# U ni te d S ta te s Co ur t of A pp ea ls

For the Eig hth Circu it

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No. 1 5- 22 85

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The Fin le y

Hos pi ta l

ll ll ll ll ll ll ll ll ll ll l Peti ti on er

v.

Nati on al Labo r Rel at io ns Bo ard

ll ll ll ll ll ll ll ll ll ll l Resp on de nt

Serv ic e Em

pl oyees' I nt ern at io na l Un io n, Lo cal 19 9

ll ll ll ll ll ll ll ll ll ll l In te rv en or

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No. 1 5- 25 92

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The Fin le y

Hos pi ta l

ll ll ll ll ll ll ll ll ll ll l Resp on de nt

v.

Nati on al Labo r Rel at io ns Bo ard

ll ll ll ll ll ll ll ll ll ll l Peti ti on er

Serv ic e Em

pl oyees' I nt ern at io na l Un io n, Lo cal 19 9

ll ll ll ll ll ll ll ll ll ll l In te rv en or__ __ __ __ __ __

Nati on al Labo r Rel at io ns Bo ard

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Su bm it te d: Marc h 1 5, 2 01 6
Fil ed : J un e 2 7, 2 01 6

__ __ __ __ __ __

Befo re MUR PHY, BEAM, an d GRUENDER, Ci rcu it Ju dg es

.

__ __ __ __ __ __

BEAM, Ci rcu it Ju dg e.

The Fi nl ey Hos pi ta l (th e Hos pi ta l) ap pe al s th e Nati on al L ab or Rel at io n Bo ard 's
(th e Bo ard 's) de ci si on affi rm in g an ad m in is tra ti ve la w jud ge 's (ALJ's ) fin di ng th at th e

Hos pi ta l vi ol at ed §§ 8( a)(5 ) an d (1 ) of th e Nati on al Lab or Rel at io ns Act (NLRA) by
(1 ) un il at eral ly di sc on ti nu in g an nu al pa y rai se s ne go ti at ed in a on e-year co ll ect iv e
b a rg ai ni ng ag reem en t (CBA) wit ho ut ba rg ai ni ng wit h th e Serv ic e Em pl oyees '

In te rn at io na l Uni on , Loc al 19 9 (th e Uni on ) on be ha lf o f t h e n u r se s, an d (2 ) by

in fo rm in g t he Uni on it was di sc on ti nu in g th e pa y rai se s. Fo r th e rea so ns di sc us se d

be lo w, we rev ers e.

I. BACKGRO UND

The Hos pi ta l is an acu te -car e ho sp it al wit h th ree faci li ti es in Io wa. The Bo ard

cert ifi ed th e Uni on as th e ex cl us iv e ba rg ai ni ng rep res en ta ti ve of fu ll -ti m e an d reg ul ar

pa rt- ti m e nu rs es

. On Ju ne 20

, 20 05

, th e Hos pi ta l ent ered in to a on e-year CBA with

th e Uni on

. Arti cl e 20 .3 of th e CBA st at es th e Hos pi ta l's po li cy reg ard in g pa y rai se s:

"Ba se Rat e In crea se s Dur in g Term of Agr eem en t. Fo r th e du rat io n of th is Agr eem en t,

t h e H o s p i ta l wil l ad

jus t th e pa y of Nur se s on hi s/ he r an ni ve rs ary da te

. Su ch p a y

in crea se s fo r Nur se s no t on pr ob at io n, du rin g th e te rm of th is Agr eem en t wil l be th ree

-2

-(3 ) pe rcen t." The CBA ex pi red by i ts own te rm s on e ye a r a f te r th e in it ia l effe ct iv e
da te

. Pu rs ua nt to th e ag reem en t, th e Hos pi ta l ga ve a si ng le rai se to each of it s nu rs es

on hi s o r he r an ni ve rs ary da te du rin g t he on e-year ter m

.

Neg ot ia ti on s fo r a ne w ag reem en t be ga n on Mar ch 28

, 20 06

, bu t a ne w

ag reem en t ha d no t b e e n r e a c h e d whe n th e CBA ex pi red on Ju ne 20

, 20 06

. The

Hos pi ta l se nt a le tt er to al l Uni on em pl oyees st at in g th at it wou ld no t pr ov id e rai se s

to nu rs es who se an ni ve rs ary da te fel l aft e r t h e da te of co nt ract ex pi rat io n un ti l th e

pa rti es reac he d a n e w ag reem en t. On Ju ne 29

, 20 06

, th e Hos pi ta l su bm it te d a

pr op os al th at wou ld pr ov id e a 3% in crea se in wag es . Th e Uni on vo te d t o st rik e on

Ju ly 6, 7, an d 8. The Hos pi ta l th en to ld th e Uni on it wou ld no t m ak e wag e in crea se s

in th e n ew CBA re tro act iv e to Ju ne 21 , 20 06 . The Unio n fil ed a co m pl ai nt arg ui ng

th at th e Hos pi ta l's refu sa l to gi ve au to m at ic 3% rai se s aft er th e ex pi rat io n of th e CBA

am ou nt ed to a refu sa l t o b arg ai n i n v io la ti on of 2 9 U.S.C. § 15 8( a)(5 ) an d (1 ). 1

