inc., 120 N.L.R.B. 388, 393-95 (1958).Unlike a S 9(a) relationship, an employer member of a multiemployer bargaining unit who has a relationship with a union under S 8(f) of the NLRA, 29 U.S.C. 158(f), does not have an obligation to bargain for a successor contract. See Luterbach, 315 N.L.R.B. at 979; Patterson-Stevens, Inc., 316 N.L.R.B. 1278, 1285 (1995). Section 8(f) differs because it allows employers engaged primarily in the building and construction industry to enter into pre-hire agreements which contain union security clauses whether or not the union represents a majority of the employer's employees. See 29 U.S.C. 158(f). Because the union enjoys no presumption of majority status, either party in a S 8(f) relationship is free to unilaterally withdraw and "avoid any obligation to bargain for a successor contract" upon the expiration of the collective bargaining agreement.5 Luterbach, 315 N.L.R.B. at 978; see also John Deklewa & Sons, Inc., 282 N.L.R.B. 1375, 1385 & n.42 (1987) (holding that S 8(f) agreements are enforceable during the life of the agreement but impose no continuing obligation to bargain following the termination of that agreement), enforced sub nom. International Ass'n of Bridge, Structural & Ornamental Iron Workers v. NLRB, 843 F.2d 770 (3d Cir. 1988). Luterbach instructs that an 8(f) employer will be bound by multiemployer bargaining only if it is "part of the multiemployer unit prior to the dispute" and "has, by a distinct affirmative action, recommitted to the union that it will be bound by the upcoming or current multiemployer negotiations." Luterbach, 315 N.L.R.B. at 980. Thus, "mere inaction during the multiemployer negotiations will not bind an 8(f) employer to a successor contract." Id. at 979.Because the distinction between 8(f) and 9(a) significantly affects the analysis concerning withdrawal from a multiemployer bargaining unit, we examine whether S 8(f) or S 9(a) governs the relationship between the parties in this case. The district court held that the S 8(f) rule requiring an employer's affirmative action to bind it to the multiemployer negotiations does not apply because "Defendant[did] not assert nor [did] the record demonstrate that SMCA [was] comprised exclusively of S 8(f) employers." App., Vol. II at 262A.On appeal, Herre Bros. claims that the record clearly establishes that the relationship between the parties is governed by S 8(f) because the "SMCA is comprised of employers `engaged primarily in the building and construction industry' " as indicated by 29 U.S.C. 158(f). Appellant's Br. at 19. Herre Bros. also argues that the court improperly applied the summary judgment standard and viewed evidence and inferences in favor of the Union. The Union responds by asserting that the 1992 agreement itself provides clear proof that the employer, through the SMCA, "expressly recognized [the Union] as the recognized collective bargaining representative under Section 9(a)," even when viewed in a light most favorable to Herre Bros. Appellee's Br. at 25-26.To determine whether the relationship here is governed by 8(f) or 9(a), we look to federal labor relations law. See Mack Trucks, Inc. v. International Union, UAW, 856 F.2d 579, 591 (3d Cir. 1988). In Deklewa, the Board explained that "the party asserting the existence of a 9(a) relationship [has the burden] to prove it" because the relationship is presumed to be an 8(f) relationship. Deklewa, 282 N.L.R.B. at 1385 n.41; see also NLRB v. Goodless Elec. Co., 124 F.3d 322, 328 (1st Cir. 1997) ("Unless and until a relationship is proved to be otherwise, a bargaining relationship between a construction industry employer and a union is presumed to be 8(f) rather than 9(a)."); Casale Indus., Inc., 311 N.L.R.B. 951, 952 (1993) ("[T]he Board presumes that parties in the construction industry intend their relationship to be an 8(f) relationship."). Deklewa indicated that a party asserting a 9(a) relationship could overcome the 8(f) presumption by showing that a construction industry employer voluntarily recognized a union based on a clear showing of majority support among the unit employees. See Deklewa , 282 N.L.R.B. at 1387 n.53. Subsequent Board cases have explained that a union can establish a 9(a) relationship from an 8(f) relationship in two ways: "(1) through a Board-certified election, or (2) through an employer's voluntary grant of recognition of the union as the employees' exclusive majority bargaining agent." Goodless