APWU of Iowa
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Des Moines, IA 50302
United States
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MCA
United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT Argued December 7, 2007 Decided January 29, 2008 No. 06-1338 MAIL CONTRACTORS OF AMERICA, PETITIONER v. NATIONAL LABOR RELATIONS BOARD, RESPONDENT Consolidated with 06-1380 On Petition for Review and Cross-Application for Enforcement of an Order of the National Labor Relations Board Jeffrey W. Pagano argued the cause for petitioner. With him on the briefs was Herbert I. Meyer. Kira Dellinger Vol, Attorney, National Labor Relations Board, argued the cause for respondent. With her on the brief were Ronald E. Meisburg, General Counsel, John H. Ferguson, Associate General Counsel, and Julie B. Broido, Supervisory Attorney. Fred B. Jacob, Attorney, entered an appearance. 2 Before: GINSBURG, Chief Judge, and TATEL and BROWN, Circuit Judges. Opinion for the Court filed by Chief Judge GINSBURG. GINSBURG, Chief Judge: The National Labor Relations Board held Mail Contractors of America violated its duty to bargain with a union when, following an impasse in negotiations, it unilaterally changed a "relay point" on one of its trucking routes. We grant MCA’s petition for review of the Board’s order and deny the Board’s cross-application for enforcement. I. Background MCA primarily transports bulk mail for the United States Postal Service among its 17 terminals nationwide. The American Postal Workers Union, Des Moines Area Local, represents approximately 90 employees who work for MCA at the Urbandale, Iowa terminal. In 2001, the Union and MCA negotiated a new collective bargaining agreement (CBA) for Urbandale, which agreement expired in September 2003. Because MCA’s terminals are far apart, its trucks are typically driven to and from "relay points" between terminals, where one driver turns the truck over to another who takes the truck on toward its destination. The 2001 Urbandale CBA contained a management rights clause providing that the Company had "the right ... to decide the location of its terminal(s) and relay points" without further bargaining. While the 2001 CBA was in effect, MCA switched relay points serving the Urbandale terminal six times. It did so five times to satisfy the needs of the USPS or to comply with new regulations issued 3 by the Department of Transportation and once at the request of the Union. Because compensation is determined by hours spent driving, the location of a relay point may affect the compensation of the drivers who serve that relay point. Each time the Company changed a relay point, it first bargained with the Union even though, under the CBA, it was not required to do so. After the CBA expired in 2003, the Union and MCA reached a tentative new agreement for Urbandale that again included a clause providing management retained the right unilaterally to change the location of relay points. The tentative agreement also included a new "bumping" provision, which gave any driver whose run was changed in such a way that his compensation decreased by 15% or more the right to take over a more junior driver’s run. In September 2004, when negotiations reached an impasse rather than a final agreement, MCA lawfully implemented its final offer, including the provisions of the tentative agreement. In March 2005 the Urbandale drivers struck. When one driver refused an order to drive to the relay point in York, Nebraska, MCA moved the relay point about 50 miles east along Interstate 80 to Havelock, Nebraska, where it had more resources. It did not give the Union notice of this change, although the striking workers were, of course, aware the Company was not using the York relay point. The effect of the change was that the drivers who drove from Urbandale to Havelock drove less and therefore earned less than they had earned prior to the strike, and the drivers who drove from Havelock to the next relay point drove more and therefore earned more than they had done prior to the strike. Because no driver’s compensation decreased by 15%, however, the change did not trigger the bumping provision. 4 After the strike ended, MCA decided to keep the I-80 relay point at Havelock. Certain employees protested, but MCA refused to negotiate with the Union over the change. The Union filed an unfair labor practice charge with the National Labor Relations Board and the General Counsel issued a complaint against MCA for refusing to bargain, in violation of Sections 8(a)(1) and (5) of the National Labor Relations Act, 29 U.S.C. §§ 185(a)(1) and (5). After a hearing, an Administrative Law Judge held MCA had indeed violated the Act by unilaterally changing the relay point. The ALJ first found the change to the relay point materially affected employees’ wages and working conditions, and was therefore a mandatory subject of bargaining. See Mail Contractors of Am., 347 N.L.R.B. No. 88, at 6 (2006) (MCA). He acknowledged that under the expired CBA management had the right to change relay points without bargaining, but noted that under Board precedent, the Union’s waiver of the right to bargain presumptively expired when the CBA expired. Id. Although the parties had tentatively agreed to a new contract that included a similar management rights clause, the ALJ noted they had never come to a final agreement. Id. at 6-7. Next, the ALJ rejected MCA’s argument that the management rights clause in its final offer gave it the right unilaterally to move the relay point. He acknowledged that the parties had reached an impasse in negotiations, which would ordinarily entitle the employer to implement its final offer. Applying the Board’s decision in McClatchy Newspapers, Inc., 321 N.L.R.B. 1386 (1996), enf’d, 131 F.3d 1026 (D.C. Cir. 1997), however, he concluded MCA could not lawfully implement the management rights clause because it granted MCA unlimited discretion to determine the location of relay points, and thereby to affect the wages and hours of employees. MCA, 347 N.L.R.B. No. 88, at 7. The ALJ also rejected MCA’s 5 alternative contention that unilaterally changing the relay point was permissible as the continuation of a practice that had developed under the expired contract. Although the 2001 CBA contained a clause granting MCA discretion unilaterally to change relay points, MCA had never actually done so while that agreement was in force. Id. at 7-8. The ALJ concluded that because neither post-impasse implementation of the final offer nor the past practice of the parties gave MCA the right to move a relay point, MCA’s failure to bargain with the Union, after the strike had ended, over the move to Havelock from York was an unfair labor practice. Id. at 8. Accordingly, he ordered MCA to move the relay point back to York and pay back wages to the drivers whose routes had been shortened. Id. at 9. MCA filed exceptions with the Board, a panel of which unanimously affirmed the findings and conclusions of the ALJ. Id. at 1 & nn.1-2. Two Members, relying upon McClatchy, voted to affirm because "the unilateral change had a direct effect on wages." Id. at 1 n.2. Chairman Battista reasoned more narrowly that under the 2001 contract the Company gave the Union advance notice of any relay point change, and "[t]here is no evidence that a change in this past practice was contemplated by the newly implemented management-rights clause." Id. II. Analysis MCA argues, among other things, that the Board erred in concluding the Company was not entitled to implement the relay point provision when negotiations with the Union had reached an impasse. Because we agree and grant the petition upon that basis, we have no occasion to reach MCA’s other arguments. 