NLRB v. Teamsters \"General\"Local Union , 723 F.3d 778 ( 2013 )


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  •                             In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 12-1586
    N ATIONAL L ABOR R ELATIONS B OARD ,
    Petitioner,
    v.
    T EAMSTERS “G ENERAL” L OCAL U NION N O . 200,
    an affiliate of the International
    Brotherhood of Teamsters,
    Respondent.
    Petition for Review of an Order of the
    National Labor Relations Board.
    No. 30-CB-5303.
    A RGUED S EPTEMBER 5, 2012—D ECIDED JULY 23, 2013
    Before B AUER, M ANION, and T INDER, Circuit Judges.
    T INDER, Circuit Judge. After losing a contentious union
    election, Timothy Buban went to work as a shuttle bus
    driver at a construction site. A year later, Buban faced
    more bad news: His employer laid him off from this
    position. When Buban approached the current union
    leadership—his former political rivals—for help in re-
    turning to work, his troubles continued. Specifically, the
    2                                             No. 12-1586
    National Labor Relations Board determined that the
    union, as the exclusive source of referrals for their mem-
    bers to the construction company, did not consistently
    use objective criteria in determining which job-seekers
    to refer to the company; discriminatorily failed to refer
    Buban for employment; and failed to provide him
    with specifically requested information concerning the
    union’s job-referral procedures. All three determinations
    constitute violations of the National Labor Relations Act.
    The union appeals the Board’s decision. We affirm.
    I.
    Buban is a member of Teamsters General Local Union
    No. 200 in Wisconsin. He participates in union politics as
    a member of the dissident group “Teamsters for a Demo-
    cratic Union,” and served as secretary-treasurer of Local
    200 from 2004 to 2006. Buban lost his bid for reelection
    in 2006, following an acrimonious campaign against the
    rival “Teamsters 4 Teamsters” slate of candidates. He
    resigned his position in October 2006, shortly after his
    electoral defeat but before his term was to expire.
    At the time of his resignation—but presumably before
    he had completely relinquished power—Buban, in his
    capacity as a union official, referred himself for work at
    the Bechtel Construction Company’s Elm Road Power
    Generating Station Project in Oak Creek, Wisconsin.
    Bechtel hired him as a shuttle bus driver, transporting
    workers to and from the construction site. Bechtel laid
    Buban off—along with all other drivers who lacked a
    certain license—in September 2007.
    No. 12-1586                                             3
    That month, Buban filed a grievance with Local 200
    regarding the layoff. Union business agent Mike Gurich
    was assigned to handle Buban’s grievance. Gurich and
    Buban had been rivals during the previous union local
    election campaign—Gurich was affiliated with the “Team-
    sters 4 Teamsters” group, and was appointed to his
    position as union business agent following that group’s
    electoral victory. Buban and Gurich clashed throughout
    the grievance process, with Buban alleging that the
    union was responsible for the loss of his job and had
    improperly handled his grievance. In an October 2007
    letter to Burich detailing the steps that the union had
    taken to resolve Buban’s grievance, Gurich called Buban’s
    allegations “somewhat hysterical.”
    Buban claims that, from at least as early as January
    until April 2008, he repeatedly told Gurich that he
    wished to return to work as a bus driver, truck driver, or
    warehouse worker at the Elm Road site. Although Local
    200 disputes the particular jobs for which Buban
    expressed an interest, the union does not deny that
    Buban informed Gurich of his interest in returning to
    work at the Elm Road site. Regardless, Buban’s conversa-
    tions with Gurich were for naught; he remained unem-
    ployed throughout this period.
    In April 2008, Carol Simon, a fellow union member and
    political ally of Buban’s, informed Buban that Gurich had
    told her that Buban “hasn’t put his name on the out-of-
    work list.” The existence of such a list was news to
    Buban. In all his conversations with Gurich regarding his
    desire to return to work, Gurich had never mentioned it.
    4                                              No. 12-1586
    But once Simon alerted him to the existence of the list,
    Buban called Gurich to expressly request to be placed on
    it. Gurich complied with his request, placing Buban’s
    name and telephone number on the list. Gurich also
    placed a question mark next to Buban’s name—a designa-
    tion that appears alongside only nine other names on
    the list. According to Gurich, this was the first time that
    Buban had asked to be placed on the list since he was
    laid off in September 2007.
    After Buban had been placed on the referral list, Gurich
    referred several other union members for positions at the
    Elm Road project. The parties in the case disagree on
    whether these individuals were referred ahead of
    Buban. According to Local 200, Gurich referred these
    individuals to Bechtel based on objective criteria; the
    Board, however, sees these referrals as arbitrary at best,
    and favoritism based on loyalty to union leaders at worst.
    By August, a still-unemployed Buban visited Local 200’s
    office to request information about the workings of the
    referral system. Buban met with another union business
    representative, who said that he was unable to help
    Buban and that the relevant union officials were not
    available. The business representative agreed to take a
    message though—but no one from the union office ever
    followed-up with Buban regarding his visit.
    By this point, Buban had filed charges against the
    union with the National Labor Relations Board. In May 15,
    2009, the Regional Director for Region 30 of the Board
    issued a complaint against the union, alleging violations
    of Section 8(b) of the National Labor Relations Act
    No. 12-1586                                              5
    (“NLRA”), 
    29 U.S.C. § 158
    (b). The next year, an administra-
    tive law judge (“ALJ”) issued a decision finding that
    the union: violated § 8(b)(1)(A) of the NLRA by operating
    an exclusive hiring-hall without consistently applying
    objective criteria; violated §§ 8(b)(1)(A) & 8(b)(2) by
    discriminatorily failing and refusing to refer Buban for
