363 NLRB 121
International Longshore & Warehouse Union, International Longshore & Warehouse Union, Local 8 and In
LONGSHOREMEN LOCAL 8
121
363 NLRB No. 12
International Longshore and
Warehouse Union,
AFL–CIO, and International Longshore and
Warehouse Union, Local 8, AFL–CIO, and In-
ternational Longshore and Warehouse Union,
Local 40, AFL–CIO, and ICTSI, Inc.
International Longshore and
Warehouse Union,
AFL–CIO, and International Longshore and
Warehouse Union, Local 8, AFL–CIO, and In-
ternational Longshore and Warehouse Union,
Local 40, AFL–CIO, and Port of Portland. Cas-
es
19–CC–082533,
19–CD–082461,
19–CC–
087504, 19–CD–087505, and 19–CC–082744
September 24, 2015
DECISION AND ORDER
BY CHAIRMAN PEARCE AND MEMBERS HIROZAWA
AND MCFERRAN
On August 28, 2013, Administrative Law Judge Wil-
liam L. Schmidt issued the attached decision. The Re-
spondents filed exceptions and a supporting brief. The
General Counsel, Charging Party ICTSI, Inc., and Charg-
ing Party Port of Portland filed answering briefs. The
Respondents filed a reply brief.1
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.2
The Board has considered the decision and record in
light of the exceptions and briefs and has decided to af-
firm the judge’s rulings, findings,3 and conclusions and
to adopt the recommended Order as modified.4
1 In addition, pursuant to Reliant Energy, 339 NLRB 66 (2003), the
Respondents filed two postbrief letters calling the Board’s attention to
recent case authority.
By Order dated September 12, 2014, the Office of Executive Secre-
tary denied the Respondents’ motion to consolidate this case with an-
other case (19–CC–100903 et al.), which involves similar allegations
against the Respondents for engaging in job actions against ICTSI.
2 Member Miscimarra is recused and took no part in the considera-
tion of this case.
3 We adopt the judge’s finding that the Respondents violated Sec.
8(b)(4)(i) and (ii)(B) of the Act by engaging in a series of job actions
against ICTSI Oregon, Inc. (ICTSI), and the steamship carriers that call
on Terminal 6 (T6) of the Port of Portland (Port) with an unlawful
“cease doing business” object, namely seeking the Port’s relinquish-
ment of control over the dockside reefer work at T6 for the benefit of
the workers represented by Respondent ILWU Local 8. In affirming
the judge’s 8(b)(4)(B) findings, we do not rely on his references to the
Board’s 10(k) decision in this dispute, Electrical Workers Local 48
(ICTSI Oregon, Inc.), 358 NLRB 903 (2012).
The judge also found that the Respondents violated Sec. 8(b)(4)(D)
by filing, maintaining, and prosecuting grievances or lawsuits against
ICTSI and the steamship carriers, in order to force the Port to assign the
dockside reefer work at T6 to employees represented by Respondent
ILWU Local 8, after the Board issued the 10(k) decision, supra, award-
ing that work to employees represented by another union. On June 17,
2013, however, the Federal District Court for the District of Oregon
vacated the Board’s 10(k) decision on the ground that the Board lacked
AMENDED CONCLUSIONS OF LAW
1. Delete Conclusion of Law 8.
ORDER
The National Labor Relations Board adopts the rec-
ommended Order of the administrative law judge as
modified below and orders that the Respondents, Interna-
tional Longshore and Warehouse Union, AFL–CIO, San
Francisco, California, International Longshore and
Warehouse Union, Local 8, AFL–CIO, Portland, Oregon,
and International Longshore and Warehouse Union, Lo-
cal 40, AFL–CIO, Portland, Oregon, their officers,
agents, and representatives, shall take the action set forth
in the Order as modified.
1. Delete paragraphs 1(e) and 2(a) and renumber the
subsequent paragraphs accordingly.
2. Substitute the attached notice for that of the admin-
istrative law judge.
APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
statutory jurisdiction to award the work to the Port’s electricians be-
cause, as public-sector employees, they are not employees within the
meaning of Sec. 2(2) of the Act. Pacific Maritime Association v.
NLRB, Case No. 3:12–CV–02179–MO (D.Or.) (unpublished decision).
By Order dated February 20, 2014, the Board granted the General
Counsel’s motion to sever, hold in abeyance, and postpone briefing on
the Sec. 8(b)(4)(D) allegations in this case. In light of that Order, we
do not address the Respondents’ exceptions to the judge’s 8(b)(4)(D)
findings at this time.
