Operative Plasterers' and Cement Masons' International Association; Operative Plasterers' and CementDownload PDFNational Labor Relations Board - Board DecisionsDec 29, 2011357 N.L.R.B. 1921 (N.L.R.B. 2011) Copy Citation PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 357 NLRB No. 160 1921 Operative Plasterers’ & Cement Masons’ Interna- tional Association Local 200, AFL–CIO and Op- erative Plasterers’ & Cement Masons’ Interna- tional Association, AFL–CIO and Standard Drywall, Inc. and Southwest Regional Council of Carpenters, United Brotherhood of Carpenters and Joiners of America Operative Plasterers’ & Cement Masons’ Interna- tional Association Local 200, AFL–CIO and Standard Drywall, Inc. and Southwest Regional Council of Carpenters, United Brotherhood of Carpenters and Joiners of America. Cases 21– CD–000659, 21–CD–000660, and 21–CD–000661 December 30, 2011 DECISION AND ORDER BY CHAIRMAN PEARCE AND MEMBERS BECKER AND HAYES On February 11, 2008, Administrative Law Judge John J. McCarrick issued the attached decision. The Re- spondents, Operative Plasterers’ & Cement Masons’ In- ternational Association (the International), and Operative Plasterers’ & Cement Masons’ International Association, Local 200 (Local 200), each filed exceptions and sup- porting briefs, the General Counsel and Charging Party Standard Drywall, Inc. (SDI) filed answering briefs, and the Respondents filed reply briefs. SDI filed cross- exceptions,1 to which the Respondents jointly filed an answering brief. Party-in-Interest, Southwest Regional Council of Carpenters, United Brotherhood of Carpenters and Joiners of America (Carpenters), filed cross- exceptions and a supporting brief, and the International filed an answering brief, in which Local 200 joined. The Plan for the Settlement of Jurisdictional Disputes in the Construction Industry (the Plan) filed an amicus brief to which the General Counsel and SDI filed reply briefs. The National Labor Relations Board has considered the decision and the record in light of the exceptions and briefs,2 and has decided to affirm the judge’s rulings, findings, and conclusions, and to adopt the recommended Order, as modified and set forth in full below.3 1 Pursuant to Reliant Energy, 339 NLRB 66 (2003), SDI filed post- brief letters calling the Board’s attention to recent case authority. 2 The Respondents have requested oral argument. The request is de- nied as the record, exceptions and briefs adequately present the issues and the positions of the parties. 3 In accordance with our decision in Kentucky River Medical Center, 354 NLRB 92 (2010), we modify the judge’s recommended remedy by requiring that monetary awards shall be paid with interest compounded on a daily basis. We agree with the judge’s recommended award of reasonable legal fees and costs incurred by SDI in defending the lawsuits, arbitrations The complaint alleges that the Respondents violated Section 8(b)(4)(ii)(D) of the Act by filing and pursuing legal actions with an object of forcing SDI to assign cer- tain plastering work to Local 200-represented employees, contrary to two earlier 10(k) proceedings where the Board awarded the work to Carpenters-represented em- ployees.4 As found by the judge, and further explained below, we agree that the Respondents violated the Act as alleged. Background—the Prior 10(k) Awards SDI is a contractor in southern California that, among other things, installs drywall on public works projects. In 2002, SDI and Carpenters entered into an agreement covering plastering work in 12 southern California coun- ties. In October 2004, Local 200 Business Manager Robert Pullen filed suit in California State court (the Pul- len suit) alleging that SDI violated California State law by failing to employ plastering apprentices on public works projects and to pay prevailing wages at southern California public worksites.5 In May 2005, Local 200 offered to withdraw the suit if SDI executed an agree- ment assigning to Local 200-represented employees SDI’s plastering work at a public works project in Fuller- ton, California. Carpenters, whose members were per- forming the Fullerton work, threatened to strike SDI if the work was reassigned. SDI filed unfair labor practice charges alleging that Carpenters’ threat violated Section 8(b)(4)(ii)(D). In SDI-I, the Board issued a 10(k) determination con- cerning this work. The Board found reasonable cause to believe that Local 200 and Carpenters made competing claims for the work, that Carpenters used proscribed means to enforce its claim to the work in violation of Section 8(b)(4)(ii)(D), and that there was no agreed-upon method for voluntary adjustment of the dispute. Apply- ing established criteria, the Board determined that em- ployees represented by Carpenters were entitled to per- form the work.6 and request for a Plan complaint. As explained below, we will also award legal fees to Carpenters. We shall also modify the judge’s recommended Order to conform to the Board’s standard language and to provide for the posting of the notice in accord with J. Picini Flooring, 356 NLRB 11 (2010). For the reasons stated in his dissenting opinion in J. Picini Flooring, Member Hayes would not require electronic distribution of the notice. 4 Southwest Regional Council of Carpenters (Standard Drywall, Inc.), 346 NLRB 478 (2006) (SDI-I), and Carpenters (Standard Dry- wall), 348 NLRB 1250 (2006) (SDI-II). 5 Deleon v. Standard Drywall, Inc., Case RIC428011. At that time Local 200 operated the only State-approved apprentice program. Local 200 sought backpay for SDI’s failure to employ its apprentices on public works projects and an injunction against future violations. 6 The Board found that all of the relevant factors presented favored awarding the work to Carpenters-represented employees: collective- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1922 One week after SDI-I issued, SDI filed new unfair la- bor practice charges alleging that Carpenters had used proscribed means to enforce its claim to SDI’s plastering work in the 12 southern California counties covered by the SDI-Carpenters agreement. In SDI-II, the Board found competing claims for the disputed plastering work, including Carpenters’ bona fide threat to strike SDI if work was assigned to Local 200 and Local 200’s Pullen lawsuit seeking compensatory damages and injunctive relief that would require SDI to use Local 200- represented employees. As evidence of Local 200’s claim to the disputed work, the Board cited its secretary- treasurer’s statement that he would have the Pullen suit dismissed if SDI signed a contract with Local 200. 348 NLRB at 1253. The Board again awarded the contested work to employees represented by Carpenters, relying on established criteria and expressly noting that there was “no basis for finding collusion” between Carpenters and SDI. SDI-II, 348 NLRB at 1252, 1254. The Board fur- ther found that Local 200’s claim that the parties were bound to a voluntary dispute resolution mechanism at 3 of the 97 locations (the Plan for the Settlement of Juris- dictional Disputes in the Construction Industry) was in- sufficient to establish that such a mechanism bound the parties at all of the disputed work locations. Because of the likelihood of future jurisdictional dis- putes, the Board issued a broad award, concluding that “the determination of this dispute applies not only to the jobs in which the dispute arose but to all similar work done by [SDI] on any other public works projects in the 12 southern California counties, where the jurisdiction of the two unions overlap.” SDI-II, 348 NLRB at 1256. The Instant Case A. The Arbitration Awards Despite the Board’s 10(k) awards, the Respondents persisted in their pursuit of the disputed work. Following SDI-I’s issuance on January 31, 2006, the parent Interna- tional of Local 200 pursued a grievance to arbitration in May 2006, under the AFL–CIO’s Plan for the Settlement of Jurisdictional Disputes in the Construction Industry (the Plan). The arbitrator in that proceeding awarded SDI’s plastering work at three southern California loca- tions to employees represented by Local 200 (the Kelly award). On July 7, 2006, the International alleged that SDI’s unfair labor practice charge in SDI-II interfered with the Kelly award, and Arbitrator Greenberg ordered bargaining agreements, employer preference and past practice, area and industry practice, relative skill, and economy and efficiency of opera- tions. 