    employment at the Elm Road site; and § 8(b)(1)(A) by
    failing and refusing to provide him with pertinent infor-
    mation, including the union’s job referral list and the
    procedures that the union used to select applicants from
    this list for referrals. The Board affirmed these specific
    findings, and ordered the union to (i) compensate
    Buban for his lost earnings stemming from the union’s
    discriminatory treatment of him; (ii) refer Buban to
    Bechtel for employment; (iii) operate its referral system
    using objective, consistently applied criteria; and (iv)
    provide Buban with information regarding these criteria.
    The union appeals.
    To understand the issues in this case, some discussion
    of the referral list is necessary. This document has its
    origins in the Area Agreement between Local 200 and
    Bechtel governing labor relations at the Elm Road site.
    This agreement provides for a procedure by which the
    union participates in Bechtel’s hiring decisions. After
    Bechtel places a request for additional workers with
    Local 200, the union has the exclusive right to refer union
    members for employment for a 48-hour period. Although
    the union enjoys an exclusive right of referral during
    this 48-hour window, Bechtel is not required to hire
    those job-seekers that the union refers. If Local 200
    6                                               No. 12-1586
    does not make the requested number of referrals during
    the 48-hour period, Bechtel may look elsewhere for work-
    ers. In practice, however, Local 200 responded to every
    request for workers that Bechtel made within 48 hours,
    and Bechtel only hired those workers that the union
    referred.
    To determine which union members to refer for em-
    ployment, Gurich maintained a document with
    the names and other descriptive information for union
    members seeking work. Each entry in the document
    contains the name and contact information for each
    union member seeking a referral. Some entries also
    include an assessment of the individual’s qualifications,
    written by Gurich. Gurich claims to have added job-
    seekers to the list in chronological order. Although the
    first portion of the list is indeed numbered, Gurich also
    placed sticky notes throughout the list with the names
    of other job-seekers; these notes were unnumbered. A
    small number of entries also include additional com-
    ments, such as “seems like [a] good guy,” “friend of
    Rick Badnik,” and “good driver.” Some sections of this
    document were organized as an ordered list, while others
    were not. (For simplicity, we refer to the entire document
    as a list because that is the term used by the parties.
    The document actually appears to be more of a loose
    conglomeration.)
    Gurich claims to have considered the following factors
    in determining which individuals to refer for positions
    at Elm Road: order in which the individual requested
    placement on the list, layoff status, seniority, experience,
    No. 12-1586                                              7
    foreman requests, and work history. Gurich did not
    apply these factors in any set formula; he acknowledges
    that his referral system was not an “exact science.” While
    there were no formal rules regarding Gurich’s methods,
    Gurich stated that his system was governed by
    unwritten rules, including a degree of discretion. These
    unwritten rules remain a mystery to us, however; in one
    particularly perplexing instance, Gurich referred a
    union member who could not recall having taken any
    steps to place his name on the list.
    The record is unclear as to how those union members
    whose names appear on the list first learned of the exis-
    tence of this document. Relatedly, no information was
    presented about the proportion of the union member-
    ship that was aware of the list’s existence. According to
    the union, members could request to be placed on the
    list either in-person at the Local 200 office or telephoni-
    cally. But since there is no evidence that Gurich or other
    union officials took steps to inform members on how to
    be placed on the list, or even to publicize its existence,
    the union failed to explain exactly how this process
    worked in practice.
    II.
    Local 200 challenges three aspects of the Board’s order.
    First, the union disputes the Board’s finding that the
    union operated an exclusive hiring-hall without objec-
    tive, consistently applied criteria to refer job-seekers.
    Second, the union argues that, even if it did operate an
    exclusive hiring-hall, substantial evidence does not exist
    8                                                No. 12-1586
    to support the Board’s determination that the union
    discriminated against Buban by failing to refer him for
    work. Third, the union claims that, even if it did operate
    an exclusive hiring-hall, substantial evidence does not
    exist to support the Board’s finding that the union vio-
    lated the NLRA by failing to provide Buban with infor-
    mation concerning the union’s job referral practices.
    In reviewing a National Labor Relations Board order,
    we review the Board’s legal determinations for a reason-
    able basis. Sears, Roebuck & Co. v. NLRB, 
    349 F.3d 493
    , 502
    (7th Cir. 2003). The Board’s legal conclusions “must be
    upheld unless they are irrational or inconsistent with the
    [NLRA].” ATC Vancom of Cal., L.P. v. NLRB, 
    370 F.3d 692
    ,
    695 (7th Cir. 2004) (citation and quotation omitted).
    We review the Board’s factual findings under a “sub-
    stantial evidence” standard. Sears, 
    349 F.3d at 502
    . Factual
    findings must be supported by “such relevant evidence
    that a reasonable mind might accept as adequate to
    support the conclusions of the Board.” L.S.F. Transp., Inc. v.
    NLRB, 
    282 F.3d 972
    , 980 (7th Cir. 2002). In making this
    determination, “[t]he presence of contradictory evidence
    is not of consequence as long as substantial evidence
    supports the Board’s decision.” 
    Id.
     The Board’s deter-
    minations of witness credibility are subject to a par-
    ticularly deferential standard; they are contravened only
    “in extraordinary circumstances.” FedEx Freight E., Inc.
    v. NLRB, 
    431 F.3d 1019
    , 1026 (7th Cir. 2005).
    Where, as here, the Board adopts an ALJ’s findings of
    fact and conclusions of law, the court will review the
    judge’s determinations under the same standard. Sears,
    