6 A. Standard of review We apply a deferential standard of review to orders of the Board, which has "considerable authority to interpret the ... [Act]. If the Board adopts a rule that is rational and consistent with the Act, then the rule is entitled to deference from the courts." Fall River Dyeing & Finishing Corp. v. NLRB, 482 U.S. 27, 42 (1987) (citation omitted). We will, however, set aside an order "when the Board has failed to apply the proper legal standard ... or when it [has departed] from established precedent without reasoned justification." Titanium Metals Corp. v. NLRB, 392 F.3d 439, 446 (D.C. Cir. 2004). B. Implementation after impasse Section 8 of the Act requires an employer to bargain with the union representing its employees with respect to "wages, hours, and other terms and conditions of employment." 29 U.S.C. § 158(a), (d). When a CBA expires without a new agreement having been reached, the employer must continue to bargain in good faith for a new agreement and maintain the status quo during negotiations. See NLRB v. Katz, 369 U.S. 736, 743, 746 (1962). The duty to bargain does not, however, "compel either party to agree to a proposal or require the making of a concession." 29 U.S.C. § 158(d). The Act "does not contemplate that unions will always be secure and able to achieve agreement even when their economic position is weak." H.K. Porter Co., Inc. v. NLRB, 397 U.S. 99, 109 (1970). The Board is charged only with ensuring the parties satisfy their duty to bargain; it may not "act at large in equalizing disparities of bargaining power between employer and union." NLRB v. Ins. Agents’ Int’l Union, 361 U.S. 477, 490 (1960). Nor may the Board impose a substantive provision upon the parties. "[A]greement may in some cases be impossible, and it was never intended that the Government 7 would in such cases step in, become a party to the negotiations and impose its own views of a desirable settlement." H.K. Porter, 397 U.S. at 103-04. Either party to collective bargaining may lawfully insist to the point of impasse upon any provision related to a "mandatory subject of bargaining," which is to say "wages, hours, [or] other terms and conditions of employment." See 29 U.S.C. § 158(d); NLRB v. Wooster Div. of Borg-Warner Corp., 356 U.S. 342, 349 (1958). An employer may even insist upon a provision granting it discretion unilaterally to change certain conditions of employment during the term of the CBA. NLRB v. Am. Nat’l Ins. Co., 343 U.S. 395, 409 (1952) ("Whether a contract should contain a clause fixing standards for such matters as work scheduling or should provide for more flexible treatment is an issue for determination across the bargaining table, not by the Board"). When an employer and a union reach an impasse over a mandatory subject of bargaining, either side may resort to economic warfare – a strike, a lockout, etc. – and "the employer’s statutory duty to maintain the status quo during postcontract negotiations ... end[s]." Laborers Health & Welfare Trust Fund v. Advanced Lightweight Concrete Co., Inc., 484 U.S. 539, 543 n.5 (1988). The employer then may "mak[e] unilateral changes that are reasonably comprehended within his preimpasse proposals." Am. Fed’n of Television & Radio Artists v. NLRB, 395 F.2d 622, 624 (D.C. Cir. 1968) (internal quotation mark omitted). The rationale for this rule is that the employer’s unilateral imposition of the final offer "breaks the impasse and therefore encourages future collective bargaining." McClatchy Newspapers, Inc. v. NLRB, 131 F.3d 1026, 1032 (D.C. Cir. 1997). It "moves the process forward by giving one party, the employer, economic leverage." Id. An employer’s right to deploy its economic weapons 8 following an impasse is not absolute: The Supreme Court has held the Board, in order to facilitate the process of collective bargaining, may place certain restrictions upon what an employer may do after impasse. In Charles D. Bonanno Linen Service, Inc. v. NLRB, 454 U.S. 404 (1982), for example, the Court upheld a Board order barring an employer from withdrawing from a multi-employer unit after bargaining had reached an impasse. Id. at 412. The Court stated more generally that the Board may "deny an employer a particular economic weapon ... in the interest of the proper and preeminent goal, maintaining the stability of the multiemployer bargaining unit." Id. at 419; see also NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 32 (1967) (upholding Board decision prohibiting employer from granting benefits to strike-breakers but not strikers because of "discouraging effect on ... future concerted activity"); NLRB v. Erie Resistor Corp., 373 U.S. 221, 231 (1963) (upholding Board decision prohibiting employer from granting super-seniority to strike-breakers because "[s]uper-seniority renders future bargaining difficult, if not impossible"); cf. Am. Ship Bldg. Co. v. NLRB, 380 U.S. 300, 309 (1965) (holding lockout was not unfair labor practice because "the employer’s intention was [not] to destroy or frustrate the process of collective bargaining"). C. The McClatchy doctrine In McClatchy Newspapers, 299 N.L.R.B. 1045 (1990) (McClatchy I), the Board announced a new exception to the implementation-after-impasse rule, again in order to facilitate post-impasse bargaining. In that case the employer, after an impasse in negotiations, implemented its proposed merit pay system, which gave it almost complete discretion to determine wages. Initially the Board held the employer had committed an unfair labor practice because the union had not "waived" its right to bargain over wages. Id. at 1046-47. This court found the Board’s explanation inconsistent with Board precedent, 9 granted the employer’s petition for review, and remanded the case for the Board to give a more adequate account of its position. NLRB v. McClatchy Newspapers, Inc., 964 F.2d 1153, 1153-54 (D.C. Cir. 1992) (per curiam) (McClatchy II). In separate concurring opinions, Judges Edwards and Silberman proposed a variety of alternative theories upon which the Board might justify its result. Among them was Judge Edwards’s theory that "a unilateral, discretionary merit pay scheme ... may pose a substantial threat to the union’s role as the employees’ representatives." Id. at 1172. He explained: If ... the employer can make unconstrained wage adjustments, the futility of union representation may be driven home to each employee in much the same way the unilateral change doctrine seeks to avoid. Admittedly, the unilateral change doctrine generally presumes that implementing changes post-impasse does not hurt collective bargaining. But if the employer can indefinitely adjust employee wages ... impasse will no longer be [a] "temporary" phenomenon .... Where the employer has the unconstrained authority to adjust wages to respond to changing conditions, it will have substantially smaller incentives to restart collective bargaining. Id. at 1172-73 (footnote omitted). On remand, the Board again held the employer had committed an unfair labor practice, essentially adopting Judge Edwards’s rationale. See McClatchy Newspapers, Inc., 321 N.L.R.B. 1386, 1390-91 (1996) (McClatchy III) ("[C]arte blanche authority over wage increases" would be "inherently destructive of the fundamental principles of collective bargaining") (emphasis and footnote omitted). If the employer had complete discretion to set wages, the Board explained, then the union would be unable to participate knowledgeably in further bargaining. Id. at 1391. Moreover, the merit pay 10 provision would "disparage the [union] by showing, despite its resistance to this proposal, its incapacity to act as the employees’ representative in setting terms and conditions of employment." Id. Emphasizing the "paramount importance of wages as a mandatory subject of bargaining," id. at 1391 n.22, the Board concluded the provision was "inimical to the policies of the Act" because it excluded the union "from any meaningful bargaining as to the procedures and criteria governing the merit pay plan." Id. at 1391. McClatchy again petitioned for review, and this time we enforced the Board’s order. McClatchy Newspapers, Inc. v. NLRB, 131 F.3d 1026 (D.C. Cir. 1997) (McClatchy IV). Citing Bonanno Linen, we noted that "the Board has wide latitude to monitor the bargaining process." Id. at 1031. We deferred to the Board’s opinion that the provision at issue might "irreparably undermine [the union’s] ability to bargain. Since the union could not know what criteria, if