Monday, March 3, 2014

NLRB OM 14-23 February 4, 2014 brings 8(f) v. 9(a) Relationships in the Construction Industry to the forefront again.



The OFFICE OF THE GENERAL COUNSEL Division of Operations-Management issued updated “Casehandling Instructions for Cases in which the Section 9(a) Status of a Collective-Bargaining Relationship in the Construction Industry is in Issue” on February 4, 2014. 

The construction industry enjoys a unique collective bargaining relationship defined as a section 8(f) relationship.  An 8(f) relationship is often referred to as a “Pre-hire” agreement.  An employer, with no employees, may choose to have a union represent its future employees.   In this case, a union has not been certified to represent a majority of the employees.  Additionally, under an 8(f) relationship, the employer and the union may choose to terminate that relationship upon expiration of the collective bargaining agreement and have no obligation or duty to bargain a new agreement.     

Almost every non-construction industry collective bargaining relationship is defined as a section 9(a) relationship.  That is, the employees have chosen to seek representation by a union and through a majority vote or show of support, e.g. card check.  Under a 9(a) relationship, upon expiration of the current collective bargaining agreement, the employer and the union have a legal obligation, duty, to negotiate a new collective bargaining agreement.

As we have witnessed over time, here in Philadelphia and elsewhere, many of the region’s 8(f) collective bargaining relationships have been converted to 9(a) relationships.  This conversion would have normally taken place during collective bargaining for a new and or successor collective bargaining agreement between labor and management and would have occurred through the use of specific collective bargaining language altering the relationship status.  That is, the agreement now exists as a 9(a) relationship, but the employees have not chosen or voted for a particular union to represent or negotiate on their behalf.  Some have argued that unionized construction employers only employ union trade’s people; therefore, it already has majority support.  However, the underlying legal issue is, in the construction industry, how can a collective bargaining relationship that began under Section 8(f) be converted into a 9(a) relationship, which requires that the union be the chosen representative of a majority of the bargaining unit employees, simply through contractual language alone?

Way back in 2001:

Under the Central Illinois case, the NLRB ruled that a 9(a) relationship can be created by contractual language alone if the language unequivocally states:

(1) the union requested recognition as the majority or Section 9(a) representative of the unit employees;
(2) the employer recognized the union as the employees’ majority or Section 9(a) representative; and
93) the employer’s recognition was based on the union’s having shown, or having offered to show, evidence of majority support. 

All of these could take place in the successful conversion from a 8(f) to a 9(a) conversion, even if the union had never enjoyed majority status and or support and had never offered to provide proof of majority representation. 

Many of our region’s collective bargaining agreements contain language indicating a past conversion.  An example is below:

“Inasmuch as the Union has demanded recognition from the EMPLOYER as the exclusive bargaining representative of the Employer’s “employees” under Section 9(a) of the National Labor Relations Act, and the Union obtained and showed each
of the Employers listed above signature cards showing that the Union represents more than 50% of each Employer’s “employees”, and each of the above Employers is satisfied that the Union represents a majority of its “employees”, the Employers above hereby recognizes the Union as the exclusive collective bargaining representative of its “employees’ on all present and future job sites within the Union’s jurisdiction, unless and until such time as the Union loses its status as the “employees” exclusive representative as a result of an NLRB election requested by such employees.”

“The Employers above agree that during the life of this Agreement, it will not request a NLRB election and expressly waives any right it may have to do so.”

Moving ahead to 2003:

In Nova Plumbing, v. NLRB, 2003, there was very clear evidence indicating that the union did not have majority support of the workforce at the time the agreement was signed.  As a result of those findings, the DC Circuit court refused to enforce the Board’s order.  Allowing a 9(a) relationship to exist, which was created by contractual language alone, where the facts are to the contrary, runs counter to the principle of majority rule built into the Act.”  

Fast forward to 2014:

General Counsel MEMORANDUM OM 14-23, dated February 4, 2014, issues guidance on how regions are to approach cases involving 9(a) relationship status which were allegedly created through contractual language using the Central Illinois test. 

These new guidelines are as follows:    

“Regions should not affirmatively seek evidence of majority support where charges are premised on contractual language in a construction industry collective-bargaining agreement that creates a Section 9(a) relationship in accordance with Central Illinois. Nor should Regions affirmatively seek evidence that contradicts the contractual language.

“However, there may be circumstances where, despite contractual language establishing Section 9(a) status, the Region is presented with direct evidence that the union did not actually have majority support at the time the employer extended Section 9(a) recognition to the union. In those cases, Regions should investigate whether the union had majority support and submit those cases to the Division of Advice.”

Construction industry employers considering signing an 8(f), pre hire agreement which does contain 9(a) language, as many do, should ask at the time of execution if any “direct evidence” exists supporting the argument that the union does not, in fact, enjoy the majority support of their bargaining unit employees.    As always, any evidence provided, either for or against, should be documented and preserved for the lifetime of the collective bargaining relationship.

Construction industry employers interested in terminating a 9(a) relationship with a union should always inquire as to whether the union enjoyed majority support of their employees when the conversion language was originally adopted; any “direct evidence” to the contrary should be documented and saved. 

As there is no duty or obligation to bargain under an 8(f) relationship, any “direct evidence” indicating that the union did not have majority status at the time that the language was adopted may change the relationship status of the current collective bargaining agreement  along with the employer’s obligation to bargain for a new agreement. 

Download a copy of OM 14-23 February 4, 2014 here…



Association members interested in receiving assistance and support during collective bargaining and throughout the terms of your collective bargaining agreements should direct their Board of Directors to contact Wayne Gregory at GMCS today, wegregory@gregorymcs.com, for consultation.  Independent signatories should contact Wayne Gregory at GMCS directly, wegregory@gregorymcs.com, for consultation.    
 

No comments:

Post a Comment