Union Poster Campaign Suggesting Franchisee Sells Contaminated Food was Lawful: Supervisors' Endorsement of Facebook Harassment was Not: NLRB | Practical Law

Union Poster Campaign Suggesting Franchisee Sells Contaminated Food was Lawful: Supervisors' Endorsement of Facebook Harassment was Not: NLRB | Practical Law

In MikLin Enterprises, Inc., d/b/a Jimmy John's, the National Labor Relations Board (NLRB) held that a franchisee employer violated Sections 8(a)(3) and (1) of the National Labor Relations Act (NLRA) by discharging and disciplining employees for their participation or perceived participation in an Industrial Workers of the World poster campaign to gain paid sick leave. The NLRB also held that the employer violated Section 8(a)(1) when an assistant manager encouraged employees, supervisors and managers to harass a union-supporting employee through posts on an antiunion Facebook page created by employees and when two supervisors endorsed and urged others to disseminate excrement-themed Facebook ridicule of that same employee.

Union Poster Campaign Suggesting Franchisee Sells Contaminated Food was Lawful: Supervisors' Endorsement of Facebook Harassment was Not: NLRB

by Practical Law Labor & Employment
Law stated as of 25 Mar 2016USA (National/Federal)
In MikLin Enterprises, Inc., d/b/a Jimmy John's, the National Labor Relations Board (NLRB) held that a franchisee employer violated Sections 8(a)(3) and (1) of the National Labor Relations Act (NLRA) by discharging and disciplining employees for their participation or perceived participation in an Industrial Workers of the World poster campaign to gain paid sick leave. The NLRB also held that the employer violated Section 8(a)(1) when an assistant manager encouraged employees, supervisors and managers to harass a union-supporting employee through posts on an antiunion Facebook page created by employees and when two supervisors endorsed and urged others to disseminate excrement-themed Facebook ridicule of that same employee.
On August 21, 2014, in MikLin Enterprises, Inc., the panel (Board) heading the NLRB's judicial functions held that a franchisee employer violated Sections 8(a)(3) and (1) of the NLRA by discharging and disciplining employees for their participation or perceived participation in an Industrial Workers of the World (Wobblies) poster campaign to gain paid sick leave. The Board also held that the employer violated Section 8(a)(1) when its Assistant Manager encouraged employees, supervisors and managers to harass a union-supporting employee through posts on an antiunion Facebook page created by employees and when two supervisors endorsed and urged others to disseminate excrement-themed Facebook ridicule of that same employee. (361 N.L.R.B. slip op. 27 (Aug. 21, 2014).)

Background

MikLin Enterprises, Inc., a Jimmy John's franchisee, operates ten sandwich shops in Minnesota. In October 2010, a representation election was held in a unit covering employees in all ten MikLin shops to determine whether employees wanted union representation by the Wobblies. The union lost the election by an 85-87 margin and filed election objections and related unfair labor practice (ULP) charges, which settled in January 2011.
MikLin employees too sick to work were required to find a replacement for their shift or risk discipline. During the union organizing campaign the employees raised the lack of paid sick leave with the Wobblies. In 2011, the Wobblies placed posters on community bulletin boards in MikLin's stores displaying side-by-side pictures of a sandwich, one described as made by a healthy worker and the other by a sick worker. The poster stated:
"Can't Tell the Difference? That's too bad because Jimmy John's workers don't get paid sick days. Shoot, we can't even call in sick. We hope your immune system is ready because you are about to take the sandwich test . . . . Help Jimmy John's workers win sick days."
The poster provided contact information for the union. MikLin's managers removed the posters whenever they discovered them in their stores.
In March 2011, four employees went to the office of MikLin's co-owner and vice-president, Rob Mulligan, and presented a letter from the union:
  • Requesting paid sick leave.
  • Indicating that the lack of paid sick leave was an economic incentive for employees to work when they were ill, posing a risk to public safety.
  • Stating that the union would like to meet with MikLin to discuss the policy. If MikLin was not willing to meet, the union would post its poster in MikLin's stores and in public places citywide.
The Wobblies issued a related press release the same day including a copy of the Sick Days poster. MikLin refused to meet with the union. Employees posted the poster in MikLin's stores and in public places nearby. This version of the poster contained text in place of the Wobblie's contact information stating, "Call the owner Rob Mulligan at [telephone number] to let him know you want healthy workers making your sandwiches." Mulligan and other managers removed as many posters as they could find. MikLin then discharged six employees and issued written warnings to three other employees for their participation in the poster campaign.
During the union campaign, employees who opposed the union started an antiunion Facebook page and invited employees, some store managers and assistant managers and Mulligan to become members. The Facebook page was open so that anyone with a Facebook account, including non-group members, could view it. David Boehnke, one of the union-supporting employees discharged for his Wobbly-postering activity, was periodically the subject of posts on the antiunion Facebook page. Around the time of Boehnke's poster activities and discharge, the assistant manager of the store in which he worked posted:
  • Boehnke's phone number and suggested that group members "let him know how you feel."
  • The message: "Fuck you David Forever."
Around March 2011, a former MikLin employee, who several months earlier had been discharged for putting excrement in Boehnke's coat pocket, posted to the antiunion Facebook group page a photo of Boehnke altered to include excrement on the bill of his cap. A MikLin store manager and assistant store manager posted their approval of the posted image and encouraged that the image be put up everywhere.
The Wobblies filed ULP charges in part challenging the discharges, discipline and management's removal of the union's posters and manager Facebook activity regarding Boehnke. The NLRB issued a ULP complaint. An NLRB administrative law judge (ALJ) issued a decision sustaining most of the complaint allegations. MikLin and the NLRB's General Counsel appealed different parts of that decision by filing exceptions with the Board.