346 NLRB at 481–483. SDI to withdraw any unfair labor practice charges (the Greenberg award). Following the issuance of SDI-II on December 13, 2006, the Respondents continued to seek the disputed work. On January 9, 2007, the International asked the Plan administrator to file a complaint under the Plan against SDI, seeking plastering work at all Los Angeles Unified School district public works projects in the 12 southern California counties.7 B. The Lawsuits In addition to the pending Pullen lawsuit, filed in 2004 and amended in 2005, Local 200 filed a second lawsuit in California state court (the Tortious Interference law- suit) on May 14, 2007.8 That suit alleges, among other things, that SDI and Carpenters tortiously interfered with Local 200’s prospective economic advantage by partici- pating in a “kickback” scheme resulting in SDI assigning its plastering work in the 12 southern California counties to employees represented by Carpenters rather than by Local 200. This lawsuit seeks punitive damages of $70 million, compensatory damages of $7 million, and in- junctive relief.9 C. The Judge’s Decision The instant complaint alleges, and the judge found, that following the Board’s 10(k) award in SDI-II, the Respondents violated Section 8(b)(4)(ii)(D) by continu- ing to pursue their claims in the lawsuits and arbitration proceedings. The judge concluded that Local 200’s pursuit of the Pullen and Tortious Interference lawsuits had the unlaw- ful objective of forcing SDI to assign to Local 200- represented employees the work the Board had awarded to Carpenters-represented employees in SDI-II. The judge rejected the Respondents’ defense that the lawsuits were reasonably based and therefore could not be held unlawful. Similarly, the judge found that the International’s pur- suit, as Local 200’s agent, of the Kelly and Greenberg awards, and its request for a Plan complaint seeking the disputed work, had the same coercive effect. The judge 7 Although the International sought to enforce the Kelly and Green- berg awards following SDI-II, it later withdrew its request for enforce- ment after SDI assigned some of the covered work to Local 200- represented employees. 8 Plasterers Local 200 v. Standard Drywall, Inc., Case BC371053. 9 In Small v. Plasterers Local 200, 611 F.3d 483 (9th Cir. 2010), the court affirmed the Federal district court’s preliminary injunction against both the Pullen and the Tortious Interference lawsuits. The court found that “because any favorable resolution of the state lawsuits would di- rectly conflict with the Board’s section 10(k) determinations . . . Local 200’s suits have an illegal objective” and “are not protected by the Petition Clause of the First Amendment.” Id. at 492. PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 1923 found that the requests for enforcement of those awards were threats within the meaning of 8(b)(4)(ii)(D). The judge concluded that all these actions were unlaw- ful because they sought to undermine the Board’s earlier 10(k) award and to force SDI to assign the work to Local 200-represented employees, even though SDI assigned the work consistent with the Board’s 10(k) award. Analysis Section 8(b)(4)(ii)(D) prohibits unions from using threats, coercion, or restraint with an object of forcing or requiring an employer to assign certain work to employ- ees represented by a particular labor organization rather than to employees represented by another labor organiza- tion. It is well settled that a union’s pursuit of a lawsuit or arbitration to obtain work awarded by the Board under Section 10(k) to employees represented by another un- ion, or monetary damages in lieu of the work, has an illegal objective and violates Section 8(b)(4)(ii)(D). See Sheet Metal Workers Local 27 (E. P. Donnelly), 357 NLRB No. 131 (2011), and cases cited there. And while the Supreme Court has held that a well-founded lawsuit may not be enjoined as an unfair labor practice even if filed with a retaliatory motive,10 the Court has recognized that a suit that has an objective that is illegal may be en- joined without violating the First Amendment. Bill Johnson’s Restaurants, Inc. v. NLRB, 461 U.S. 731, 737 fn. 5 (1983). Contrary to the Respondents, the judge correctly held that the Court’s decision in BE&K did not eliminate the illegal objective exception in Bill Johnson’s footnote 5. “Thus, where ‘the Board has previously ruled on a given matter, and where the lawsuit is aimed at achieving a result that is incompatible with the Board’s ruling, the lawsuit falls within the “illegal objective” exception to Bill Johnson’s.’” E. P. Donnelly, supra, quoting Team- sters Local 776 (Rite Aid), 305 NLRB 832, 835 (1991), enfd. 973 F.2d 230 (3d Cir. 1992), cert. denied 507 U.S. 959 (1993).11 See also Small v. Plasterers’ Local 200, supra. We agree with the judge that, applying these princi- ples, the Respondents’ filing and pursuit of the lawsuits, arbitrations, and Plan complaint after the Board issued its 10 In BE&K Construction Co. v. NLRB, 536 U.S. 516 (2002), the Su- preme Court held that the Board may not find that a completed, unsuc- cessful lawsuit constituted an unfair labor practice where the suit was objectively reasonable and filed with the purpose of obtaining the relief requested. 11 The Board has held that the Supreme Court’s decision in BE&K Construction did not affect the fn. 5 exemption in Bill Johnson’s for lawsuits with an illegal objective. E. P. Donnelly, supra, slip op. at 2 fn. 4; Allied Trades Council (Duane Reade, Inc.), 342 NLRB 1010, 1013 fn. 4 (2004). 10(k) determination in SDI-II were aimed at achieving a result contrary to the Board’s ruling, i.e., to have the work awarded to employees represented by Local 200.12 The Pullen lawsuit, if successful, would undercut the Board’s 10(k) determination and therefore has an illegal objective. The amended Pullen complaint, filed after the 10(k) decisions, seeks recovery of wages that would have been paid to Local 200 members had SDI hired them. The Pullen lawsuit has an illegal objective because it seeks damages for the loss of work the Board awarded to Carpenters-represented employees in its 10(k) decision. E. P. Donnelly, supra, slip op. at 3 (Board rejected un- ion’s argument that its lawsuit was not unlawful because it sought damages only for breach of contract, not pay-in- lieu of the assignment of work; Board concluded “this is a distinction without a difference”). Similarly, in the Tortious Interference lawsuit, Local 200 seeks damages for work that its members allegedly lost as a result of a kickback scheme, and an injunction against further kickbacks. However, as noted above, the Board previously found, in SDI-II, supra at 1252, 1254, that there was no evidence of collusion between SDI and Carpenters, and SDI-II encompassed all the work at issue in the Respondents’ suit—SDI’s plastering work on all current and future public works projects in 12 southern California counties. It is therefore apparent that the Tor- tious Interference lawsuit, like the Pullen lawsuit, con- flicts directly with the 10(k) award and therefore harbors an illegal objective. As they argued with respect to the Pullen lawsuit, the Respondents claim that the Tortious Interference lawsuit does not necessarily conflict with the 10(k) awards.13 In this regard, the Respondents argue that the lawsuit is 12 The Respondents renew their arguments that they should be per- mitted to litigate in this proceeding certain threshold issues decided in SDI-II, including whether there was an agreed-upon method for resolv- ing the jurisdictional disputes and whether SDI and Carpenters engaged in collusion regarding the assignment of the disputed work. It is well settled that threshold issues are not subject to relitigation after a 10(k) award. Longshoremen Local 6 (Golden Grain Macaroni Co.), 289 NLRB 1, 2 fn. 4 (1988). Additionally, on December 21, 2007, the Board denied on the merits the Respondents’ Special Permission to Appeal the judge’s ruling precluding the introduction of evidence con- cerning threshold matters in this proceeding. The Board specifically concluded that the collusion question was a threshold issue in the 10(k) proceeding that could not be relitigated in this unfair labor practice proceeding. See also SDI-II, supra at 1254. 13 The Respondents dispute the judge’s statement that Local 200 conceded in its pleadings, apparently referring to those in the Tortious Interference lawsuit, that an object of the lawsuit was the reassignment of the disputed work to employees it represents. As discussed below, it is apparent that the effect of that lawsuit which sought, among other things, compensatory damages in lieu of the work assignment, was to cause such a reassignment and thus the reassignment was an object of the lawsuit. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1924 analogous to a suit to enforce a valid no-subcontracting clause and, like such a suit, would require SDI only to desist from engaging in the unlawful kickback scheme and to compensate Local 200 for past employment op- portunities lost because of the collusion. There is no merit to that argument. SDI is not signato- ry to a collective-bargaining agreement with Local 200 and, accordingly, cannot be found to have violated any provisions of a Local 200 contract.14 Rather, by means of its lawsuit, Local 200 seeks injunctive relief, compen- satory damages in lieu of the work assignment, and puni- tive damages. Like the Pullen lawsuit, the Tortious In- terference lawsuit has the intent of causing SDI to reas- sign the plastering work to employees represented by Local 200, an unlawful objective that violates Section 8(b)(4)(ii)(D). The arbitrations and the Plan complaint also have ille- gal objectives. Both the Kelly and Greenberg awards run counter to the Board’s awards of work in the 10(k) pro- ceedings, as the former awarded work to Local 200 and the latter enjoined SDI’s maintenance of unfair labor practice charges against the Respondents. The Plan complaint also sought the same work previously awarded to Carpenters-represented employees. Accordingly, those actions were for an illegal objective within the meaning of Bill Johnson’s footnote 5. Therefore we find, in agreement with the judge, that Local 200’s conduct with regard to the lawsuits, and the International’s pur- suit of the Plan complaint and the grievances to arbitra- tion, after December 13, 2006, violated Section 8(b)(4)(ii)(D) of the Act.15 14 Accordingly, the cases the Respondents cite are clearly distin- guishable. In Laborers International (Capitol Drilling), 318 NLRB 809, 810 (1995), the Board held that a union’s enforcement by arbitra- tion of a collective-bargaining agreement’s subcontracting clause, when the union did not claim the work from the subcontractor, did not amount to a dispute within the meaning of Sec. 10(k) and did not vio- late the Act. Similarly distinguishable are Iron Workers Local 3 (Span- crete Northeast), 298 NLRB 800 (1990), and Associated General Contractors v. Operating Engineers, 529 F.2d 1395, 1397–1398 (9th Cir. 1976) (court concluded that Board’s 10(k) award did not preempt damages case by Iron Workers against Spancrete for violating the no- subcontracting provision). 15 We agree with the judge that the International acted as agent for Local 200 in filing and pursuing these grievances and by filing a com- plaint under the Plan. As a remedy for the violations committed by the Respondents, the judge ordered that they pay certain of SDI’s legal costs associated with the Kelly and Greenberg awards as well as the Pullen and Tortious Interference lawsuits. We agree with the judge. Carpenters excepted to the judge’s failure to award it legal costs. We find merit in the excep- tion. It is undisputed that the Tortious Interference lawsuit also named the Carpenters as a defendant. To the extent that Carpenters was re- quired to expend legal fees to defend that unlawful lawsuit, an appro- priate remedy would also include reimbursement for those fees. See generally Rite Aid Corp., 305 NLRB at 832–835 fn. 10. ORDER A. The National Labor Relations Board orders that the Respondent, Operative Plasterers’ & Cement Masons’ International Association, its officers, agents, and repre- sentatives, shall 1. Cease and desist from threatening to and actually seeking to enforce the Kelly and Greenberg arbitration awards, and threatening to and actually seeking a Plan complaint to obtain plastering work performed by SDI employees represented by the Carpenters Union in the 12 southern California counties on public works projects with an object of requiring SDI to assign the disputed work to employees represented by Respondent Local 200 rather than to employees represented by Carpenters. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Withdraw the petition to enforce the Kelly and Greenberg awards and withdraw the request for a Plan complaint seeking plastering work at public works pro- jects in the 12 southern California counties performed by SDI employees represented by the Carpenters. (b) Reimburse SDI for reasonable legal expenses and fees associated with the defense of the Kelly and Green- berg awards and the Plan after December 13, 2006, with interest as computed in the manner prescribed in New Horizons, 283 NLRB 1173 (1987), compounded daily as prescribed in Kentucky River Medical Center, 356 NLRB 6 (2010). (c) Within 14 days after service by the Region, post at its office and meeting halls copies of the attached Notice, in English and Spanish, marked “Appendix A.”16 Copies of the Notice, on forms provided by the Regional Direc- tor for Region 21, after being signed by the Respondent’s authorized representative, shall be posted by the Re- spondent immediately upon receipt and maintained for 60 consecutive days in conspicuous places including all places where notices to employees/members are custom- arily posted. In addition to physical posting of paper notices, notices shall be distributed electronically, such as by email, posting on an intranet or an internet site, and/or other electronic means, if the Respondent custom- arily communicates with its members by such means. Reasonable steps shall be taken by the Respondents to ensure that the notices aren’t altered, defaced, or covered by any other material. (d) Within 14 days after service by the Region, deliver to the Regional Director for Region 21 signed copies of 16 If this Order is enforced by a judgment of the United States court of appeals, the words in the notice reading “Posted by Order of the National Labor Relations Board” shall read “Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board.” PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 1925 the notice in sufficient number for posting by SDI at its jobsite, if it wishes, in all places where notices to em- ployees are customarily posted. (e) Within 21 days after service by the Region, file with the Regional Director a sworn certification of a re- sponsible official on a form provided by the Region at- testing to the steps that the Respondent has taken to comply. B. Respondent Operative Plasterers’ & Cement Ma- sons’ International Association, Local 200, its officers, agents, and representatives, shall 1. Cease and desist from (a) Threatening to and actually seeking to enforce the Kelly and Greenberg arbitration awards and threatening to and actually seeking a Plan complaint to obtain plas- tering work performed by SDI employees represented by the Carpenters Union in the 12 southern California coun- ties with an object of requiring SDI to assign the disputed work to employees represented by Respondent Local 200 rather than to employees represented by Carpenters. (b) Maintaining after December 13, 2006, the lawsuits entitled Deleon v. Standard Drywall, Inc., Case RIC428011 (the Pullen lawsuit) and Plasterers Local 200 v. Standard Drywall, Inc., Case BC371053 (the Tor- tuous Interference lawsuit) with an object of forcing or requiring SDI to assign, contrary to the Board’s Decision and Determination of Dispute in 348 NLRB 1250 (2006), the plastering work on public works projects in 12 south- ern California counties to employees represented by Lo- cal 200 rather than to employees represented by Carpen- ters. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Withdraw the petition to enforce the Kelly and Greenberg awards and withdraw the request for a Plan complaint seeking the above described plastering work at public works projects in the 12 southern California coun- ties performed by SDI employees represented by the Carpenters. (b) Withdraw the Pullen and Tortious Interference lawsuits. (c) Reimburse SDI and Carpenters for reasonable legal expenses and fees associated with the defense of the Tor- tious Interference lawsuit after December 13, 2006, and SDI for reasonable legal expenses and fees associated with the defense of the Pullen lawsuit, the Kelly and Greenberg awards, and the Plan complaint after Decem- ber 13, 2006. Interest is to be computed in the manner prescribed in New Horizons for the Retarded, 283 NLRB 1173 (1987), compounded daily as prescribed in Ken- tucky River Medical Center, 356 NLRB 6 (2010). (d) Within 14 days after service by the Region, post at its union office and meeting halls copies of the attached notice, in English and Spanish, marked “Appendix B.”17 Copies of the notice, on forms provided by the Regional Director for Region 21, after being signed by the Re- spondent’s authorized representative, shall be posted by the Respondent and maintained for 60 consecutive days in conspicuous places including all places where notices to employees and members are customarily posted. In addition to physical posting of paper notices, notices shall be distributed electronically, such as by email, post- ing on an intranet or an internet site, and/or other elec- tronic means, if the Respondent customarily communi- cates with its members by such means. Reasonable steps shall be taken by the Respondent to ensure that the notic- es are not altered, defaced, or covered by any other mate- rial. (f) Within 14 days after service by the Region, deliver to the Regional Director for Region 21 signed copies of the notice in sufficient number for posting by SDI at its jobsite, if it wishes, in all places where notices to em- ployees are customarily posted. (g) Within 21 days after service by the Region, file with the Regional Director for Region 21 a sworn certifi- cation of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply. APPENDIX A NOTICE TO MEMBERS AND EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated Federal labor law and has ordered us to post and obey this notice. FEDERAL LAW GIVES YOU THE RIGHT TO Form, join, or assist a union Choose representatives to bargain on your behalf with your employer Act together with other employees for your bene- fit and protection Choose not to engage in any of these protected activities. WE WILL NOT threaten to, or actually seek enforcement of the Kelly and Greenberg arbitration awards or a Plan complaint seeking plastering work on public works pro- jects in 12 southern California counties with an object of forcing Standard Drywall Inc. (SDI) to assign certain work to employees represented by Local 200 rather than 17 See fn. 16, supra. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1926 to employees represented by Carpenters, contrary to a ruling by the National Labor Relations Board at 348 NLRB 1250 (2006). WE WILL withdraw our request for enforcement of the Kelly and Greenberg awards and our request for a Plan complaint. WE WILL reimburse SDI for reasonable legal expenses and fees with interest incurred in defending against the Kelly and Greenberg awards and the Plan complaint after December 13, 2006. OPERATIVE PLASTERERS’ & CEMENT MASONS’ INTERNATIONAL ASSOCIATION, AFL–CIO APPENDIX B NOTICE TO MEMBERS AND EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated Federal labor law and has ordered us to post and obey this notice. FEDERAL LAW GIVES YOU THE RIGHT TO Form, join, or assist a union Choose representatives to bargain on your behalf with your employer Act together with other employees for your bene- fit and protection Choose not to engage in any of these protected activities. WE WILL NOT threaten to, or actually seek enforcement of the Kelly and Greenberg arbitration awards or a Plan complaint seeking plastering work on public works pro- jects in 12 southern California counties with an object of forcing Standard Drywall Inc. (SDI) to assign that work to employees represented by us rather than to employees represented by Carpenters contrary to a ruling by the National Labor Relations Board at 348 NLRB 1250 (2006). WE WILL NOT maintain the Pullen and Tortious Inter- ference lawsuits with an object of forcing SDI to assign the plastering work on public works projects in 12 south- ern California counties to employees represented by us rather than to employees represented by Carpenters. WE WILL withdraw our request for enforcement of the Kelly and Greenberg awards and our request for a Plan complaint. WE WILL withdraw the Pullen and tortious interference lawsuits. WE WILL reimburse SDI for reasonable legal fees and costs with interest incurred in defending against the Kel- ley and Greenberg awards, the Plan complaint and the lawsuits after December 13, 2006. WE WILL reimburse Carpenters for reasonable legal fees and costs with interest incurred in defending against the tortious interference lawsuit after December 13, 2006. OPERATIVE PLASTERERS’ & CEMENT MASONS’ INTERNATIONAL ASSOCIATION, LOCAL 200, AFL–CIO Ami Silverman, Esq., for the General Counsel. Daniel Shanley, Esq. (DeCarlo, Connor & Shanley, PC), of Los Angeles, California, for the Respondents Southwest Regional Council of Carpenters, United Brotherhood of Carpenters and Joiners of America. John J. Davis Jr., Esq. (Davis, Cowell & Bowe, LLP), of San Francisco, California, for the Respondent, Operative Plas- terers’ & Cement Masons’ International Association, Local 200. Brian A. Powers, Esq. (O’Donoghue & O’Donoghue), of Washington, D.C., for the Respondent Operative Plasterers’ & Cement Masons’ International Association, AFL–CIO. Mark T. Bennett, Esq. (Marks, Golia & Finch, LLP), of San Diego, California, for the Charging Party Standard Drywall, Inc. DECISION STATEMENT OF THE CASE JOHN J. MCCARRICK, Administrative Law Judge. This case was tried in Los Angeles, California, on September 11 and 12, 2007, based upon the second order consolidating cases, second amended consolidated complaint, and amended notice of hear- ing (the complaint) issued on August 16, 2007, by the Acting Regional Director for Region 21. The complaint alleges that Respondents Operative Plasterers’ & Cement Masons’ Interna- tional Association (International) and Operative Plasterers’ & Cement Masons’ International Association, Local 200 (Local 200) have violated Section 8(b)(4)(ii)(D) of the Act by threat- ening, restraining, and coercing Standard Drywall, Inc. (SDI) with an object of forcing SDI to assign work to employees who are members of or represented by, Local 200 rather than to employees who are members of or represented by Southwest Regional Council of Carpenters, United Brotherhood of Car- penters and Joiners of America (Carpenters). Specifically, complaint paragraphs 10(a) through (d), 12, and 13 allege that the Pullen lawsuit and its amendments has had the effect of threatening restraining and coercing SDI with an object of forcing or requiring SDI to assign plastering work to Local 200 represented employees rather than to Carpenters represented employees. Complaint paragraphs 10(e), 12, and 13 allege that Local 200’s May 14, 2007 lawsuit in the Superior Court of the State of California Los Angeles County against SDI and the Carpen- ters seeking damages and injunctive relief based on SDI having assigned plastering work to Carpenters represented employees rather then Local 200 represented employees has had the effect PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 1927 of threatening restraining and coercing SDI with an object of forcing or requiring SDI to assign plastering work to Local 200 represented employees rather than to Carpenters represented employees. Complaint paragraphs 11(a) through (g) allege that the Inter- national, as agent for Local 200, pursued the Kelly and Green- berg grievances to arbitration, sought enforcement of the Kelly and Greenberg awards and pursued a grievance before the ad- ministrator for the Plan for the settlement of jurisdictional dis- putes in the construction industry seeking plastering work per- formed by SDI employees. Complaint paragraphs 14 and 15 allege the conduct described in paragraphs 11(a) through (g) threatened, coerced, and restrained SDI with an object of forc- ing or requiring SDI to assign plastering work to Local 200 represented employees rather than to Carpenters represented employees. Respondents filed timely answers to the complaint denying any wrongdoing and affirmatively contend, inter alia, that pur- suing the Pullen and Tortious Interference litigation, the Kelly and Greenberg arbitration awards, and the Plan complaint are not coercive conduct within the meaning of Section 8(b)(4)(ii)(D) of the Act, the Board’s underlying 10(k) determi- nations are in error and that there was a method to resolve jurisdictional disputes binding on all parties requiring the dis- missal of the instant charges. Findings of Fact Upon the entire record herein, including briefs from the General Counsel, the Charging Party, and Respondents, I make the following findings of fact. I. JURISDICTION Charging Party SDI, a California corporation, with an office and principle place of business located in Riverside County, California, and offices located in Arizona, Utah, and Wyoming where it is engaged as a contractor in the drywall construction industry, has annually derived gross revenues in excess of $500,000 and purchased and received at its California projects goods and materials valued in excess of $50,000 directly from points located outside the State of California. Based upon the above, I find that SDI is and has been at all times material, an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. II. LABOR ORGANIZATIONS Based upon Respondents’ admissions, I find that Respond- ents and each of them is a labor organization within the mean- ing of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. The Facts The facts in this case are not in significant dispute. In their answers, Respondents have admitted most of the operative facts in the complaint except Respondents deny that Local 200 de- manded the disputed work from SDI, that the International continues to pursue grievances seeking the disputed work or that the International acted as an agent of Local 200. SDI began performing plastering work on the Fine Arts Pro- ject at California State University at Fullerton in December 2004, using 10 of its employees represented by the Carpenters. Prior to this time, on October 24, 2004, Local 200 Business Manager Robert Pullen (Pullen) and Business Agent David Fritchel, as individuals, filed a lawsuit in California Superior Court for Santa Barbara County (the Pullen suit) alleging SDI had violated California Labor Codes1 requiring contractors to use State of California approved worker training programs and failed to pay prevailing wage law at public worksites in south- ern California. On August 9, 2005, an amended complaint was filed in this lawsuit adding Local 200 as a plaintiff and seeking back pay for all Local 200 apprentices not employed by SDI as well as restitution and injunctive relief