any, petitioner was using to award individual salary increases, it could not bargain against those standards; instead, it faced a discretionary cloud." Id. at 1032. We also accepted the Board’s rationale that the union would appear impotent to its members if it had no information to relay. Id. at 1033. Recognizing the principle of Insurance Agents that the Board may not "act at large in equalizing disparities of bargaining power between employer and union," id. (quoting Insurance Agents, 361 U.S. at 490) (alteration and internal quotation marks omitted), we concluded "this case is marginally closer to Bonanno Linen"; "as in Bonanno Linen, the Board has denied the employer a particular economic tactic for the sake of preserving the stability of the collective bargaining process." Id. Most important for purposes of the present case, we noted the Board had confined its decision to provisions governing wages because wages are "a key term and condition of employment and a primary basis of negotiations," id. at 1035 (internal quotation marks omitted). We concluded: 11 [T]he Board is free to draw on its expertise to determine that wages are typically of paramount importance in collective bargaining and to suggest that wages, unlike scheduling or a host of other decisions generally thought closely tied to management operations, are expected to be set bilaterally in a collective bargaining relationship. Id. The Board has since held employers ran afoul of the rule in McClatchy in four cases, three of which involved wage provisions. We approved the Board’s application of McClatchy to a wage provision that gave "unfettered discretion to the employers at every stage of the pay determination process," Anderson Enters., 329 N.L.R.B. 760 (1999), enf’d, 2 Fed. App’x 1, 3 (2001), but vacated an order in which the Board applied McClatchy to a relatively nondiscretionary unilateral wage provision. Detroit Newspaper Agency, 326 N.L.R.B. 700 (1998), vacated sub nom. Detroit Typographical Union No. 18 v. NLRB, 216 F.3d 109, 118 (2000). The First Circuit vacated the third Board decision, which concerned a provision giving an employer the discretion either to pay a predefined wage or to abide by "current marketplace pay practices," and remanded the case for further consideration. See Edward S. Quirk Co., Inc., 330 N.L.R.B. 917 (2000), vacated and remanded, 241 F.3d 41, 45 (2001) ("McClatchy is based on employer discretion and discretion is a matter of degree, implicating policy judgments informed by Board expertise. However ... the Board owes the employer and a reviewing court ... a reasoned explanation of where it draws the line ...."), reinstated, 340 N.L.R.B. 301, 30102 (2003). In the fourth case, which was not reviewed by any court, the Board applied McClatchy to a highly discretionary provision involving health benefits. KSM Indus., Inc., 336 N.L.R.B. 133, 135 (2001), modified in part, 337 N.L.R.B. 987 (2002). 12 D. The relay point change As recounted above, the Board held MCA ran afoul of McClatchy when it unilaterally imposed a provision reserving the right to change relay points. That decision was arbitrary and capricious for three reasons. First, the management rights provision at issue is utterly unlike the provision in McClatchy or the provision at issue in any subsequent case to which the Board has applied McClatchy. Second, it is inconceivable the provision will jeopardize collective bargaining in the affected unit – the stated concern underlying McClatchy. Finally, the Board’s decision here would impinge upon the employer’s ability to run its business more severely than did McClatchy itself or any of its sequellae. First. The Board’s decision is inconsistent with both the plain terms and the reasoning of McClatchy, which was based upon and limited by the "paramount importance of wages as a mandatory subject of bargaining." 321 N.L.R.B. at 1391 n.22. We expressly predicated our approval of the Board’s decision upon the distinction between wages and "scheduling or a host of other decisions generally thought closely tied to management operations." 131 F.3d at 1035. Indeed, the Board has consistently limited its application of McClatchy to provisions giving an employer discretion to determine wages (or, in one case, benefits) rather than discretion to configure "management operations" – until this case. The placement of a relay point is a quintessentially managerial decision; its location presumably will affect the efficiency of the Company’s operations but it will have no material effect upon the Company’s wage bill. If, as a result of changing a relay point, some drivers lose work, then other drivers gain as much work; meanwhile, the bumping provision that MCA implemented as part of its final offer prevents 13 management from manipulating relay points to give significantly more hours to less senior drivers. The Board contends the placement of a relay point is nonetheless subject to the McClatchy doctrine because it will have a "direct effect on wages." MCA, 347 N.L.R.B. No. 88, at 1 n.2. The effect is no more significant, however, than the effect of any management decision about the scheduling of work or its allocation among plants or shifts. Cf. Clinton’s Ditch Coop. Co., Inc. v. NLRB, 778 F.2d 132, 135, 140 (2d Cir. 1985) (management’s right to change drivers’ assignments had only "indirect, limited connection to ... any ... aspect of labor relations"). In McClatchy IV we deferred to the Board’s view that wages are such a fundamental subject of collective bargaining that they are uniquely "expected to be set bilaterally in a collective bargaining relationship." 131 F.3d at 1035. The placement of a relay point, with its incidental effect upon wages, simply is not comparable. Second. Neither of the pragmatic reasons for the Board’s holding in McClatchy applies to this case: If an employer could unilaterally set wages, then the union (1) would be "unable to bargain knowledgeably" and (2) would appear impotent to its members because of its "incapacity to act as the employees’ representative in setting terms and conditions of employment." McClatchy III, 321 N.L.R.B. at 1391. As to the former, management’s change in the location of a relay point did not preclude "meaningful bargaining as to the procedures and criteria governing" wages, id.; nor, because wage rates and other terms of employment were fixed in nondiscretionary provisions of the final offer, did the change require the Union to bargain against a "discretionary cloud." McClatchy IV, 131 F.3d at 1032. As for threatening to render the Union impotent and collective bargaining pointless in the eyes of employees, as 14 applied here the idea is fanciful. The change in the relay point at issue here, like each of the six changes MCA made during the two year term of the 2001 CBA, was made in response to an unexpected event. Having moved the relay point merely in order to keep trucks rolling during the strike, the Company then found it was more efficient to retain the new location. As the strike-induced move illustrates, the events that prompt the Company to change a relay point are both sporadic and sufficiently unexpected that the parties could not realistically have addressed them in the CBA; accordingly, management’s reservation of the right to respond to them posed no realistic threat to the process of collective bargaining. Were it otherwise, the Union would not have agreed to the management rights clause in the 2001 CBA. More significant, with the benefit of experience under that agreement, the Union tentatively agreed to the clause again in the 2003 bargaining for a new agreement; indeed, the bargaining history shows the Union was concerned not with eliminating management’s right to move relay points but with adding a more robust bumping provision in order to protect more senior drivers from any significant loss of work when a relay point is changed. Third. The Board’s decision impedes the employer’s ability after impasse to implement its final offer to a far greater extent than had any prior decision. Bear in mind that in McClatchy itself the employer was prohibited