Elec., 124 F.3d at 328; see J & R Tile, Inc., 291 N.L.R.B. 1034, 1036 & n. 11 (1988) (citing cases).To satisfy the voluntary recognition option under Goodless Electric, the party asserting the 9(a) relationship must show (1) a clear and unequivocal demand to be recognized as a 9(a) representative, (2) a voluntary and unequivocal grant of such recognition, and (3) a contemporaneous showing of majority support among the appropriate unit of employees. See Golden West Elec., 307 N.L.R.B. 1494, 1495 (1992). "[T]here must be evidence that the union unequivocally demanded recognition as the employees' 9(a) representative and that the employer unequivocally accepted it as such." J & R Tile, 291 N.L.R.B. at 1036.With respect to the third requirement, Board precedent indicates that the contemporaneous showing of majority support may be satisfied in various ways. For example, the Board has indicated that majority support may be demonstrated through the presentation of employee authorization cards to an employer, see Hayman Elec., Inc., 314 N.L.R.B. 879, 886 (1994), or through an employer-conducted poll prior to initial recognition, see Precision Stripping, Inc., 284 N.L.R.B. 1110, 1112 (1987). In addition, the Board has found the third requirement satisfied where an employer's admission or acknowledgment that the union enjoyed majority support was given contemporaneously with the demand for 9(a) recognition and was provided without inquiry into the union's actual status. See Golden West Elec., 307 N.L.R.B. at 1495 ("The voluntary recognition agreement signed by the Employer by its terms unequivocally states that the Union claimed it represented a majority of the employees and Employer acknowledged that this was so."). In addition, the Board has determined that, by signing a collective bargaining agreement containing contractual language which unequivocally demands and grants 9(a) recognition and states that "the Employer is satisfied that the Union represents a majority of its eligible employees," the employer confers 9(a) status on the union without more. Decorative Floors, Inc., 315 N.L.R.B. 188, 188 (1994); see also Triple C Maintenance, Inc., 327 N.L.R.B. No. 15, 1998 WL 799280, at *6-*7 (N.L.R.B. Oct. 30, 1998) (holding that recognition clause of collective bargaining agreement established that union was exclusive representative of employer's employees based on S 9(a)); MFP Fire Protection, Inc., 318 N.L.R.B. 840, 841-42 (1995) (determining that employer's execution of a document acknowledging 9(a) representative status of the union was sufficient to establish 9(a) relationship, despite absence of other independent proof showing majority status), enforced on other grounds, 101 F.3d 1341, 1343 (10th Cir. 1996).Similarly, the Board has deemed as sufficient proof a union's claim of majority support that went unchallenged by the employer for more than six months. See Triple A Fire Protection, Inc. 312 N.L.R.B. 1088, 1089 (1993) (applying six-month limitation period to preclude employer from challenging union's majority status approximately four years after employer signed contract recognizing 9(a) relationship), enforced, 136 F.3d 727, 736-37 (11th Cir. 1998); Casale Indus., 311 N.L.R.B. at 953 (refusing to consider employer's challenge to union's majority status six years after employer extended 9(a) recognition and limiting challenges to union's majority status to six months after employer extends 9(a) status). But see American Automatic Sprinkler Sys., Inc. v. NLRB, 163 F.3d 209, 218 n.6, 222 (4th Cir. 1998) (holding that six-month limitation period does not apply and requiring explicit proof of actual majority status contemporaneous with union's demand and employer's voluntary recognition).Applying these principles to this case, we presume that the collective bargaining relationship between Herre Bros., the SMCA, and the Union was established under S 8(f). However, we must review the record to determine whether the Union overcame this presumption and whether there are genuine issues of fact on this point.Viewing the evidence in a light most favorable to Herre Bros., we conclude that the 1992 collective bargaining agreement constitutes uncontroverted proof that the parties were governed by S 9(a). Article II, S 12 of this agreement is a recognition clause. It states:Insomuch as[ ] the Union has submitted proof and the Employer is satisfied that the Union represents a majority of its employees in the bargaining