Employers Required to Respond to Union Request for Irrelevant Information: NLRB | Practical Law

Employers Required to Respond to Union Request for Irrelevant Information: NLRB | Practical Law

In IronTiger Logistics, Inc., the National Labor Relations Board (NLRB) held that an employer violated Section 8(a)(5) of the National Labor Relations Act (NLRA) by failing to timely respond in any manner to a union's request for presumptively relevant information relating to bargaining unit employees. The fact that the information requested was ultimately found to be irrelevant was immaterial. 

Employers Required to Respond to Union Request for Irrelevant Information: NLRB

Practical Law Legal Update 3-522-0608 (Approx. 5 pages)

Employers Required to Respond to Union Request for Irrelevant Information: NLRB

by PLC Labor & Employment
Published on 26 Oct 2012USA (National/Federal)
In IronTiger Logistics, Inc., the National Labor Relations Board (NLRB) held that an employer violated Section 8(a)(5) of the National Labor Relations Act (NLRA) by failing to timely respond in any manner to a union's request for presumptively relevant information relating to bargaining unit employees. The fact that the information requested was ultimately found to be irrelevant was immaterial.

Key Litigated Issues

In IronTiger Logistics, Inc., key litigated issues included whether an employer violated the NLRA by failing to timely respond in any manner to a union's request for information that was presumptively relevant because it concerned terms and conditions of bargaining unit employees' employment but was ultimately proven to be irrelevant.

Background

Both IronTiger Logistics, Inc. and TruckMovers.com, Inc. are employers with common ownership. A union represents IronTiger's drivers but not TruckMovers' drivers. TruckMovers assigns loads for delivery to both groups of drivers. IronTiger and the union entered into a Letter of Agreement clarifying that loads assigned to TruckMovers' drivers were not IronTiger's and that their delivery by TruckMovers would not be considered subcontracting.
In March 2010, the union alleged that IronTiger was not complying with the dispatch provisions in the parties' CBA, and then:
  • Filed a grievance concerning the dispatch of loads to TruckMovers' drivers, contending that IronTiger was not placing all available loads on its dispatch board.
  • Requested information concerning all units of work dispatched to both IronTiger's and TruckMovers' drivers over the preceding six months.
In response, IronTiger provided a list of units dispatched to both employers' drivers. In May 2010, the union requested supplemental information concerning:
  • TruckMovers' drivers.
  • IronTiger's drivers, including:
    • the names of IronTiger's drivers for each unit;
    • their destination;
    • their mileage; and
    • all relevant communication from customers about those units.
After two months, the union filed an unfair labor practice charge, triggering the NLRB to begin their investigation. On July 30, the union repeated its request for supplementary information. IronTiger did not acknowledge the union's May request for approximately 4.5 months. It finally responded on September 27, 2012, and did not provide any of the requested information. Instead, IronTiger asserted that:
  • Loads not appearing on IronTiger's dispatch board were not IronTiger's drivers' loads pursuant to the Letter of Agreement.
  • Information about TruckMovers:
    • involved non bargaining unit employees; and
    • was irrelevant.
  • The union needed to substantiate the relevance of the information concerning IronTiger's drivers' loads because that work had already been performed by IronTiger's drivers.
  • The union's information request was generally:
    • harassment;
    • burdensome; and
    • irrelevant.
An NLRB administrative law judge (ALJ) found that:
  • The union's supplemental information request concerning the units of work dispatched to IronTiger's drivers was presumptively relevant because it involved terms and conditions of employment of bargaining unit employees.
  • IronTiger was obligated to timely inform the union of the reasons that it did not believe that the information sought was relevant.
  • IronTiger did not meet its obligations under Section 8(a)(5) of the NLRA to bargain in good faith because it waited more than 4.5 months to respond to the union, despite the ALJ's related finding that:
    • all the supplementary information requested by the union was irrelevant to the union's representation of the bargaining unit employees; and
    • because the requested information was irrelevant, IronTiger need not provide it.
IronTiger filed exceptions to the panel (Board) heading to the NLRB's judicial functions. The Board delegated its authority in the proceeding to a three-member panel.

Outcome

On October 23, 2012, a 2-1 Board majority (Member Hayes dissented) issued an opinion in the case affirming the ALJ's rulings, findings and conclusions and adopted the recommended Order.
The Board held that, under Section 8(a)(5) of the NLRA, which imposes the duty to bargain in good faith, a unionized employer must on request, provide information:
  • That is relevant and necessary to the union's performance of its duties as collective-bargaining representative (NLRB v. Acme Industrial Co.).
  • In a reasonably timely manner (Woodland Clinic).
The Board noted precedent holding that:
  • An unreasonable delay in furnishing requested relevant information is as much of a violation of Section 8(a)(5) as a refusal to furnish the information at all.
  • An employer must timely respond to a union request seeking relevant information even when the employer believes it has grounds for not providing the information.
  • Information about terms and conditions of bargaining unit employees' employment are presumptively relevant and an employer that refuses to furnish this information at the request of the union bears the burden of proving the requested information is irrelevant (Kathleen's Bakeshop).
Extending these principles to presumptively relevant information, the Board affirmed the ALJ's finding that IronTiger violated Section 8(a)(5) and (1) of the Act by not timely responding to the union's request for supplemental information concerning presumptively relevant information about bargaining unit employees, even though IronTiger proved that the requested information was irrelevant. The Board majority held that it was immaterial that the presumptively relevant information proved to be irrelevant. It is reasonable for a union to expect production of the information unless and until the employer notifies it otherwise. In turn, the employer must respond promptly with its reasons for not providing the information. Placing this minimal burden on the employer is appropriate because, particularly where the requested information is presumptively relevant, the employer is in a clearly superior position to ensure that a dispute is avoided.
In his dissent, Member Hayes would reverse the ALJ's and dismiss the complaint, asserting that IronTiger was free to ignore the union's request at the time it was made because:
  • The Board has never required an employer to furnish irrelevant information requested by a union.
  • IronTiger rebutted the presumptive relevance of the requested information, nullifying any obligation under Section 8(a)(5) to respond to the request.
  • The NLRA imposes no obligation on an employer to respond, timely or otherwise, to a request for information that is not relevant.
  • IronTiger did not act unlawfully in failing to timely respond to the union's request for that information.
The Board majority rejected Member Hayes' dissent, holding that:
  • The duty to provide information is a component of the broader duty to bargain in good faith under Section 8(a)(5).
  • The question should be whether IronTiger had a duty to respond to the union's request in a timely way and not whether IronTiger had a duty to provide the information sought by the union.

Practical Implications

Employers with union-represented employees should be aware that the Board majority interprets the NLRA as requiring timely responses to all information requests for:
  • Relevant information, as usual.
  • Irrelevant information that is presumed to be relevant because it concerns the terms and conditions of bargaining unit employees employment.
The Board still requires that employers furnish only relevant information. The Board majority justified its holding as a matter of policy to encourage the parties to address potential disputes before they disrupt the collective-bargaining relationship. The Board maintains the view that information exchange is essential to enable such settlement.
On its face, the decision furthers an innocuous obligation to correspond with unions, even if they are asking for irrelevant information. However, since the NLRB tends not to consider any union information requests abusive, harassing or in bad faith, the decision, as Member Hayes points out, might result in unions having even greater latitude to hector employers with information requests for tactical purposes that obstruct, rather than further, good-faith bargaining relationships.