only from implementing a system in which it would have determined wages on a purely discretionary basis; nothing in that decision bars an employer from implementing a final offer in which wages are determined according to fixed criteria. In this case, the ALJ correctly noted the management rights provision at issue left MCA with complete discretion to move relay points, MCA, 347 N.L.R.B. No. 88, at 7, but neither the ALJ nor the Union ever suggested there might be fixed criteria MCA could have offered and then implemented after impasse to govern the placement of relay points. Nor does that seem feasible for, as we have seen, relay 15 points, unlike wages, are changed in response to infrequent and exogenous events. In other words, because no nondiscretionary provision appears possible, the Board’s decision would effectively preclude MCA from ever changing a relay point after impasse. That would be both anomalous, considering that MCA was free unilaterally to implement provisions regarding more fundamental subjects of bargaining, see, e.g., E.I. du Pont de Nemours & Co., 346 N.L.R.B. No. 55, at 11-12 (2006) (permitting unilateral imposition of nondiscretionary health care plan), enf’d, 489 F.3d 1310, 1320 (D.C. Cir. 2007), and inconsistent with the narrow exception in McClatchy to the general rule allowing the employer to implement its final offer after impasse. The ALJ justified the application of McClatchy to this case as follows: Section 8(d) of the Act requires the parties to bargain over "wages and hours." It would undermine this specific statutory mandate if an employer could relegate to itself the discretion to determine [relay points after impasse]. In addition, to allow an employer to do so unjustifiably affects the balance of power between labor and management and thereby undermines an important goal of the Act of encouraging the parties to reach a collective-bargaining agreement. This is so because ... if an employer can relegate to itself this discretion a union’s bargaining strength is diminished and the likelihood of reaching an agreement is decreased. 347 N.L.R.B. No. 88, at 7. The ALJ’s analysis is in effect a broadside attack upon the implementation-after-impasse doctrine. His concern that an employer would undermine the statutory mandate to bargain by unilaterally implementing its final offer after impasse overlooks 16 the very purpose of the doctrine, which is to "break[] the impasse and therefore encourage[] future collective bargaining ... by giving one party, the employer, economic leverage." McClatchy IV, 131 F.3d at 1032. His other point – that unilateral implementation means the union could no longer "seek concessions from the employer" in return for its agreement, MCA, 347 N.L.R.B. No. 88, at 7 – ignores the Supreme Court’s teaching that it is not the Board’s role to "equalize[e] disparities of bargaining power between employer and union." Insurance Agents, 361 U.S. at 490. In affirming the ALJ, the Board rather limply stated only that "here, as in McClatchy, the unilateral change had a direct effect on wages," MCA, 347 N.L.R.B. No. 88, at 1 n.2, without any more particularized examination of the significance of that effect. The Board gave no reason to believe the relay point provision here at issue would impede collective bargaining. Therefore, we think it necessary to reiterate a point we made in McClatchy IV: The Board must proceed cautiously in applying the McClatchy doctrine, taking care to tether its applications to the pragmatic justification for that decision, namely, to facilitate the process of collective bargaining. III. Conclusion For the reasons set out above, we hold MCA, after collective bargaining had reached an impasse, lawfully relocated its relay point to Havelock from York pursuant to the management rights provision of its final offer. Therefore, it did not commit an unfair labor practice when, after the strike ended, it kept the relay point at Havelock without first bargaining with the Union. Accordingly, the petition for review is granted and the Board’s cross-application for enforcement is denied. So ordered.
United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued December 7, 2007 Decided January 29, 2008
No. 06-1338
MAIL CONTRACTORS OF AMERICA,
PETITIONER
v.
NATIONAL LABOR RELATIONS BOARD,
RESPONDENT
Consolidated with
06-1380
On Petition for Review and Cross-Application for
Enforcement
of an Order of the National Labor Relations Board
Jeffrey W. Pagano argued the cause for petitioner. With
him on the briefs was Herbert I. Meyer.
Kira Dellinger Vol, Attorney, National Labor Relations
Board, argued the cause for respondent. With her on the brief
were Ronald E. Meisburg, General Counsel, John H. Ferguson,
Associate General Counsel, and Julie B. Broido, Supervisory
Attorney. Fred B. Jacob, Attorney, entered an appearance.
2
Before: GINSBURG, Chief Judge, and TATEL and BROWN,
Circuit Judges.
Opinion for the Court filed by Chief Judge GINSBURG.
GINSBURG, Chief Judge: The National Labor Relations
Board held Mail Contractors of America violated its duty to
bargain with a union when, following an impasse in
negotiations, it unilaterally changed a "relay point" on one of its
trucking routes. We grant MCA’s petition for review of the
Board’s order and deny the Board’s cross-application for
enforcement.
I. Background
MCA primarily transports bulk mail for the United States
Postal Service among its 17 terminals nationwide. The
American Postal Workers Union, Des Moines Area Local,
represents approximately 90 employees who work for MCA at
the Urbandale, Iowa terminal. In 2001, the Union and MCA
negotiated a new collective bargaining agreement (CBA) for
Urbandale, which agreement expired in September 2003.
Because MCA’s terminals are far apart, its trucks are
typically driven to and from "relay points" between terminals,
where one driver turns the truck over to another who takes the
truck on toward its destination. The 2001 Urbandale CBA
contained a management rights clause providing that the
Company had "the right ... to decide the location of its
terminal(s) and relay points" without further bargaining. While
the 2001 CBA was in effect, MCA switched relay points serving
the Urbandale terminal six times. It did so five times to satisfy
the needs of the USPS or to comply with new regulations issued
3
by the Department of Transportation and once at the request of
the Union. Because compensation is determined by hours spent
driving, the location of a relay point may affect the
compensation of the drivers who serve that relay point. Each
time the Company changed a relay point, it first bargained with
the Union even though, under the CBA, it was not required to do
so.
After the CBA expired in 2003, the Union and MCA
reached a tentative new agreement for Urbandale that again
included a clause providing management retained the right
unilaterally to change the location of relay points. The tentative
agreement also included a new "bumping" provision, which
gave any driver whose run was changed in such a way that his
compensation decreased by 15% or more the right to take over
a more junior driver’s run. In September 2004, when
negotiations reached an impasse rather than a final agreement,
MCA lawfully implemented its final offer, including the
provisions of the tentative agreement.
In March 2005 the Urbandale drivers struck. When one
driver refused an order to drive to the relay point in York,
Nebraska, MCA moved the relay point about 50 miles east along
Interstate 80 to Havelock, Nebraska, where it had more
resources. It did not give the Union notice of this change,
although the striking workers were, of course, aware the
Company was not using the York relay point. The effect of the
change was that the drivers who drove from Urbandale to
Havelock drove less and therefore earned less than they had
earned prior to the strike, and the drivers who drove from
Havelock to the next relay point drove more and therefore
earned more than they had done prior to the strike. Because no
driver’s compensation decreased by 15%, however, the change
did not trigger the bumping provision.