unit described herein, the Employer recognizes the Union as the exclusive Collective Bargaining Unit on all present and future job sites within the jurisdiction of the Union, unless and until such time as the Union loses its status as the employees exclusive representative as a result of an N.L.R.B. election requested by the employees. The Employer agrees that it will not request an N.L.R.B. election and expressly waives any right it may have to do so.App., Vol. I at 136A. This language conclusively establishes a 9(a) relationship for several reasons. First, while the employer does not explicitly demand 9(a) recognition, the intent and the content of the language unequivocally imply such a demand.6 Second, the contract unequivocally states that the employer recognizes the Union as the exclusive majority representative of the employees in the bargaining unit until the Union loses that status by an employee-requested election. Third, although the type of proof is not described, the contract clearly recites that the Union submitted proof and that the employer is satisfied that the union represents a majority of its employees based on that proof. By entering into and signing an agreement containing the above language, the employer confers 9(a) status on the Union. See MFP Fire Protection, 318 N.L.R.B. at 841-42; Decorative Floors, 315 N.L.R.B. at 188-89. Fourth, the contract contemplates continuance of the relationship subject to defeasance by an election challenging the union's majority status. This arrangement comports with the rule under S 9(a) that the union enjoys a presumption of majority status until an employee-requested election challenges that status; this structure is contemplated by S 9(a) to preserve the freedom of employee choice. Cf. Deklewa, 282 N.L.R.B. at 1379-80. We see no reason why proof of a 9(a) relationship necessarily requires reference to S 9(a) itself in the agreement if the language otherwise conclusively gives notice that a 9(a) relationship is intended. Moreover, the language of the 1992 contract in this case appears indistinguishable from the contract language held to be sufficient in Decorative Floors, 315 N.L.R.B. at 188-89, and Golden West Elec., 307 N.L.R.B. at 1495.It is undisputed that Herre Bros. was a member of the SMCA at the time this contract language was in effect and that it was bound to the 1992 agreement. Thus, even construing the contractual language and inferences therefrom in a light most favorable to Herre Bros., there is simply no way to read an 8(f) relationship into this contract. Herre Bros. presents no facts which either create a genuine issue of fact on this point or allow us to draw any inferences against the inescapable conclusion that a 9(a) relationship governed the parties in this case.B.We now turn to the question of withdrawal. The district court analyzed whether the employer Herre Bros. had properly withdrawn from the multiemployer bargaining association under S 9(a) standards. The court determined that Herre Bros. timely notified the SMCA and the Union of its revocation of the assignment of its bargaining rights but that the revocation was invalidated because Herre Bros.' subsequent conduct was inconsistent with the revocation. See App., Vol. II at 264A-65A.On February 13, 1995, the president of Herre Bros., Richard A. McBride, wrote a letter to the SMCA revoking the association's authority to bargain on behalf of Herre Bros. See id. at 254A. As a result, the SMCA sent a letter to the president of the Union, Thomas J. Kelly, explaining that Herre Bros. "[would] not be assigning the Bargaining Authorization to SMCA." Id. at 255A. This letter, dated March 1, 1995, was signed by the president of the SMCA, Mr. Forlizzi. The record shows that at all times relevant to this case, Mr. Forlizzi also was vice-president of sheet metal operations at Herre Bros. See id., Vol. I at 53A. On March 9, 1995, Mr. Kelly sent a letter on behalf of the Union to Herre Bros. in which he admitted receiving notice from the SMCA that Herre Bros. had not given their bargaining rights to the association and he invited Herre Bros. to negotiate separately a new collective bargaining agreement to replace the one expiring on May 31, 1995. See id., Vol. II at 154A.Meanwhile, the SMCA proceeded to negotiate with the Union, meeting six times between May 15, 1995, and July 18, 1995. Lori A. Eshenaur, executive director of the SMCA, and Mr. Kelly were the principal negotiators. They