[00:00:00] Speaker 04: Case number 17-1122 at L. International Union of Operating Engineers, Local 18 Petition [00:00:39] Speaker 03: Good morning, Your Honor. [00:00:40] Speaker 03: Thank you. [00:00:40] Speaker 03: May it please the Court, Timothy Ronald Fadal on behalf of the Petitioner Cross Respondent International Union of Operating Engineers. [00:00:50] Speaker 03: With leave of the Court, we respectfully request five minutes of rebuttal time. [00:00:57] Speaker 03: Collective bargaining is an attempt to erect [00:01:00] Speaker 03: a system of self-government, utilizing agreed-upon rules which seek to avoid leaving matters subject to a temporary resolution dependent solely upon the relative strength at any given time of the contending forces. [00:01:14] Speaker 03: It is therefore long been federal policy to promote the use of collective bargaining as a way to ensure industrial stability and peace. [00:01:25] Speaker 03: It has also long been federal policy to encourage the use of the grievance and arbitration procedure as a process to resolve any disputes arising under the collective bargaining process. [00:01:38] Speaker 03: The policy favoring collective bargaining and the policy favoring arbitration of disputes arising in a labor setting under a collective bargaining agreement is no less applicable in cases where the dispute between the parties is a jurisdictional dispute. [00:01:54] Speaker 03: Indeed, the legislative history of Section 10-K of the Act, which was created to address jurisdictional disputes, demonstrates that Congress, when it passed that Act, intended that it would spur the parties, the employers, [00:02:11] Speaker 03: the unions to take it upon themselves, amongst themselves, to create a system of governance that would potentially avoid the need for the court to invoke, or excuse me, for the board to invoke its authority under Section 10-K and resolve a jurisdictional dispute. [00:02:29] Speaker 03: The congressional intent [00:02:31] Speaker 03: to allow the parties to collectively bargain in a way to avoid jurisdictional disputes was wholeheartedly adopted by the parties in this case. [00:02:40] Speaker 03: For decades, Local 18 has engaged in a collective bargaining process with the employers at issue in this case through their representatives. [00:02:50] Speaker 03: to create a collective bargaining system that is designed to avoid any possibility or semblance of jurisdictional disputes, and it does that collective bargaining relationship does so in several significant ways. [00:03:02] Speaker 03: First and foremost, the collective bargaining agreements that were negotiated by these parties specifically identify the type of work [00:03:10] Speaker 03: That belongs to the operating engineers and the employer specifically in entering into that collective bargaining agreement specifically acknowledge what work is properly within the union's jurisdiction. [00:03:23] Speaker 03: That work for decades has include included forklift and skid steer work. [00:03:29] Speaker 03: In addition to specifying the work that should be assigned to the operating engineers under the collective bargaining agreement, the collective bargaining agreement itself also provides a mechanism in case there is any dispute or misassignment of that work. [00:03:43] Speaker 03: Specifically, the collective bargaining agreement envisions a scenario where the employer may elect to assign work specifically identified in that collective bargaining agreement to somebody other than an operating engineer. [00:03:55] Speaker 03: In those circumstances, a collective bargaining agreement limits Local 18 in not seeking an assignment of that work. [00:04:03] Speaker 03: Instead, Local 18 is limited to seeking only damages that are directly attributable to that misassignment of work. [00:04:10] Speaker 03: And for years, when there were disputes about the assignment of forklifts and skid steers, that dispute was resolved in that manner, through the filing of a grievance and, if necessary, the arbitration of that grievance. [00:04:22] Speaker 03: In this case, the underlying facts relied upon by the board to resolve this case, as found by the ALJ, acknowledge that, and acknowledge that over the relevant period of time that the ALJ examined, there were no fewer than 13 settled grievances. [00:04:37] Speaker 03: where the operating engineers, local 18, documented an instance where a piece of equipment was assigned specifically a forklift or a skid steer to somebody else and the employer agreed not to invoke 10K but to honor the mandates of the collective bargaining agreement and in fact pay the damages as called for by the collective bargaining agreement. [00:05:00] Speaker 03: This long-established practice that had peacefully