Opinion ID: 739940
Heading Depth: 2
Heading Rank: 3

Heading: New Breed and the NLRB

Text: 10 In April 1994, the Unions filed unfair labor practice charges against New Breed with the Board. In May, the NLRB Regional Director for Region 21 (Regional Director) issued unfair labor practice complaints, alleging that New Breed was a successor employer with respect to the former Maersk employees represented by the Unions. The complaints further alleged that New Breed violated sections 8(a)(3) and (1) of the Act by refusing to hire these employees. Finally, the complaints alleged that New Breed violated sections 8(a)(5) and (1) of the Act by failing to recognize and bargain with the Unions as representatives of New Breed's unit employees, in establishing its employees' terms and conditions of employment without bargaining with the Unions, and by failing to bargain with the Unions regarding changes made to terms and conditions of employment that existed with regard to Maersk's former employees.
11 In August 1994 the Regional Director petitioned the federal district court for a preliminary injunction pursuant to section 10(j) of the Act, 29 U.S.C. § 160(j), pending the resolution of the unfair labor practice complaints against New Breed filed by General Counsel with the NLRB. 12 The district court granted a temporary injunction and ordered New Breed to reinstate Maersk employees, reinstate prior working conditions, and bargain with the Unions. Aguayo v. New Breed Leasing Corp., No. 94-5196 AWT (CTx) (C.D.Cal. Aug. 22, 1994). New Breed appealed. This court affirmed the grant of the temporary injunction. Aguayo v. New Breed Leasing Corp., 46 F.3d 1138, 1138 (9th Cir.1995) (mem.) We found, however, that the district court had erred in ordering New Breed to restore former wages and conditions of employment for the Maersk employees, because at the injunctive phase of the proceedings this remedy was not necessary to protect the integrity of the collective bargaining process [or] to preserve the Board's remedial power. Id. (citing Miller v. California Pac. Med. Ctr., 19 F.3d 449, 460 (9th Cir.1994) (en banc)). Accordingly, we remanded to the district court to reconsider the appropriate scope of that injunction. New Breed Leasing Corp., 46 F.3d at 1138. 13 We explained, however, that in the event the Board finds that New Breed committed an unfair labor practice by setting initial wages below the union rate, [the Board could] fashion a back pay award to remedy that harm. Id. 14
15 the Administrative Law Judge and the NLRB 16 The Board's General Counsel brought the unfair labor practice complaints against New Breed before an administrative law judge (ALJ). In an order dated February 14, 1995, the ALJ found that New Breed had violated sections 8(a)(1), 8(a)(3), and 8(a)(5) of the Act by failing to hire Maersk employees in order to avoid becoming a successor employer, and by refusing to recognize and bargain with the Unions. The ALJ recommended that the NLRB order New Breed to reinstate the Maersk employees to their former positions, recognize and bargain with the Unions, and restore the status quo ante with respect to wages and terms and conditions of employment. In addition, the ALJ recommended that New Breed be required to make the employees whole by providing back pay with interest. 17 In an order issued on June 30, 1995, the Board affirmed the ALJ's rulings, findings, and conclusions, and adopted the ALJ's recommended orders. New Breed Leasing Corp., 317 N.L.R.B. 1011, 1995 WL 407188 (1995). The NLRB left the determination of the number of Maersk employees entitled to reinstatement and back pay to the compliance stage of its proceedings. Id. at n. 4. 18 New Breed now petitions for review of the Board's June 30 order. The Board cross-petitions for enforcement of its order.