Opinion

UPS Supply Chain Solutions, Inc v. National Labor Relations Board

Court
Court of Appeals for the Ninth Circuit
Filed
Apr 7, 2025
Status
Unpublished
Cited by
0 cases
Authority
More cited than 34.7%

The opinion

NOT FOR PUBLICATION FILED

UNITED STATES COURT OF APPEALS APR 7 2025

MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

NATIONAL LABOR RELATIONS No. 23-3628

BOARD, NLRB No.

32-CA-309933

Petitioner,

v. MEMORANDUM*

UPS SUPPLY CHAIN SOLUTIONS, INC,

Respondent,

----------------------------------------

INTERNATIONAL BROTHERHOOD OF

TEAMSTERS LOCAL 439,

Intervenor.

INTERNATIONAL BROTHERHOOD OF No. 24-518

TEAMSTERS LOCAL 439,

NLRB No.

Petitioner, 32-CA-309933

v.

NATIONAL LABOR RELATIONS

BOARD,

Respondent.

*

This disposition is not appropriate for publication and is not precedent

except as provided by Ninth Circuit Rule 36-3.

UPS SUPPLY CHAIN SOLUTIONS, INC, No. 24-1981

Petitioner, NLRB No.

32-CA-309933

v.

NATIONAL LABOR RELATIONS

BOARD,

Respondent.

On Petition for Review of an Order of the

National Labor Relations Board

Argued and Submitted March 4, 2025

San Francisco, California

Before: WARDLAW, PAEZ, and LEE, Circuit Judges.

The National Labor Relations Board (“Board”) petitions for enforcement of

its January 3, 2024 unfair labor practices Order against UPS Supply Chain

Solutions, Inc. (“UPS Healthcare”). In the Order, the Board concluded that UPS

Healthcare had violated Section 8(a)(5) and (1) of the National Labor Relations

Act, 29 U.S.C. § 158(a)(5) & (1), by refusing to recognize and bargain with the

International Brotherhood of Teamsters Local 439 (“Union”) beginning on

December 6, 2022.1 UPS Healthcare cross-petitions for review of the Board’s

1

The Board issued its original unfair labor practices Order against UPS Healthcare

on August 4, 2023. UPS Healthcare filed a motion for reconsideration, which the

Board granted in part and denied in part. The January 3, 2024 Order amends the

original order as to the date on which UPS Healthcare’s unlawful refusal to bargain

commenced and otherwise adopts the findings and reasoning of the original order.

2 23-3628

Order. The Union, as Intervenor, also petitions for review of the Board’s Order as

to when UPS Healthcare’s refusal to bargain commenced. We have jurisdiction

under 29 U.S.C. § 160(e) and (f). We grant the Board’s petition for enforcement,

deny UPS Healthcare’s cross-petition for review, and deny the Union’s petition for

review except as to enforcement of the Board’s Order.

We will uphold an order of the Board if it “correctly applied the law and its

factual findings are supported by substantial evidence.” NLRB v. Nexstar Broad.,

Inc., 4 F.4th 801, 805-06 (9th Cir. 2021) (citation omitted).

1. Substantial evidence supports the Board’s overruling of UPS

Healthcare’s objections to the May 11, 2022 election of the Union as the exclusive

collective bargaining representative of certain unit employees. “The NLRB has

broad discretion to determine the propriety of the union representation election

process.” Micronesian Telecomm. Corp. v. NLRB, 820 F.2d 1097, 1101 (9th Cir.

1987). In its Order, the Board affirmed the Regional Director’s underlying

decision overruling UPS Healthcare’s four objections to certain conduct by several

Union representatives during the election. The Regional Director, adopting the

factual findings of the hearing officer, applied the Board’s multi-factor balancing

test to evaluate whether challenged conduct by union agents tended to interfere

with employees’ free choice in a representation election. See Taylor Wharton Div.

Harsco Corp., 3356 NLRB 157, 158 (2001).

3 23-3628

The Regional Director properly relied on record evidence, including witness

testimony and security camera footage of the parking lot at UPS Healthcare’s

facility, and the hearing officer’s findings of fact regarding the Union

representatives’ conduct to conclude that none of the challenged conduct was

objectionable. In doing so, the Regional Director properly relied on Board

precedent holding that union activity “in areas that are not designated as no-

electioneering locations, with nothing more, do[es] not constitute objectionable

electioneering sufficient to set aside an election.” See Milchem, Inc., 170 NLRB

362, 363 (1968); U-Haul of Nevada, Inc., 341 NLRB 195, 197 (2004). The

Regional Director also relied on substantial evidence in the record to find that the

Union representatives’ brief conversations with three voters and presence in the

parking lot did not constitute objectionable electioneering or voter intimidation.

