Catholic Medical Center of Brooklyn v. National Labor Relations Board
Catholic Medical Center of Brooklyn v. National Labor Relations Board
Opinion of the Court
The Catholic Medical Center of Brooklyn and Queens, Inc. (the Center) operates four non-profit hospitals in the two boroughs, two of which, Mary Immaculate and St. Mary’s, are here involved. It asks us to set aside an order of the National Labor Relations Board, 236 NLRB No. 59; the Board requests us to enforce it. The Board found, affirming one of its administrative law judges, that the Center had violated § 8(a)(5) and (1) of the National Labor Relations Act by refusing to bargain with the New York State Federation of Physicians and Dentists (the Union) which the Board had certified, over the Center’s objections, as the exclusive bargaining representative of salaried physicians and dentists after Board-conducted elections at Mary Immaculate and St. Mary’s. The Board also found, again affirming the ALJ, that the Center had violated § 8(a)(3) and (1) by suspending for three weeks in the two certified units the salary increase reviews that were being accorded its other salaried physicians and dentists. It entered a “broad order” requiring the Center to cease and desist from in any manner infringing upon the exercise of employee rights.
Promptly after the elections on February 26, 1976, the Center filed objections, one of them being that the elections were invalid because of pro-union activity by supervisors. The Regional Director overruled
The only objection to the certification still pressed by the Center is the active participation by supervisors on behalf of the Union — a ground which, if established, could invalidate the elections even though the efforts of supervisors were to support, rather than, as is more commonly the case, to oppose unionization. Turner’s Express Incorporated v. NLRB, 456 F.2d 289 (4 Cir. 1972); NLRB v. Piggly Wiggly Red River Co., 464 F.2d 106, 108 (8 Cir. 1972); NLRB v. Roselon Southern, Inc., 382 F.2d 245 (6 Cir. 1967). Cf. NLRB v. Metropolitan Life Ins. Co., 405 F.2d 1169, 1178 (2 Cir. 1968) (election set aside because supervisors were permitted to participate in campaign and vote in election though union would have won even without their votes). The “supervisors” here in questiqn were physicians who were directors of various departments of the hospitals; the Regional Director found that they were in fact supervisors and the Board does not dispute this.
In the spring of 1975, Dr. Calvin Norman, director of radiology at St. Mary’s and three other supervisors, Drs. Gotta, Jadwat
In October or November 1975, Nathan was contacted by a physician who advised that an organizing campaign might be fruitful. The Union conducted its campaign by telephone and mail. Dr. Norman and another of the supervisors who had been active from the outset supplied Nathan with names of physicians and dentists who might be interested.
By December 18, 1975, the Union thought it had assembled sufficient support to enable it to file with the Board’s regional office a petition seeking an election among all the Center’s salaried physicians scheduled to work more than 15 hours per week. On December 31 the Center’s Director of Labor Relations and counsel, and Nathan and the Union’s counsel met with a Board agent. The Center’s counsel questioned the adequacy of the Union's showing of interest. After the agent stated there was a problem about this and the petition had been amended to include dentists, the agent informed the Center’s director and counsel that the Union was withdrawing its petition. As the director and counsel were leaving, Nathan said “I’ll be back. I’ll see you in a couple of weeks.” True to that promise, the Union filed two new petitions limited to salaried physicians and dentists at Mary Immaculate and St. Mary’s respectively, on January 15, 1976.
The Regional Director found there had been extensive activity by supervisors on behalf of the Union. In addition to having distributed authorization cards, Dr. Norman before and after January 15, 1976, spoke to eligible voters and declared his personal support for unionization in general and for the Union in particular. In late December 1975 Dr. Norman gave Dr. Cardo some 10 authorization cards. On December 31, 1975, the day on which the Union amended its petition to include dentists, Dr. Cardo signed a card, obtained signatures from other dentists and returned the cards to the Union. Both before and after January 15,1976, he advocated the Union’s cause with dentists at Mary Immaculate and anaesthesiologists at St. Mary’s. The evidence with respect to Dr. Jadwat was less substantial; about all that was established was that he signed authorization cards on July 23 and December 30, 1975 and offered on the latter date to transmit to the Union a card signed by an anaesthesiologist on his staff. Dr. Anel, senior emergency room physician at Mary Immaculate, who was found to be a supervisor, signed an authorization card on December 30, 1975, and asked an emergency room physician to sign one on the same date. A number of other supervisors signed authorization cards, only one of them, Dr. Wadhwa, director of employee health at St. Mary’s, after January 15, 1976. The Center had made its opposition to the Union clear to both the supervisors and the employees.
