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    National Labor Relations Board v. W.A.D. Rentals Limited D/B/A Kelly's Private Car Service, 919 F.2d 839, 2d Cir. (1990)

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    This document summarizes a court case from the United States Court of Appeals for the Second Circuit regarding a petition by the National Labor Relations Board (NLRB) to enforce its order against W.A.D. Rentals Limited for violating the National Labor Relations Act. The NLRB found that W.A.D. refused to bargain with the union representing its employees. W.A.D. argued that there was too much delay by the union and NLRB, and that high employee turnover meant the union no longer represented a majority of employees. The court rejected these arguments, finding that W.A.D. was primarily responsible for delays through litigation tactics, and that allowing an employer to rely on employee turnover to

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    National Labor Relations Board v. W.A.D. Rentals Limited D/B/A Kelly's Private Car Service, 919 F.2d 839, 2d Cir. (1990)

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    This document summarizes a court case from the United States Court of Appeals for the Second Circuit regarding a petition by the National Labor Relations Board (NLRB) to enforce its order against W.A.D. Rentals Limited for violating the National Labor Relations Act. The NLRB found that W.A.D. refused to bargain with the union representing its employees. W.A.D. argued that there was too much delay by the union and NLRB, and that high employee turnover meant the union no longer represented a majority of employees. The court rejected these arguments, finding that W.A.D. was primarily responsible for delays through litigation tactics, and that allowing an employer to rely on employee turnover to

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    Filed: 1990-11-27 Precedential Status: Precedential Citations: 919 F.2d 839 Docket: 442

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    This document summarizes a court case from the United States Court of Appeals for the Second Circuit regarding a petition by the National Labor Relations Board (NLRB) to enforce its order against W.A.D. Rentals Limited for violating the National Labor Relations Act. The NLRB found that W.A.D. refused to bargain with the union representing its employees. W.A.D. argued that there was too much delay by the union and NLRB, and that high employee turnover meant the union no longer represented a majority of employees. The court rejected these arguments, finding that W.A.D. was primarily responsible for delays through litigation tactics, and that allowing an employer to rely on employee turnover to

    Copyright:

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    Download as PDF or read online from Scribd
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    29 views5 pages

    National Labor Relations Board v. W.A.D. Rentals Limited D/B/A Kelly's Private Car Service, 919 F.2d 839, 2d Cir. (1990)

    Uploaded by

    Scribd Government Docs
    This document summarizes a court case from the United States Court of Appeals for the Second Circuit regarding a petition by the National Labor Relations Board (NLRB) to enforce its order against W.A.D. Rentals Limited for violating the National Labor Relations Act. The NLRB found that W.A.D. refused to bargain with the union representing its employees. W.A.D. argued that there was too much delay by the union and NLRB, and that high employee turnover meant the union no longer represented a majority of employees. The court rejected these arguments, finding that W.A.D. was primarily responsible for delays through litigation tactics, and that allowing an employer to rely on employee turnover to

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    of 5

    919 F.

    2d 839
    135 L.R.R.M. (BNA) 3135, 59 USLW 2388,
    117 Lab.Cas. P 10,435

    NATIONAL LABOR RELATIONS BOARD, Petitioner,


    v.
    W.A.D. RENTALS LIMITED d/b/a Kelly's Private Car
    Service, Respondent.
    No. 442, Docket 90-4062.

    United States Court of Appeals,


    Second Circuit.
    Argued Oct. 1, 1990.
    Decided Nov. 27, 1990.

    Stuart M. Kirshenbaum, Mineola, N.Y., for respondent W.A.D. Rentals,


    Inc.
    Margaret G. Bezou, Washington, D.C. (Peter Winkler, Supervisory Atty.,
    Jerry M. Hunter, Gen. Counsel, Robert E. Allen, Associate Gen. Counsel,
    Aileen A. Armstrong, Deputy Associate Gen. Counsel, N.L.R.B.,
    Washington, D.C., of counsel), for petitioner N.L.R.B.
    Before CARDAMONE and MINER, Circuit Judges, and POLLACK,
    District Judge* .
    CARDAMONE, Circuit Judge:

    We have a petition for enforcement by the National Labor Relations Board


    (Board) of its decision and order dated June 9, 1988, reported at 289 N.L.R.B.
    No. 9. The Board found that respondent W.A.D. Rentals, Limited, d/b/a Kelly's
    Private Car Service, violated Secs. 8(a)(1) and (5) of the National Labor
    Relations Act, 29 U.S.C. Secs. 158(a)(1), (5) (Act), and required it to cease and
    desist from unfair labor practices, more specifically to recognize and bargain
    with the union, and to post a remedial notice.