The Regional Director also properly relied on the hearing officer’s

credibility determinations as to witness testimony in finding that the Union

representatives did not shout at voters. “Because the Board hearing officer who

observes the witnesses and hears their testimony is in the best position to judge

witness credibility, such determinations are entitled to great deference and will not

be disturbed unless a clear preponderance of all the relevant evidence convinces

the court that they are incorrect.” Bell Foundry Co. v. NLRB, 827 F.2d 1340, 1343

(9th Cir. 1987) (citing NLRB v. Pacific Int’l Rice Mills, Inc., 594 F.2d 1323, 1326

4 23-3628

(9th Cir. 1979)). Upon consideration of testimony from UPS Healthcare

employees and the relevant security camera footage, the hearing officer and

Regional Director found witnesses’ assertions that the Union representatives

shouted at voters lacked credibility. As substantial evidence supports that finding,

we will not disturb those credibility determinations or the Regional Director’s

ultimate conclusion to overrule the election objections.

2. Accordingly, “we will not overturn a Board decision to certify a union

unless the Board has abused that discretion.” Micronesian Telecomm., 820 F.2d at

1102 (citation omitted). In finding that the Regional Director’s decision to certify

the Union after overruling UPS Healthcare’s election objections was supported by

substantial evidence, we conclude the Board’s affirmance of that decision was not

an abuse of discretion.

3. The Board did not err in finding that UPS Healthcare’s unfair labor

practices commenced on December 6, 2022, when the Union was certified by the

Regional Director. The Board relied on its precedent that a “simple refusal to

initiate collective-bargaining negotiations pending final Board resolution of timely

filed objections to the election” is not a “per se violation of Section 8(a)(5) and

(1).” See Howard Plating Indus., 230 NLRB 178, 179 (1977). As the Board did

not find evidence that UPS Healthcare’s conduct prior to the certification of the

Union constituted a violation of the NLRA, its finding that the company’s unfair

5 23-3628

labor practices in refusing to bargain with the Union began on the date that the

Union was certified as the collective bargaining representative does not constitute

legal error.

Further, to the extent that the Union argues that UPS Healthcare engaged in

bad faith refusal to bargain during the precertification period, those arguments are

jurisdictionally barred because they were not previously raised before the Board.

See 29 U.S.C. § 160(e). Accordingly, there is no basis to remand the issue of when

the duty to bargain commenced to the Board.

4. The Board did not err in finding that relitigation of issues related to

UPS Healthcare’s election objections is unwarranted. In its Order, the Board

acknowledged its general rule against relitigation in refusal to bargain cases. The

Board found that the circumstances warranting an exception to its general rule

against relitigation in Sub-Zero Freezer Co., 271 NLRB 47 (1984), which involved

threats to employees and property damage, were “materially different” from UPS

Healthcare’s election objections in this case. See RadNet Mgmt., Inc. v. NLRB, 992

F.3d 1114, 1128 (D.C. Cir. 2021). Further, the Board acknowledged that UPS

Healthcare had admitted that the election objections were “fully litigated and

resolved in the underlying representation hearing.” UPS Healthcare presents no

new facts or circumstances before this court that compel a different conclusion as

to the propriety of relitigation. Thus, we conclude the Board did not err in finding

6 23-3628

no basis for relitigation of the issues related to UPS Healthcare’s election

objections.

5. Finally, the Board did not abuse its discretion in severing the issue of

compensatory damages from the unfair labor practices case. The Board retains

“broad discretion to devise remedies that effectuate the policies of the [NLRA].”

United Nurses Assocs. of Cal. v. NLRB, 871 F.3d 767, 777 (9th Cir. 2017). We

have held that, upon severance of the remedial issue of compensatory damages, the

unsevered portion of the Board’s decision regarding an employer’s underlying

unfair labor practices still constitutes a final order. See NLRB v. Siren Retail

Corp., 99 F.4th 1118, 1124 (9th Cir. 2024). The Board also did not err in finding it

immaterial whether the severance of the compensatory damages issue would

effectively overrule Ex-Cell-O Corp., 185 NLRB 107 (1970), as the unsevered

portion of the Board’s decision “consummates the Board’s final statement on the

underlying violation and is one from which legal consequences—the requirement

to bargain with the Union—will flow if enforced.” Siren Retail Corp., 99 F.4th at

1124 (quoting Bennett v. Spear, 520 U.S. 154, 177-78 (1997)) (internal quotation

marks and alterations omitted). We therefore affirm the Board’s severance of the

compensatory damages issue from its unfair labor practices Order.2

2

The Board’s Motion to Supplement the Record and Transmit Letter, Dkt. #63, is

denied as moot.

7 23-3628

The parties shall bear their own costs on appeal.

PETITION FOR ENFORCEMENT GRANTED; CROSS-PETITION

FOR REVIEW DENIED; PETITION FOR REVIEW DENIED.

8 23-3628

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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