In appraising this evidence the Regional Director and, as we must assume from its approval, the Board were guided by a principle which the Regional Director stated as follows:
The Board, in considering objections to an election, looks only to evidence of conduct which occurred between the time the pe
Proceeding on this basis the Regional Director found that
[T]he above evidence constitutes insufficient basis for concluding that the voters were precluded from exercising a free choice in the election. Although several supervisory physicians and dentists joined- and supported Petitioner from the beginning of its campaign, their only activities during the critical period which commenced on January 15, 1976, consisted of statements of preference for Petitioner and signing in private of an authorization card by a director employed at St. Mary’s.
With the focus thus limited to acts that were indeed insignificant, even when given “meaning and dimension” by the extensive earlier activities, particularly on the part of Drs. Norman and Cardo, the Regional Director had no difficulty in regarding “the nature of the supervisory support of Petitioner during the critical period,” to wit, the period after January 15, 1976, “as minimal and which would not have affected the results of the election.”
The Board has indeed said it to be “axiomatic that the Board, in considering objections to an election, looks only to evidence of conduct which occurred between the time the petition is filed and the election is held,” Head Ski Company, Inc., 192 NLRB 217, 218 (1971), although the evidence ruled out in that case related to post-election conduct. The axiom derives from Ideal Electric & Manufacturing Co., 134 NLRB 1275, 1277-78 (1961).
The Administrative Procedure Act, 5 U.S.C. § 556(d), provides that an “agency as a matter of policy shall provide for the exclusion of irrelevant, immaterial or unduly repetitious evidence.” By negative implication an agency thus may not provide for the exclusion of relevant evidence not protected by a privilege or countervailing policy, defined in Federal Rules of Evidence 401, as “evidence having any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence.”
While at first blush such a position seems surprising, more can be said for it than could be gathered from the perfunctory
Before that decision the Board applied a rule whereby a party which had participated in an election was estopped from complaining of pre-election conduct by an adversary, of which it had knowledge, when it neither filed charges nor otherwise protested to the Board until after the election. Concluding that this policy presented the offended party with a Hobson’s choice, the Board overruled these decisions in Great Atlantic & Pacific and decided that whether or not charges had been filed, it would consider any alleged interference after (1) the execution of a consent-election agreement or a stipulation for certification upon consent election, or (2) the date of issuance by the Regional Director of a notice of hearing. The Board went on to say, without explanation, that it “will not, however, consider election objections based upon interference which may occur prior to these dates.” 101 NLRB 1121.
F. W. Woolworth Co., supra, 109 NLRB 1446 (1954), a decision anticipated by The Liberal Market, Inc., 108 NLRB 1481 (1954), modified The Great Atlantic & Pacific Tea Co., rule in one respect. Taking account of the fact that the rule there adopted produced a much longer “critical period” in cases where the right to an election was contested than where it was not, the Board decided that in cases of the former type the cut-off date would henceforth be the decision and direction of election or, where an amended decision and direction of election issued, the date of the amended decision and direction. Again there was no explanation why the cut-off should not come earlier.