On Ju ne 3, 20 15

, th e Bo ard fo un d, in ag reem en t wit h th e ALJ, th at th e Hos pi ta l

vi ol at ed 29 U.S.C. § 15 8( a)(5 ) an d (1 ) by de cl in in g to gi ve it s nu rs es ad di ti on al rai se s

aft er th e CBA ex pi red

. The Bo ard co nc ed ed th at th e Hos pi ta l's co nt ract ua l ob li ga ti on

The co m pl ai nt fu rth er al le ge d th at th e Hos pi ta l vi ol at ed th e NLRA by fai li ng 1

to pr ov id e th e Uni on wit h in fo rm at io n r eg ard in g Uni t Ope rat io ns Co un ci ls an d

nu rs es ' ab se nc es du e to wor k- rel at ed il ln es se s, whi ch th e Uni on req ue st ed on Apri l
26

, 20 06

. The co m

pl ai nt al so no te d th e Hos pi ta l's fai lu re to reas on ab ly acco m m od at e th e Uni on 's req ue st fo r th e na m es an d co nt act in fo rm a t io n of co m pl ai na nt s ag ai ns t
Nur se Gin a Gro ss , who was te rm in at ed by th e Hos pi ta l in Ju ne 20 0 5

. Th e B o a r d
affi rm ed th e ALJ's fin di ng th at th e Hos pi ta l vi ol at ed §§ 8( a)(5 ) an d (1 ) of th e NLRA by fai li ng to pr ov id e th e req ue st ed in fo rma t i on or m ak e a ti m el y acco m m od at io n. The Hos pi ta l do es no t ap pe al th es e fin di ng s, an d it fai le d to di sc us s th es e is su es in
it s br ie f. Thu s, "[t ]he Bo ard is en ti tl ed to su m m ary en fo rcem en t of [th e s e ]

un co nt es te d po rti on s of [th e] or de r." NLRB v. Bo li va r-Tees

, In c., 55 1 F.3 d 72 2, 72 7 (8 th Ci r. 20 08 ) (q uo ti ng Fl y in g Fo od Gro up , In c. v. NLRB, 47 1 F.3 d 17 8, 18 1 (D.C.
Ci r. 20 06 )).

-3

-to pr ov id e an nu al rai se s exp ire d at the en d of th e on e-year te rm

. Howev er, becau se

it fo un d th at th e on e-year CBA crea te d a st at us qu o of an nu al pa y rai se s, it he ld th at

th e Hos pi ta l ha d a st at ut or y ob li ga ti on un de r th e NLRA to co nt in ue an nu al pa y rai se s

un ti l a ne w CBA was reac he d or th e pa rti es ba rg ai ne d to an im pa ss e. The Bo ard al so

fo un d no th in g in Arti cl e 2 0.3 of th e CBA or in th e CBA in ge ne ral th at cl earl y an d

un m is ta ka bl y waiv ed th e em pl oyer's st at ut or y du ty to co nt in ue gr an ti ng an nu al rai se s

aft er t he ex pi rat io n o f th e CBA. Me m be r Harry Joh ns on di ss en te d.

The Hos pi ta l no w ap pe al s th e Bo ard 's de ci si on , arg ui ng th at th e on e-year-lo ng

CBA di d no t es ta bl is h a st at us qu o of an nu al

, co m po un de d rai se s aft er th e ag reem en t

ex pi red

. Alt ern at iv el y , th e Hos pi ta l arg ue s th at th e Uni on waiv ed it s st at ut or y rig ht

to po st -ex pi rat io n ra is es

.

II

. DISCUSS IO N

A. Sta nda rd o f Rev ie w

W e rev i e w f

a ct ua l fin di ng s fo r su bs ta nt ia l ev id en ce. NLRB v. Am . F ire st op

So lu ti on s, In c., 67 3 F.3 d 76 6, 76 7 (8 th Ci r. 20 12 ). "'Su bs ta nt ia l ev id en ce' is ev id en ce

th at 'a reas on ab le m in d m ig ht a c c e p t a s a de qu at e to su pp or t' a fin di ng ." Id

. at 76 8
(q uo ti ng Uni ve rs al Cam era Cor p. v. NLRB, 34 0 U.S. 47 4, 47 7 (19 51 )). W e rev ie w
le ga l qu es ti on s to en su re th e Bo ard "co rrec tl y a pp li ed th e la w." Id