resolved these jurisdictional disputes for decades was rendered asunder when the employers took it upon themselves to avoid their obligations by engaging in essentially collusion with a third party, an outside labor organization, intended to ensure that they could reassign this work away without having to pay the damages. [00:05:27] Speaker 03: And they would do so by invoking Section 8B-4 or Section 10K of the Act and subsequently 8B-4D of the Act. [00:05:34] Speaker 03: And when they did so, when they attempted, and in that vein, this dispute does not arise from a misassignment of work. [00:05:46] Speaker 03: This dispute, why we are here today, is not because there is an employer that elected to assign work out of a bargaining unit. [00:05:55] Speaker 03: The dispute is the employer's refusal to honor and obey or honor and adhere to [00:05:59] Speaker 03: the terms and conditions of the damages clause in the collective bargaining agreement, which specify damages. [00:06:05] Speaker 03: The assignment is not what the union is after, merely it's damages. [00:06:09] Speaker 03: And they, for decades, there was free and fair collective bargaining agreement between these parties that specifically calls for damages. [00:06:17] Speaker 03: And to the extent that the board has invoked its Section 10K authority and subsequent authority under 8B4D of the Act, [00:06:24] Speaker 03: to render Local 18's grievances seeking damages an improper violation of its assignment of work under the 10K, that does harm to the fundamental purpose of the National Labor Relations Act, which is to encourage collective bargaining and the use of the grievance and arbitration procedure. [00:06:42] Speaker 03: And that damage and that violence to the National Labor Relations Act's fundamental purpose is further exacerbated in this case when there is clearly a way to honor both. [00:06:52] Speaker 03: where the section 10 case mandates of resolving jurisdictional disputes can still be honored and the assignment that the board awarded can still be honored as can the deference that needs to be paid to the party's decision to collectively bargain for a liquidated damages clause. [00:07:09] Speaker 03: In this case, that would simply go by the employers continuing to assign the work as they see fit while simultaneously paying damages in those instances where grievance was brought and damages were asserted and deemed to be justified or necessary. [00:07:26] Speaker 03: So to the extent that this board's ruling has invaded and done harm to the fundamental purpose of the act, the inner, excuse me, the respondent would believe that it needs to be addressed by this court. [00:07:38] Speaker 01: This is work that Local 310 had always been doing, right? [00:07:41] Speaker 03: This is work that Local 18 had always been doing, Your Honor. [00:07:45] Speaker 03: The collective bargaining agreements that issue in this case state... What am I missing in the facts? [00:07:49] Speaker 01: They thought the laborers had been traditionally doing this work. [00:07:52] Speaker 03: The testimony offered by the intervening employers was that, in some situate, their claim was that the laborers had always been performing this work. [00:08:02] Speaker 03: The ALJ did not find that to be the case. [00:08:05] Speaker 03: Whether you examine whether the work had been performed under a fractured bargaining unit that the analysis that the board adopted or the broader bargaining analysis that the union asserts is a proper analysis, both will show that this work had, in fact, been performed by Local 18 in the past. [00:08:22] Speaker 03: As it relates to the specific employers utilizing the fractured bargaining unit analysis adopted by the ALJ and the board, no fewer than two of the employers in this case, Independence and R.G. [00:08:34] Speaker 03: Smith, have a history of assigning this type of work specifically to the operating engineers. [00:08:39] Speaker 03: And that was a fact that was found by the ALJ and a factual finding that was not disturbed by the board. [00:08:45] Speaker 03: In the context of the larger multi-employer bargaining unit, the ALJ found as a matter of fact that there were hundreds of instances over the relevant time period where Local 18 actually performed the work in dispute. [00:08:59] Speaker 01: Did the ALJ find that the laborers had done this a lot? [00:09:03] Speaker 03: The ALJ found that the laborers had in fact performed this work as well. [00:09:07] Speaker 03: Yes, Your Honor. [00:09:07] Speaker 03: There was not neither Local 18 nor the laborers had an exclusive assignment to this work. [00:09:15] Speaker 01: My understanding from the record, and again I have to look back on this, was that the essential holding was that the laborers, much