against SDI for failing to make apprenticeship contributions for apprentices it did not hire on all of its past, present, and future public works projects in 12 southern California counties.2 The injunctive relief re- quested that SDI comply with applicable statutes and regula- tions including California Labor Code section 1777.5 requiring use of Plasterers’ apprentices. SDI filed unfair labor practice charges on February 2, 2005, alleging the Carpenters violated Section 8(b)(4)(ii(D) of the Act by forcing it to assign plastering work to employees represented by Carpenters rather than Local 200. A 10(k) hearing was held and on January 31, 2006, the Board issued its order in Southwest Regional Council of Car- penters (Standard Drywall, Inc.), 346 NLRB 478 (2006) (SDI- I) awarding plastering work performed by SDI employees at the California State University Fullerton, Fine Arts Project to SDI employees represented by the Carpenters Union rather than Local 200. In SDI-I the Board found, and the record herein confirms, that SDI’s California plastering employees were covered by a memorandum agreement with the Carpenters effective from January 1, 2002, to June 30, 2006, and that SDI and the Car- penters had a bargaining relationship of at least 10 years while SDI never had a bargaining relationship with the International or Local 200. The Board concluded that both the Carpenters and Local 200 laid claim on SDI for the disputed plastering work and that Local 200’s disclaimer of the work was ineffec- tive. In support of its finding that Local 200 made a claim on the SDI plastering work, the Board concluded that on May 2005 Local 200 told SDI that if SDI would sign an agreement assigning Local 200 the disputed work, Local 200 would try to dismiss the Pullen suit. The Board also found that the Pullen lawsuit had a jurisdictional object.3 The Board found, based on the parties’ stipulation and the absence of evidence to the con- trary, that there was no voluntary method for adjustment of the work dispute. 1 California Labor Code 1777.5 requires on public works projects that only apprentices in training under programs approved by the State of California are eligible for apprentice wages. Until November 2006 the Plasterers’ apprenticeship program was the only program approved by the State of California. Local 200 Exh. 20 and Tr. at p. 176. 2 GC Exhs. 2–3. 3 SDI-I, id., fn. 8. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1928 While both Respondents deny the International acted as an agent of Local 200, they admit that on May 29, 2006, the Inter- national pursued a grievance to arbitration under the AFL– CIO’s plan for the Settlement of Jurisdictional Disputes in the Construction Industry (Plan) before Arbitrator Tony A. Kelly who awarded plastering work being performed by SDI’s em- ployees in southern California at the Central Los Angeles High School #2, the East Valley New Middle School #1, and the Cal Trans Replacement Facilities Shop #7 to employees represented by Local 200. (The Kelly award). On February 7, 2006, SDI filed additional unfair labor prac- tice charges alleging the Carpenters violated Section 8(b)(4)(D) of the Act by threatening, coercing, and restraining SDI with an object of forcing it to assign plastering work at three Los Ange- les Unified School District projects to employees represented by Local 200 rather than to employees represented by the Car- penters. On July 7, 2006, the International pursued a grievance under the Plan, alleging impediments to the Kelly award, and Arbitra- tor Paul Greenberg ordered SDI to withdraw any unfair labor practice charges filed with the Board, including but not limited to the charges at issue herein. (The Greenberg award.) After a 10(k) hearing, on December 13, 2006, the Board is- sued its decision in Southwest Regional Council of Carpenters (Standard Drywall, Inc.), 348 NLRB 1250 (2006) (SDI-II) awarding plastering work performed by SDI employees repre- sented by the Carpenters in all similar jobs performed by SDI on any public works projects in the 12 southern California Counties. In SDI-II the Board found, and the instant record establishes, that while Local 200 told SDI that it was not pursu- ing its Pullen lawsuit with respect to the finished Fine Arts project it continued to pursue the Pullen lawsuit against SDI on continuing public works projects. Also in February 2006 Local 200 Secretary-Treasurer Patrick Finley told SDI that it would drop the Pullen suit if SDI signed a contract covering SDI’s California projects. On February 23, 2006, SDI informed the Carpenters that it had no choice but to assign plastering work to employees represented by Local 200, as Local 200 continued to pursue the Pullen lawsuit. In response, on February 24, 2006, the Carpenters told SDI that if SDI reassigned any work cur- rently performed by members of the Carpenters Union, they would immediately strike SDI. In SDI-II the Board concluded that there were competing claims for the disputed plastering work, including the Carpen- ter’s bona fide threat to strike SDI if work was assigned to Lo- cal 200. The Board reaffirmed Local 200’s Pullen suit is a claim for the disputed work since it seeks compensatory dam- ages and injunctive relief requiring that SDI use apprentices trained by a State of California approved apprenticeship pro- gram which only Local 200 can fulfill. In addition the Board found, as evidence of Local 200’s claim to the disputed work, Local 200 Secretary-Treasurer Finley’s statement that he would get the Pullen suit dismissed if SDI signed a contract with Lo- cal 200 covering SDI’s California projects. The Board found that the Carpenter’s threat to strike was jurisdictional not repre- sentational and that threat is proscribed by the Act. Further the Board concluded that the Carpenter’s threat was genuine and not the product of collusion between the Carpenters and SDI. Next, the Board held that there was no voluntary means to adjust the work dispute. The Board found that article VII and VIII of the Project Stabilization Agreement (PSA), requiring use of the Plan, was not a voluntary method to adjust work disputes as it covered only 3 of 97 potential jobs in dispute and because there are conflicting forums for resolving the work disputes in SDI’s collective-bargaining agreement with the Carpenters. On January 9, 2007, the International requested the Plan ad- ministrator file a complaint against SDI seeking plastering work at all Los Angeles Unified School District public works projects in the 12 southern California Counties.4 On January 13, 2007, the International withdrew this complaint conditional- ly and stated that if it found work was included under the Plan it would reinstate the complaint.5 On January 9, 2007, the International6 sought to enforce both the Kelly and Greenberg awards.7 On January 13, 2007, the International advised the Plan administrator it withdrew its request for enforcement of the Kelly and Greenberg awards because SDI was in compliance with those awards.8 It is admitted that on May 14, 2007, Local 200 filed a lawsuit against SDI and the Carpenters in the Superior Court of the State of California County of Los Angeles (Tortious Interfer- ence Suit) seeking damages and injunctive relief requiring SDI and the Carpenters to comply with all applicable statutes and regulations including California Labor Code section 1777.5 that would have required SDI to hire Local 200 apprentices. The suit, which seeks $7 million damages for lost wages and union dues, alleges that as a result of an unlawful kickback scheme, the Carpenters have caused SDI to withdraw plastering work from Plasterers’ Union signatory contractors and assign plaster- ing work to SDI’s employees who are represented by the Car- penters.9 Both the International and Local 200 admit in their answers and the record establishes that on June 22, 2007, Local 200 filed an amended lawsuit substantially similar to the Pullen suit and has continued to pursue that suit.10 B. Preliminary Rulings on Counsel for the General Counsel’s Motion to Preclude Evidence and SDI Motion to Revoke Subpoenas On September 6, 2007, counsel for the General Counsel (CGC) filed a motion to preclude evidence at unfair labor prac- tice hearing. Both Respondents and SDI filed responses. After the hearing opened on September 11, 2007, I issued an order granting in part counsel for the General Counsel’s motion to preclude evidence at unfair labor practice hearing.11 In the order I found that Respondents could not relitigate certain 4 GC Exh. 11. 5 GC Exh. 12. 6 The record establishes that only the International may pursue a grievance under the Plan even though it is for the benefit of the local union. 7 GC Exh. 10. 8 GC Exhs. 17–18. 9 GC Exh. 14. 10 GC Exh. 19. 