. Und er th is

st an da rd

, "t he NLRB m

us t be su st ai ne d if: (1 ) it st art ed wit h th e cu rren tl y co nt ro ll in g

la w; (2 ) it co rrec tl y ap pl ie d th is la w; an d (3 ) su bs ta nt ia l ev id en c e s up po rts it s

fin di ng ." Ced ar Vall ey Co rp

. v. NLRB, 97 7 F.2 d 12 11

, 12 15 (8 t h C i r

. 19 92 ). Fo r

co nt ract ua l qu es ti on s no t ba se d on po li cy un de r th e NLRA, we r e v i e w th e Bo ard 's

de ci si on de no vo

. Am

. Fi res to p So lu ti on s, 67 3 F.3 d at 76 8. Alt ho ug h th e Bo ard ha s

au th or it y to in te r

p r e t C B As in reg ard s to un fai r la bo r pr act ic es , " co ur ts are st il l th e

pr in ci pa l so ur ces of co nt ract in te rp ret at io n." Lit to n Fi n. Pri nt in g Div

. v. NLRB, 50 1

U.S. 19 0, 20 2 (1 99 1) [h erei na fte r Li t to n Fi n.] (q uo ti ng NLRB v. St ro ng , 39 3 U.S.

-4

-35 7, 36 0- 61 (1 96 9) ). If th e Bo ard were gi ve n au th or it y to in te rp ret co nt ract s, "[w]e

wou ld ris k t he de ve lo pm en t o f co nf li ct in g p rin ci pl es ." Id . at 2 03

.

B. Sta tus Quo

The Hos pi ta l arg ue s th a t th e Bo ard erre d in ho ld in g th at th e on e-year-lo ng

C BA wit h th e Uni on es ta bl is he d a st at us qu o of an nu al

, co m po un de d rai se s th at

,

un de r th e NLRA, m

us t b e co nt in ue d afte r th e ag reem en t's ex pi rat io n. We agre e. It

is an un fai r la bo r pr act ic e un de r th e NLRA f o r a n em pl oyer "t o refu se to ba rg ai n

co ll ect iv el y wit h th e rep res en ta ti ve s of hi s em pl oyees." 29 U.S.C. § 15 8( a)(5 ). The

ob li ga ti on to ba rg ai n co ll ect iv el y m ean s th at th e em pl oyer m us t "m eet at reas on ab le

t i mes a n d co nf

er in go od fai th wit h res pe ct to wag es , ho ur s, an d ot he r te rms a n d

co nd it io ns of e m

pl oym en t." Id. § 15 8( d)

.

The un il at eral ch an ge do ct rin e st at es th at "an em pl oyer's un il at eral ch an ge in

co nd it io ns of em

pl oym en t un de r ne go ti at io n is

. . . a vi ol at io n of § 8( a)(5 ), fo r it is a
ci rcu m ve nt io n of th e du ty to ne go ti at e whi ch fru st rat es th e ob ject i v e s o f § 8( a)(5 )

m uc h as do es a fla t refu sa l." NLR B v

. K a t z , 3 6 9 U.S. 73 6, 74 3 (1 96 2)

. Eve n an

in cr ea se in wag es wit ho ut ne go ti at io n co ns ti tu te s an un fai r la bo r pr act ic e. Id

. at 74 6.

The on ly ex cep ti on is if th e pa y rai se s are "i n li ne wit h th e co m pa ny's lo ng -s ta nd in g

pr act ic e of gr an ti ng " rai se s, whi ch wou ld th en m ak e th e pr act ic e "a m ere co nt in ua ti on

of th e st at us qu o." Id

. W ag e in crea se s th at fit wit hi n th i s e xc ep ti on are ge ne ral ly

"au to m at ic in crea se s t o wh ic h t he em pl oyer ha s al read y

co m m it te d h im se lf." Id.

The te rm s an d co nd it io ns th at co nt in ue as pa rt of th e st at us qu o un de r th e

un il at eral ch an ge do ct rin e "ar e no lo ng er ag reed -u po n te rm s; th ey are te rm s im po se d
by la w." Lit to n Fi n., 50 1 U.S. at 20 6. Thi s is so be cau se "an ex pi red co nt ract ha s by

it s own te rm s rel eas ed al l it s pa rti es fro m th ei r res pe ct iv e co nt ract ua l ob li ga ti on s ."

Id

. The "ri gh ts an d du ti es u n d e r t he ex pi red ag reem en t[, ho wev er,] 'ret ai n le ga l

si gn ifi can ce be cau se th ey de fin e th e st at us qu o ' f o r p u r po se s of th e pr oh ib it io n on

-5

-un il at eral ch an ge s." Id

. (q uo ti ng Derri co v. Sh eeh an Em erg en cy Hos p. 84 4 F.2 d 22

,

25 -2 7 (2 d C ir. 1 98 8) ).

All pa rti es ag ree th at be cau se th e CBA ha d ex pi red

, th e Hos pi ta l no lo ng er ha d

an y co nt ract ua l ob li ga ti on s. As su ch

, "[t ]he cri ti cal in qu iry is whe th er th ere ex is te d

an es ta bl i s h e d p ract ic e or st at us qu o" th at crea te d a st at ut or y ob li ga ti on of

co m po un de d, an nu al rai se s. N LR B v. Tals ol Co rp ., 15 5 F.3 d 78 5, 79 4 (6 th Ci r.

