Hosp. of Barstow, Inc. v. Nat'l Labor Relations Bd.
Hosp. of Barstow, Inc. v. Nat'l Labor Relations Bd.
Opinion
This case comes to this court a second time. It grows out of a decision of the National Labor Relations Board holding that Hospital of Barstow refused to bargain in good faith with a union representing nurses at the facility. The main issue concerns whether a Regional Director of the Board retained authority to certify the union during a period in which the Board itself lacked power to take action because its membership had slipped below the statutorily mandated quorum. If the Board itself had lost power to take any action, could a Regional Director, exercising Board-delegated authority, conduct a representation election and certify the results?
In previous decisions, we held that, notwithstanding the lapse of a Board quorum, Regional Directors retain authority to direct elections administered under a so-called stipulated election agreement-an agreement under which the employer and union agree to have a Regional Director conduct the election, but subject to the possibility of Board review if a party opts to seek it.
See
UC Health v. NLRB
,
In our previous decisions concerning stipulated election agreements, we deferred to the Board's interpretation of the NLRA's quorum provision in upholding the authority of Regional Directors to conduct and certify elections when the Board lacks a quorum. When we first considered this case, the Board had yet to address whether it had the same understanding of the quorum provision in the context of a consent election agreement. We remanded the case to enable the Board to consider that question.
Hosp. of Barstow, Inc. v. NLRB
,
On remand, the Board saw no salient difference between consent election agreements and stipulated election agreements. It thus interpreted the NLRA's quorum provision to allow Regional Directors to conduct representation elections under a consent election agreement notwithstanding the lapse of a Board quorum. As in our previous decisions, we again sustain the Board's understanding of the statute as reasonable. We also reject the hospital's various challenges to the Board's finding of unfair labor practices and to the remedies imposed by the Board.
I.
A.
The National Labor Relations Act provides that the Board shall consist of five
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members,
The same NLRA provision authorizes the Board to delegate to Regional Directors the authority to conduct representation elections, rule on the parties' objections to the election procedures, and certify the results.
See
As of January 3, 2012, the terms of three Board members had expired and their seats remained vacant because the Senate did not confirm the President's nominees. On January 4, 2012, the President, asserting authority under the Recess Appointments Clause, U.S. Const. art. II, § 2, cl. 3, appointed three individuals to the Board. The Supreme Court, however, held those recess appointments to be invalid.
NLRB v. Noel Canning
, --- U.S. ----,
B.
Hospital of Barstow operates an acute-care facility in California. In 2012, the California Nurses Association/National Nurses Organizing Committee (the Union) initiated an organizing campaign to represent Barstow's nurses. On May 2, 2012, during the time the Board lacked a quorum, Barstow and the Union entered into a consent election agreement, under which a Regional Director would conduct the election and the parties agreed that the Regional Director's election rulings and certification would be final.
The nurses voted in favor of the Union. Barstow lodged two objections with the Regional Director, both of which were rejected. On June 29, 2012, the Regional Director certified the Union's election. Soon after, Barstow and the Union commenced the bargaining process, but the negotiations ended after Barstow declared an impasse. In September 2012, the Union filed a charge with the Board alleging that Barstow had engaged in unfair labor practices and had refused to bargain with the Union. An administrative law judge agreed and found that Barstow had violated the Act.
The Board largely affirmed the ALJ's decision.
Hosp. of Barstow, Inc.
,
To remedy Barstow's bargaining violations, the Board ordered Barstow to cease its unfair practices and resume bargaining with the Union. The Board also required Barstow to reimburse the Union's negotiating expenses.
Barstow petitioned for review in this court. We held that the Board had erred in ruling that Barstow waived its ability to challenge the Regional Director's authority to conduct the representation election.
Hosp. of Barstow
,
On remand, the Board interpreted the NLRA to authorize Regional Directors to continue exercising their delegated authority under a consent election agreement, notwithstanding a lapse in the Board's quorum.
Hosp. of Barstow, Inc.
,
Barstow now petitions for review of the Board's decision, and the Board seeks cross-enforcement of its order. The Union has intervened in support of the Board's decision.
II.
Barstow principally contends that the Regional Director lacked delegated authority to conduct and certify the representation election because, at the time, the Board did not have a statutorily mandated quorum of three members. We reject that challenge, and also reject Barstow's various challenges to the Board's finding of unfair labor practices and the associated remedies.
A.
The NLRA prescribes that "three members of the Board shall, at all times, constitute a quorum."
1.
In
UC Health
,
UC Health
examined the Board's interpretation of the quorum provision under "the familiar two-step
Chevron
test."