11 ALJ Exh. 3. PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 1929 threshold issues decided by the Board in the underlying 10(k) proceedings including whether the Board’s underlying work determinations were valid, whether the matter was properly before the Board on jurisdictional issues, whether there was collusion between the Carpenters and SDI regarding the Car- penters demand for the disputed work, and whether a voluntary method for the resolution of work disputes existed binding the parties. However, I ruled that the record of the 10(k) proceed- ings in SDI-I and SDI-II should be made part of the record in this proceeding under Section 102.92 of the Board’s Rules and Regulations.12 On September 7, 2007, SDI filed motion to revoke subpoena duces tecum nos. B-504775 and B-504776. Local 200 filed its opposition on September 8, 2007. At the commencement of the hearing on September 11, 2007, I issued an order granting counsel for Standard Drywall, Inc.’s petition to revoke subpoe- na duces tecum nos. B-504775 and B-50477613 on the grounds that the subpoenas sought documents not relevant to issues in this case, that is, issues previously decided by the Board in the underlying 10(k) proceedings including whether there was a jurisdictional dispute, whether there was collusion between SDI and the Carpenters and whether an agreement for the resolution of jurisdictional disputes exits that is binding on the parties to this proceeding. At the conclusion of the trial, Respondents filed requests for special permission to appeal to the Board from the orders grant- ing CGC’s motion to preclude evidence and SDI’s motion to revoke subpoenas. On December 21, 2007, the Board granted Respondents’ request for special permission to appeal only to the extent that the record of the underlying 10(k) proceedings should be admitted into this record.14 C. Parties’ Positions In her posthearing brief CGC raises five contentions: 1. Local 200 violated section 8(b)(4)(ii)(D) of the Act by pur- suing the Pullen lawsuit after the Board issued its Decision and Determination of Dispute in SDI II. 2. Local 200 violated section 8(b)(4)(ii)(D) of the Act by fil- ing and maintaining a lawsuit seeking damages for tortious in- terference with prospective economic advantage after the Board issued its Decision and Determination of Dispute in SDI II. 3. The International, as agent for Local 200, violated section 8(b)(4)(ii)(D) of the Act by pursuing the Kelly award after the Board issued its Decision and Determination of Dispute in SDI II. 12 Id. at 4. 13 ALJ Exh. 4. 14 On January 2, 2008, SDI filed a motion of charging party to strike and/or disregard portions of Respondents’ joint posthearing brief. The motion contends that, in view of the Board’s order granting only that portion of Respondents’ special appeal directing that the record of the 10(k) proceedings in SDI-I and SDI-II be included in the record herein, certain portions of Respondents’ joint brief be stricken or disregarded because they present evidence or arguments that are irrelevant to these proceedings in light of the ALJ and Board’s rulings. I will disregard those portions of Respondents’ brief that are not relevant to the issues before me. 4. The International, as agent for Local 200, violated section 8(b)(4)(ii)(D) of the Act by filing and pursuing the Greenberg award after the Board issued its Decisions and Determination of Disputes in SDI I and SDI II. 5. The International, as agent for Local 200, violated section 8(b)(4)(ii)(D) of the Act by filing a jurisdictional complaint under the Plan after the Board issued its Decision and Deter- mination of Dispute in SDI II. In their joint posthearing brief Respondents argue that nei- ther of Local 200’s lawsuits may be enjoined by the Board under BE&K Construction Co., 351 NLRB 451 (2007), since the ongoing suits are not objectively or subjectively baseless and because the suits do not conflict with the Board’s underly- ing 10(k) decisions herein, that enforcement of the Kelly and Greenberg awards is not coercive conduct violative of Section 8(b)(4)(ii)(D) of the Act, that pursuit of the Plan complaint is not coercive conduct within the meaning of Section 8(b)(4)(ii)(D) of the Act, that there is a voluntary method for the resolution of the work dispute herein and that there is no jurisdictional dispute within the meaning of the Act. D. The Analysis Section 8(b)(4)(ii)(D) of the Act provides: It shall be an unfair labor practice for a labor organiza- tion or its agents, (ii) to threaten, coerce or restrain any person engaged in commerce or in an industry affecting commerce where in ei- ther case an object thereof is: (D) forcing or requiring any employer to assign particular work to employees in a particular labor organization or in a particular trade, craft, or class rather than to employees in an- other labor organization, trade, craft, or class unless such em- ployer is failing to conform to an order or certification of the Board determining the bargaining representative for employ- ees performing such work. 1. The Pullen and Tortious interference lawsuits In this case, Respondents contend that the Pullen and Tor- tious interference suits are reasonably based in law and fact and do not conflict with the Board’s 10(k) determinations. Re- spondents cite the various causes of action in the Pullen suit and argue that they do not require SDI to assign work but rather require compliance with state prevailing wage law, including record keeping, apprentice ratios, and making payments to the state approved apprenticeship programs. Respondents contend that the Tortious Interference suit likewise does not seek as- signment of work but rather compels SDI to cease engaging in tortious conduct that interferes with Local 200’s economic relations with signatory contractors. To the contrary CGC and SDI contend that the Pullen suit has no legal merit and the only object of the suit is the unlawful coercion of SDI into making an assignment of work after the Board has issued its 10(k) determination. In their recent decision in BE&K, supra, on remand from the Supreme Court in BE&K Construction Co. v. NLRB, 536 U.S. 516 (2002), the Board majority of Chairman Battista and Mem- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1930 bers Schaumber and Kirsanow held that, “the filing and maintenance of a reasonably based lawsuit does not violate the Act, regardless of whether the lawsuit is ongoing or is completed, and regardless of the motive for initiating the lawsuit.”15 Thus in BE&K, the Board extended the prohibi- tion on enjoining a well founded ongoing lawsuit as an un- fair labor practice under Bill Johnson’s Restaurants, Inc. v. NLRB, 461 U.S. 731 (1983), to completed litigation. In Bill Johnson’s, the Court held, with respect to ongoing litiga- tion, that “[t]he filing and prosecution of a well-founded lawsuit may not be enjoined as an unfair labor practice, even if [the suit] would not have been commenced but for the plaintiff's desire to retaliate against the defendant for exercising rights protected by the Act.”16 However, the Court created an exception to this rule: It should be kept in mind that what is involved here is an em- ployer’s lawsuit that the federal law would not bar except for its alleged retaliatory motive. We are not dealing with a suit that is claimed to be beyond the jurisdiction of the state courts because of federal law preemption, or a lawsuit that has an objective that is illegal under federal law. . . . Nor could it be successfully argued otherwise, for we have upheld Board or- ders enjoining unions from prosecuting court suits for en- forcement of fines that could not be lawfully imposed under the Act, . . . , and this Court has concluded that, at the Board’s request, a district Court may enjoin enforcement of a state court injunction where the Board’s power preempts the field.17 In Manufacturers Woodworking Association of Greater New York, Inc., 345 NLRB 538 (2005), a case involving the filing of a demand for arbitration to compel the union to engage in an unlawful objective of causing the union to induce a work stoppage that would violate Section 8(b)(4)(B) of the Act, the Board concluded that the Bill Johnson’s principles have been applied to arbitration actions. See, e.g., Service Employees Local 32B–32J v. NLRB, 68 F.3d 490, 495 (D.C. Cir 1995). The Board went on to find that: Under Bill Johnson’s Restaurants, supra, 461 U.S. 731, as a general rule a lawsuit enjoys special protection and can be condemned as an unfair labor practice only if it is filed with a retaliatory motive, i.e., motivated by a desire to retaliate against the exercise of a Section 7 right, and if it has no rea- sonable basis in fact or law. However, a lawsuit that is aimed at achieving an “unlawful objective” (or is preempted) “en- joys no special protection” under Bill Johnson’s and may be enjoined. See Bill Johnson’s, supra, 461 U.S. 747 fn 5. A lawsuit filed with an unlawful objective can be condemned as an unfair labor practice “[i]f it is unlawful under traditional NLRA principles.” Teamster’s Local 776 (Rite Aid), 305 NLRB 832, 835 (1991), enfd. 973 F. 2d 230 (3d Cir. 1992), cert. denied 507 U.S. 959 (1993).18 15 BE&K, supra. 16 Bill Johnson’s, supra at 743. 17 Id. at 737 fn. 5. 