Outcome

The Board panel (Chairman Pearce and Members Johnson and Schiffer):
  • Affirmed the ALJ's conclusion that:
    • MikLin violated Section 8(a)(1) when an assistant manager encouraged employees, supervisors and managers to harass a strong union supporter employee by posting on the antiunion Facebook the union supporter's phone number and soliciting employees to call him, but not for her crude Facebook posts that the NLRA tolerates during the heat of labor relations (Trailmobile Trailer, LLC, 343 N.L.R.B. 95 (2004)); and
    • MikLin violated Section 8(a)(1) by removing Wobbly FAQs and a copy of a prior ULP charge that employees posted on a community bulletin board in one store that MikLin previously permitted employees to use to post literature, including union literature, without limitation.
  • Reversed the ALJ's conclusion and found that MikLin also violated Section 8(a)(1) when a store manager and assistant manager approved and urged others to spread the excrement-themed ridicule of Boehnke.
A panel majority (Chairman Pearce and Member Schiffer):
  • Affirmed the ALJ's conclusion that MikLin violated Sections 8(a)(3) and (1) of the NLRA by discharging six employees and disciplining three others because of their participation or perceived participation in the union's Sick Days poster campaign.
  • Held, with further analysis, that:
    • the union's sick days campaign was concerted protected activity under the NLRA;
    • the employees involved in the poster campaign did not engage in disloyal, reckless or maliciously untrue conduct that would cause them to lose the NLRA's protection; and
    • MikLin's discharges and warnings were unlawful because the disciplined employee's participation in the union's sick days campaign was protected activity under the NLRA.
The majority rejected MikLin's arguments that the communications were disloyal, and therefore unprotected, under NLRB v. Electrical Workers Local 1229, 346 U.S. 464 (1953) (Jefferson Standard). The majority noted that when analyzing whether employee communications to third parties exceed the protections of the NLRA under Jefferson Standard, the Board considers:
  • Whether the communications indicate that they are related to an ongoing labor dispute and whether they are so disloyal, reckless or maliciously untrue as to lose the NLRA's protection (MasTec Advanced Tech., 357 N.L.R.B. slip op. 17 at 5 (2011)).
  • Whether the communications were made at a "critical time in the initiation of the company's business" and whether they were so disparaging that they could be seen as "reasonably calculated to harm the company's reputation and reduce its income." (Valley Hosp. Med. Ctr., 351 N.L.R.B. 1250, 1252 (2007) (quoting Jefferson Standard), enfd. sub. nom. Service Employee Local 1107, 358 Fed. App'x 783 (9th Cir. 2009)).
Applying the MasTec analytical framework the majority found that neither the posters nor the press release were shown to be so disloyal, reckless, or maliciously untrue as to lose the protection of the NLRA because these communications:
  • Were expressly related to the ongoing labor dispute concerning the employees' wish for paid sick leave. Although the poster and press release suggested the potential risk of eating food prepared by a sick worker, they clearly connected that risk to issues involved in the labor dispute, and their primary message was to seek support for the workers' position in the dispute. Anyone viewing the posters and press release would reasonably understand that their motive was to garner support for the campaign to improve the employees' terms and conditions of employment by obtaining paid sick leave rather than to disparage MikLin or its product.
  • Were not reckless or maliciously untrue. The statement in the posters and press release that "Jimmy John's workers don't get paid sick days" was factually accurate. Although the next statement, "shoot, we can't even call in sick," may not have presented the entirety of the employer's policy on sick days, it was an accurate characterization of the policy's impact. Before commencing the campaign, the union surveyed MikLin's employees, who reported that they worked while sick nearly 80% of the time due to MikLin's attendance policies. Employees also stated that they were directed to work while sick if there was no cover available for their shift. Furthermore, any reasonable reader would recognize that the poster's message involves the kind of exaggeration expected and tolerated in labor disputes (Jolliff v. NLRB, 513 F.3d 600, 611-613 (6th Cir. 2008)).
  • Were not "so disloyal" as to lose the protection of the NLRA. To lose the NLRA's protection as an act of disloyalty, an employee's public criticism of an employer must evidence a malicious motive (Valley Hosp. Med. Ctr., 351 N.L.R.B. at 1252). The Board will not find employee communications to third parties unprotected unless they are "flagrantly disloyal, wholly incommensurate with any grievance which [the employees] might have" (MasTec, 357 N.L.R.B. slip op. 17 at 6). "Concerted activity that is otherwise proper does not lose its protected status simply because [it is] prejudicial to the employer." (NLRB v. Circle Bindery, Inc., 536 F.2d 447, 452 (1st Cir. 1976)). Even communications that raise highly sensitive issues such as public safety have been found protected where they are sufficiently linked to a legitimate labor dispute and are not maliciously motivated to harm the employer. In protecting employee communications that are critical of the employer or its product where the communications relate to a labor dispute, the Board has adhered to the specific holding of Jefferson Standard and its approach has been upheld by numerous courts (Sierra Publ. Co. v. NLRB, 889 F.2d 210, 220 (9th Cir. 1989)). The posters and press release did not constitute disloyalty or reckless disparagement because:
    • there is no evidence that the communications were made "at a critical time in the initiation" of the MikLin's business (Jefferson Standard);
    • although the posters and press release shed unwelcome light on issues affecting public safety, they did not use inflammatory language, and their message did not stray from the context of the labor dispute;
    • in particular, the safety issue that was raised, employees working while they are sick, was directly related to and in furtherance of the ongoing dispute over MikLin's failure to provide paid sick leave; and
    • while the employees may have anticipated that some members of the public might choose not to patronize MikLin's restaurants after reading the posters or press release, there is no evidence that their purpose was to inflict harm on MikLin, or that they acted recklessly without regard for the economic detriment to MikLin's business. Rather, by urging the public to "Help Jimmy John's Workers Win Sick Days," the employees demonstrated that they were motivated by their wish to obtain paid sick leave.
Finally, while noting that although the NLRA tolerates bitter and abusive speech during the heat of labor relations (Trailmobile Trailer, LLC), the Board unanimously found that the assistant manager's encouragement of employees to harass the strong union supporter on employees' antiunion Facebook page in response to his involvement with the union campaign went beyond the bounds of mere opinion or exuberance during the heat of a labor campaign.
The Board also reversed the ALJ's conclusion that managers' support and promotion of the degrading photo of Boehnke could be excused as disparagement of a union official permissible in the midst of a union campaign (see Sears, Roebuck & Co., 305 N.L.R.B. 193 (1991)). The Board found that:
  • Although Boehnke was one of the leaders of the union effort, he was:
    • an employee, subject to the authority of the Respondent’s supervisors and managers; and
    • not a union official.
  • The supervisors’ encouragement on Facebook of employees to disseminate widely this degrading picture of an employee leader of the Wobblies was unlawful because it would reasonably intimidate both Boehnke and other employees who would not want to be subject to the same kind of humiliation and ridicule, thereby dissuading them from supporting the union (Dayton Hudson Corp., 316 N.L.R.B. 477, 477–478, 482–483 (1995)).
Member Schiffer dissented in part, and would have also found degrading comments on the Facebook page about Boehnke by Mulligan (such as calling him the "Unibrowner") were unlawful because:
  • A co-owner of the employer participating in the public humiliation of a union supporter.
  • Even though he did not call for further harassment or ridicule of Boehnke, the action would still intimidate others and might interfere with their support for the union (Rankin & Rankin, Inc., 330 N.L.R.B. 1026 (2000) and Dayton Hudson Corp.).
In his dissent, Member Johnson noted that he would have inferred that the employees' poster communications were disloyally and maliciously intended to harm MikLin and the Jimmy John's franchise generally, and are therefore unprotected under Board and court precedent. Specifically, the dissent contended that the posters:
  • Falsely claimed that it was impossible for employees to call in sick.
  • Exaggerated the potential public health problem and conveyed the message that customers are getting sick and will continue to get sick.
  • Contained public health danger claims that were not supported by "statistical proof or empirical analysis."
  • The posters and press release do not consistently distinguish between franchisor Jimmy John's and MikLin, a franchisee. This maximized the threat of substantial and lasting detriment to the MikLin 's and Jimmy John's reputation, and possibly threatened MikLin's franchise relationship with Jimmy John's.

Practical Implications

The decision highlights that the current Board interprets concerted activity broadly and cases noting grounds for concerted activity to lose the NLRA's protections narrowly. This decision shows that unions have quite a free reign to use disparaging poster campaigns against employers as long as the communications are at least loosely connected to the subject matter of the related labor dispute. Objectively false statements were excused as campaign rhetoric.
The case is also the first case in which the Board evaluated supervisor and manager conduct on Facebook. Consistent with other recent decisions affirming that expletives and vulgar language are part of the fabric of labor relations, the Board found many vulgar Facebook statements and posts by supervisors and managers permissible. However, the Board will find employer ULPs where managers or supervisors use Facebook to:
  • Call on others to harass union-supporting employees.
  • Approve of and encourage the dissemination of degrading images or comments about union-supporting employees.
Employers should consider discouraging supervisors and managers from using social media for these purposes and disciplining those who do.
Update: The 8th Circuit enforced the NLRB's order (MikLin Enterprises, Inc. v. NLRB, No. 14-3099, (8th Cir. Mar. 25, 2016)).