19 98 ). The Bo ard rel ie d so le ly on it s in te rp ret at io n of Arti cl e 20 .3 of th e CBA to

co nc lu de th at co nt in ui ng 3% pa y in crea s e s w e r e p art of th e st at us qu o. Howev er,

rat he r th an di sc us si ng ex act ly how th e la ng ua ge of Art ic le 20 .3 es ta bl is he d a st at us

qu o of an nu al pa y rai se s, th e Bo ard si m pl y as su m ed th at be cau se th e CBA au th or iz ed

a on e-t im e 3% pa y rai se , an nu al 3% rai se s au to m at ic al ly be cam e pa rt of th e st at us qu o

th at m us t be m ai nt ai ne d du rin g ne go ti at io ns

. As Mem be r Jo hn so n po in te d ou t in hi s
di ss en t, "[b ]y effe ct iv el y de le ti ng th e ti m e co ns tra in t th at was an in he ren t pa rt of th e

wag e in crea se ob li ga ti on , th e m ajor it y m ak es a tim e- boun d ob li ga ti on in to a pe rp et ua l

on e." The Bo ard 's de c i s i o n a ll ows "an y in crem en ta li st or de crem en ta li st te rm [to ]

co nt ro l ov er th e ac tu al la ng ua ge us ed in th e c o n t r a c t

. " The pu rp os e of th e NLRA

was su rel y

no t t o m ak e al l wag e te rm s in ev ery em pl oym en t ag reem en t l as t b ey on d

th e te nu re o f th e b arg ai ne d- fo r ag reem en t.

"We in te rp ret co ll ect iv e-b arg ai ni ng ag reem en ts

. . . acco rd in g to or d i n ary

pr in ci pl es of co nt ract la w, a t l eas t whe n th os e pr in ci pl es are no t in co ns is te nt wit h

fed eral la bo r po l ic y ." M & G Po lym ers USA, LLC v. Tack et t, 13 5 S. Ct

. 92 6, 93 3
(2 01 5)

. The Res ta te m en t (Sec on d) of Co nt ra c t s § 20 2( 1) st at es , "Word s an d ot he r

co nd uc t are in te rp r e t e d in th e li gh t of al l th e ci rcu m st an ces , an d if th e pr in ci pa l

pu rp os e of th e pa rti es is as cert ai na bl e it is gi ve n g reat weig ht ." "Un le ss a di ffer en t

in te n t i o n i s m an ife st ed

, whe re la ng ua ge ha s a ge ne ral ly pr ev ai li ng m ean in g, it is

in te rp ret ed in acco rd an ce wit h th at m ean in g." I d

. § 2 0 2( 3) (a). Arti cl e 20 .3 of th e CBA, th e rai se -p ro vi di ng pr ov is io n, st at es th at it ap pl ie s on ly "fo r th e du rat io n of th is
Agr eem en t." That ph ras e, or a sl ig ht va ria ti on of t ha t p hr as e, is us ed th ree t im es in

-6

-Arti cl e 2 0.3 , and th e p art ie s kn ew th at th e CBA ex pi red in on e y ear. Th e g en eral ly

pr ev ai li ng m ean in g of th at ph ras e, in li gh t of al l th e ci rcu m st an ces , is th at each nu rs e

g e t s o ne 3% rai se on on e da te du rin g th e y ear th at th e CBA is in effe ct

. Th u s , t h e pl ai n l an gu ag e o f th e CBA do es no t, as th e Bo ard st at es , pro vi de for pe rio di c wag e

in crea se s or an nu al rai se s; rat he r, th e la ng ua ge se ts fo rth a st rai gh t fo rward

, si ng ul ar

pa y in crea se on a pa rti cu la r da y du rin g t he on e-year co nt ract

.

"Si nc e th e st at us qu o is qu it e ob vi ou sl y de fin ed by refe ren ce to th e su bs ta nt iv e

te rm s of th e ex pi red co nt ract

, it fo ll ows th at

. . . th os e pe rti ne nt co nt ract ua l te rm s

'su rv iv e' th e ex pi rat io n d at e." Hi ns on v. NL RB, 42 8 F.2d 13 3, 1 39 (8t h C ir. 1 97 0)

. The "s ub st an ti ve te rm s of th e ex pi red co nt ract " in qu es ti on he re, as di sc us se d ab ov e,

ex pl ic it ly st at e th at each em pl oyee wil l rece iv e a on e-t im e 3% rai se on hi s o r he r

an ni ve rs ary da te

. One can no t se pa rat e th e o n e -y ear te rm li m it fro m th e pa y rai se

o b l ig at io n. As su ch

, th e la ng ua ge of th e CBA di d no t pr ov id e fo r co mp o u n d e d

,

an nu al rai se s. Mem

be r Jo hn so n co rrec tl y no te s in h i s d i s s e n t th at th e nu rs es ' pa y

"m ov ed fro m on e fix ed po in t to an ot he r an d [th us sh ou ld ] st ay [] th ere up on co nt ract

ex pi rat io n." The refo re, the ne w sa la ry at th e ti m e th e CBA ex pi red , no t t he al le ge d

pr act ic e of 3% an nu al pa y rai se s, is th e st at us qu o th at m us t be m ai nt ai ne d th ro ug ho ut

ne go ti at io ns

.