    349 F.3d at 508
    .
    No. 12-1586                                                9
    A.
    A union breaches its duty of fair representation under
    the NLRA when it acts toward its members in a manner
    that is “arbitrary, discriminatory, or in bad faith.” Vaca v.
    Sipes, 
    386 U.S. 171
    , 190 (1967). This duty applies to all
    union activity, Air Line Pilots Ass’n, Int’l. v. O’Neill, 
    499 U.S. 65
    , 67 (1991), including the operation of an exclu-
    sive hiring-hall. In this case, the union challenges the
    Board’s determination that the union breached its
    statutory duty by operating an exclusive hiring-hall
    without using consistently applied, objective criteria. There
    are two components of the Board’s assessment. First, the
    Board determined that the union operated an exclusive
    hiring-hall. Second, the Board determined that the
    union did not operate the hall using consistent, objective
    criteria. Since both components are necessary to the
    conclusion that the union challenges, we address each
    element in turn.
    We first assess whether substantial evidence supports
    the Board’s determination that the union operated an
    exclusive hiring-hall. This determination is crucial to
    addressing the second-stage question of whether
    the union violated the NLRA by operating its exclusive
    hiring-hall in an inconsistent, non-objective manner. See
    NLRB v. Int’l Bhd. of Elec. Workers, Local Union 16, 
    425 F.3d 1035
    , 1040 (7th Cir. 2005) (“A union is presumed to
    have breached its duty of fair representation if, in the
    administration of a hiring-hall agreement, it refuses to
    refer a member who is eligible under that agreement.”).
    10                                                  No. 12-1586
    To determine whether an exclusive hiring-hall exists, the
    Board examines the “totality of the circumstances.” NLRB
    v. Laborers Local 334, 
    481 F.3d 875
    , 881 (6th Cir. 2007);
    Teamsters Local Union No. 174 (Totem Beverages, Inc.), 
    226 N.L.R.B. 690
    , 690 (1976). These circumstances may
    include any contractual language between the union
    and the employer, as well as the actual hiring practices
    that these parties follow. See Laborers Local 334 (Kvaerner
    Songer, Inc.), 
    335 N.L.R.B. 597
    , 599-600 (2001).
    We begin our analysis by examining the Area Agree-
    ment between the union and Bechtel.1 On the surface, the
    language in this agreement may appear to support the
    union’s position. Specifically, the Agreement allows
    Bechtel to look to any source for employees after the
    1
    Local 200 refers us to a separate Area Agreement, between
    the Teamsters and Wisconsin Power Constructors, which
    covered the latter entity’s construction of a power plant in Port
    Washington, Wisconsin. Local 200 notes that an NLRB adjudica-
    tor in the Board’s Milwaukee Regional Office (Region 30)
    determined that this Area Agreement—which contains very
    similar language as the Agreement in the instant case—did not
    establish an exclusive hiring-hall. But a NLRB Region 30
    decision concerning a separate matter does not have
    precedential weight in our court. (Local 200 also claims that this
    Area Agreement involves the “same [p]roject” as the Agreement
    in the instant case. Given the location of the two sites on
    opposite sides of the Milwaukee metropolitan area and the
    fact that they involved different employers, this claim, without
    more, seems implausible.)
    No. 12-1586                                              11
    union’s 48-hour exclusive referral period. The union
    argues that the temporary nature of this exclusive
    referral period indicates that the Agreement was non-
    exclusive.
    The fact that the union’s sole right to refer employees
    is temporary does not mean that it is non-exclusive,
    however. Rather, the 48-hour window simply requires
    that the union exercise its exclusive right within a given
    time frame. “Hiring is deemed to be ‘exclusive’ . . . if the
    union retains sole authority to supply workers . . . for
    some specified period of time, such as 24 or 48 hours.”
    Breininger v. Sheet Metal Workers Int’l Ass’n Local Union
    No. 6, 
    493 U.S. 67
    , 73 n.1 (1989). Thus, the fact that the
    union’s referral rights were time-limited will not save
    the union from a finding that it operated an exclusive
    hiring-hall.
    Next, we turn to the parties’ hiring practices. Where
    there is an implicit understanding between a union and
    an employer regarding hiring practices, the Board infers
    that a de facto exclusive hiring-hall exists. Elec. Workers
    Local 2115 (Nat’l Elec. Contractors Ass’n), 
    136 N.L.R.B. 1618
    , 1619 (1962). Here, Bechtel only hired those job-
    seekers that the union recommended. Whenever job-
    seekers would show up at the Elm Road site without
    the union’s seal of approval, Bechtel would direct them
    to the Local 200 office for placement on the referral list.