We explained that the question was not whether the Board itself (or a subset of the Board) could take actions when it lacked a quorum. That had been the issue we addressed in
Laurel Baye Healthcare of Lake Lanier, Inc. v. NLRB
,
In
UC Health
, the question instead was whether, when the Board lacks a quorum, a Regional Director can exercise authority that had been delegated by the Board at a time it did have a quorum. We emphasized that, unlike the Board (or a subset of the Board as in
Laurel Baye
), Regional Directors "never similarly occupy the Board's role as a final decisionmaker."
"Moreover," we explained, "allowing the Regional Director to continue to operate regardless of the Board's quorum is fully in line with the policy behind Congress's decision to allow for the delegation in the first place."
2.
This case, unlike UC Health and SSC Mystic , involves an election conducted under a consent election agreement. Whereas the parties to a stipulated election agreement can seek discretionary Board review of a Regional Director's election decisions, the parties to a consent election agreement agree to forgo Board review and accept the Regional Director's decisions as final. The Board found that distinction to be an immaterial one in its decision below.
The Board explained that, even in the case of a stipulated election agreement, the Regional Director's decisions can still be final if the parties do not seek Board review. The Board saw no "meaningful distinction between the 'finality'
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accorded to the Regional Director's certification of [a] representative based on the parties' consent election agreement and the 'finality' accorded to the Regional Director's certification of [a] representative in
UC Health
based on the parties' choice not to seek Board review to which they otherwise were entitled under their stipulated election agreement."
Hosp. of Barstow
,
Barstow urges us to reject the Board's interpretation of the NLRA's quorum provision in the context of a consent election agreement. As in
UC Health
, however, we again defer to the Board's interpretation of the statute.
UC Health
explains why our decision in
Laurel Baye
does not control when the question concerns the exercise of delegated authority by a Regional Director (as opposed to a subset of the Board "occupy[ing] the Board's role as a final decisionmaker").
UC Health
,
The sole potentially salient difference between stipulated election agreements and consent election agreements is that, in the latter, the parties agree at the outset that they will forgo Board review. The parties thus know in advance that the Regional Director's actions will generally be final.
Cf.
Pierre Apartments
,
But while the parties know that the Regional Director's decisions will be final in the case of a consent election agreement, the finality results from the parties' choice to forgo Board review, not from the Board's delegation of authority itself. In that sense (and as the Board explained), the finality arising under a consent election agreement mirrors the finality arising under a stipulated election agreement when neither party chooses to seek Board review. The Board reasonably saw no material distinction between the two. In both situations, the delegation of authority to the Regional Director does not inherently involve authority to render final Board decisions. Rather, in both situations, the parties can choose to give a Regional Director the final say by opting against Board review.
It is true that, under the Board's regulations, a Regional Director's decisions pursuant to a consent election agreement are treated as "final ... with the same force and effect, in that case, as if issued by the Board."
*288
Proposed Rules Governing Consent-Election Agreements,
Barstow submits that, under our decisions in
UC Health
and
SSC Mystic
, the parties to a consent election agreement cannot give a Regional Director the power to render final decisions in a given case. Barstow relies on our holding in
UC Health
and
SSC Mystic
that, when the parties agree to a Regional Director's conduct of a representation election, they do not thereby waive their ability to challenge-on judicial review-the Regional Director's authority to act.
UC Health
,
Barstow, finally, attempts to draw a distinction between stipulated and consent election agreements based on timing. Under a stipulated election agreement, a Regional Director's decision becomes final only if the parties opt against seeking Board review after certification of the election. The parties to a consent election agreement, by contrast, waive their right to seek Board review at the outset, before the election begins. Barstow thus submits that, in the case of a consent election agreement, the Regional Director is cloaked with authority to provide the final say on election matters at the time of her or his rulings. And if the Board itself could not issue rulings at that time because of the absence of a quorum, Barstow argues, neither can the Regional Director.
The Board was not compelled to draw a distinction between consent and stipulated election agreements on that basis. In both contexts, a Regional Director exercises delegated authority to oversee and certify elections, and her rulings become final without Board action only if the parties choose to forgo seeking Board review. At every relevant time-the time of the Regional Director's rulings and certification, as well as the time of the parties' decision to forgo Board review-the Board may lack a quorum. Regardless, the Board permissibly concluded, the Regional Director does not "stand in the Board's place."
UC Health
,
The parties' choice to do so, we held in UC Health , need not be seen to vitiate the Board's delegation of non-final election authority to Regional Directors, notwithstanding the lapse of a Board quorum. The same is true here. We thus defer to the Board's interpretation of the NLRA's quorum provision and conclude that the Regional Director had authority to conduct the election and certify its results in favor of the Union.