Fu rth er, th ere i s m in im al , i f an y , l eg al pr eced en t su pp or ti ng th e no ti on th at a

on e-t im e act by an em

pl oyer crea te s a ne w st at us qu o. In fact

, th e Fo ur th Ci rcu it ha s

sa id th e o pp os it e, st at in g, "[W] e refu se to gi ve an y cred en ce to th e pr op os it io n th at

a on e-t im e gi ft

. . . , st an di ng al on e, co ul d in an y way es ta bl is h a po li cy or pr act ic e of

y earl y bo nu se s." S. Md

. Hos p. Ct r. v. NLRB

, 8 0 1 F

. 2 d 6 66

, 66 9 (4 th Ci r. 19 86 ).

Howev er, "[a ]n em

pl oyer wit h a pa st hi st or y of a m eri t in crea se pr og ram ne it he r m ay
di sc on ti nu e th at pro gr am

. . . no r . . . con ti nu e to un il at eral ly ex erci se hi s di sc ret io n

w i t h res pe ct to su ch in crea se s." Lit to n Mi cro wav e Co ok in g Pro ds

. v. NLRB, 94 9

F.2 d 24 9, 25 2 (8 th Ci r. 19 91 ) [h erei na fte r Lit to n Mi cro wav e] (al te rat io ns in or ig in al )

-7

-(q uo ti ng One it a K n i t ti ng Mi ll s, 20 5 N.L.R.B. 50 0, 50 1 n.1 (1 97 3) ). "In st ead

, th e

em pl oyer m us t m ai nt ai n t he ge ne ral ou tl in e o f th e p ro gr am

. . . ." Id . at 2 53

.

In Lit to n Mi cro wav e th e em pl oyer ha d gr an te d rai se s ev er y J an ua ry or
Feb ru ary si nc e th e op en in g of th e pl an t in 19 77

. 94 9 F.2 d at 25 1, 25 3. In 19 81

, th e

em pl oyer de ci de d no t to gi ve m eri t rai se s. Id

. at 25 2. Thi s co ur t fo un d th at un de r th e

un il at eral ch an ge do ct rin e th e em pl oyer was req ui red to co nt in ue gi vi ng rai se s whi le

ne go ti at in g th e co nt ract be cau se of th e lo ng st an di ng pr act ic e of gi vi ng s u c h r ai se s.
Id

. at 25 3. "[T]he Feb ru ary m eri t in crea se s were a pa rt of wag es be cau se th ey ha d

be co m e a pr act ic e of th e co m pa ny

. . . ." Id

. a t 2 5 2

. Thu s, fai lu re to ba rg ai n ov er
di sc on ti nu at io n of th e rai se s co ns ti tu te d an un fai r la bo r pr act ic e in vi ol at io n of th e

NLRA. Id

. at 25 3. Co nv ers el y , in Ph el ps Dod ge Mi ni ng Co

. v. NLRB, 22 F.3 d 14 93
(1 0t h Ci r. 19 94 ), th e co ur t he ld th at ei gh t bo nu se s pa id to va rio us em pl oyees be twee n

19 85 an d 19 89 di d no t es ta bl is h a st at us qu o of bo nu se s. Id

. at 14 97

. Bo nu se s or pa y
rai se s "ar e co ns id ered 'wag es ' or 'ot he r te rm s an d co nd it io ns of em pl oym en t' 'if th ey

are of su ch a fix ed na tu re an d ha ve be en pa id ov er a su ffi ci en t le ng th of ti m e to ha ve
b eco m e a reas on ab le ex pe ct at io n of th e em pl oyees an d, th eref

or e, pa rt o f t h e i r

an ti ci pa te d rem

un erat io n.'" Id

. at 14 96 (q uo ti ng NLRB v. Nell o Pi st or es i & So n, In c.,

50 0 F.2 d 39 9, 40 0 (9 th Ci r. 19 74 )). The Bo ard ex am in ed th e "re gu la rit y of th e

pr act ic e an d th e way in whi ch th e em pl oyer

. . . tre at ed it ." Id

. (q uo ti ng Guy Gan ne tt

Pu bl 'g Co

., 2 9 5 N

. L. R

. B. 37 6, 37 8 (1 98 9) ). Eve n wit h m ul ti pl e bo nu se s pa id on a

se m i-c on si st en t ba si s ov er se ve ral y ears , it was no t en ou gh to es ta bl is h a ne w st at us

qu o, an d th us , f

ai lu re to ne go ti a t e di sc on ti nu at io n of th e bo nu se s was no t an un fai r

la bo r pr act ic e. Id . at 1 49 8.