more so than the operating engineers, had been doing this work, even though the operating engineers had done some. [00:09:29] Speaker 03: That essential holding was based upon factual findings utilizing an analysis where the board avoided looking to the multi-employer bargaining unit as a whole. [00:09:40] Speaker 01: You're saying that you agree that it's a factual finding, but you think it's clearly erroneous? [00:09:44] Speaker 03: I believe that the factual finding was only reached because the board was able to ignore the hiring and... Are you saying the finding was clearly erroneous? [00:09:52] Speaker 03: I'm saying the finding is not supported by substantial evidence in light of the board's other findings. [00:09:56] Speaker 01: But you agree there is this finding? [00:09:58] Speaker 03: I agree that the board did make the determination that the laborers had in fact performed this work for a limited number of employers, but the employers that the board made the determination that the laborers performed the work for were limited to the interveners in this case. [00:10:12] Speaker 03: So essentially the board made that determination by looking at the only people who were complaining about the labor or local 18 requesting this. [00:10:19] Speaker 03: The collective bargaining agreement that we're talking about between these parties that creates the work preservation defense [00:10:24] Speaker 03: and that identifies a multi-employer bargaining unit as the appropriate unit. [00:10:31] Speaker 03: There is no question that that unit involves and includes hundreds of different employers. [00:10:35] Speaker 03: The ALJ found as much. [00:10:38] Speaker 03: That being said, Your Honor, when the Board went to analyze whether or not this work was appropriate for work preservation defense, [00:10:47] Speaker 03: It looked only to the hiring practices, not to the multi-employer unit as a whole, but to the individual hiring practices of each individual employer. [00:10:55] Speaker 03: And in so doing, was able to effectively make the determination, well, Local 18 never did this work for this individual employer. [00:11:02] Speaker 03: It ignored what it was required to do by its own general counsel's memorandum. [00:11:06] Speaker 03: to address whether or not that work is fairly claimable in the multi-employer bargaining unit as a whole that was created under that collective bargaining agreement. [00:11:15] Speaker 03: And with that, I notice, oh, John? [00:11:17] Speaker 02: You're into your rebuttal time that you reserved, if you want to? [00:11:20] Speaker 01: Let me, I'd like to ask one other question. [00:11:23] Speaker 01: Howard is essentially arguing in this case that you're raising something that has been disposed of. [00:11:32] Speaker 01: These matters have already been litigated. [00:11:34] Speaker 01: I believe the honor is referring to the Sikh Turk's opinion. [00:11:44] Speaker 03: Your honor, the only time the boards, those disputes were addressed and raised in a Section 10K proceeding underneath. [00:11:53] Speaker 03: That Section 10K proceeding is not a full and true adjudication of the rights. [00:11:58] Speaker 03: It's an intermediary step. [00:12:01] Speaker 01: I think at least on one of them, there was a following ULP proceeding. [00:12:05] Speaker 03: There was an AOJ proceeding by Judge Karisini. [00:12:07] Speaker 01: And it was, and their argument is, they've been resolved. [00:12:11] Speaker 03: They have been resolved, but in resolving it, the board applied the wrong law. [00:12:15] Speaker 01: But wait, the question is whether you can relitigate. [00:12:19] Speaker 03: The union is not seeking to relitigate the assignment of work, Your Honor. [00:12:22] Speaker 03: It is only seeking to relitigate whether or not its continued pursuit of its grievances in light of that assignment is prohibited under Section 8B40 of the Act. [00:12:30] Speaker 03: So the assignment of a work will stand, unless the employers elect to reopen the hearings based upon changed circumstances, which they are permitted to do. [00:12:38] Speaker 02: Were you seeking to preserve only the work that this union had previously done? [00:12:45] Speaker 03: We will seek and preserve the work that the employers have agreed to assign to the operating engineers by voluntarily entering into these collective bargaining agreements that identify that work. [00:12:54] Speaker 03: So is that a no? [00:12:55] Speaker 03: We will seek to preserve and protect that work which we have performed. [00:12:59] Speaker 03: In those situations, within the multi-employer bargaining unit, if we have not performed that work for an individual employer, but have a practice of performing it within the multi-employer bargaining unit as a whole, we