B.
Having concluded that the Regional Director had authority to certify the Union's election, we now turn to Barstow's challenges to the merits of the Board's decision, none of which we find persuasive.
1.
Barstow contends that the Board erred in rejecting Barstow's request to submit this dispute to arbitration. The
*289
Board has discretion to defer labor disputes to arbitration.
See
DaimlerChrysler Corp. v. NLRB
,
In this case, the Board declined to defer the dispute to arbitration for two reasons. First, the parties had not entered into a collective-bargaining agreement establishing an arbitration procedure. Second, the parties' bargaining relationship was brief and unproductive. The Board's reliance on those considerations is consistent with its precedent, and we see no basis to reject the Board's approach or conclusion.
With regard to the absence of an agreement establishing an arbitration procedure, Barstow argues that the parties had entered into a "Labor Relations Agreement" that included an arbitration provision. That agreement, however, was never signed or executed; and according to the agreement's own terms, it would take effect and bind the parties only if signed. As for the duration and nature of the parties' bargaining relationship, Barstow argues that the Board unduly focused on the brevity of the parties' relationship. But that focus was consistent with previous decisions in which the Board has determined that "short and fraught" relationships are not well suited for arbitration.
E.g.,
San Juan Bautista, Inc.
,
2.
The NLRA makes it an "unfair labor practice" for an employer "to refuse to bargain collectively with the representatives of his employees."
The Board adopted the ALJ's finding that Barstow had violated the NLRA by refusing to submit its bargaining proposals until the Union set forth its proposal in full. The Board also adopted the ALJ's finding that Barstow violated the Act by declaring an impasse and refusing to bargain. We can overturn the Board's decision in those respects only if it is arbitrary or is unsupported by substantial evidence in the record.
See
Wayneview Care Ctr. v. NLRB
,
The record fully supports the Board's finding that Barstow failed to bargain in good faith by refusing to put forward proposals until the Union presented its proposals on every issue over which the parties were bargaining. Barstow observes that there had been some previous discussions of several bargaining subjects. But after reaching tentative agreements on a handful of issues, Barstow refused to offer further proposals until the Union set forth its proposal in full. To the extent Barstow claims that it could aggressively defend a bargaining position, it does not dispute
*290
that an outright refusal to submit proposals or counterproposals evidences bad-faith bargaining.
See, e.g.
,
Fed. Mogul Corp.
,
The Board determined that Barstow also violated the Act by declaring a bargaining impasse over the Union's support of nurses using "assignment despite objection" ("ADO") forms to document conditions that, in the nurses' view, were unsafe or that could threaten their nursing licenses. The Board found that the ADO forms never became a subject of bargaining, such that Barstow could not declare an impasse over the matter. That finding is supported by substantial evidence. Neither Barstow nor the Union made any proposals concerning the forms. The only time the parties discussed them was when Barstow insisted that the Union discontinue using them before Barstow would resume the bargaining process. In that context, the Board permissibly concluded that Barstow's declaration of impasse was unlawful because it was based on an issue outside the scope of the parties' bargaining.
Barstow contends that the ADO forms were necessarily tied to the Union's bargaining proposal because the Union provided the forms to nurses who sat on the bargaining council. But that shows, at most, that the Union used the forms to prepare for negotiations; it hardly shows that the forms were a subject over which the parties in fact engaged in bargaining. To the contrary, the Union continued to express its willingness to bargain over the ADO forms and other issues even after Barstow declared impasse.
3.
Finally, Barstow argues that we should decline to enforce the Board's award of negotiating expenses to the Union. We have acknowledged that "the choice of remedies is primarily within the province of the Board."
United Steelworkers of Am. v. NLRB
,
The Board found that, throughout the bargaining process, Barstow "deliberately acted to prevent any meaningful progress" by refusing to bargain.
Hosp. of Barstow
,
* * * * * *
In its opening brief, Barstow listed a number of issues beyond those discussed in this opinion when noting the issues raised by its petition. Barstow Op'g Br. 2-5. But Barstow forfeited those issues by
*291
offering no argument on them.
See, e.g.
,
Carducci v. Regan
,
So ordered.
Reference
- Full Case Name
- HOSPITAL OF BARSTOW, INC., Doing Business as Barstow Community Hospital, Petitioner v. NATIONAL LABOR RELATIONS BOARD, Respondent California Nurses Association/National Nurses Organizing Committee, Intervenor
- Cited By
- 3 cases
- Status
- Published