Here, th e Bo ard 's fin di ng of a st at us q u o o f an nu al rai se s was ba se d on a
si ng ul ar pa y rai se de li ne at ed in a CBA th at co nt ai ne d an ex pl ic it te rm li m it

. Alt ho ug h

co ur ts ha ve st ru gg le d wi t h de ci di ng ex act ly h ow lo ng is lo ng en ou gh to es ta bl is h a

ne w st at us qu o, a on e-t im e pa y in crea se is c l e a r l y i ns uf fic ie nt

. The on e-year-lo ng

CBA did no t es ta bl is h "a pa st hi st or y " of ann ua l 3% rai se s. Lit to n Mic ro wav e, 94 9

-8

-F.2 d at 25 2. Thu s, th e Hos pi ta l "m ai nt ai n[ ed ] th e ge ne ral ou tl in e of th e pr og ram " by

pr es erv in g em

pl oyees' sa la rie s th ro ug h neg ot ia ti on as th ey were at th e ex pi rat io n of

th e CBA. Id . at 2 53

.

II I. CONCLUSI ON

Bec au se we ho ld th at th e CBA di d no t es ta bl is h a st at us qu o of

, an d th us a

st at ut or y rig ht to

, an nu al 3% rais es , we ne ed no t add res s whet he r th e Uni on waiv ed

it s al le ge d st at ut or y rig ht to po st -ex pi rat io n rai se s. And

, be cau se th e Hos pi ta l di d no t

vi ol at e 29 U.S.C. § 15 8( a)(5 ) b y di sc on ti nu in g an nu al pa y rai se s, th e Hos pi ta l al so
di d no t vi ol at e 29 U.S.C. § 15 8( a)(1 ) by in fo rm in g em pl oyees th at it wou ld no lo ng er gi ve an nu al pa y rai se s aft er th e ex p i r a t io n of th e CBA. W e gr an t th e Hos pi ta l's 2

pe ti ti o n f or rev ie w an d se t as id e th e po rti on of th e Bo ard 's or de r reg ard in g th e

Hos pi ta l's di sc on t i nu an ce of an nu al pa y rai se s. The un co nt es te d po rti on s of th e

Bo ard 's o rd er ar e aff

irmed.

MURP HY, Circ ui t J ud ge , di ss en ti ng

.

Bec au se th e m ajor it y ha s no t ap pl ie d th e go ve rn in g la w to th is cas e, I di ss en t.

Und er th e NLRA em

pl oyers are pr oh ib it ed f

r o m r e fu si ng "t o ba rg ai n co ll ect iv el y

The di ss en t m is co ns tru es th e co ur t's a n al y si s, su gg es ti ng th at we "co nf us e[] 2

th e un io n's pr im a faci e cas e wit h th e Hos pi ta l's affi rm at iv e de f e n s e of waiv er." As
th e di ss en t co rrec tl y st at es , we sh ou ld h a v e , an d we di d, fir st "d et erm in e[] th e

su ffi ci en cy of th e un io n's pr im a faci e cas e," ho ld in g th at th e on e-year-lo ng CBA
fai le d to es ta bl is h a st at us qu o o f an nu al 3% ra is es

. Si nc e, as no te d in Hin so n, 42 8
F.2 d at 13 9, th e Uni on 's ap pl ic ab le st at us q u o i s measu red by "t he te rm s of th e

ex pi red co nt ract ," th e p l a i n l a ng ua ge of th e CBA es ta bl is he d a ne w "s ta tu s qu o"

sa la ry , no t a st at us qu o of an nu al 3% rai se s. Thu s, gi ve n th e ho ld in g th at th e Uni on ha d no rig ht

, co nt ract ua l or st at ut or y , to an nu al 3% rai se s, it was no t ne ces sa ry fo r th e

co ur t to reac h th e Hos pi ta l's de fen se th at th e Uni on waiv ed an y rig ht em erg in g fro m th e CBA.

-9

-wit h" th e em pl oyees' rep res en ta ti ve s, 29 U.S.C. § 15 8( a)(5 ), an d m us t m ai nt ai n th e

" s t a t u s q u o" aft er a CBA ex pi res un ti l ei th er a ne w ag reem en t or an im pa ss e i s

reac he d. NLRB v

. Katz

, 36 9 U.S. 73 6, 74 6– 47 (1 96 2)

. In or de r to sh ow th at an

em pl oyer ha s vi ol at ed th e NLRA by a un il at eral ch an ge in th e st a t u s q u o, a un io n

must pr ov e th at th e em

pl oyer ch an ge d a te rm or co nd it io n of em pl oym en t th a t i s a

m an da to ry su bjec t of ba rg ai ni ng un de r t he CBA. See Am

. Oil Co

. v. NLRB, 60 2

F.2 d 18 4, 18 8 (8t h Cir. 19 79 ); Hin so n v. NLRB, 42 8 F.2d 13 3, 13 9 (8 th Ci r. 19 70 ).

An em pl oyer m ay ne ve rth el es s un il at eral ly ch an ge su ch a te rm if a un io n ha s waiv ed

it s st at ut or y rig ht to ba rg ai n ab ou t th at pr ov is io n. Id

. at 13 3. W ai ve r is an affi rm at iv e
de fen se an em

pl oyer m us t pr ov e by "cl ear an d un m is ta ka bl e" ev id en ce. Po rta -Kin g

Bl dg

. Sy s., Div

. of Ja y Hen ge s Ent ers ., In c. v. NLRB, 14 F.3 d 1 2 5 8

, 12 62 –6 3 (8 th

Ci r. 19 94 ).

