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Federal Register/Vol. 76, No. 168/Tuesday, August 30, 2011/Rules and Regulations
16, 1949), promulgating 29 CFR 516.18,
the predecessor to 29 CFR 516.4.
5. The Teamsters 357 Decision
In response to the NPRM, the U.S.
Chamber of Commerce submitted a
comment that questions “‘how the
proposal can be said to be consistent
with” the Supreme Court’s decision in
Local 357, International Brotherhood of
Teamsters v. NLRB, 365 U.S. 667 (1961).
Specifically, the Chamber accuses the
Board of ignoring the Court’s
admonition in that case warning that
“Twl]here * * * Congress has aimed its
sanctions only at specific discriminatory
practices, the Board cannot go farther
and establish a broader, more pervasive
regulatory scheme.” Id. at 675. The
Chamber reads this statement out of
context.
To understand why the Board
disagrees with the Chamber’s view,
further explanation of Teamsters 357 is
necessary. In that case, the Supreme
Court rejected the Board’s conclusion
that a union had committed an unfair
labor practice by operating an exclusive
hiring hall pursuant to an agreement
that contained a nondiscrimination
clause but not three additional clauses
that the Board had previously declared
in its Mountain Pacific decision to be
necessary to prevent “ ‘unlawful
encouragement of union membership.’ ”’
Id. at 671 (quoting Mountain Pacific
Chapter, 119 NLRB 883, 897 (1958)).
The Court first noted that Congress had
examined the operation of hiring halls
and had decided not to ban them. Id. at
673-74. Next, the Court observed that
NLRA Section 8(a)(3) ‘“‘‘does not outlaw
all encouragement or discouragement of
membership in labor organizations; only
such as is accomplished by
discrimination is prohibited.’ ” Id. at
674-75 (emphasis added) (quoting
Radio Officers’ Union v. NLRB, 347 U.S.
17, 42-43 (1954)). Since the hiring hall
agreement at issue in Teamsters 357
“specifically provide[d] that there will
be no discrimination * * * because of
the presence or absence of union
membership,” the Court determined
that the Board was attempting to protect
against nondiscriminatory
encouragement of union membership.
Id, at 675. This was impermissible
because “[wlhere * * * Congress has
aimed its sanctions only at specific
discriminatory practices, the Board
cannot go farther and establish a
broader, more pervasive regulatory
scheme.” Id. at 676.
Properly understood, Teamsters 357
does not preclude the Board from
issuing the notice posting rule. The
union had not committed an unfair
labor practice in that case because its
hiring hall agreement did not encourage
or discourage union membership by
“discrimination.” See id. at 674-75. By
faulting the union for not including in
its agreement clauses that the Board’s
Mountain Pacific rule had declared
necessary to prevent “ ‘unlawful
encouragement of union membership,’ ”’
id. at 671 (quoting Mountain Pacific
Chapter, 119 NLRB at 897), the Board
had attempted to regulate hiring halls in
a manner that was facially inconsistent
with the discrimination requirement
embedded in NLRA Section 8(a)(3) and
(b)(2). Accordingly, the Chamber makes
too much of the Court’s statement
prohibiting the Board from
“establish[ing] a broader, more
pervasive regulatory scheme” when
“specific discriminatory practices’ have
already been outlawed. Id. at 676. By
that, the Court simply meant to remind
the Board that it may not
administratively amend Section 8(a)(3)
and (b)(2) to prohibit nondiscriminatory
activity that might be viewed as
undesirable because those statutory
sections are clearly aimed only at
“specific discriminatory practices.”
Id.46
This rulemaking does not involve
those provisions of the NLRA that
Teamsters 357 addressed. Accordingly,
the Board does not view that case as
controlling the outcome of this
proceeding.
6. Miscellaneous Matters
The Center on National Labor Policy,
Inc., argues that the Board ‘‘must be
mindful of the Supreme Court’s
admonition in Lechmeref, Inc.] v. NLRB,
502 U.S. 527, 534 (1992), that an
employer possesses First Amendment
rights to its property.’’ The Board
disagrees that the property rights
discussed in Lechmere emanate from
the First Amendment, see Thunder
Basin Coal Co. v. Reich, 510 U.S. 200,
217 n.21 (1994) (“The right of
employers to exclude union organizers
from their private property emanates
from state common law * * *.”), and to
the extent that the Center’s reference to
the First Amendment asserts a conflict
between these regulations and
employers’ right to free speech, that
argument is rejected for reasons
explained above. After quoting
extensively from Lechmere, the Center
next contends that “‘if a union has no
access to company property to
communicate with employees, neither
46 To the extent that the Board espoused a
contrary view of Teamsters 357 in a prior
rulemaking proceeding, that view is abandoned. See
Union Dues Regulation, 57 FR 43635, 43637-38
(Sept. 22, 1992), withdrawn, 61 FR 11167 (Mar. 19,
1996).
does the Board without Section 10(c)
authority.” The Board rejects this
argument because it fails to recognize
the important substantive difference
between the conduct at issue in
Lechmere, which involved “‘trespassory
organizational activity’”’ by
nonemployees on the employer’s
grounds, id. at 535 (quoting Sears,
Roebuck & Co. v. San Diego Dist.
Council of Carpenters, 436 U.S. 180, 205
(1978)), and the regulations here which
involve nothing more than the
employer’s responsibility to post an
official notice of legal rights.
The Portland Cement Association
(PCA) comments that the Board’s failure
to place the three law review articles
that the Board cited to the NPRM #7 in
the administrative docket is arbitrary
and capricious. Although the Board
provided the legal citations for these
articles, PCA believes that it should not
have to pay an electronic legal reporting
service to access the material. The Board
has placed these articles in the hard
copy docket, but has not uploaded these
articles to the electronic docket at
http://www.regulations.gov, because
such an action could violate copyright
laws.48
Finally, one comment contends that
requiring employers to set aside wall
space for posting the notices violates the
Takings Clause of the Fifth Amendment
to the U.S. Constitution. The comment
cites no authority for this proposition,
which would seem to invalidate the
notice-posting requirements under all
other Federal and state workplace
statutes. Accordingly, the Board rejects
this contention.
In conclusion, the Board believe that
it has fully demonstrated that it
possesses sufficient statutory authority
to enact the final rule, and therefore that
it is not “‘in excess of statutory
jurisdiction” or “short of statutory
right’ within the meaning of the
Administrative Procedure Act, Section
706(2)(C), 5 U.S.C. 706(2)(C).
C. Factual Support for the Rule
As stated above, the Board found that
the notice posting rule is needed
because it believes that many employees
are unaware of their NLRA rights and
therefore cannot effectively exercise
those rights. The Board based this
finding on several factors: the
comparatively small percentage of
private sector employees who are
represented by unions and thus have
ready access to information about the
47 See NPRM, 75 FR 80411 and fn. 3 above.
48 The Board has also placed the other non-case
materials cited to in this final rule into the hard
copy docket.
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