Ideal Electric was a controversy between an incumbent union and another seeking to supplant it. The incumbent won the election and the challenger complained of improper conduct, to wit, the incumbent’s negotiation of an apparently favorable contract after the petition for an election but prior to the decision and direction. The Regional Director deemed himself precluded from considering this. The Board referred to Woolworth as having “had the advantage of eliminating from post-election consideration conduct too remote to have prevented the free choice guaranteed by Section 7” but also as having “resulted in the Board’s not considering much of the activity occurring during the election campaign and enhanced the possibility of intentional delay at the hearing stage by a party contestant seeking to campaign improperly before the cut-off date”, Id. at 1277-78, and cited the reduction in the elapsed time between the filing of petitions and the elections held pursuant to them as a result of delegation of power to Regional Directors. In light of these considerations the Board made the filing of the election petition the cut-off date. The lack of explanation why the cut-off date should not have been moved still further is thus readily accounted for; apparently no one had asked the Board to do this. In Goodyear Tire and Rubber Co., 138 NLRB 453 (1962), a sharply divided Board extended the Ideal Electric rule to consent elections. In Dickensian language the majority declared “this standard — the date of the petition — to be a simpler and more workable standard than we have ever had before.” Id. at 455.
It could thus be strongly argued that the Ideal Electric-Goodyear rule- is simply another example of the Board’s extrapolating from the broad language of the National Labor Relations Act more detailed standards which will assist the parties in conforming their conduct to the law and avoid the need of weighing the precise effect of alleged misconduct in every case — a process which has been endorsed by the Supreme Court, see, e. g., Republic Aviation Corp. v. NLRB, 324 U.S. 793, 65 S.Ct. 982, 89 L.Ed. 1372 (1945) (employer rule prohibiting em
Assuming without deciding the validity of the Ideal Electric-Goodyear cut-off in the ordinary run of cases, we are here faced with the narrower question of its application to a case where the misconduct occurred during the pendency of a petition for election subsequently withdrawn and shortly replaced.
Shortly thereafter, the Board revisited the subject of successive petitions in the important case of R. Dakin & Company, 191 NLRB 343 (1971), enforcement denied and cause remanded, 477 F.2d 492 (9 Cir. 1973), opinion on remand, 207 NLRB 521 (1973). In that case the union had filed an initial
The Dakin decision did not fare well. In NLRB v. R. Dakin & Co., 477 F.2d 492, 493 (9 Cir. 1973),
The Board’s reception of the court’s decision was no more kindly than the court’s reception of the Board’s. In R. Dakin & Company, 207 NLRB 521 (1973), the Board accepted the court’s ruling as “the rule of law now governing disposition of this ease, and this case only,” see also 207 NLRB at 522 n. 9, and set the election aside.
After a reference in Regency Electronics, Inc., 215 NLRB 847, 850 n. 10 (1974) to “the court’s relaxed approach to the cutoff date rule” in Dakin, the Board returned to the problem in Monroe Tube Company, 220 NLRB 302, 305 (1975), enforcement denied on other grounds, 545 F.2d 1320 (2 Cir. 1976). Here the shoe was on the other foot — the union was complaining of the employer. The union had filed a petition on August 16, 1973, withdrew it on September 5, and refiled on September 6. The employer misconduct occurred during the pendency of the first petition. After noting the position taken in Dakin I (without referring to the. Ninth Circuit’s reversal), namely, that the Board has refused to evaluate conduct that occurred prior to the filing of the petition which resulted in the election, it distinguished that case on the ground that “no petition was on file at the time when the alleged misconduct occurred”. The Board went on to say
In this case where the first petition was filed a short time prior to the filing of the second petition and a petition was on file at the time that unlawful conduct took place, we deem it proper to begin the critical period at the filing of the first petition and to evaluate conduct occurring from that date until the election.
So far as we are aware, this is the Board’s latest word on the subject.
Even if, as suggested earlier in our discussion, Ideal Electric may be something more than the simple “evidentiary device” which the Ninth Circuit thought it to be, 477 F.2d at 494, we believe it must be qualified at least to the extent stated in Monroe Tube
Counsel for the Board argues that even if the Regional Director should have considered all supervisory activity prior to January 16,1976, “the totality of the supervisory conduct here . . . does not warrant setting aside the election.” However, we cannot sustain the Board on a basis advanced by counsel which might or might not have been followed by the Board itself. Burlington Truck Lines, Inc. v. United States, 371 U.S. 156,168-69, 83 S.Ct. 239, 9 L.Ed.2d 207 (1962), applying SEC v. Chenery Corporation, 318 U.S. 80, 63 S.Ct. 454, 87 L.Ed. 626 (1943).