    Moreover, when Bechtel declined to hire job-seekers
    that were referred by the union, the union’s practice was
    to file a grievance. As significantly, the testimony of two
    union officials before the ALJ in this case led the judge
    to concluded that Local 200 believed that it held the
    12                                                No. 12-1586
    exclusive right to refer workers to Bechtel. These
    practices of both the union and Bechtel, when viewed in
    tandem with the language of the Area Agreement,
    provide substantial evidence to support the Board’s
    finding that the union operated an exclusive hiring-hall.
    A union is subject to the duty of fair representation in
    its operation of a hiring-hall, and must exercise its hiring
    authority “in a nonarbitrary and nondiscriminatory
    fashion.” Breininger, 
    493 U.S. at 88
    ; see also Boilermakers
    Local No. 374 v. NLRB, 
    852 F.2d 1353
    , 1358 (D.C. Cir. 1988)
    (A union’s operation of an exclusive hiring-hall creates
    “a fiduciary duty on the part of the union not to conduct
    itself in an arbitrary, invidious, or discriminatory
    manner when representing those who seek to be
    referred out for employment. . . . [A]ny departure from
    established exclusive hiring hall procedures which
    results in a denial of employment . . . breaches the duty
    of fair representation . . . and violates Section 8(b)(1)(A)
    and (2) of the [National Labor Relations] Act.” (quoting
    Teamsters Local 519 (Rust Eng’g Co.), 
    276 N.L.R.B. 898
    , 908
    (1985))). The Board considers a union to have violated its
    duty of fair representation “if it administers an exclusive
    hiring hall arbitrarily or without reference to objective
    criteria.” Stagehands Referral Serv., LLC, 
    347 N.L.R.B. 1167
    ,
    1170 (2006). In other words, in the Board’s, view an ex-
    clusive hiring-hall must utilize job-referral criteria that
    are both objective and consistently applied.2
    2
    Without adopting or rejecting this requirement as the legal
    standard in our circuit, we note that the Board employed this
    (continued...)
    No. 12-1586                                                  13
    Here, the ALJ determined that, although union officials
    can point to objective criteria—e.g., seniority, work experi-
    ence, etc.—to explain their job referral decisions,
    Local 200 did not apply these criteria consistently.
    Instead, the union relied on what the ALJ deemed “clearly
    subjective” factors in some instances. For example,
    Gurich referred a union member for employment even
    though that individual had not requested to be placed
    on the list; allowed another individual whom Gurich
    believed did not get “a fair shake” to bypass other, more
    senior union members on the list; and wrote notes on the
    list, such as “friend of Rick Badnik” and “seems like
    good guy.” This evidence supports the notion that sub-
    jective factors may have come into play. Based on
    these facts, the ALJ stated that Gurich considered the
    referral list “as an informal referral system that relied
    in part on his discretion.” The Board concurred with the
    ALJ’s assessment, finding that the union did not con-
    sistently apply objective criteria in referring applicants
    to Bechtel.
    Between Gurich’s testimony and the haphazardly
    compiled referral list that appears in the record, there
    2
    (...continued)
    standard in this case and many other decisions; that the parties
    here agree that this standard ought to apply; and that several
    of our sister circuits have favorably cited this standard. See
    Lucas v. NLRB, 
    333 F.3d 927
    , 934 (9th Cir. 2003); Jacoby v.
    NLRB, 
    325 F.3d 301
    , 309 (D.C. Cir. 2003); NLRB v. Iron Workers
    Local 46, 
    149 F.3d 93
    , 107 (2d Cir. 1998)
    14                                               No. 12-1586
    is substantial evidence to support the factual finding
    that Local 200 did not consistently rely on objective
    criteria, and the Board’s legal conclusion that the
    shifting, amorphous factors that the union employed
    constitute a breach of the duty under the NLRA has a
    reasonable basis. See Breininger, 
    493 U.S. at 88
     (Unions
    must exercise their authority “in a nonarbitrary and
    nondiscriminatory fashion.”); Jacoby v. NLRB, 
    325 F.3d 301
    , 309 (D.C. Cir. 2003) (stating that unions have a duty
    to use “ ‘objective criteria’ and ‘consistent standards’ ” in
    the operation of hiring-halls). Accordingly, we affirm
    the Board’s holding that the union operated an
    exclusive hiring-hall without consistently using objec-
    tive criteria, in violation of Section 8(b)(1)(A) of the NLRA.
    B.
    Local 200 also takes issue with the Board’s conclusion
    that it discriminatorily failed and refused to refer Buban
    for employment. This holding, if affirmed, constitutes
    an additional violation of the NLRA. See Breininger,
    
