Opinion ID: 715784
Heading Depth: 2
Heading Rank: 5

Heading: Local 131's Recognition Agreement and Collective Bargaining Agreement

Text: 20 The next day, April 11, the New York Mediation Board commissioner determined that Local 131 had obtained twenty valid authorization cards in January 1991. Katz's immediately signed a recognition agreement with Local 131, effectively withdrawing recognition from Local 100. Katz's and Local 131 signed a collective bargaining agreement that was ratified by employees on April 18. This new agreement did not include a provision for a pension plan, but it did require Katz's to make payments to an annuity fund on behalf of its employees. The contract also contained a union security clause that required the deduction of union dues from the employees' paychecks. On April 18, Local 131 requested that the NLRB withdraw its election petition, and by a letter from the Board's Regional Director dated April 22, the Board approved the withdrawal.F. Proceedings before the ALJ 21 In May 1992, more than a year after Katz's had withdrawn recognition from Local 100 and signed an agreement with Local 131, the NLRB's General Counsel issued a consolidated complaint alleging that both Katz's and Local 131 had engaged in various unfair labor practices. Hearings were held before Administrative Law Judge Steven B. Fish in November 1993, and on September 2, 1994, the ALJ issued his factual findings and recommended order. 22 The ALJ found that, contrary to Lynch's assertions, Katz's and Local 100 had not agreed on a new contract during their negotiations in February and March 1991. Based on Lynch's and the Katz's employees' testimony, the ALJ determined that Lynch had informed Katz's employees that a contract had been reached and that the purported contract did not contain a salary increase. He found that Lynch had told Katz's employees that the Local 100 contract would give them better benefits and that they might lose their pension benefits if they went with Local 131. The ALJ did not credit the testimony by Katz's employees that Lynch threatened they would lose their jobs if they refused to sign Local 100's employee petitions. 23 Based on these findings of fact, the ALJ concluded that Katz's had violated sections 8(a)(1) and (5) of the NLRA by withdrawing recognition from Local 100. He noted that the authorization cards signed by Katz's employees in support of Local 131 in January 1991 could not be used to establish Local 131's majority support in light of Local 100's March 30, 1991, and April 9, 1991, employee petitions (signed by 19 of 34 Katz's employees and at least 18 of the same Katz's employees who signed Local 131's cards). Furthermore, the ALJ noted that Katz's could not have had a good faith doubt of Local 100's majority status, because Katz's was aware of Local 100's April 9 employee petition at the NLRB regional office conference of April 10--the day before Katz's signed the recognition agreement with Local 131. The ALJ noted that Katz's lack of good faith was further demonstrated by its immediate entry into a recognition agreement and contract with Local 131. Accordingly, the ALJ found that Katz's had withdrawn recognition from Local 100 while it was aware of Local 100's continued employee support. 24 The ALJ also concluded that Katz's violated subsections 8(a)(1), (2), and (3) of the Act and that Local 131 violated subsections 8(b)(1)(A) and (2) of the Act by executing the recognition agreement and the collective-bargaining agreement, which contained a union security clause. This conclusion was based on two independent theories: (1) the agreements were unlawful because Local 131 did not have majority support among Katz's employees, and (2) Katz's and Local 131 signed a recognition agreement and contract while a question concerning representation existed--that is, while Local 131 had an election petition on file with the NLRB. In so finding, the ALJ rejected Katz's and Local 131's attempts to discredit Local 100's employee petitions on the ground that Local 100 had coerced or deceived Katz's employees by threatening them with a loss of their pensions or other benefits if they did not sign. 25 As a remedy for the violations found, the ALJ recommended that Katz's and Local 131 be ordered, inter alia, to cease and desist from the unfair labor practices found. Furthermore, he recommended that Katz's be ordered to withdraw recognition from Local 131 and to recognize and bargain with Local 100. As a remedy for its unlawful withdrawal of recognition from Local 100, the ALJ recommended that Katz's be required to retroactively restore, upon Local 100's request, the provisions set forth in Local 100's most recent contract with Katz's, including the provisions requiring payments to Local 100's welfare and pension funds, in order to place Katz's employees in the same position that they would have been in, had [Katz's] not unlawfully withdrawn recognition [from Local 100]. As an additional remedy for Katz's and Local 131's improper entry into a recognition agreement and contract, the ALJ recommended that Katz's and Local 131 be ordered jointly and severally to reimburse Katz's employees for initiation fees, dues, or other payments made to Local 131 during that period. 4 G. The NLRB's Decision 26 Katz's and Local 131 filed exceptions to the ALJ's rulings, findings, and conclusions with the NLRB on October 21, 1994. After considering the issues raised, a three-member panel of the NLRB issued a Decision and Order on February 16, 1995, adopting the ALJ's recommended order in full. 5 In so doing, the Board considered and rejected Katz's and Local 131's exceptions to the ALJ's credibility findings--specifically, his reliance on Local 100's March 30 and April 9 employee petitions as indicators of support for Local 100 and his failure to find that those petitions were invalid because of Local 100's alleged coercion and deception. 27 Katz's and Local 131 both challenge the NLRB's Decision and Order, arguing (1) the violations found are not supported by substantial evidence and accordingly cannot be enforced; and (2) even if the Board properly found that Katz's and Local 131's conduct violated the NLRA, the orders directing reimbursement of employees for fees and dues paid to Local 131 and retroactive payments into Local 100's welfare and pension funds are improper. 28 We grant the Board's petition for enforcement in its entirety, and remand for compliance proceedings in accordance with this opinion.