It follows that so much of the order as found the Center guilty of a refusal to bargain must be set aside and the cause remanded for consideration of supervisory activity prior to the filing of the second petition.”
With respect to the § 8(a)(3) violation the Center argues that it was confronted or at least thought it was confronted, with the dilemma which led this court to deny enforcement in NLRB v. Dorn’s Transportation Co., 405 F.2d 706 (2 Cir. 1969) and J. J. Newberry Co. v. NLRB, 442 F.2d 897 (2 Cir. 1971). The Board responds that the dilemma found to exist in cases where an organizational campaign was still in progress was not present here, since the Union had been certified on November 15,1976. It relies on our statement in NLRB v. United Aircraft Corp., 490 F.2d 1105, 1111 (2 Cir. 1973), that
[U]nlike the employers in Dorn’s and Newberry, where no union had yet become bargaining representative, the Company here could have avoided all risk by notifying and consulting with the Union as to the course to be followed.
We think this is true even though the Center was challenging the certification. However, this three-week delay, a year after the election, in considering the unit employees for salary review, allegedly founded on a good faith although erroneous belief that such action was required, and fully rectified as soon as the Union complained, must be one of the most inconsequential unfair labor
Stating that “[t]he unfair labor practices found being of a character which go to the very heart of the policies of the Act”, the ALJ recommended that the Center “be required to cease and desist from in any manner infringing upon the exercise of employee rights,” a recommendation which the Board adopted, over exception, without comment. The sole authority which the ALJ cited was NLRB v. Entwistle Mfg. Co., 120 F.2d 532, 536 (4 Cir. 1941), a blatantly discriminatory discharge of a leading union sympathizer. It requires a type of mind different from ours to discern a dispositive similarity between the Center’s unfair labor practices and Entwistle’s. The unfair labor practices the Center was found to have committed were (1) pursuing, in good faith, and on substantial grounds, a course designed to obtain review of the Board’s certification which was approved by the Supreme Court as long ago as 1941 in Pittsburgh Plate Glass Co. v. NLRB, 313 U.S. 146,154, 61 S.Ct. 908, 85 L.Ed. 1251, and has been followed by thousands of law-abiding employers, and (2) the inconsequential § 8(a)(3) violation just discussed. If what the Center did goes “to the very heart of the Act”, one wonders what unfair labor practices merely penetrate the skin. This was a paradigm case for application of the narrow order principle announced in NLRB v. Express Publishing Co., 312 U.S. 426, 435-38, 61 S.Ct. 693, 85 L.Ed. 930 (1941).
So much of the orders as found violations of § 8(a)(5) and (3) and consequently of § 8(a)(1) are vacated and the case is remanded to the Board for further proceedings consistent with this opinion. The “broad order” is set aside, with instructions that the cease and desist provisions of such order, if any, as may hereafter be entered shall be limited to the unfair labor practices found and other like or related unlawful acts.
. The ALJ did not reexamine the Center’s objections to the certifications.
. The Board did discern that no backpay was owing since it had already been paid. Nothing but interest was needed to make the unit employees whole; according to petitioner, the maximum allowance would be three weeks’ interest on 472% of an individual’s take-home salary.
. Dr. Gotta was director of anaesthesiology at St. Mary’s, Dr. Jadwat held the same post at Mary Immaculate, and Dr. Cardo was chief of oral surgery at St. Mary’s.