    Respondent's principal argument is that there has been inordinate delay, in the

    first instance, on the union's part in filing charges and, in the second instance,
    on the Board's part in petitioning for enforcement. In the meanwhile,
    respondent says, a high employee turnover rate in its business has left few of
    the original employees now on its payroll that voted nine years ago for union
    representation. We have no doubt, as has often been observed, that
    procrastination is the thief of time. In this case, the union and the Board share
    slightly in the blame, but the chief culprit in our view is the employer, which
    first stalled and then later engaged in lengthy litigation thereby causing the
    delay of which it now complains.
    3

    * Respondent operates a taxi service providing passenger service to and from


    the Long Island Railroad Station in Bayside, Queens, New York. Its drivers
    may not accept street fares. Instead fares are obtained by telephone calls from
    customers or from passengers picked up at the railroad station. The charges in
    this case were filed five years ago on July 2, 1985 by Local 3036, Taxi Drivers
    and Allied Workers Union, Service Employees International Union, AFL-CIOCLC. Local 3036 began organizing respondent's drivers in 1980 and executed a
    Stipulation for Certification upon Consent Election on December 15, 1980,
    which was followed by an election on January 9, 1981 that resulted in a 15-14
    vote in favor of the union. About a year later, in February 1982, the Regional
    Director certified Local 3036 as the bargaining representative of the company's
    employees. A number of negotiating sessions were held over the next several
    years but no collective bargaining agreement was signed.

    An earlier unfair labor practice charge brought against the respondent company
    was dismissed by the Regional Director in 1984 because the union had failed to
    prepare and submit to respondent a draft agreement. Testimony before the
    Administrative Law Judge (ALJ) in the instant case regarding the delay in
    reaching a meeting of the minds on the terms of a collective bargaining
    agreement revealed that numerous telephone calls made in 1983 and in 1984 by
    union representatives to respondent's lawyer were not returned for one reason or
    another. The ALJ credited the union's substantially uncontradicted testimony
    on this issue.

    Meanwhile, between 1981 and 1985 the company had an employee turnover of
    500 percent--a rate characteristic of the industry--so that by the time the ALJ
    held the hearing on the present unfair labor charges, only three of the
    employees who had originally voted on union representation remained with the
    company.

    The ALJ determined that the parties had never come to a meeting of the minds
    on a collective bargaining agreement, but that the company had a continuing

    obligation to negotiate with the union. He rejected respondent's claims that


    because the Local did not represent a majority of the employees it was no
    longer the employees' bargaining representative, as well as its further claim that
    because of the passage of time and the employee turnover rate, the company
    was entitled to have a good faith doubt as to the union's majority status.
    7

    Instead, the ALJ found the company violated Secs. 8(a)(1) and (5) of the Act
    by withdrawing recognition from Local 3036 and by refusing to bargain with it
    in good faith. In his recommended order, the hearing officer required the
    company to cease and desist from such unfair labor practices, from interfering
    with or coercing employees in the exercise of their rights to conduct union
    activity, to post a remedial notice, and to bargain with the union. The Board
    summarily approved the ALJ's decision and order on June 9, 1988 and--as the
    company has since refused to bargain with the union--now petitions for
    enforcement of its order.

    II
    8

    We discuss first respondent's contention that the union and then the Board were
    guilty of such delay as to render the Board's direction to engage in collective
    bargaining moot. Focusing on the lapse of time between the activities that are
    the subject of the complaint of unfair labor practices and the remedy granted,
    none of the delay prior to the earlier July 1985 filing by the Local of an unfair
    labor practice charge may be ascribed to delay on the part of the union. With
    respect to the period from its certification in 1981 until it filed charges in July
    1985, there is substantial evidence in the record viewed as a whole to support a
    finding that Local 3036 neither knew nor could have known of the employer's
    refusal to bargain because it had an ongoing bargaining relationship with the
    employer.

    With respect to the subsequent period, the record shows that the unfair labor
    practice charge now before us was filed on July 2, 1985 and, after
    investigation, the Regional Director issued a complaint and notice of hearing on
    September 16. On September 25, the company filed an answer denying the
    complaint's allegations and moved on December 30 for summary judgment. On
    April 9, 1986, the Board denied the motion, and hearings were held in July
    1986. On April 28, 1987, after the parties had filed briefs, the ALJ issued its
    51-page recommended decision, which the Board adopted on June 9, 1988.

