NLRB Adopts Expansive Interpretation of Union Recognition Bar Time Period | Practical Law

NLRB Adopts Expansive Interpretation of Union Recognition Bar Time Period | Practical Law

In Americold Logistics LLC, the National Labor Relations Board (NLRB) held that the time period barring petitions to oust a voluntarily-recognized union is a minimum of six months and a maximum of one year, measured from the date of the first bargaining session between the employer and the union, not from the date the recognition agreement is signed. By doing so, the NLRB clarified its earlier decision in Lamons Gasket Co. and overturned a regional director’s decision to process a company employee’s decertification petition. The Board also held that the decertification petition was barred under the multi-factor test applied in Lee Lumber and Building Material Corp. because a reasonable amount of time for bargaining had not yet elapsed.

NLRB Adopts Expansive Interpretation of Union Recognition Bar Time Period

Practical Law Legal Update 4-607-7915 (Approx. 5 pages)

NLRB Adopts Expansive Interpretation of Union Recognition Bar Time Period

by Practical Law Labor & Employment
Published on 10 Apr 2015USA (National/Federal)
In Americold Logistics LLC, the National Labor Relations Board (NLRB) held that the time period barring petitions to oust a voluntarily-recognized union is a minimum of six months and a maximum of one year, measured from the date of the first bargaining session between the employer and the union, not from the date the recognition agreement is signed. By doing so, the NLRB clarified its earlier decision in Lamons Gasket Co. and overturned a regional director’s decision to process a company employee’s decertification petition. The Board also held that the decertification petition was barred under the multi-factor test applied in Lee Lumber and Building Material Corp. because a reasonable amount of time for bargaining had not yet elapsed.
On March 31, 2015, in Americold Logistics LLC, a majority of the three-member panel (Board) heading the NLRB’s judicial and election functions held that the one-year time period barring petitions to oust a voluntarily-recognized union is measured from the date of the first bargaining session between the employer and the union, not from the date the recognition agreement is signed. By doing so, the NLRB clarified its earlier decision in Lamons Gasket Co. and overturned a regional director’s decision to process a company employee’s decertification petition. The Board also held that the decertification petition was barred under the multi-factor test applied in Lee Lumber and Building Material Corp. because a reasonable amount of time for bargaining had not yet elapsed. (362 N.L.R.B. slip op. 58 (Mar. 31, 2015).)

Background

Americold Logistics operates two food storage warehouses in Illinois. In 2012, after an organizing drive at both warehouses, a majority of its warehouse employees voted to authorize a union in an election using a neutral third-party to conduct the card check. Although a recognition agreement was signed on June 18, 2012, the first negotiation session between the employer and the union was not held until October 2012. The parties negotiated sporadically over the course of the next eight months. At one point, there was a gap of over three months in negotiations due to the employer’s unavailability. The negotiations culminated in a signed agreement the employees voted to ratify on June 29, 2013. The day before the ratification vote, a company employee filed a petition to decertify the union and hold a Board-conducted election. The decertification petition was filed slightly more than a year after the recognition agreement had been signed.
In Lamons Gasket Co., the Board held that voluntary recognition of a union bars a decertification petition for a reasonable bargaining period of “no less than 6 months after the parties' first bargaining session and no more than 1 year” (357 N.L.R.B. slip op. 72 (Aug. 26, 2011)). The regional director interpreted Lamons Gasket as measuring the reasonable bargaining period from the date of the recognition agreement. Since the petition was filed slightly over a year after the recognition agreement, the regional director found that the decertification petition was not barred and should be processed. The union filed a request for review with the Board, arguing that a recognition bar remained in effect because the petition was filed less than a year from when the first bargaining session had been held, and that a reasonable time for bargaining had not elapsed as of the time the decertification petition was filed. The issue before the Board was whether the maximum one-year period under the recognition bar runs from the date of recognition or from the start of bargaining.

Outcome

In seeking to clarify its earlier decision in Lamons Gasket, a majority of the Board (Chairman Pearce and Member Hirozawa) found that a reasonable period of bargaining under the recognition bar is a minimum of six months and a maximum of one year, measured from the date of the first bargaining meeting between the union and the employer. In coming to this conclusion, the Board noted that:
  • Nothing in Lamons Gasket expressly stated or even suggested that the recognition bar period is measured from the date of recognition.
  • A successor bar decision issued by the Board the same day as Lamons Gasket discussed the same six-month to one-year window, but expressly defined a reasonable period of bargaining as “a minimum of 6 months and a maximum of 1 year, measured from the date of the first bargaining meeting between the union and the employer” (see UGL-UNICCO Service Co., 357 N.L.R.B. slip op. 76 (Aug. 26, 2011)).
  • A union can only demonstrate its effectiveness once actual bargaining begins.
  • The criteria of the Lee Lumber test are tied to the commencement of bargaining, not to the recognition of the union (see 334 N.L.R.B. 399 (2001)).
  • Having a reasonable bargaining period under the recognition bar last up to a year from the first bargaining meeting would not make it more protective than the certification bar because:
    • the certification bar always guarantees a one-year insulated period; and
    • only the first six months of the recognition bar is a guaranteed insulated period, with additional six month extension depending on an analysis of the Lee Lumber factors.
  • Measuring the recognition bar from the date bargaining commenced furthers the overall goal of giving a newly-created bargaining relationship a chance to succeed, as reflected in this case by the parties reaching an agreement that the employees ratified.
  • At the time the decertification petition was filed, a reasonable time period for negotiations had yet to elapse under the Lee Lumber five-factor test.
Member Miscimarra dissented, finding that:
  • The Board’s decision in Dana Corp. (which was overruled by Lamons Gasket) should be applied, or that the Board should apply its decisions preceding Dana Corp. indicating that the recognition bar starts running as of when the employer recognizes the union (see 351 N.L.R.B. 434 (2007)).
  • The language of Lamons Gasket should be construed as limiting the recognition bar to no longer than one year from the date of recognition.
  • The majority’s decision measuring the election bar from when collective bargaining begins created an “incongruous” situation and an “upside-down regime,” in which electing a union in a secret ballot election means that another election cannot be held for a year, but voluntarily recognizing a union without an election prevents employees from voting in a Board election for longer than a year.

Practical Implications

The Board’s decision in Americold Logistics LLC clarifies an ambiguity from Lamons Gasket regarding when the one-year bar to decertify a voluntarily-recognized union begins to run. By holding that the one-year time period is measured from the date of the parties' first bargaining session, rather than the date the union was recognized, the recognition bar could be extended indefinitely due to any delay in the parties meeting.