would still pursue our claims against the individual employer. [00:13:12] Speaker 03: That is a deal which they agreed to. [00:13:14] Speaker 01: And the board said under the Act, there was a dispute here. [00:13:16] Speaker 01: The employer was getting squeezed by Local 18 and Local 310. [00:13:21] Speaker 01: That's exactly when the board can come into the situation. [00:13:25] Speaker 01: Why would an employer – the employer was being squeezed, and so they want a resolution on it. [00:13:30] Speaker 03: The employer was being squeezed not by two competing demands for the assignment of the work, which is what 10K envisions. [00:13:35] Speaker 01: The employer is being – You weren't demanding a work? [00:13:37] Speaker 03: We were demanding – we were demanding damages for failure to assign that work. [00:13:41] Speaker 01: My understanding was you first said we want the work, and when they said it's [00:13:46] Speaker 01: The laborers, then you say, well, we're entitled to damages. [00:13:49] Speaker 01: You just came in and said, we'll take damages. [00:13:50] Speaker 01: That was all that happened to you? [00:13:52] Speaker 03: That is what the collective bargaining agreement specifically calls for. [00:13:54] Speaker 01: No, no, that's not my question. [00:13:55] Speaker 01: That is exactly what happened here. [00:13:57] Speaker 01: So my understanding of the record is wrong. [00:13:59] Speaker 01: The union never made a request for the work. [00:14:02] Speaker 03: Your Honor, the demand for damages is based on a right to the work under the collective. [00:14:06] Speaker 01: That's not my question. [00:14:07] Speaker 01: Please note that this is really important because then I'm completely confused about your theory. [00:14:12] Speaker 03: Your honor. [00:14:13] Speaker 01: My understanding is the union said this is our work. [00:14:15] Speaker 01: We want our work. [00:14:16] Speaker 03: It is our work under the collective bargaining agreement. [00:14:18] Speaker 01: And then when you think you get the wrong answer, then you're saying, well, you have to pay us now. [00:14:23] Speaker 03: The work has been collectively bargained to be assigned to the operating engineers. [00:14:27] Speaker 03: And we have pointed out to these employers by filing these grievances that seek damages that by failing to assign. [00:14:33] Speaker 01: I'm not answering my question. [00:14:35] Speaker 01: Didn't you demand the work? [00:14:38] Speaker 03: Yeah, by virtue. [00:14:39] Speaker 03: Yes. [00:14:40] Speaker 03: Yes, your honor. [00:14:40] Speaker 03: We requested the work, but when the employer, but when the employer made the work, you demanded the work. [00:14:45] Speaker 01: That's all I'm asking. [00:14:46] Speaker 01: Yes, then that makes it clear to me that the NLR. [00:14:50] Speaker 01: applies and that the board may have a role. [00:14:52] Speaker 01: Of course you demanded the work. [00:14:54] Speaker 03: But when another party demanded the work, the local 18 said, we will no longer demand it. [00:14:59] Speaker 03: We will instead request only damages. [00:15:01] Speaker 03: And in processing each of his grievances, it utilized what we refer to as Miranda cards, which are specific cards that were handed to the employer at the time the grievance was filed that specifically disclaimed any assignment of the work and instead pointed out that we were only seeking damages. [00:15:16] Speaker 03: for the Mississippi. [00:15:17] Speaker 01: So you're saying if at that point the employer said, okay, you can have it, you would have turned it away? [00:15:22] Speaker 03: No, at that point we would no longer have a basis to file agreements at that point, Your Honor. [00:15:27] Speaker 03: There would be no longer any violation of the collective bargaining agreement. [00:15:31] Speaker 03: Thank you. [00:15:40] Speaker 05: Good morning. [00:15:41] Speaker 05: I'm Heather Beard for the NLRB, and we seek enforcement of the board's order against Local 18. [00:15:47] Speaker 05: So to begin, I agree with my opposing council. [00:15:51] Speaker 05: Congress intended to make Section 10K proceedings the peaceful and binding final determination of work assignments between unions. [00:15:58] Speaker 05: Here we have two unions competing demands for the same work. [00:16:02] Speaker 05: And the losing union here, my opponent, here's where I disagree, they cannot continue to flout the board's section 10K determinations either by seeking the work which they are seeking [00:16:13] Speaker 05: or by pursuing and filing grievances to get pay in lieu of the work. [00:16:18] Speaker 05: Both of those have been held by the circuit courts, including I believe this court in Sealand, that even seeking damages in lieu of the work is the same essentially