The m ajor it y 's an al y si s co nf us es th e un io n's pr im a faci e cas e wit h th e ho sp it al 's

affi rm at i ve de fen se of waiv er. In it s op in io n th e m ajor it y co nc lu de s th at th e un io n

fai le d to pr ov e th at th e ho sp it al un il at eral ly ch a n g ed th e st at us qu o si nc e th e nu rs e

pa y rai se pr ov is io n was li m it ed to th e "d ur at io n of " th e CBA. A un io n's pr im a faci e

cas e i s h o w e v e r to be an al y zed se pa rat el y fro m an em pl oyer's waiv er de fen se

. See

Po rta -Kin g, 14 F.3 d at 12 62 –6 3; se e al so Loc al Jo in t Exe c. Bd

. of Las Veg as v. NLRB, 54 0 F.3 d 10 72

, 10 78 –8 0 (9 th Ci r. 20 08 ); Hon ey well In t'l

, In c. v. NLRB, 25 3

F.3 d 12 5, 12 8– 34 (D.C. Ci r. 20 01 ); NLRB v. Gen

. Tire & Ru bb er Co

., 79 5 F.2 d 58 5,

58 8 (6 th Cir . 19 86 ).

Here, th e un io n pr ov ed it s pr im a faci e cas e si nc e th e nu rs e pa y rai se pr ov is io n

was a m an da to ry su bjec t of ba rg ai ni ng , 2 9 U.S.C. § 15 8( d) , a nd an ex p r e ss te rm of

th e CBA, se e Hin so n, 42 8 F.2 d at 13 9. The pa y rai se pr ov is io n de fin ed th e st at us qu o
de sp it e th e cl au se s lim it in g it to th e "d ur at io n o f" t he CBA beca us e th e ag reem en t's

e x p i r a ti on was ex te nd ed by la w un ti l th e pa rti es reac he d an im pa ss e or a ne w

ag reem en t. See Lo c a l J o in t Exe c. Bd

., 54 0 F.3 d at 10 78 –8 0; Hon ey well In t'l

, 25 3

F.3 d at 12 8– 34 ; Gen

. Tire & Ru bb er Co., 79 5 F.2d at 58 8. Si nc e th e ho sp it al fai le d

-1 0-to pa y nu rs e rai se s aft er th e ex pi rat io n of th e CBA, bu t be fo re a n i mpas se or a ne w

ag ree men t

, th e un io n pr ov ed it s pr im a faci e cas e. The du rat io n cl au se s in th e pa y
rai se pro vi si on are o nl y

rel ev an t t o t he ho sp it al 's a ffi rm at iv e d efen se of wa iv er.

A un io n rel in qu is h e s it s rig ht to ba rg ai n fo r a te rm of em pl oym en t if it ha s

ag reed to "wai ve it s st at ut or y pr ot ect io n ag ai ns t un il at era l c h a n ge s in m an da to ry

su bjec ts of ba rg ai ni ng ." Hon ey well In t'l

, In c., 25 3 F.3 d at 13 3; se e al so Am

. Oil Co

., 60 2 F.2 d at 18 8. In or de r fo r a pa rty to w a i v e i t s st at ut or y rig ht to ba rg ai n ov er a

CBA p ro vi si on , th e CBA m us t ex pl ic it ly st at e th at th e pr ov is io n te rmi na te s at th e

ex pi rat io n of th e CBA. See, e.g ., Loc al Jo in t Exe c. Bd

., 54 0 F.3 d at 10 80 ; Hon ey well

In t'l

, 25 3 F.3 d at 13 3– 34

. It is no t en ou gh fo r th e pr ov is io n to st at e th at it la st s fo r th e

du ra ti on of th e ag reem en t. See

, e

. g

. , Lo cal Jo in t Exe c. Bd

., 54 0 F.3 d at 10 80 ;

Hon ey well In t'l

, 25 3 F.3 d at 13 3– 34

. Tha t is be cau se th e un il at eral ch an ge do ct rin e "p res up po se s th e en d of a co ll ect iv e b a r g a in in g ag reem en t an d gu aran te es th e

co nt in ua t i o n of ex is ti ng be ne fit s as a mat te r of la w ." Hon ey well In t'l

, 25 3 F.3 d at

12 8. Thu s, if a CBA pro vi si on co nt ai ns a du rat io n c la us e th at m erel y de fin es whe n

th e u ni on 's " co nt ra ct ua l rig ht [s ]" en d bu t "i s si le nt on [wh en ] th e Uni on 's st at ut or y rig ht s" en d, i t " in no way ev in ces a cl ear a nd un m is ta ka bl e wai ve r." Id . at 1 34

.