4
After the strike ended, MCA decided to keep the I-80 relay
point at Havelock. Certain employees protested, but MCA
refused to negotiate with the Union over the change.
The Union filed an unfair labor practice charge with the
National Labor Relations Board and the General Counsel issued
a complaint against MCA for refusing to bargain, in violation of
Sections 8(a)(1) and (5) of the National Labor Relations Act, 29
U.S.C. §§ 185(a)(1) and (5). After a hearing, an Administrative
Law Judge held MCA had indeed violated the Act by
unilaterally changing the relay point.
The ALJ first found the change to the relay point materially
affected employees’ wages and working conditions, and was
therefore a mandatory subject of bargaining. See Mail
Contractors of Am., 347 N.L.R.B. No. 88, at 6 (2006) (MCA).
He acknowledged that under the expired CBA management had
the right to change relay points without bargaining, but noted
that under Board precedent, the Union’s waiver of the right to
bargain presumptively expired when the CBA expired. Id.
Although the parties had tentatively agreed to a new contract
that included a similar management rights clause, the ALJ noted
they had never come to a final agreement. Id. at 6-7.
Next, the ALJ rejected MCA’s argument that the
management rights clause in its final offer gave it the right
unilaterally to move the relay point. He acknowledged that the
parties had reached an impasse in negotiations, which would
ordinarily entitle the employer to implement its final offer.
Applying the Board’s decision in McClatchy Newspapers, Inc.,
321 N.L.R.B. 1386 (1996), enf’d, 131 F.3d 1026 (D.C. Cir.
1997), however, he concluded MCA could not lawfully
implement the management rights clause because it granted
MCA unlimited discretion to determine the location of relay
points, and thereby to affect the wages and hours of employees.
MCA, 347 N.L.R.B. No. 88, at 7. The ALJ also rejected MCA’s
5
alternative contention that unilaterally changing the relay point
was permissible as the continuation of a practice that had
developed under the expired contract. Although the 2001 CBA
contained a clause granting MCA discretion unilaterally to
change relay points, MCA had never actually done so while that
agreement was in force. Id. at 7-8.
The ALJ concluded that because neither post-impasse
implementation of the final offer nor the past practice of the
parties gave MCA the right to move a relay point, MCA’s
failure to bargain with the Union, after the strike had ended,
over the move to Havelock from York was an unfair labor
practice. Id. at 8. Accordingly, he ordered MCA to move the
relay point back to York and pay back wages to the drivers
whose routes had been shortened. Id. at 9.
MCA filed exceptions with the Board, a panel of which
unanimously affirmed the findings and conclusions of the ALJ.
Id. at 1 & nn.1-2. Two Members, relying upon McClatchy,
voted to affirm because "the unilateral change had a direct effect
on wages." Id. at 1 n.2. Chairman Battista reasoned more
narrowly that under the 2001 contract the Company gave the
Union advance notice of any relay point change, and "[t]here is
no evidence that a change in this past practice was contemplated
by the newly implemented management-rights clause." Id.
II. Analysis
MCA argues, among other things, that the Board erred in
concluding the Company was not entitled to implement the relay
point provision when negotiations with the Union had reached
an impasse. Because we agree and grant the petition upon that
basis, we have no occasion to reach MCA’s other arguments.
6
A. Standard of review
We apply a deferential standard of review to orders of the
Board, which has "considerable authority to interpret the ...
[Act]. If the Board adopts a rule that is rational and consistent
with the Act, then the rule is entitled to deference from the
courts." Fall River Dyeing & Finishing Corp. v. NLRB, 482
U.S. 27, 42 (1987) (citation omitted). We will, however, set
aside an order "when the Board has failed to apply the proper
legal standard ... or when it [has departed] from established
precedent without reasoned justification." Titanium Metals
Corp. v. NLRB, 392 F.3d 439, 446 (D.C. Cir. 2004).
B. Implementation after impasse
Section 8 of the Act requires an employer to bargain with
the union representing its employees with respect to "wages,
hours, and other terms and conditions of employment." 29
U.S.C. § 158(a), (d). When a CBA expires without a new
agreement having been reached, the employer must continue to
bargain in good faith for a new agreement and maintain the
status quo during negotiations. See NLRB v. Katz, 369 U.S. 736,
743, 746 (1962).
The duty to bargain does not, however, "compel either party
to agree to a proposal or require the making of a concession."
29 U.S.C. § 158(d). The Act "does not contemplate that unions
will always be secure and able to achieve agreement even when
their economic position is weak." H.K. Porter Co., Inc. v.
NLRB, 397 U.S. 99, 109 (1970). The Board is charged only with
ensuring the parties satisfy their duty to bargain; it may not "act
at large in equalizing disparities of bargaining power between
employer and union." NLRB v. Ins. Agents’ Int’l Union, 361
U.S. 477, 490 (1960). Nor may the Board impose a substantive
provision upon the parties. "[A]greement may in some cases be
impossible, and it was never intended that the Government
7
would in such cases step in, become a party to the negotiations
and impose its own views of a desirable settlement." H.K.
Porter, 397 U.S. at 103-04.
Either party to collective bargaining may lawfully insist to
the point of impasse upon any provision related to a "mandatory
subject of bargaining," which is to say "wages, hours, [or] other
terms and conditions of employment." See 29 U.S.C. § 158(d);
NLRB v. Wooster Div. of Borg-Warner Corp., 356 U.S. 342, 349
(1958). An employer may even insist upon a provision granting
it discretion unilaterally to change certain conditions of
employment during the term of the CBA. NLRB v. Am. Nat’l
Ins. Co., 343 U.S. 395, 409 (1952) ("Whether a contract should
contain a clause fixing standards for such matters as work
scheduling or should provide for more flexible treatment is an
issue for determination across the bargaining table, not by the
Board").
When an employer and a union reach an impasse over a
mandatory subject of bargaining, either side may resort to
economic warfare – a strike, a lockout, etc. – and "the
employer’s statutory duty to maintain the status quo during
postcontract negotiations ... end[s]." Laborers Health &
Welfare Trust Fund v. Advanced Lightweight Concrete Co., Inc.,
484 U.S. 539, 543 n.5 (1988). The employer then may "mak[e]
unilateral changes that are reasonably comprehended within his
preimpasse proposals." Am. Fed’n of Television & Radio Artists
v. NLRB, 395 F.2d 622, 624 (D.C. Cir. 1968) (internal quotation
mark omitted). The rationale for this rule is that the employer’s
unilateral imposition of the final offer "breaks the impasse and
therefore encourages future collective bargaining." McClatchy
Newspapers, Inc. v. NLRB, 131 F.3d 1026, 1032 (D.C. Cir.
1997). It "moves the process forward by giving one party, the
employer, economic leverage." Id.