as requesting the work in that any sort of distinction [00:16:32] Speaker 05: is ephemeral because if an employer is to give damages to one union versus the other union, the statutory provision against threatening or coercing an employer to give work to another labor union is invoked. [00:16:47] Speaker 05: And so under well-settled case law under Section 10K and 8B42D, that I do not believe Local 18 has even challenged in their opening brief with regard to the distinction, ephemeral as it may be, between seeking work and seeking damages. [00:17:03] Speaker 05: That was not challenged as something that was legally untoward by the board. [00:17:09] Speaker 05: So insofar as that is concerned, this is a classic Section 10K determination that the board made. [00:17:16] Speaker 05: Now, we also agree [00:17:17] Speaker 05: that the policy, national labor policy, does favor collective bargaining and arbitration. [00:17:23] Speaker 05: However, Section 10-K is not in conflict with this. [00:17:26] Speaker 05: When you have two unions, as you did here, that have two separate collective bargaining agreements, two competing claims for work, [00:17:33] Speaker 05: The very reason that the section was introduced was to keep commerce flowing and to keep the employer in business and able to give the work to one of the unions. [00:17:47] Speaker 05: And in this instance, when there is a section 10K determination, there are three threshold determinations that the board made. [00:17:53] Speaker 05: The board made those four different times throughout the course of this dispute, starting the work site at Donley's, [00:18:01] Speaker 05: making demands for the work to the entirety of the multi-employer unit, the CEA. [00:18:06] Speaker 05: Then they made demands to the employer's KMU, 21st Century, and then to Narone. [00:18:14] Speaker 05: And in all of those instances, the board found the three threshold issues it needed to determine a 10K. [00:18:20] Speaker 05: There were two complete competing claims for work. [00:18:23] Speaker 05: There was a prescribed means of seeking it, which was a strike threat, and here we have [00:18:29] Speaker 05: two strike threats that were made by the laborers when the employers told them, look, if we assign the work to the other union, you all are not going to get the work. [00:18:38] Speaker 05: And there was a strike threat that was made. [00:18:40] Speaker 05: And the board found in not only all four 10K determinations, but in the earlier ULP determination [00:18:49] Speaker 05: that was sparked after the first two 10Ks in Donley's Four, which was enforced by the Sixth Circuit, that there was no evidence presented by the local 18 of any collusion to create a sham jurisdictional dispute. [00:19:04] Speaker 05: All of that was rejected by the board four times and a fifth time in an unfair labor practice hearing. [00:19:10] Speaker 05: And so then we moved to the third threshold finding in a 10K determination, which is [00:19:15] Speaker 05: no voluntary method for the settlement of the dispute. [00:19:18] Speaker 05: And this is what I think is really important. [00:19:20] Speaker 05: My opponent's presentation was we could move on and we can just give the work to one union and pay damages to the other. [00:19:29] Speaker 05: The problem with that is that there is no voluntary method between all three parties to resolve this dispute. [00:19:35] Speaker 05: And so once the board makes that finding, those threshold findings, it goes on and gives [00:19:41] Speaker 05: the laborers or whichever union is before it, the opportunity to fight it out in front of the board as to who should get the work. [00:19:49] Speaker 05: And then there's five different merits findings that the board makes as to which union should be assigned the work. [00:19:56] Speaker 05: And then that is supposed to be it so that we can continue and the employers can continue to get their work done. [00:20:02] Speaker 05: This case is an example. [00:20:04] Speaker 05: A lot of complicated [00:20:06] Speaker 05: potential, lots of facts, but all of them are in the simple classic board 10K 8B42D rubric. [00:20:17] Speaker 05: The issue here that my opponent has raised throughout the briefs is that they have an affirmative defense, which is their burden to prove that they were merely seeking to preserve their own work. [00:20:29] Speaker 05: But as my opponent admitted to this court, the board made findings that with regard to all of the employers who were charging parties, not just regarding Donley's Four with those employers, but here, [00:20:43] Speaker 05: The charging employers here that the laborers did, as Judge Edward points out, do the majority of that work other than in rare and isolated instances. [00:20:52] Speaker 