H e r e , th e un io n di d no t waiv e it s st at ut or y rig ht to pa y in crea se s aft er th e

ex pi rat io n o f th e CBA. The nu rs e rai se pro vi si on at i ss ue st at es :

20 .3 Ba se Rat e In crea se s Duri ng Term of Agr eem en t. Fo r th e d ur at io n of th is Agr eem en t, th e Hos pi ta l wil l ad jus t th e pa y of Nur se s on hi s/ he r

an ni ve rs ary da te

. Su ch pa y in crea se s fo r Nur se s no t on pr ob at io n, du rin g th e te rm of t hi s Ag reem en t wi ll be th ree ( 3) pe rcen t. . . .

(em ph as is ad de d) . Alth ou gh th e p ro vi si on st at es th at th e p ay in crea se s wi ll las t fo r

th e du rat io n o f th e co nt ract

, it do es no t pr ov id e th at th e in crea se s wil l "t erm in at e"

whe n th e ag reem en t ex pi res

. Bec au se th e du rat io n cl au se s are "s il en t on th e Uni on 's

-1 1-s t a t u t o r

y r i gh ts un de r Katz an d Lit to n," th ey "i n no way ev in ce[] a cl ear an d

un m is ta ka bl e wai ve r by the un io n." See Ho ne y well Int 'l, In c., 25 3 F .3d at 4 30

.

The du rat io n c la us es at i ss ue in th is cas e are s im il ar t o t he on e in Loca l J oi nt

Exe cu ti ve Bo ard of La s Veg as , wh ere a du es ch eck of f pr ov is io n in th e CBA st at ed

th at it "s ha ll be co nt in ue d in effe ct fo r th e te rm of [th e] Agr ee men t

. " 54 0 F.3 d at

10 75

. The Nin th Ci rcu it ex pl ai ne d th at th is du rat io n cl au se di d no t waiv e th e un io n's

st at ut or y rig ht to ba rg ai n o ve r th e p ro vi si on be cau se :

The Bo ard 's pr eced en t ha s pl ai nl y an d co ns is te nt ly di st in gu is he d
be twee n la ng ua ge th at st at es a pa rti cu la r pr ov is io n ap pl ie s "d ur in g" th e

co nt ract te rm , an d la ng ua ge th at st at es th e rel ev an t be ne fit wil l
"t erm in at e" at th e en d of th e co nt ract te r m. O nl y whe re th e pr ov is io n
st at es th at th e be ne fit wil l "t erm in at e" ha s th e Bo ard fou nd a cl ear a nd

un m is ta ka bl e wai ve r.

Id . at 1 08 0.

The de ci s i on in Loc al Jo in t Exe cu ti ve Bo ard of Las Veg as is su pp or te d by

se ve ral ot he r ci rcu it co ur t an d Bo ard de ci si on s. See, e.g ., Hon ey well In t'l

, In c., 25 3

F.3 d at 13 0, 13 3– 34 (co nc lu di ng th at th e fo ll owi ng du rat io n cl au se di d no t waiv e th e

un io n's rig ht s: "Th e Effec ts Barg ai ni ng Agr eem en t sh al l be effe ct iv e as of May 3 0,

19 94

, an d sh al l rem ai n in effe ct un ti l m id ni gh t on Ju n e 6, 19 97

, bu t no t th erea fte r

un le ss ren ewed or ex te nd ed in writ in g by th e pa rti es "); Gen

. Tire & Ru bb er Co

., 79 5

F.2 d at 58 7– 88 (co nc lu di ng th at th e fo ll owi ng du rat io n cl au se di d no t waiv e th e

un io n's rig ht s: "t he be ne fit s d es cri be d he rei n sh al l be pr ov id ed fo r ni ne ty (9 0) da y s

fo ll o w i ng te rm in at io n" ); Sch m id t-Ti ag o Co ns t. Co

., 28 6 N.L.R.B. 34 2, 34 3 n.7
(1 98 7) (co nc lu di ng th at th e CBA's req ui rem e n t th at em pl oyer co nt rib ut io ns to th e

em pl oyees' pen si on co ul d on ly be m ad e "i n a cco rd an ce wi th a Pen si on Agr eem en t"

di d no t waiv e th e un io n's rig ht s) ; KBMS

, In c., 27 8 N.L.R.B. 82 6, 8 4 9 (1 98 6)
(co nc lu di ng th at th e CBA req ui rem en t th at em pl oyer co nt rib ut io ns to em pl oyee tru st

-1 2-fu nd s "s ha ll co nt in ue to be pa id as lo ng as [th e co m pa ny] is so ob li ga te d pu rs ua nt to

sa id co ll ect iv e b arg ai ni ng ag reem en ts " d id no t wai ve th e u ni on 's ri gh ts ).

S i n c e t h e ho sp it al vi ol at ed th e NLRA b y no t pa y in g nu rs e rai se s whi le C B A

ne go ti at io ns were on go in g an d th e un io n di d no t waiv e it s rig ht to ba rg ai n ov er th is

pr ov is io n, t he ho sp it al 's p et it io n fo r rev ie w sh ou ld be de ni ed

.

__ __ __ __ __ __ __ __ __ __ __ __ __ __ __

-1 3-