    10

    The company then advised the Regional Office that it would comply and
    posted the remedial notice. Only later, after further investigation, did the
    Regional Office conclude that the employer was in fact continuing to engage in

    dilatory tactics and persisting in its unlawful refusal to bargain. As a result, the
    case was referred for enforcement in May 1989. This recitation demonstrates
    that the company vigorously litigated this case at every stage, and it was on
    account of its tactics that the initiation of the instant enforcement proceeding
    was delayed. Hence, the processing of this case, though time consuming, has
    not been marked by undue delay. The June 9, 1988 order of the N.L.R.B. is
    enforceable, notwithstanding the passage of time and the employee turnover
    rate since the company's purported withdrawal of recognition from the union.
    11

    The respondent appeals essentially to our equitable powers, since the National
    Labor Relations Act contains no time limit for the enforcement of the Board's
    orders. See N.L.R.B. v. Katz, 369 U.S. 736, 748 n. 16, 82 S.Ct. 1107, 1114 n.
    16, 8 L.Ed.2d 230 (1962); Continental Web Press, Inc. v. N.L.R.B., 742 F.2d
    1087, 1095 (7th Cir.1984). Although we have the power to deny enforcement
    where it is unnecessary or futile, see Emhart Industries v. N.L.R.B., 907 F.2d
    372, 378-80 (2d Cir.1990); N.L.R.B. v. Maywood Plant of Grede Plastics, 628
    F.2d 1, 7 (D.C.Cir.1980), the purposes that the Act was enacted to serve argue
    against denying enforcement in this case.

    III
    12

    We consider next the 500 percent employee turnover. During the year
    following its certification, a union enjoys a conclusive presumption of majority
    employee support and, thereafter, it enjoys a rebuttable presumption of such
    support. See Brooks v. N.L.R.B., 348 U.S. 96, 104, 75 S.Ct. 176, 181, 99 L.Ed.
    125 (1954); N.L.R.B. v. Aquabrom, Div. of Great Lakes Chem. Corp., 855 F.2d
    1174, 1183 (6th Cir.), amended on other grounds, 862 F.2d 100 (1988). The
    policy behind the presumption of continuing majority support not only allows
    time for the bargaining process to work, see Franks Bros. Co. v. N.L.R.B., 321
    U.S. 702, 705, 64 S.Ct. 817, 819, 88 L.Ed. 1020 (1944), but, in addition,
    insisting on continued majority employee support, in an industry--such as the
    private car rental service--where there is a high employee turnover rate, would
    encourage an employer to commit unfair labor practices. An employer not
    anxious, for example, to have its employees organized would quickly realize
    that employee turnover would work in its favor, so that after the passage of time
    the only remedy available upon complaint of an unfair labor practice would be
    a cease and desist order and a new election. By playing a waiting game, the
    employer could indefinitely postpone serious bargaining with the union. See
    Chromalloy Mining & Minerals Alaska Div., Chromalloy American Corp. v.
    N.L.R.B., 620 F.2d 1120, 1132 (5th Cir.1980). Where such tactics are shown,
    as we believe they are in the instant record, they should not be countenanced.

    13

    We recognized these policy considerations in refusing to require a new election


    when there had been some employee turnover between a union's selection by
    the employees and the Board's petition for enforcement of a bargaining order.
    See N.L.R.B. v. Patent Trader, Inc., 426 F.2d 791, 792 (2d Cir.1970) (in banc).
    To allow an employer first to stall and then to engage in lengthy litigation and
    later to claim that in the meantime its high employee turnover rate has
    effectively left none of the employees on its payroll who originally voted for
    the union, would give employers an incentive to use such tactics. Providing
    such an incentive would serve only to encourage the commission of unfair labor
    practices. See Glomac Plastics, Inc. v. N.L.R.B., 592 F.2d 94, 101-02 (2d
    Cir.1979); N.L.R.B. v. All Brand Printing Corp., 594 F.2d 926, 931 (2d
    Cir.1979).

    CONCLUSION
    14

    Although the administrative delay in petitioning for enforcement is regrettable,


    the appropriate remedy is to allow the employees, if they are so advised, to
    petition for decertification, not to require another election, particularly when
    union recognition originated through an election. See N.L.R.B. v. Koenig Iron
    Works, Inc., 856 F.2d 1, 2-3 (2d Cir.1988).

    15

    Enforcement of the Board's order is accordingly granted.

    Hon. Milton Pollack, Senior Judge, United States District Court for the
    Southern District of New York, sitting by designation

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