. The Taft-Hartley Act amended § 10(b) of the National Labor Relations Act to provide that an unfair labor practice proceeding “shall, so far as practicable, be conducted in accordance with the rules of evidence applicable in the district courts of the United States under the rules of civil procedure for the district courts of the United States, .adopted by the Supreme Court of the United States.” See NLRB v. Stark, 525 F.2d 422, 426-30 (2 Cir. 1975), cert. denied, 424 U.S. 967, 96 S.Ct. 1463, 47 L.Ed.2d 734 (1976). The question whether this should now be read to include the Federal Rules of Evidence, which replace former F.R.Civ.P. 43, seems not yet to have been decided. See, however, L. S. Ayres & Co. v. NLRB, 551 F.2d 586, 588 (4 Cir. 1977); NLRB v. Hale Mfg. Co., 570 F.2d 705, 710-11 (8 Cir. 1978); Sturgis-New-port Business Forms, Inc. v. NLRB, 563 F.2d 1252 (5 Cir. 1977); and NLRB v. Pope Maintenance Corp., 573 F.2d 898, 906-07 (5 Cir. 1978) —all dealing, like Stark, with the sequestration rule. In any event the quoted provision of § 10(b) would probably not apply to an investigation of the validity of an election under § 9, despite the principle that an issue fully litigated in a representation proceeding will not be reliti-gated in an unfair labor practice proceeding based upon it in the absence of new evidence, see, e. g., NLRB v. Union Brothers, Inc., 403 F.2d 883, 887 (4 Cir. 1968).
. In fact the Board has not done this where the misconduct was egregious, see Weather Seal Incorporated, 161 NLRB 1226 (1966); Willis Shaw Frozen Express, 209 NLRB 267 (1974); Servomaton of Columbus, Inc., 219 NLRB 504, 505 (1975); Baker Machine & Gear, Inc., 220 NLRB 194, 207 (1975).
. As we read the Center’s brief, its attack on the Ideal Electric doctrine as applied to conduct prior to the first petition, was limited to one ground. This was that in Gibson’s Discount Center, 214 NLRB 221 (1974), the Board applied NLRB v. Savair Mfg. Co., 414 U.S. 270, 94 S.Ct. 495, 38 L.Ed.2d 495 (1973) (election will be invalidated when union has offered to waive initiation fees for employees signing before the election) in a case where the offer was made before the petition was filed. See also Lyon’s Restaurants, 234 NLRB No. 10 (1978) (pre-petition threats of job loss if employees would not join union). Both these opinions indicated the uniqueness of the situations; in Gibson’s Discount the Board expressly stated that it did “not otherwise intend any broad departure from the Ideal Electric rule.” 214 NLRB at 222 n. 3. Neither Gibson’s Discount nor Lyon’s Restaurants would be applicable here. If, on the remand we are directing, the Center wishes to attack Ideal Electric more generally, it is free to do so.
. Incredibly the only reference to this case that we have found in the entire proceeding is a discussion of the court opinion in petitioner’s reply brief to us.
. We see no force in the distinction proffered by the Board’s counsel, namely, that in Monroe Tube “the second petition was filed the day after the first petition was withdrawn so that, in essence, a petition was on file continuously.”
During a representation campaign, as in Dorn’s and Newberry, an employer has no one to consult to escape the alleged dilemma. The union is not yet the bargaining representative, and the employees are the very persons whom the employer may be accused of bribing or coercing. Even after a union becomes bargaining representative, of course, its response to an employer’s efforts to consult may be uncooperative or ambiguous. But we do not think an employer can justifiably claim that it is faced with a legal dilemma unless it first seeks union guidance.
. It is not clear from the papers before us that petitioner called Monroe Tube to the attention of the Regional Director, the ALJ or the Board. However, the substantive point was made, and this satisfies the third sentence of § 10(e). Board counsel do not contend otherwise. The Board’s Regional Director, ALJ and large legal staff should surely have been aware of such a recent and important decision.
. There is a never-never land quality about a case where an agency has excluded highly relevant evidence of union misconduct, in the name of administrative efficiency, because it occurred a few weeks before the filing of the “operative” election petition, yet committed public funds to the prosecution of the minuscule § 8(a)(3) violation here alleged.
. See Thermalloy Corp., 213 NLRB 129 (1974); Feam International, Inc., 209 NLRB 232 (1974); Skyline Mobile Homes, 200 NLRB 109 (1972). Board counsel distinguishes these cases on the ground that each concerned a minor incident involving a single employee.
Reference
- Full Case Name
- The CATHOLIC MEDICAL CENTER OF BROOKLYN AND QUEENS, INC., Mary Immaculate Hospital Division and St. Mary's Hospital Division v. NATIONAL LABOR RELATIONS BOARD
- Cited By
- 1 case
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- Published