05: And those instances were for independents and R.G. [00:20:54] Speaker 05: Smith. [00:20:55] Speaker 05: And there was testimony in, exhaustively, the Donley's 410K, rather, 8B42D proceeding about those, the work done for these charging party employers. [00:21:06] Speaker 05: And there was, in the following, 210K. [00:21:09] Speaker 02: They did do work for these employers. [00:21:13] Speaker 02: before this kind of work. [00:21:16] Speaker 05: Yes, there were isolated instances where local 18 folks were in the seats of the skid steers. [00:21:22] Speaker 05: Yes, in the forklift. [00:21:23] Speaker 02: But what the board found was that... Aren't they then seeking to preserve their ability to do that kind of work? [00:21:31] Speaker 05: Under the board's test for work preservation, no, Your Honor. [00:21:34] Speaker 05: Under the board's test for work preservation, the employer, rather, the union needs to demonstrate who's making that claim that they [00:21:42] Speaker 05: are not trying to acquire new work. [00:21:45] Speaker 05: And one of the most important factors is whether they've done it exclusively. [00:21:48] Speaker 05: And here, because the union has not done it exclusively, indeed most of the time for the last 30 years, as Local 18 itself admitted, this work has been done by the laborers. [00:21:58] Speaker 05: And so if there are isolated instances, which the board found in the Shepard case not to be sufficient, that does not preclude a finding that the work is not being preserved because they're trying to grab [00:22:10] Speaker 05: all of the work at these particular projects. [00:22:14] Speaker 05: So the union's argument is not even in its reply brief, if I'm correct, that there's so much work that was done here for these charging party employers that the union is preserving it. [00:22:27] Speaker 05: Their argument is, let's do a test, the fairly claimable test throughout the entirety of the multi-employer unit. [00:22:33] Speaker 05: and find that dotted throughout there's some instances of Local 18 doing the work. [00:22:38] Speaker 05: The problem with that, that would completely eviscerate Section 10-K under the Act because the first threshold finding is whether there are two competing claims. [00:22:47] Speaker 05: So yes, there are going to be two competing claims here, but when the board goes through the threshold procedures and determines that what's happening is Local 18 is trying to take work, [00:22:58] Speaker 05: that it hasn't done for 30 years, it meets the board's classic. [00:23:02] Speaker 02: What if a union's just trying to preserve its share of the work that it previously had? [00:23:06] Speaker 05: If a union is trying, which would be a different case, that would definitely be a different story because what would be looked to is whether or not they're trying to get more than was just the work that they had performed. [00:23:18] Speaker 01: So yes, if that was the case, that would be different, but here... You're saying the threat for damages [00:23:24] Speaker 01: under the contract subsumed all of the work, not just the isolated instances that they had done. [00:23:31] Speaker 05: No, again, what I'm saying more precisely, Your Honor, thank you for the opportunity to clarify, is that the work that they were seeking under their grievances was work at the individual project sites of the employers that they had not been performing, just at those sites. [00:23:46] Speaker 05: That's what I was saying, Your Honor. [00:23:49] Speaker 01: That they had not been performing. [00:23:50] Speaker 01: Correct. [00:23:50] Speaker 05: Correct, not that they had not been performing. [00:23:53] Speaker 01: My question was, were they seeking grievance damages for work? [00:24:02] Speaker 01: Yes. [00:24:03] Speaker 01: Yes. [00:24:05] Speaker 01: Yes, Your Honor. [00:24:06] Speaker 01: Yes, Your Honor. [00:24:06] Speaker 05: And so for those reasons and for all of the reasons in our brief, we would ask that this controversy with regard to who gets the work at these particular job sites be resolved and that the board's order be enforced. [00:24:23] Speaker 01: What's the thrust of your relitigation point? [00:24:27] Speaker 05: The thrust of our re-litigation point is that with regard to collusion first, they cannot re-litigate the issue of collusion. [00:24:37] Speaker 05: The board has held in the case standard drywall that collusion being a threshold issue in a 10K determination is not properly re-litigated in AP42D. [00:24:46] Speaker 05: Nonetheless, the board also went ahead and said, even if we're wrong on the relitigation point, the evidence that's been put in throughout all of these cases and proffered, actually, is not sufficient in any event to demonstrate that there was any