Opinion ID: 156911
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: These matters originally came before the court on the cross-petitions of Aramark Corporation (Aramark) and the National Labor Relations Board (the Board). The Board sought enforcement of two orders finding that Aramark had committed unfair labor practices when it had refused to bargain with the Florida Public Employees Council 79, AFSCME (Council 79) and the International Union of Operating Engineers, Local 465, AFL-CIO (Local 465) (collectively, the Unions). The Unions intervened to support the Board’s petition. Aramark, the -2- employer, argued that the Board was without jurisdiction in these matters because: (1) the operations at issue are exempt from Board jurisdiction under the “political subdivision exemption” 1 to the National Labor Relations Act (the Act); and (2) Aramark’s government contracts do not leave it sufficient control over its labor relations to enable it to bargain meaningfully with a labor union. A panel of this court denied enforcement of the Board’s orders. See Aramark Corp. v. NLRB, 156 F.3d 1087, 1098 (10 th Cir. 1998). The panel began by rejecting Aramark’s contention that it is an exempt political subdivision. See id. at 1092-95. Nevertheless, concluding it was bound by the Memorial Hospital line 2 of circuit precedent, the panel held that the Board lacked jurisdiction over an employer operating under a government contract unless that employer retained sufficient control over the employment relationship to engage in meaningful collective bargaining (the so-called “governmental control test”). See id. at 109598. Because the Board had not applied the governmental control test to the operations at issue here, the panel denied enforcement of the Board’s orders and remanded the case to the Board for further proceedings. See id. at 1098. 1 Section 2(2) of the Act exempts from the Act’s coverage “any State or political subdivision thereof.” 29 U.S.C. § 152(2). 2 See Board of Trustees of Mem’l Hosp. v. NLRB, 624 F.2d 177, 185 (10 th Cir. 1980); R.W. Harmon & Sons, Inc. v. NLRB, 664 F.2d 248, 251 (10 th Cir. 1981); Jefferson County Community Ctr. for Developmental Disabilities, Inc. v. NLRB, 732 F.2d 122, 126 (10 th Cir. 1984); Denver Post of Nat’l Soc’y of Volunteers of Am. v. NLRB, 732 F.2d 769, 774 (10 th Cir. 1984). -3- Both the Board and the Unions filed petitions for rehearing, requesting that the en banc court repudiate the Memorial Hospital line of cases. The en banc court ordered the cases reheard. Upon review of the Act and applicable authorities, the en banc court holds that the Board need not apply the governmental control test before exercising jurisdiction under § 2(2) of the Act. Accordingly, we vacate sections II.B. and III. of the panel opinion and enforce the Board’s orders. 3