    493 U.S. at 88
     (stating that when a union operates an
    exclusive hiring-hall, it must do so in a nondiscrim-
    inatory manner).
    In this case, the Board adopted the ALJ’s findings that
    the union failed to refer Buban for employment based
    on Buban’s years-long political opposition to the current
    union leadership. On appeal, the union claims that
    the ALJ “did not support his findings with factual refer-
    ences, and even if [Local 200] did Buban no favors, such
    is far from constituting evidence of discrimination.”
    No. 12-1586                                                  15
    Local 200 argues that its failure to refer Buban could be
    due to negligence or mistake, rather than animus, and
    that the ALJ’s decision that the union’s actions were
    discriminatory is grounded in little more than a hunch.
    As an initial matter, we note that Local 200 misstates
    the legal standard for discrimination. Local 200 claims
    that evidence of “intentional, prima facie discrimination”
    is needed, citing NLRB v. Operating Eng’rs Local 139, 
    796 F.2d 985
    , 993 (7th Cir. 1986) (“[I]ntentional union miscon-
    duct [is required] to show a breach of the duty of fair
    representation.”). Following the publication of Local 139,
    however, “the Supreme Court in Air Line Pilots Ass’n, Int’l
    v. O’Neill, 
    499 U.S. 65
     (1991) rejected [our] court’s
    narrow reading of the duty of fair representation stan-
    dard.” Ooley v. Schwitzer Div., Household Mfg. Inc., 
    961 F.2d 1293
    , 1302 (7th Cir. 1992); see also 
    id.
     at 1302 n.7 (explaining
    that the Air Line Pilots Court rejected the Seventh
    Circuit’s prior position that employees “do not need . . .
    protection against representation that is inept but not
    invidious” (internal quotation omitted)).
    To determine whether a union’s conduct should be
    classified as arbitrary, discriminatory, or in bad faith,
    the Board applies the Wright Line analysis. Wright Line, A
    Div. of Wright Line, Inc., 
    251 N.L.R.B. 1083
    , 1087 (1980). This
    framework is particularly appropriate where, as here,
    two differing rationales, one permissible (here, negli-
    gence) and the other impermissible (i.e., a discriminatory
    motive), could be claimed to have caused the outcome.
    The Supreme Court and our circuit have endorsed the
    application of the Wright Line framework in these cir-
    16                                               No. 12-1586
    cumstances. See NLRB v. Transp. Mgmt. Corp., 
    462 U.S. 393
    , 403-04 (1983), abrogated on other grounds by Dir.,
    Office of Workers’ Comp. Programs, Dep’t of Labor v. Greenwich
    Collieries, 
    512 U.S. 267
     (1994); NLRB v. GATX Logistics,
    Inc., 
    160 F.3d 353
    , 356 (7th Cir. 1998).
    Under the first step of the Wright Line framework, the
    General Counsel of the Board must show that the em-
    ployee or union member’s political activity was a “moti-
    vating factor” in the employer or union’s adverse action
    against that individual. Wright Line, 251 N.L.R.B. at 1087.
    In NLRB v. So-White Freight Lines, Inc., we affirmed a
    Board finding that the first prong of Wright Line was
    satisfied based on similar evidence as in the instant case.
    