An employer’s right to deploy its economic weapons
8
following an impasse is not absolute: The Supreme Court has
held the Board, in order to facilitate the process of collective
bargaining, may place certain restrictions upon what an
employer may do after impasse. In Charles D. Bonanno Linen
Service, Inc. v. NLRB, 454 U.S. 404 (1982), for example, the
Court upheld a Board order barring an employer from
withdrawing from a multi-employer unit after bargaining had
reached an impasse. Id. at 412. The Court stated more
generally that the Board may "deny an employer a particular
economic weapon ... in the interest of the proper and preeminent
goal, maintaining the stability of the multiemployer
bargaining unit." Id. at 419; see also NLRB v. Great Dane
Trailers, Inc., 388 U.S. 26, 32 (1967) (upholding Board decision
prohibiting employer from granting benefits to strike-breakers
but not strikers because of "discouraging effect on ... future
concerted activity"); NLRB v. Erie Resistor Corp., 373 U.S. 221,
231 (1963) (upholding Board decision prohibiting employer
from granting super-seniority to strike-breakers because
"[s]uper-seniority renders future bargaining difficult, if not
impossible"); cf. Am. Ship Bldg. Co. v. NLRB, 380 U.S. 300, 309
(1965) (holding lockout was not unfair labor practice because
"the employer’s intention was [not] to destroy or frustrate the
process of collective bargaining").
C. The McClatchy doctrine
In McClatchy Newspapers, 299 N.L.R.B. 1045 (1990)
(McClatchy I), the Board announced a new exception to the
implementation-after-impasse rule, again in order to facilitate
post-impasse bargaining. In that case the employer, after an
impasse in negotiations, implemented its proposed merit pay
system, which gave it almost complete discretion to determine
wages. Initially the Board held the employer had committed an
unfair labor practice because the union had not "waived" its
right to bargain over wages. Id. at 1046-47. This court found
the Board’s explanation inconsistent with Board precedent,
9
granted the employer’s petition for review, and remanded the
case for the Board to give a more adequate account of its
position. NLRB v. McClatchy Newspapers, Inc., 964 F.2d 1153,
1153-54 (D.C. Cir. 1992) (per curiam) (McClatchy II). In
separate concurring opinions, Judges Edwards and Silberman
proposed a variety of alternative theories upon which the Board
might justify its result. Among them was Judge Edwards’s
theory that "a unilateral, discretionary merit pay scheme ... may
pose a substantial threat to the union’s role as the employees’
representatives." Id. at 1172. He explained:
If ... the employer can make unconstrained wage
adjustments, the futility of union representation may be
driven home to each employee in much the same way the
unilateral change doctrine seeks to avoid. Admittedly, the
unilateral change doctrine generally presumes that
implementing changes post-impasse does not hurt
collective bargaining. But if the employer can indefinitely
adjust employee wages ... impasse will no longer be [a]
"temporary" phenomenon .... Where the employer has the
unconstrained authority to adjust wages to respond to
changing conditions, it will have substantially smaller
incentives to restart collective bargaining.
Id. at 1172-73 (footnote omitted).
On remand, the Board again held the employer had
committed an unfair labor practice, essentially adopting Judge
Edwards’s rationale. See McClatchy Newspapers, Inc., 321
N.L.R.B. 1386, 1390-91 (1996) (McClatchy III) ("[C]arte
blanche authority over wage increases" would be "inherently
destructive of the fundamental principles of collective
bargaining") (emphasis and footnote omitted). If the employer
had complete discretion to set wages, the Board explained, then
the union would be unable to participate knowledgeably in
further bargaining. Id. at 1391. Moreover, the merit pay
10
provision would "disparage the [union] by showing, despite its
resistance to this proposal, its incapacity to act as the
employees’ representative in setting terms and conditions of
employment." Id. Emphasizing the "paramount importance of
wages as a mandatory subject of bargaining," id. at 1391 n.22,
the Board concluded the provision was "inimical to the policies
of the Act" because it excluded the union "from any meaningful
bargaining as to the procedures and criteria governing the merit
pay plan." Id. at 1391.
McClatchy again petitioned for review, and this time we
enforced the Board’s order. McClatchy Newspapers, Inc. v.
NLRB, 131 F.3d 1026 (D.C. Cir. 1997) (McClatchy IV). Citing
Bonanno Linen, we noted that "the Board has wide latitude to
monitor the bargaining process." Id. at 1031. We deferred to
the Board’s opinion that the provision at issue might
"irreparably undermine [the union’s] ability to bargain. Since
the union could not know what criteria, if any, petitioner was
using to award individual salary increases, it could not bargain
against those standards; instead, it faced a discretionary cloud."
Id. at 1032. We also accepted the Board’s rationale that the
union would appear impotent to its members if it had no
information to relay. Id. at 1033. Recognizing the principle of
Insurance Agents that the Board may not "act at large in
equalizing disparities of bargaining power between employer
and union," id. (quoting Insurance Agents, 361 U.S. at 490)
(alteration and internal quotation marks omitted), we concluded
"this case is marginally closer to Bonanno Linen"; "as in
Bonanno Linen, the Board has denied the employer a particular
economic tactic for the sake of preserving the stability of the
collective bargaining process." Id. Most important for purposes
of the present case, we noted the Board had confined its decision
to provisions governing wages because wages are "a key term
and condition of employment and a primary basis of
negotiations," id. at 1035 (internal quotation marks omitted).
We concluded:
11
[T]he Board is free to draw on its expertise to determine
that wages are typically of paramount importance in
collective bargaining and to suggest that wages, unlike
scheduling or a host of other decisions generally thought
closely tied to management operations, are expected to be
set bilaterally in a collective bargaining relationship.
Id.
The Board has since held employers ran afoul of the rule in
McClatchy in four cases, three of which involved wage
provisions. We approved the Board’s application of McClatchy
to a wage provision that gave "unfettered discretion to the
employers at every stage of the pay determination process,"
Anderson Enters., 329 N.L.R.B. 760 (1999), enf’d, 2 Fed. App’x
1, 3 (2001), but vacated an order in which the Board applied
McClatchy to a relatively nondiscretionary unilateral wage
provision. Detroit Newspaper Agency, 326 N.L.R.B. 700
(1998), vacated sub nom. Detroit Typographical Union No. 18
v. NLRB, 216 F.3d 109, 118 (2000). The First Circuit vacated
the third Board decision, which concerned a provision giving an
employer the discretion either to pay a predefined wage or to
abide by "current marketplace pay practices," and remanded the
case for further consideration. See Edward S. Quirk Co., Inc.,
330 N.L.R.B. 917 (2000), vacated and remanded, 241 F.3d 41,
45 (2001) ("McClatchy is based on employer discretion and
discretion is a matter of degree, implicating policy judgments
informed by Board expertise. However ... the Board owes the
employer and a reviewing court ... a reasoned explanation of
where it draws the line ...."), reinstated, 340 N.L.R.B. 301, 30102
(2003). In the fourth case, which was not reviewed by any
court, the Board applied McClatchy to a highly discretionary
provision involving health benefits. KSM Indus., Inc., 336
N.L.R.B. 133, 135 (2001), modified in part, 337 N.L.R.B. 987
(2002).