prejudice to them by not including it because it wouldn't meet the standard for collusion. [00:25:07] Speaker 05: Relitigation regarding the work preservation issue is a similar argument we're making, which is the board determines [00:25:13] Speaker 05: that a threshold issue in the 10K for which work preservation would be kind of an affirmative defense is done once the 10K has been completed. [00:25:23] Speaker 05: Now, in this instance, however, we have the unique situation where the board in Donnelly's Four did actually let them re-litigate work preservation once and bring in evidence. [00:25:33] Speaker 05: And so our position with regard to re-litigation in the... What, preceding the Donnelly's Four? [00:25:38] Speaker 05: There were two 10 K's before Donley's four and then Donley's four which was the ULP proceeding the board did allow in a lot of evidence on the multi-employer bargaining units and who was doing the work and then Determined that the correct test is one that looks to the charging party employers and not to the multi-employer unit and so our position is they shouldn't now after having a [00:26:01] Speaker 05: two 10Ks, a ULP determination, then two more 10Ks, relitigate the work preservation. [00:26:08] Speaker 01: Wait, are you saying the Sixth Circuit, affirming the board, takes care of all this? [00:26:15] Speaker 01: Is that what you're saying? [00:26:16] Speaker 05: The Sixth Circuit is definitely precedent that the work preservation defense [00:26:22] Speaker 05: is a defense they must prove as to not wanting to acquire work in the charging party employer units at issue. [00:26:31] Speaker 05: So Donley's Four, which was addressed by the Sixth Circuit, found it was appropriate for the board to take a look at work preservation only in terms of the charging party employer. [00:26:40] Speaker 05: So yes, that was determined in the Sixth Circuit upholding Donley's Four. [00:26:44] Speaker 02: Thank you very much. [00:26:45] Speaker 02: We'll hear from the intervener. [00:27:03] Speaker 00: Good morning, your honors. [00:27:06] Speaker 02: Good morning. [00:27:07] Speaker 00: May it please the court. [00:27:08] Speaker 00: My name is Meredith Shoop. [00:27:09] Speaker 00: I'm here on behalf of the charging party intervening employers in this case. [00:27:17] Speaker 00: I think it's worth explaining up front that in the construction industry, employers join multi-employer bargaining units. [00:27:27] Speaker 00: And those multi-employer associations negotiate contracts with various trade unions. [00:27:34] Speaker 00: In this case, in relevant part, the Construction Employers Association, for example, negotiated contracts with Laborers Local 310 and Operating Engineers Local 18. [00:27:47] Speaker 00: Operating Engineers Local 18's jurisdiction spreads throughout the state of Ohio and beyond. [00:27:54] Speaker 00: I believe it's either every county or almost every county in the state of Ohio. [00:27:59] Speaker 00: Laborers Local 310's jurisdiction is just a very small subset of the state of Ohio that's right around Cleveland, Ohio, around Cuyahoga County. [00:28:09] Speaker 00: The reason I mention this is because we have two collective bargaining agreements with inconsistent obligations on behalf of the employers, right? [00:28:19] Speaker 00: So that's exactly what Section 10K was designed to resolve. [00:28:23] Speaker 00: For employers who found themselves caught in the middle of work jurisdiction disputes between two unions. [00:28:28] Speaker 00: That's why Section 10K was introduced into the law. [00:28:32] Speaker 00: Under these circumstances, employers can, and in this case did, petition the board for a resolution. [00:28:39] Speaker 00: In order to resolve that issue, the board first looks to whether there's an actual dispute over the work, and if so, it reviews a number of factors, including the employer's past practice, efficiency, safety, the area practice, the industry practice, and the employer's preference. [00:28:57] Speaker 00: On balance, it then makes a determination as to which union should perform the work. [00:29:01] Speaker 00: This is basic Section 10K determination. [00:29:04] Speaker 00: However, at the Section 10K hearing, if an employer were to have manufactured a work jurisdiction dispute by, for example, unilaterally reassigning work that had been historically performed by one trade to assigning it to another trade, then the union whose members had historically done that work has an affirmative defense that renders a Section 10K determination inappropriate. [00:29:29] Speaker 00: This is the true work preservation defense. [00:29:32] Speaker 00: It can be seen, just for example, in the case like Machinist District 190, which is a 2005 NLRB case. [00:29:40] Speaker 