reached a tentative agreement on June 2, 1995, and although the new agreement was not signed by the parties until July 18, 1995, it was effective retroactively from June 1, 1995, to May 31, 1998. Both the expiring 1992 agreement and the new 1995 agreement contained identical language providing that all members of the association "shall be bound by this Agreement."7 Id., Vol. I at 136A; Vol. II at 162A. If Herre Bros. failed to effectively withdraw or if its conduct subsequently invalidated a withdrawal, it certainly would be bound to the 1995 agreement by this provision.Although Herre Bros. and the Union negotiated independently, meeting approximately four times beginning on May 23, 1995, they did not reach an agreement.8 Toward the end of the negotiation period, on August 30, 1995, Mr. Kelly sent a letter to Ms. Eshenaur indicating that he knew Herre Bros. was still a member of the SMCA and Mr. Forlizzi was still president of the SMCA. The purpose of the letter was to inquire about what actions the SMCA was taking with respect to Herre Bros. and to remind the SMCA that S 13 of the 1995 collective bargaining agreement bound all members of the SMCA to the terms of that agreement. On September 14, 1995, the Union's lawyer sent a letter to counsel for Herre Bros. "requesting that Herre Brothers acknowledge that it is bound to the [1995 collective bargaining agreement] in accordance with the terms of that Agreement[,] . . . their membership in the [SMCA, and] . . . Section8(a)(5) of the National Labor Relations Act." Id., Vol. II at 230A. The next day Mr. Kelly sent a letter to Herre Bros. stating that the Union expected Herre Bros. to employ all the sheet metal workers beginning September 18, 1995, pursuant to the collective bargaining agreement to which it believed Herre Bros. was bound. The letter was received by Herre Bros. on September 18, 1995. However, on September 19, 1995, Mr. Forlizzi, in his capacity as vice-president at Herre Bros., wrote the SMCA notifying it of Herre Bros.' immediate withdrawal from the association. See id. at 249A. At this juncture, Herre Bros. refused to be bound by the 1995 agreement.Generally, "[a]n employer who is a member of a multiemployer bargaining association is bound by an agreement negotiated by the association." NLRB v. Hartman, 774 F.2d 1376, 1383 (9th Cir. 1985) (citing Charles D. Bonanno Linen Service, Inc. v. NLRB, 454 U.S. 404, 412 (1982)). After a multiemployer bargaining arrangement is formed binding its members to a union agreement, the parties' withdrawal is subject to reasonable controls. See Retail Assocs., 120 N.L.R.B. at 393. Absent unusual circumstances or mutual consent, neither employers nor unions may withdraw from multiemployer bargaining arrangements once negotiations for a new contract have commenced. See id. at 395. "Prohibiting such withdrawals contributes to the stability of multiemployer units and prevents the use of the scope of the bargaining unit as a bargaining lever to secure an economic advantage for one side over the other." NLRB v. Marine Mach. Works, Inc., 635 F.2d 522, 524 (5th Cir. 1981); see also NLRB v. Sheridan Creations, Inc., 357 F.2d 245, 248 (2d Cir. 1966) ("Withdrawal should be restricted to the period before negotiations to assure that it is not used as a bargaining lever.").Effective withdrawal from a multiemployer unit must meet three requirements. In Retail Associates, the Board explained that a S(9) (a) employer may abandon the multiemployer bargaining unit only if it (1) unequivocally withdraws from the association (2) in a timely fashion before negotiations for a new contract begin (3) by communicating the intent to withdraw to all parties. See Retail Assocs., 120 N.L.R.B. at 393, 395. "The decision to withdraw must contemplate a sincere abandonment, with relative permanency, of the multiemployer unit and the embracement of a different course of bargaining on an individual-employer basis." Id. at 394. Stated differently, an employer may not attempt to "secure the best of two worlds" by purportedly withdrawing bargaining authority but then remaining a member of a multiemployer unit in the hope of securing advantageous terms through group negotiations. Associated Shower Door Co., 205 N.L.R.B. 677, 682 (1973), enforced, 512 F.2d 230, 233 (9th Cir. 1975); accord Michael J. Bollinger Co., 252 N.L.R.B. 406, 407-08 (1980), enforced,Try vLex for FREE for 3 days
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