12
D. The relay point change
As recounted above, the Board held MCA ran afoul of
McClatchy when it unilaterally imposed a provision reserving
the right to change relay points. That decision was arbitrary and
capricious for three reasons. First, the management rights
provision at issue is utterly unlike the provision in McClatchy or
the provision at issue in any subsequent case to which the Board
has applied McClatchy. Second, it is inconceivable the
provision will jeopardize collective bargaining in the affected
unit – the stated concern underlying McClatchy. Finally, the
Board’s decision here would impinge upon the employer’s
ability to run its business more severely than did McClatchy
itself or any of its sequellae.
First. The Board’s decision is inconsistent with both the
plain terms and the reasoning of McClatchy, which was based
upon and limited by the "paramount importance of wages as a
mandatory subject of bargaining." 321 N.L.R.B. at 1391 n.22.
We expressly predicated our approval of the Board’s decision
upon the distinction between wages and "scheduling or a host of
other decisions generally thought closely tied to management
operations." 131 F.3d at 1035. Indeed, the Board has
consistently limited its application of McClatchy to provisions
giving an employer discretion to determine wages (or, in one
case, benefits) rather than discretion to configure "management
operations" – until this case.
The placement of a relay point is a quintessentially
managerial decision; its location presumably will affect the
efficiency of the Company’s operations but it will have no
material effect upon the Company’s wage bill. If, as a result of
changing a relay point, some drivers lose work, then other
drivers gain as much work; meanwhile, the bumping provision
that MCA implemented as part of its final offer prevents
13
management from manipulating relay points to give
significantly more hours to less senior drivers.
The Board contends the placement of a relay point is
nonetheless subject to the McClatchy doctrine because it will
have a "direct effect on wages." MCA, 347 N.L.R.B. No. 88, at
1 n.2. The effect is no more significant, however, than the effect
of any management decision about the scheduling of work or its
allocation among plants or shifts. Cf. Clinton’s Ditch Coop.
Co., Inc. v. NLRB, 778 F.2d 132, 135, 140 (2d Cir. 1985)
(management’s right to change drivers’ assignments had only
"indirect, limited connection to ... any ... aspect of labor
relations"). In McClatchy IV we deferred to the Board’s view
that wages are such a fundamental subject of collective
bargaining that they are uniquely "expected to be set bilaterally
in a collective bargaining relationship." 131 F.3d at 1035. The
placement of a relay point, with its incidental effect upon wages,
simply is not comparable.
Second. Neither of the pragmatic reasons for the Board’s
holding in McClatchy applies to this case: If an employer could
unilaterally set wages, then the union (1) would be "unable to
bargain knowledgeably" and (2) would appear impotent to its
members because of its "incapacity to act as the employees’
representative in setting terms and conditions of employment."
McClatchy III, 321 N.L.R.B. at 1391. As to the former,
management’s change in the location of a relay point did not
preclude "meaningful bargaining as to the procedures and
criteria governing" wages, id.; nor, because wage rates and other
terms of employment were fixed in nondiscretionary provisions
of the final offer, did the change require the Union to bargain
against a "discretionary cloud." McClatchy IV, 131 F.3d at
1032.
As for threatening to render the Union impotent and
collective bargaining pointless in the eyes of employees, as
14
applied here the idea is fanciful. The change in the relay point
at issue here, like each of the six changes MCA made during the
two year term of the 2001 CBA, was made in response to an
unexpected event. Having moved the relay point merely in
order to keep trucks rolling during the strike, the Company then
found it was more efficient to retain the new location. As the
strike-induced move illustrates, the events that prompt the
Company to change a relay point are both sporadic and
sufficiently unexpected that the parties could not realistically
have addressed them in the CBA; accordingly, management’s
reservation of the right to respond to them posed no realistic
threat to the process of collective bargaining. Were it otherwise,
the Union would not have agreed to the management rights
clause in the 2001 CBA. More significant, with the benefit of
experience under that agreement, the Union tentatively agreed
to the clause again in the 2003 bargaining for a new agreement;
indeed, the bargaining history shows the Union was concerned
not with eliminating management’s right to move relay points
but with adding a more robust bumping provision in order to
protect more senior drivers from any significant loss of work
when a relay point is changed.
Third. The Board’s decision impedes the employer’s ability
after impasse to implement its final offer to a far greater extent
than had any prior decision. Bear in mind that in McClatchy
itself the employer was prohibited only from implementing a
system in which it would have determined wages on a purely
discretionary basis; nothing in that decision bars an employer
from implementing a final offer in which wages are determined
according to fixed criteria. In this case, the ALJ correctly noted
the management rights provision at issue left MCA with
complete discretion to move relay points, MCA, 347 N.L.R.B.
No. 88, at 7, but neither the ALJ nor the Union ever suggested
there might be fixed criteria MCA could have offered and then
implemented after impasse to govern the placement of relay
points. Nor does that seem feasible for, as we have seen, relay
15
points, unlike wages, are changed in response to infrequent and
exogenous events. In other words, because no nondiscretionary
provision appears possible, the Board’s decision would
effectively preclude MCA from ever changing a relay point after
impasse. That would be both anomalous, considering that MCA
was free unilaterally to implement provisions regarding more
fundamental subjects of bargaining, see, e.g., E.I. du Pont de
Nemours & Co., 346 N.L.R.B. No. 55, at 11-12 (2006)
(permitting unilateral imposition of nondiscretionary health care
plan), enf’d, 489 F.3d 1310, 1320 (D.C. Cir. 2007), and
inconsistent with the narrow exception in McClatchy to the
general rule allowing the employer to implement its final offer
after impasse.
The ALJ justified the application of McClatchy to this case
as follows:
Section 8(d) of the Act requires the parties to bargain over
"wages and hours." It would undermine this specific
statutory mandate if an employer could relegate to itself the
discretion to determine [relay points after impasse]. In
addition, to allow an employer to do so unjustifiably affects
the balance of power between labor and management and
thereby undermines an important goal of the Act of
encouraging the parties to reach a collective-bargaining
agreement. This is so because ... if an employer can
relegate to itself this discretion a union’s bargaining
strength is diminished and the likelihood of reaching an
agreement is decreased.
347 N.L.R.B. No. 88, at 7.
The ALJ’s analysis is in effect a broadside attack upon the
implementation-after-impasse doctrine. His concern that an
employer would undermine the statutory mandate to bargain by
unilaterally implementing its final offer after impasse overlooks
16
the very purpose of the doctrine, which is to "break[] the
impasse and therefore encourage[] future collective bargaining
... by giving one party, the employer, economic leverage."