    969 F.2d 401
    , 407 (7th Cir. 1992). In So-White, the Board
    concluded that an employee was dismissed from his job
    in retaliation for his union organizing. The Board
    made this determination based on the facts that (i) the
    employer had knowledge of the employee’s pro-union
    activities, and (ii) a supervisor stated that the employee
    was “a pain, causing trouble with the union.” 
    Id.
     Buban’s
    case involves analogous evidence. In the instant case,
    the ALJ found that (i) the union was aware of Buban’s
    political opposition to the union’s current leadership, and
    (ii) union officials made derogatory statements against
    Buban throughout the most recent union election. These
    two findings are strongly similar to the factual findings
    that undergirded the conclusion in So-White that the
    employee’s political activities were a factor in motivating
    his employer’s adverse actions. Moreover, the ALJ in
    the instant case made a third factual finding: that
    Buban and Gurich clashed during the grievance pro-
    No. 12-1586                                              17
    cess. We affirmed the Board’s conclusion that the
    first Wright Line step was satisfied in So-White—a case
    with only two out of the three relevant facts that are
    present in the instant case. Accordingly, we think that the
    So-White precedent provides a sufficient basis for the
    Board’s legal conclusion concerning the first Wright
    Line step in the instant case.
    The union argues that, in finding under the first Wright
    Line step that Buban’s political activity was a motivating
    factor in the union’s failure to refer him to work, the
    ALJ relied on his own “inference and suspicion.” We
    think that this criticism is misguided. Unless a union
    official were to admit directly that he or she acted with
    discriminatory intent, some degree of inference almost
    always will be necessary to make assessments concerning
    an individual’s motives. Cf. Wright Line, 251 N.L.R.B. at
    1083 (“[A]n employer will rarely, if ever, baldly assert
    that it has disciplined an employee because it detests
    unions.”). Therefore, it is permissible to rely on circum-
    stantial evidence to determine whether a union’s disap-
    proval of a member’s intra-union political conduct was
    a motivating factor of the union’s adverse action. See
    NLRB v. Rich’s Precision Foundry, Inc., 
    667 F.2d 613
    , 626
    (7th Cir. 1981) (“[I]n making this determination [of motiva-
    tion] the Board is free to rely on circumstantial as well
    as direct evidence.”). Our deferential review of the
    Board’s determinations of witness credibility, “which we
    will disturb only in extraordinary circumstances,” FedEx,
    431 F.3d at 1026, reflects the importance we place on
    what Local 200 refers to as “inference and suspicion.”
    18                                             No. 12-1586
    Local 200 also argues against the finding that antipathy
    towards Buban was a motivating factor in its treatment
    of him by noting that it “placed Buban on the job referral
    list on the same day he asked that his name be added.”
    According to the union, this fact indicates that the
    union’s failure to add him to the list earlier should be
    attributed to negligence, not animus. But the issue of
    when Gurich should have known that Buban wanted to
    return to any position at the Elm Road site—even without
    Buban specifically inquiring about a job-referral list—is
    in dispute. Essentially, it’s Buban’s word against
    Gurich’s. With the ALJ finding other aspects of Gurich’s
    testimony “not credible,” it seems reasonable for the
    ALJ and the Board not to regard as dispositive Gurich’s
    claim that he placed Buban’s name on the list as soon as
    he knew (or should have known) that Buban desired to
    be added to it.
    Since the first step of the Wright Line framework has
    been satisfied, we turn our attention to the second step.
    Under this second step, the burden shifts to Local 200
    to show that the same outcome would have occurred
    “even in the absence of the protected conduct.” Wright
    Line, 251 N.L.R.B. at 1087. Given the haphazard process
    by which Gurich referred job-seekers, it is unsurprising
    that the union does not seriously attempt to make this
    showing.
    The union does, however, call our attention to the
    following statement from the ALJ’s decision: “Gurich
    did not consistently apply his proffered criteria for re-
    ferrals, so this result [Buban being passed-over for job
    No. 12-1586                                            19
    referral] probably was unavoidable but, nonetheless,
    was discriminatory in effect, especially to Buban and
    others like him.” We agree with Local 200 that this state-
    ment raises questions. If the ALJ means to say that
    Buban would not have received a job referral regardless
    of whether the union discriminated against him, then
    this statement casts doubt on whether the requirements
    of the second Wright Line step were met. There is,
    however, an alternative interpretation of the ALJ’s state-
    ment. This interpretation suggests that (i) in the absence
    of animus, Gurich’s haphazard referral process proba-
    bly—but not definitely—would have been sufficient to
    cause Buban to be passed-over for employment, and (ii)
    Gurich’s animus towards Buban also was sufficient to
    cause Buban to be passed-over. This interpretation would
    be entirely consistent with a finding that the union’s
    animus towards Buban at least could have been
    dispositive. In any case, the second prong of Wright Line
    places the burden on Local 200 to show that this same
    outcome would have occurred, absent the union leader-
    ship’s clashes with Buban. The union has made no such
    showing. Nor could it, given the union’s inconsistent
    application of any job-referral criteria that it may
    have considered, as well as its inability to explain how
    it determined which job-seekers from the list to refer
    to Bechtel.
    Based on our Wright Line analysis, we hold that the
    Board’s conclusion that Local violated the NLRA by
    discriminatorily failing and refusing to refer Buban for
    employment has a reasonable basis in law.
    20                                             No. 12-1586
    C.
    Finally, the union disputes the Board’s conclusion that
    it failed to provide Buban with pertinent information
    concerning the job-referral list, including any written
    rules, any notices posted in the halls, and a physical copy
    of the list itself. The statutory duty of fair representa-
    tion requires unions to “deal fairly with an employee’s
    request for information as to his relative position on the
    out-of-work register.” Operating Eng’rs Local 139, 
    796 F.2d at 993
    . Thus, a failure to provide a union member with
    this information violates the NLRA.
    Local 200 acknowledges that it did not provide Buban
    with his requested information, but claims that this
    failure does not violate the NLRA. Local 200 offers two
    arguments in support of this claim. First, the union
    claims that the information that it provided to Buban is
    sufficient to meet its statutory duty. While it is true
    that Local 200 provided Buban, along with all other job-
    seekers, with some information on its job referral proce-
    dures, it did not provide him with his specifically re-
    quested information, including a copy of the referral list.
    According to the Board, a union’s failure to produce a
    referral list, when requested by a union member, violates
    Section 8(b)(1)(A) of the NLRA. Int’l Ass’n of Iron
    Workers Local Union 27 (Morrison-Knudson), 
    313 N.L.R.B. 215
     (1993); see also Operating Eng’rs Local Union No. 3,
    
