Opinion ID: 185992
Heading Depth: 2
Heading Rank: 3

Heading: Good-Faith Reasonable Doubt

Text: 22 Community raised as an affirmative defense that its refusal to bargain with the Union was based upon its good-faith reasonable doubt about the Union's majority status. A good-faith doubt is a genuine, reasonable uncertainty about whether [the Union] enjoy[s] the continuing support of a majority of unit employees. Allentown Mack Sales & Serv., Inc. v. NLRB, 522 U.S. 359, 367, 118 S.Ct. 818, 823, 139 L.Ed.2d 797 (1998); see Order at 21. The employer has the burden of proof on this issue, Scepter, Inc. v. NLRB, 280 F.3d 1053, 1056 (D.C. Cir.2002), and it must prove not only that it had such a doubt but also that it refused to recognize the union upon the basis of that doubt. Miller Waste Mills, Inc., 334 N.L.R.B. 466, 2001 WL 803445, at , 2001 NLRB LEXIS 485, at  (2001). 23 The ALJ, relying heavily upon Community's failure to respond to the General Counsel's subpoena calling for documents relating to its claim of a good-faith reasonable doubt, Order at 23, 18, found that (1) Community did not act in good faith; (2) any doubt it had was not well-founded and was unreasonable; and in any event (3) Community did not rely upon such a doubt in refusing to recognize the Union. Id. at 21-24. Community claims each of these findings was erroneous. 24 We think the Board reasonably concluded Community failed to demonstrate that, when it refused to bargain with the Union, it relied upon such doubt as it may have had about the Union's majority status. That is reason enough to hold the employer committed an unfair labor practice; we need not concern ourselves with Community's first two claims of error. 25 Community disputes the ALJ's finding that the record fails to demonstrate who made the decision [not to recognize and bargain with the Union] and why it was made. Order at 23. According to the employer, the undisputed record evidence demonstrates that [its] Board of Directors. . . decided not to recognize and bargain with CNA after receiving input from [a committee formed to study the issue] and outside counsel. Community points to a host of evidence it claims demonstrates that its decision was based upon its doubts about the Union's majority status. Although a great deal of that evidence arguably supports its contention that a good-faith doubt would have been reasonable in the circumstances, none of it shows that its decision in fact was based upon such a doubt. For example, the testimony of nurses working at UMC that they and many of their co-workers were dissatisfied with the Union, while relevant to whether those nurses may have doubted the Union's majority status, is not relevant to the inquiry whether the employer made its decision based upon any such doubt. 26 Although Community contends that the decision not to recognize the Union was made by its board of directors, there is no direct evidence in the record indicating when, how, or even whether the directors made such a decision, or indeed ever considered the matter. In the absence of any such evidence, which is peculiarly within Community's control — and which the General Counsel had subpoenaed — the ALJ was justified in inferring that if produced, the evidence would have been unfavorable to the employer. Cf. United States v. Young, 463 F.2d 934, 939 (D.C.Cir.1972) (if a party has it peculiarly within his power to produce witnesses whose testimony would elucidate the transaction, the fact that he does not do it permits an inference that the testimony, if produced, would have been unfavorable). Community argues that inference was inappropriate because the General Counsel neither responded to its attempts to negotiate a mutually agreeable redaction of documents responsive to the subpoena nor sought enforcement of the subpoena. The ALJ would have been justified in drawing the adverse inference, however, even if no subpoena had been issued. Moreover, the result would have been the same even if he had not drawn the inference. Community had the burden of showing it relied upon a good-faith reasonable doubt; absent evidence of its reliance, the ALJ had no need of an adverse inference to find the employer did not meet its burden of proof. 27 Community objects that by demanding information about its decision the Board was seeking to pry into the internal deliberations of its directors and to require it to disclose assertedly privileged documents. We find this argument singularly unpersuasive. Initially we note that a party holding privileged information that could establish a claim or defense as to which it has the burden of proof always faces the difficult choice whether to produce that information. Moreover, Community's problem in this case is entirely of its own making; the only reason the proceedings of its board of directors are at issue is that it never responded to the CNA's request to bargain by explaining that it doubted the Union's majority status. 28 Instead of providing direct evidence of a decision by its board of directors, Community points to testimony by members of an ad hoc committee it formed to determine whether to recognize the Union, and claims the full board decided not to recognize the Union upon the recommendation of this committee. In addition to being circumstantial, the testimony — primarily that of Michael McGinnis, Community's Chief Financial Officer, and of Eileen McCloskey, its human resources manager — is not particularly helpful to the employer. Although Ms. McCloskey did state her understanding that the committee's recommendation was based in part upon the Union's alleged minority status, Mr. McGinnis clearly suggested that any fear the CNA would be a minority union was based upon the UMC nurses being a minority of the full complement of nurses (whole work force) at Community's three hospitals. As we have seen, however, the Unit 7 nurses at UMC were by themselves an appropriate bargaining unit. The possible minority status of the Union within a larger unit has no bearing upon whether Community was required to recognize and bargain with the Union; and a decision of the board of directors based upon the recommendation of the committee would be founded not upon a good-faith reasonable doubt but upon a misconception.  Under these circumstances, substantial evidence supports the Board's finding that Community failed to carry its burden.