18 Manufacturers Woodworking Assn., supra at 541. In support of their argument that the Pullen suit has no rea- sonable merit, CGC and SDI cite the Supreme Court’s decision in California Division of Labor Standards Enforcement v. Dil- lingham, 519 U.S. 316 (1997), and the Ninth Circuit Court of Appeals decision in Assoc. Builders & Contractors of South California Inc., v. Nunn, 356 F.3d 979, 986 fn. 4 (9th Cir. 2004), which hold that an employer is under no obligation un- der California Labor Code section 1777.5 to hire apprentices from an approved training program. These decisions hold that contractors have the option of hiring apprentices at a reduced wage or hiring journeymen at the prevailing journeyman rate. The Supreme Court in interpreting Labor Code section 1777.5 in Dillingham stated, “In most circumstances, California public works contractors are not obliged to employ apprentices, but if they do, the apprentice wage is only permitted for those appren- tices in approved programs.”19 A long line of Board cases has held that after a Board 10(k) order and work determination a union that pursues a contrary arbitration award, lawsuits for enforcement of the arbitration award or lawsuits for damages in lieu of the work assignment engages in coercive conduct to achieve an unlawful object thereby violating Section 8(b)(4)(ii)(D) of the Act. In Longshoremen ILWU Local 32 (Weyerhaeuser Co.), 271 NLRB 759 (1984), the Board rejected the argument that Bill Johnson’s precluded a Board adjudication of whether an ongo- ing 301 suit could be enjoined. The Board held: Accordingly, we find that the Respondent's Section 301 action, which seeks to enforce an arbitration award contra- ry to the Board's 10(k) award and also seeks to achieve a prohibited objective, lacks a reasonable basis in fact and law. Therefore, the Court's decision in Bill Johnson’s does not require a stay of proceedings. In Laborers Local 261 (W. B. Skinner, Inc.), 292 NLRB 1035, 1035 (1989), after a Board 10(k) award, the losing union sought enforcement of an arbitrator’s award granting employ- ees it represented in lieu of damages for lost wages and benefits as a result of the Board’s award of the disputed work to em- ployees represented by IBEW. The Board found: In support of his finding, the judge also cited the Board's decision in Longshoremen ILWU Local 7 (Georgia- Pacific Corp.), 273 NLRB 363 (1984). In Georgia-Pacific, the Board held, inter alia, that the filing of grievances for payments in lieu of a work assignment, before, as well as after, a contrary 10(k) award has issued, violates Section 8(b)(4)(D).20 The Board in Skinner concluded: [T]hat by maintaining the suit after the Board had made its 10(k) determination, the Respondents sought to undermine the Board's 10(k) award and to coerce the Employer into reassigning to its members the work that the Board found had been properly assigned by the Employer to employees 19 Dillingham, supra at 320. 20 Skinner, supra at 1035. PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 1931 represented by IBEW Local 202. Accordingly, the Re- spondents’ conduct in maintaining the suit after the 10(k) determination issued violated Section 8(b)(4)(D) of the Act.21 The first task in applying the above principles to the Pullen and Tortious Interference lawsuits is to determine if the suits fall within the Bill Johnson’s exception to lawsuits aimed at achieving an unlawful objective. The Pullen Lawsuit, as originally filed,22 in the 5th cause of action alleges that under California Labor Code section 1777.5 SDI was required to hire Plasterers apprentices and failed to do so. The amended Pullen lawsuit23 alleges that the only appren- ticeship program SDI could hire apprentices from was the Plas- terers program. Finally the Second Amended Pullen Lawsuit24 filed after the Board’s 10(k) awards herein seeks lost wages and benefits for Local 200 apprentices SDI failed to hire from October 29, 2000, to the present had it complied with Labor Code section 1777.5. Respondents contend that the Pullen litigation does not have an unlawful objective but rather seeks to enforce state prevail- ing wage laws. However, contrary to Respondent’s position, Labor Code section 1777.5 does not compel an employer to hire from approved apprenticeship programs. See Dillingham & Nunn, supra. Thus, there appears to be no basis in law for the Respondents’ position in the Pullen lawsuit that SDI violated state labor codes when it failed to hire Local 200 apprentices. Moreover, even if the Pullen suit claims to enforce State la- bor code prevailing wage standards, the effect of Local 200’s suit is to compel SDI to pay damages for lost wages and bene- fits to employees represented by Local 200 SDI failed to hire contrary to the Board’s 10(k) determination. The fact that since November 2006 SDI could have hired apprentices from a state approved Carpenter’s apprentice program is irrelevant since the Pullen suit seeks damages both before and after November 2006. It appears that the purpose of the ongoing Pullen litiga- tion is, like the court action in Weyerhaeuser Co. and W. B. Skinner, Inc., supra, inimical to the Board’s 10(k) award. The continued pursuit of the Pullen litigation has an unlawful objec- tive of compelling SDI to assign work to Local 200 represented employees or pay wages and benefits to Local 200 represented employees in lieu of actual work assignments. The pursuit of such lawsuits has an unlawful objective and has been found coercive conduct under Section 8(b)(4)(ii)(D) of the Act. I conclude that Local 200’s ongoing pursuit of the Pullen suit, after the Board awarded plastering work to Carpenters represented employees in SDI-II, is aimed at achieving the unlawful objective of coercing SDI into assigning plastering work to Local 200 represented employees and therefore enjoys no special protection under Bill Johnson's or BE&K and vio- lates Section 8(b)(4)(ii)(D) of the Act as alleged. The Tortious Interference Lawsuit filed by Local 200, after the Board’s 10(k) award in SDI-II, on May 14, 2007, in the 21 Id. 22 GC Exh. 2. 23 GC Exh. 3. 24 GC Exh. 19, p. 2 LL. 2–8. Superior Court of California for the county of Los Angeles in its preamble and its substantive allegations notes that the Car- penters Union has sought to take over the work of Local 200, that through illegal kickbacks the Carpenters have induced SDI to withdraw its plastering work from Local 200 signatory con- tractors and instead assign that work to their own employees who are represented by the Carpenters, that but for the tortuous interference SDI would have continued to assign plastering work to Local 200 represented employees and that as a result of this conduct plastering employees represented by Local 200 have lost work and income and Local 200 has lost dues income. In this suit Local 200 seeks compensatory damages of $7 mil- lion for members’ lost income and its lost dues income. This lawsuit is similar in nature to the in lieu of damage lawsuits in Weyerhaeuser Co. and W. B. Skinner, Inc., supra. While Re- spondent’s claim they are only seeking to enjoin tortuous ac- tivity by SDI, the effect is to cause SDI to assign work to Local 200 represented employees or pay over $77 million in compen- satory and punitive damages. This is coercive conduct that Local 200 concedes in its pleadings has as its object the return of plastering work to employees it represents. Like the Pullen suit, the Tortious Interference suit has an un- lawful object and is exempt from the Bill Johnson’s and BE&K prohibitions on enjoining ongoing litigation. The filing and pursuit of this lawsuit is coercive conduct violative of Section 8(b)(4)(ii)(D) of the Act as alleged. 