McClatchy IV, 131 F.3d at 1032. His other point – that
unilateral implementation means the union could no longer
"seek concessions from the employer" in return for its
agreement, MCA, 347 N.L.R.B. No. 88, at 7 – ignores the
Supreme Court’s teaching that it is not the Board’s role to
"equalize[e] disparities of bargaining power between employer
and union." Insurance Agents, 361 U.S. at 490.
In affirming the ALJ, the Board rather limply stated only
that "here, as in McClatchy, the unilateral change had a direct
effect on wages," MCA, 347 N.L.R.B. No. 88, at 1 n.2, without
any more particularized examination of the significance of that
effect. The Board gave no reason to believe the relay point
provision here at issue would impede collective bargaining.
Therefore, we think it necessary to reiterate a point we made in
McClatchy IV: The Board must proceed cautiously in applying
the McClatchy doctrine, taking care to tether its applications to
the pragmatic justification for that decision, namely, to facilitate
the process of collective bargaining.
III. Conclusion
For the reasons set out above, we hold MCA, after
collective bargaining had reached an impasse, lawfully relocated
its relay point to Havelock from York pursuant to the
management rights provision of its final offer. Therefore, it did
not commit an unfair labor practice when, after the strike ended,
it kept the relay point at Havelock without first bargaining with
the Union. Accordingly, the petition for review is granted and
the Board’s cross-application for enforcement is denied.
So ordered.
er days for truckers may stick
Bloomberg News
U.S. long-haul truck drivers can continue to spend as much as 11 hours a day behind the wheel, after a federal agency refused to return to lower limits sought by safety advocates.
The U.S. Transportation Department, in an interim rule issued Tuesday, sided with the trucking industry and upheld a 2004 increase in daily driving time from 10 hours. The rule also keeps a 14-hour daily limit for drivers to be on duty.
"There have been a lot of allegations and innuendo" about greater safety risks since the longer workdays began, John Hill, the top U.S. trucking regulator, said Tuesday. "What the data show is that is untrue."
The rule is a win for the American Trucking Associations trade group, whose members include United Parcel Service and YRC Worldwide. Trucking companies said shorter workdays boost costs by requiring more drivers to move the same amount of freight, while consumer groups such as Public Citizen say drivers who work fewer hours are less likely to have accidents.
The new rule also permits drivers reaching 60 hours on-duty in seven days to return to work after 34 hours. Before 2004, they had to wait out the seven-day period.
Public Citizen will challenge the rule in court if the final version retains the longer hours, said Joan Claybrook, president of the organization. Regulators may publish the final rule next year, she said.
APWU NEWS FLASH
October 22, 2007
VIEW FROM THE DRIVERS SEAT The Union is pleased to announce that we have reached an agreement with MCA on bumping rights for the Des Moines Bargaining Unit drivers. Any Driver who is on approved leave and has been off work for more than sixty days, upon returning to work, can use their job seniority to bump into a run. After a Driver has been cleared to return to work, instead of being forced to the extra board, a Driver can then exercise his/her right to bump into any run where the Driver has more job seniority. This has been the Union ’s position all along. MCA came to the same conclusion without fighting another labor charge and did the right thing and agreed the Union was right on this issue. Starting with Union brother Charley Jones returning to work and from this point forward, this position will cover all Drivers under the Des Moines contract (Kansas City Drivers avoid this issue by doing “hold down” bids while on approved leave). Seniority is the corner stone of any Union contract, it insures fair and equal treatment for all working people and to deny a person’s years of service to the company is wrong. By Jeff Kyle | ||||
The Union received more good news in an NLRB case. MCA and the Union have agreed to settle the case against three Union Drivers who were unjustly disciplined for falsifying their daily logs. Before going to trial, MCA agreed to do the right thing and remove the discipline from their employee files and pay the three Drivers for their two day suspensions. Without going into the merits of the case, the Union felt we had a very good case and the company agreed to settle. By Jeff Kyle | ||||
DRIVERS REMEMBER TO DO YOUR COMPLETE PRE & POST TRIP INSPECTIONS
Your JOB & LIFE, AS WELL AS OTHER PEOPLES Lives are ON THE LINE,
SO MAKE SURE YOUR EQUIPMENT IS SAFE & LEGAL TO DRIVE
We All must Do our Part Or None Of us Will Have A job !!! | We are told that MCA’s overall service rating on many USPS contracts is the lowest it has ever been. While I agree that far too many USPS contracts are in danger of Postal action being taken against MCA, I feel that MCA Management has lost sight of how to achieve and maintain “quality service” on its USPS contracts. I feel MCA Management needs to spend less time harassing drivers over their time sheets and more time dispatching open runs. Far too many times 5500’s are issued due to dispatchers not covering a sick or vacationing driver’s run. Our equipment (trucks & trailers) needs to be serviced or repaired better, so drivers have the necessary equipment to perform the job in a timely manner. Drivers also have a responsibility to do his/her job including doing Pre-Trip, Post-Trip and Communicate with both fellow Drivers and Management about issues with that days run. One thing for sure, the 5500’s must stop or the USPS will definitely act to solve the problem. By Lee Gray |
Pursuant to a settlement agreement
Approved by the national labor relations board
MCA and the DMI-AREA Local APWU have reached an agreement that affects Bargaining Unit Drivers (Kansas City & Des Moines). The agreement concerns opt-out rules for the Regular Drivers employee health insurance benefits as of September 1, 2007.
The long and short of the issue is, the fact that the current employee Health Insurance provider (United Health Care) requires Regular drivers who were hired after September 1, 2006 or who have not previously opted out of the health insurance, to have at least Plan B Employee Only coverage. That mean no new opt outs will be allowed by the Health Insurance Company.
The following APWU Locals Jacksonville Florida, West Memphis Arkansas, Greensboro North Carolina, Kansas City Kansas, Des Moines Iowa are currently required to meet the above MCA directed Health Insurance requirements.
As KANSAS CITY & DES MOINES UNITS CBA’sare in effect, we are no longer living under MCA’s “imposed working conditions”. This means drivers have a contract in which the Union can hold MCA accountable to & for their actions. The Collective Bargaining Agreements (CBA’s) will be provided to every Union Member who requests a copy as soon as possible. With a CBA, drivers get to have the right to have their unsettled grievances sent to arbitration. This one thing should make MCA think twice before unfairly disciplining any driver in the future. With a CBA all Union members will have “Union dues-check off” ($9.99 per week) automatically deducted from their weekly pay check. That way, a Union member never has to worry about falling behind in their payment of Union dues. I hope to have MCA start the first weekly payroll deduction as of the first pay period in November (11-9-07). By Lee Gray |
Federal Motor Carrier Safety Administration
Iowa OSHA
http://www.iowaworkforce.org/labor/iosh/
Mail Contractors of America
http://www.mailcontractors.com/main.htm
U.S. Department of Transportation
APWU of Iowa
PO Box 539
Des Moines, IA 50302
United States
ph: 563-599-7725
alt: 515-669-8046
info