    324 N.L.R.B. 14
     (1997) (holding that Section 8(b)(1)(A)
    requires unions to provide requested information that
    is “reasonably directed toward ascertaining whether
    the [union] member has been fairly treated with respect
    No. 12-1586                                                 21
    to obtaining job referrals”). We think that the Board’s
    interpretation of Section 8(b)(1)(A) to require the
    provision of this specific information upon request has a
    reasonable basis. Moreover, the Board’s past administra-
    tive decisions in this area—see, e.g., id.; Iron Workers, Local
    27, 313 N.L.R.B. at 215—should have put Local 200 on
    notice of its obligations. Therefore, the union’s argument
    that it is not required to provide Buban with the specific
    information that he requested because it already pro-
    vided union members with other information con-
    cerning the referral process is unpersuasive.
    Second, Local 200 argues in the alternative that if the
    information that it provided to Buban was in fact inade-
    quate, then this stems from a good-faith belief that the
    union did not operate an exclusive hiring-hall (and there-
    fore had no obligation to provide Buban with informa-
    tion concerning hiring-hall practices), and that it did
    not have a discriminatory intent in not providing
    Buban with his requested information. Local 200 does
    not cite any caselaw or Board decisions to support its
    contention that a good-faith, but mistaken, belief of this
    magnitude can serve as a defense to this violation. Instead,
    Local 200 calls our attention to Steamfitters Local Union
    No. 342, 
    336 N.L.R.B. 549
     (2001). That case addresses
    a clerical error regarding the treatment of specific job-
    seekers at an exclusive hiring-hall. 
    Id. at 553
    . We think
    that a union’s claimed good-faith error regarding
    whether it was operating an exclusive hiring-hall is a
    “mistake” of a much greater magnitude than simple
    negligence in the treatment of a particular job-seeker.
    22                                              No. 12-1586
    Concerning Local 200’s argument that there is “no
    evidence that [it] had a discriminatory intent to forbid
    criteria dissemination,” the union once again misstates
    the intent requirement needed to find a breach of the duty
    of fair representation. We refer back to our White Line
    analysis evaluating whether the union’s failure to refer
    Buban for employment can be classified as arbitrary,
    discriminatory, or in bad faith; the same basic analysis
    also supports the Board’s finding that the union’s failure
    to provide Buban with his requested information.
    We also note that whether the union’s failure to
    respond to Buban’s information request is attributable to
    an improper motive is a question best answered by the
    ALJ, who is well-situated to determine witness credi-
    bility. NLRB v. Overnite Transp. Co., 
    938 F.2d 815
    , 819
    (7th Cir.1991). Here, the ALJ deemed Gurich’s claim that
    Buban had never asked him or, to his knowledge,
    any other union official for information concerning the
    referral-list to be not “very convincing” and “not credible.”
    Thus, we affirm the Board’s holding that Local 200
    violated the NLRA by failing to provide Buban with the
    information concerning the union’s job-referral process
    that Buban requested.
    III.
    Substantial evidence exists to support the Board’s
    findings that the union operated an exclusive hiring-
    hall without applying consistent, objective factors;
    discriminatorily failed and refused to refer Buban for
    employment; and discriminatorily failed and refused to
    No. 12-1586                                            23
    provide Buban with job referral information to which
    he was legally entitled. The Board’s conclusions that each
    of these actions violates the National Labor Relations
    Act are reasonable. Accordingly, we A FFIRM the Board’s
    Decision and Order.
    7-23-13
    