2. The Kelly and Greenberg arbitration awards and the plan complaint As noted above the Board has found that the pursuit of grievances to arbitration after a contrary 10(k) award is coer- cive conduct that violates Section 8(b)(4)(ii)(D) of the Act. Where there is an unlawful object of the arbitration, the Bill Johnson’s exception will apply and lawsuits and grievances may be enjoined. See Longshoremen Local 32 (Weyerhaeuser Co.), 271 NLRB 759 (1984), Laborers Local 261 (W. B. Skin- ner, Inc.), 292 NLRB 1035, 1035 (1989), Ironworkers local 433 (Swinerton & Walberg Co.), 308 NLRB 757, 761 (1992). Respondents contend that seeking enforcement of the Kelly and Greenberg arbitration awards and requesting the Plan ad- ministrator file a complaint were not coercive since Local 200 has no authority to file Plan grievances and neither the Local nor the International have authority to enforce Plan awards. Respondents argue further that their attempts to enforce the Kelly and Greenberg awards are not coercive since they with- drew their requests for enforcement of the arbitration awards and the Plan complaint and since Respondents’ mere failure to provide assurances that it will comply with a 10(k) award is insufficient to establish coercion within the meaning of Section 8(b)(4)(ii)(D) of the Act. a. Agency In both Ironworkers Local 433 (Swinerton & Walberg Co.), 308 NLRB 757, 761 (1992), and Ironworkers Local 433 (Otis Elevator Co.), 309 NLRB 273 (1992), the Board has found that a parent union body is a proper respondent as an agent of its local union in a 10(k) proceeding where the parent body has initiated proceedings to compel arbitration on behalf of its lo- cal. Thus, both Respondents are proper parties to this proceed- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 1932 ing and the International by requesting Plan enforcement of the Kelly and Greenberg awards on behalf of Local 200 and by seeking a Plan complaint for the plastering work at all Los An- geles Unified School District public works projects in the 12 southern California counties has acted as Local 200’s agent. b. Effect of withdrawing the request for enforcement of the Kelly and Greenberg awards and the Plan complaint There is no merit to Respondents’ argument that their with- drawal of the Kelly and Greenberg enforcement request and of the Plan complaint nullifies their coercive effect. The mere failure to state that there will be compliance with the Board’s 10(k) awards is not what occurred here. Rather, Respondents sought to enforce arbitration awards contrary to the Board’s 10(k) order when the International sought enforcement of the Kelly and Greenberg awards on January 9, 2007. Likewise by seeking a Plan complaint awarding them the disputed plastering work, Respondents acted contrary to the Board’s 10(k) deci- sion. The International’s withdrawal of the enforcement re- quest on January 13, 2007, was based on its understanding that SDI was complying with Kelly and Greenberg, thus leaving the door open for a renewed threat of enforcement. Respondent’s January 13, 2007 withdrawal of the request for a Plan com- plaint was conditional and left open the possibility that the request for a complaint would be renewed if it found work was included under the Plan. Both the Plan complaint and enforce- ment of the Kelly and Greenberg awards continued to hang like Damocles’ sword over SDI and constitute genuine threats under Section 8(b)(4)(ii)(D) of the Act. Respondents’ argument that neither the Respondents’ request for enforcement of the arbitration awards nor the Plan com- plaint can be coercive because only the Plan administrator can authorize those actions must also fail since a threat to take ac- tion may be coercive even if the threat is not carried out. The Board has held a threat to picket may be coercive under Section 8(b)(4)(ii)(B) of the Act even if the threat is not carried out. Amalgamated Packinghouse, 218 NLRB 853 (1975). Thus, both the requests for enforcement of the Kelly and Greenberg awards and the Plan complaint, notwithstanding their with- drawal, were threats to SDI within the meaning of Section 8(b)(4)(ii)(D) of the Act. I find that by pursuing the enforcement of the Kelly and Greenberg awards and the Plan complaint after the Board is- sued its award in SDI-II, Respondents have violated Section 8(b)(4)(ii)(D) of the Act. 3. The agreed-upon method for resolving jurisdictional disputes Respondents argue finally that by pursuing a Plan award was proper because the parties were bound to the Plan through the PSA. This argument has been previously decided by the Board in SDI-II when in concluded that the parties were not bound to an agreed-upon method of dispute resolution at all potential job sites. Moreover, once the Board ruled in the 10(k) proceeding in SDI-II, it preempted pursuit of a contrary result in any other forum. As, I ruled previously,25 Respondents’ argument that there was no jurisdictional dispute herein has been decided by the Board in SDI-I and SDI-II. It is a foundational issue that may not be relitigated here. CONCLUSIONS OF LAW 1. Standard Drywall, Inc. is an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. 2. Operative Plasterers’ & Cement Masons’ International Association and Operative Plasterers’ & Cement Masons’ In- ternational Association, Local 200 are labor organizations with- in the meaning of Section 2(5) of the Act. 3. Respondent Operative Plasterers’ & Cement Masons’ In- ternational Association and Operative Plasterers’ & Cement Masons’ International Association, Local 200 have engaged in unfair labor practices proscribed by Section 8(b)(4)(ii)(D) of the Act since December 13, 2006, by pursuing after the Board’s 10(k) award in SDI-II the Kelly and Greenberg awards and since January 9, 2007, by requesting a Plan complaint seeking plastering work at public works projects in the 12 southern California counties performed by SDI employees represented by the Carpenters with an object of forcing or requiring SDI to assign the work, described below, to employees represented by Local 200 rather than to employees represented by Carpenters. The work in question consists of plastering work on public works projects in 12 southern California counties as set forth more specifically in the Board’s above cited Decision and De- termination of Dispute in SDI-II. 4. Respondent Operative Plasterers’ & Cement Masons’ In- ternational Association, Local 200 has engaged in unfair labor practices proscribed by Section 8(b)(4)(ii)(D) of the Act since December 13, 2006, after the Board’s 10(k) award in SDI-II by pursuing the Pullen and Tortious Interference lawsuits with an object of forcing or requiring SDI to assign the work, described below, to employees represented by Local 200 rather than to employees represented by Carpenters. The work in question consists of plastering work on public works projects in 12 southern California counties as set forth more specifically in the Board’s above cited Decision and Determination of Dispute in SDI-II. 5. The aforesaid unfair labor practices are unfair labor prac- tices affecting commerce within the meaning of Section 2(6) and (7) of the Act. REMEDY CGC and SDI as part of the remedy herein seek restitution of legal costs and fees in conjunction with defending the Pullen and Tortious Interference lawsuits, defending the enforcement of the Kelly and Greenberg awards and defending the request for a Plan complaint. In Air Line Pilots Association (ABX Air, Inc.), 345 NLRB 820 (2005), the Board affirmed the judge’s remedy awarding legal fees and expenses. In Air Line Pilots Association, after a series of mergers and acquisitions, Respondent Airline Pilots Association filed a grievance alleging that employer DHL had violated its collective-bargaining agreement with the Pilots 25 ALJ Exh. 3. PLASTERERS LOCAL 200 (STANDARD DRYWALL, INC.) 1933 Association by subcontracting out work. DHL filed an action for declaratory relief in United States District Court seeking a judgment that it had not violated the contract. The Pilots Asso- ciation filed a counterclaim seeking expedited arbitration and an injunction restraining DHL from contracting out its air oper- ations services. The Board found that both pursuit of the griev- ance and the counterclaim constituted unlawful secondary ac- tivity within the meaning of Section 8(b)(4)(ii)(A) and (B) and 8(e). In granting an award of legal fees and expenses the Board said: The judge recommended that the Board order the Respondent to reimburse DHL for “all reasonable expenses and legal fees, with interest, incurred in defending against the grievance and counterclaim.” Reimbursement is the appropriate remedy where the Respondent has engaged in actual coercion. See Food & Commercial Workers Local 367 (Quality Foods), 333 NLRB 771 (2001); Service Employees Local 32B-32J (Nevins Realty), supra, 313 NLRB at 403. We clarify, how- ever, that the Respondent is not liable for legal expenses relat- ed to DHL's initiation of the district court litigation. The Re spondent is liable only for expenses related to defending against its grievance and counterclaim.26 Having found that the Respondents’ pursuit of the Kelly and Greenberg awards and the Plan complaint after the Board’s order in SDI-II and Local 200’s pursuit of the litigation in the Pullen and Tortious Interference lawsuits subsequent to the Board’s order in SDI-II constitute coercion within the meaning of Section 8(b)(4)(ii)(D) of the Act, I will recommend to the Board as part of the remedy herein an award of reasonable legal fees and costs incurred after December 13, 2006, against Local 200 in conjunction with defending the Pullen and Tortious In- terference lawsuits, defending the enforcement of the Kelly and Greenberg awards and defending the request for a Plan com- plaint and against the International in conjunction with defend- ing the enforcement of the Kelly and Greenberg awards and defending the request for a Plan complaint. Having found that Respondents have engaged in and are en- gaging in certain unfair labor practices, I shall recommend that they be ordered to cease and desist and to take certain affirma- tive action designed to effectuate the purposes of the Act. [Recommended Order omitted from publication.] 26 Airline Pilots Assn., supra at 824. Copy with citationCopy as parenthetical citation