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National Labor Relations Board v. 675 West End Owners Corp.

Citation: 304 F. App'x 911Docket: No. 07-2695-ag

Court: Court of Appeals for the Second Circuit; December 18, 2008; Federal Appellate Court

Narrative Opinion Summary

The case involves the National Labor Relations Board's (NLRB) petition to enforce an order against several LLCs and management companies identified as joint employers of employees in eight New York City apartment buildings. The NLRB found these companies violated the National Labor Relations Act (NLRA) by refusing to bargain with the certified Stationary Engineers Union and unilaterally subcontracting work. The court upheld the Regional Director's determination of joint employer status based on shared management and labor control under Uzi Einy. The companies' objections to the union election results, particularly concerning the classification of doormen as guards, were dismissed due to untimeliness and lack of evidence. The administrative law judge confirmed the companies engaged in unfair labor practices by not negotiating with the Union post-certification and subcontracting work to non-unit employees. The court supported the NLRB's requirement for the companies to engage in bargaining with the Union, maintain the status quo, and rectify the improper subcontracting actions. The petition for enforcement was granted, and procedural challenges by the Companies were dismissed.

Legal Issues Addressed

Appropriate Bargaining Unit Determination

Application: The Board concluded that employees of eight buildings constituted an appropriate bargaining unit, and objections to this determination were dismissed as untimely.

Reasoning: The Director properly relied on a stipulation that the ownership and management companies acted as joint employers across eight buildings, determining that the employees constituted an appropriate bargaining unit.

Definition of Guards under NLRA

Application: Doormen were found not to be guards within the meaning of 29 U.S.C. 159(b)(3) because their duties were primarily tenant services, not security.

Reasoning: The doormen did not meet this definition, as their primary duties included access control, receiving packages, and cleaning, without security uniforms or patrol responsibilities.

Joint Employer Status under Labor Law

Application: The court affirmed the determination that several LLCs and management companies were joint employers due to shared ownership, management, and labor relations control.

Reasoning: The Regional Director determined that the companies constituted a single employer due to shared ownership, management, and labor relations control, primarily through Uzi Einy, who significantly owns the companies and directs employee operations.

Subcontracting as a Mandatory Bargaining Subject

Application: Subcontracting decisions involving bargaining unit positions require negotiation, and failure to do so violates the NLRA.

Reasoning: The Supreme Court mandates that subcontracting decisions involving bargaining unit positions require negotiation.

Timeliness of Election Objections

Application: The Companies' objections to the election results were deemed untimely as they were not filed within the required 7-day period.

Reasoning: The Companies’ objections regarding the election were deemed untimely, as they were not filed within the 7-day period required by 29 C.F.R. 102.69(a).

Unfair Labor Practices and Duty to Bargain

Application: The Companies were found to have committed unfair labor practices by refusing to negotiate with the Union post-certification and unilaterally subcontracting work.

Reasoning: The administrative law judge (ALJ) determined that the Companies committed unfair labor practices by (1) refusing to negotiate or provide the Union with necessary information following the Union's certification and (2) hiring non-unit employees from Command Security to perform work of unit employees without notifying the Union or allowing bargaining.