00: That's the work preservation defense. [00:29:43] Speaker 00: Here, the operating engineers propose to turn the work preservation defense into a mechanism to undermine the entire purpose of Section 10K. [00:29:53] Speaker 00: as applied to employers who are members of these multi-employer bargaining associations. [00:29:58] Speaker 00: In particular, the operating engineers seek to assert work preservation where the work would otherwise be fairly claimable under Section 8B42B of the National Labor Relations Act. [00:30:11] Speaker 00: That is the hot cargo provision. [00:30:14] Speaker 00: I would just like to emphasize that cases under Section 8B42B say that a union can assert financial pressure to prevent employers with whom it has contracts from subcontracting work, for example, to non-union employers. [00:30:28] Speaker 00: That's a different circumstance. [00:30:32] Speaker 00: Specifically, unions can do that if the work in question is fairly claimable, meaning that it's the work that their members do. [00:30:40] Speaker 00: In hot cargo cases, [00:30:42] Speaker 00: The unit is applying pressure to encourage the employer to follow a contractual clause. [00:30:50] Speaker 00: It is not about not contracting work out to, for example, non-union employers. [00:30:54] Speaker 00: Here, under section 10K and section 8B4D, that standard makes no sense. [00:31:02] Speaker 00: If an employer has historically assigned work based on a composite crew, who has ever had consistencies in work assignment, or as in this case, is just a member of a multi-employer bargaining association, where that work is sometimes assigned to [00:31:17] Speaker 00: the competing union, then both of the unions could assert that the work was fairly claimable. [00:31:24] Speaker 00: Right? [00:31:24] Speaker 00: So under that analysis, Section 10-K would be rendered useless. [00:31:28] Speaker 00: It could not resolve work jurisdiction disputes that it was designated to address. [00:31:32] Speaker 00: And that is why the whole fairly claimable standard simply cannot apply. [00:31:38] Speaker 00: It puts employers back in the situation they were in before they ever filed a charge. [00:31:43] Speaker 02: Thank you very much. [00:31:44] Speaker 00: Thank you. [00:31:48] Speaker 02: You may have two minutes for a bottle. [00:31:50] Speaker 03: Thank you, Your Honor, and I will be brief. [00:31:57] Speaker 03: From local 18's perspective, the instances of its members performing this work for the employers that were part of the multi-employer bargaining unit or just part of the respondents to the board's case were not isolated instances. [00:32:09] Speaker 03: There were 391 jobs over the course of the years that were lost. [00:32:14] Speaker 03: As it relates to the specific employers at this issue, the testimony is addressing Local 18's principal brief about two longtime employees of Independence who, as a result of this dispute, lost their jobs. [00:32:26] Speaker 03: We're told those who talk don't work. [00:32:28] Speaker 03: When they complained about no longer being assigned the forklift and skid steer work, we're actually fired. [00:32:34] Speaker 03: So it's not isolated instances of us performing this work. [00:32:38] Speaker 03: It is a long and proud history and tradition of performing this work. [00:32:41] Speaker 03: I would also want to address the idea that exclusivity of performance of the work is a prerequisite to Local 18 asserting its work preservation claim. [00:32:53] Speaker 03: Exclusivity is not a prerequisite. [00:32:56] Speaker 03: The cases that the board and that the intervener rely upon to make that claim is prate installation versus carpenters, which was cited by the ALJ, by the board. [00:33:06] Speaker 03: by the interveners and by the Sixth Circuit. [00:33:09] Speaker 03: That case is completely in opposite. [00:33:13] Speaker 03: It involved two unions who had long agreed to form composite crews where both unions agreed that they would intermingle their work and would each perform the work of the others. [00:33:24] Speaker 03: And there was no dispute for years. [00:33:25] Speaker 03: What ended up happening is one of those unions decided they were going to claim all the work one day. [00:33:30] Speaker 03: And that led to the jurisdictional dispute. [00:33:33] Speaker 03: That's not the case here. [00:33:34] Speaker 03: It's clear Local 18 has never agreed with the laborers to split this work, nor is Local 18 claiming exclusive jurisdiction over all the work, only those isolated instances where breaches were observed and subject to grievance and arbitration procedure. [00:33:48] Speaker 03: Thank you, Your Honor. [00:33:49] Speaker 02: Thank you to all the counsel. [00:33:50] Speaker 02: The case is submitted.