Document Info

Docket Number: 12-1586

Citation Numbers: 723 F.3d 778

Judges: Tinder

Filed Date: 7/23/2013

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (19)

national-labor-relations-board-v-local-46-metallic-lathers-union-and , 149 F.3d 93 ( 1998 )

national-labor-relations-board-petitionercross-respondent-v-local-334 , 481 F.3d 875 ( 2007 )

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Sears, Roebuck & Company, Petitioner/cross-Respondent v. ... , 349 F.3d 493 ( 2003 )

Atc Vancom of California, L.P. v. National Labor Relations ... , 370 F.3d 692 ( 2004 )

L.S.F. Transportation, Inc., A/K/A L.S.F. Trucking, Inc., ... , 282 F.3d 972 ( 2002 )

Jacoby v. National Labor Relations Board , 325 F.3d 301 ( 2003 )

Steven Lucas v. National Labor Relations Board , 333 F.3d 927 ( 2003 )

National Labor Relations Board v. Rich's Precision Foundry, ... , 667 F.2d 613 ( 1981 )

National Labor Relations Board v. Local 139, International ... , 796 F.2d 985 ( 1986 )

Boilermakers Local No. 374, Etc. v. National Labor ... , 852 F.2d 1353 ( 1988 )

National Labor Relations Board v. Gatx Logistics, Inc. , 160 F.3d 353 ( 1998 )

National Labor Relations Board v. International Brotherhood ... , 425 F.3d 1035 ( 2005 )

paul-ooley-v-schwitzer-division-household-manufacturing-incorporated , 961 F.2d 1293 ( 1992 )

Air Line Pilots Ass'n v. O'Neill , 111 S. Ct. 1127 ( 1991 )

Vaca v. Sipes , 87 S. Ct. 903 ( 1967 )

Breininger v. Sheet Metal Workers International Ass'n Local ... , 110 S. Ct. 424 ( 1989 )

Director, Office of Workers' Compensation Programs v. ... , 114 S. Ct. 2251 ( 1994 )

National Labor Relations Board v. Transportation Management ... , 103 S. Ct. 2469 ( 1983 )

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