We find no merit in the Respondents’ exception to the judge’s denial
of the Respondents’ motion to reopen the record to admit and consider
certain “new evidence and law.” The Respondents’ motion describes
the evidence as having been “created . . . months after the close of the
hearing on August 29, 2012.” Accordingly, we agree with the judge
that the evidence does not meet the Board’s standard for “newly dis-
covered evidence” under Sec. 102.48(d)(1) of the Board’s Rules and
Regulations. See Allis-Chalmers Corp., 286 NLRB 219, 219 fn. 1
(1987) (evidence not “newly discovered” if it came into existence fol-
lowing the close of the hearing). For the same reason, we deny the
Respondents’ motion requesting that the Board take administrative
notice of that evidence. We also deny the Respondents’ motion to take
administrative notice of a brief filed by the General Counsel in Califor-
nia Cartage Co. v. NLRB, 822 F.2d 1203 (D.C. Cir. 1987), and ICTSI’s
motion to take administrative notice of the General Counsel’s excep-
tions and briefs in International Longshore and Warehouse Union
(Kinder Morgan Bulk Terminals), 19–CC–092816.
4
We shall amend the judge’s conclusions of law and modify the
judge’s recommended Order to conform to the violations found. In
addition, we shall substitute a new notice to conform to the Order as
modified and in accordance with our decision in Durham School Ser-
vices, 360 NLRB 694 (2014).
122
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
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 with us on
your behalf
Act together with other employees for your bene-
fit and protection
Choose not to engage in any of these protected
activities.
WE WILL NOT induce or encourage employees of
ICTSI Oregon, Inc. (ICTSI) to withhold their services,
engage in slowdowns and work stoppages, or interfere
with the lawful and proper work assignments of other
employee groups that perform services at Terminal 6 in
Portland, Oregon, in order to force or require ICTSI, or
any sea-going carrier, to cease using the services provid-
ed at Terminal 6.
WE WILL NOT directly or indirectly threaten in any
manner to shut down or otherwise disrupt ICTSI’s opera-
tions at Terminal 6, Portland, Oregon, in order to force or
require ICTSI or any other person to cease doing busi-
ness with the Port of Portland at Terminal 6.
WE WILL NOT fail and/or refuse to fulfill ICTSI’s time-
ly requests for the referral of qualified employees for
work at Terminal 6 in accord with the Pacific Coast
Longshore and Clerks Agreement in order to force or
require ICTSI or any other person to cease doing busi-
ness with the Port at Terminal 6.
WE WILL NOT file, process, maintain, and/or prosecute
grievances or lawsuits, or threaten to engage in such
conduct against ICTSI, Terminal Maintenance Corpora-
tion (TMC), COSCO North America, Inc., Hanjin Ship-
ping America, LLC, “X” Line America, Inc., Hamburg
Sud North America, Inc., and Hapag Lloyd America Inc.,
or any other similarly situated neutral employer at Ter-
minal 6, in order to force or require any of them or any
other neutral employers or persons to cease doing busi-
ness with the Port of Portland.
WE WILL NOT in any like or related manner induce or
encourage any individual employed by any person en-
gaged in commerce or in an industry affecting commerce
to engage in a strike or a refusal in the course of their
employment to use, manufacture, process, transport, or
otherwise handle or work on any goods, articles, materi-
als, or commodities or to perform any services; or threat-
en, coerce, or restrain any person engaged in commerce
or in an industry affecting commerce, where in either
case an object thereof is to force or require any person to
cease using, selling, handling, transporting, or otherwise
dealing in the products of any other producer, processor,
or manufacturer, or to cease doing business with any
other person.
INTERNATIONAL LONGSHORE AND WAREHOUSE
UNION, AFL–CIO
INTERNATIONAL LONGSHORE AND WAREHOUSE
UNION, LOCAL 8, AFL–CIO
INTERNATIONAL LONGSHORE AND WAREHOUSE
UNION, LOCAL 40, AFL–CIO
The
Board’s
decision
can
be
found
at
www.nlrb.gov/case/19-CC-082533 or by using the QR
code below. Alternatively, you can obtain a copy of the
decision from the Executive Secretary, National Labor
Relations Board, 1015 Half Street, S.E., Washington,
D.C. 20570, or by calling (202) 273–1940.
Mara-Louise Anzalone, Lisa J. Dunn, and Rachael Harvey,
Attys., for the Acting General Counsel.
Michael T. Garone, Atty. (Schwabe, Williamson & Wyatt), of
Portland, Oregon, for ICTSI, Inc.
Kathy A. Peck, Atty. (Williams, Zografos & Peck), of Lake
Oswego, Oregon, Randolph C. Foster and Daniel G Muller,
Attys. (Stoel, Rives LLP), of Portland, Oregon, for the Port
of Portland.
Norman Malbin, Atty., of Portland, Oregon, for IBEW Local
48.
Robert Remar and Eleanor Morton, Attys. (Leonard Carder,
LLP), of San Francisco, California, for ILWU Locals 8 and
40.
Kirsten Donovan, ILWU Director of Contract Administration,
of San Francisco, California, for the ILWU.
DECISION
STATEMENT OF THE CASE
WILLIAM L. SCHMIDT, Administrative Law Judge. I heard
this case in Portland, Oregon, over the course of 12 days be-
tween July 31 and August 29, 2012.1 This proceeding seeks to
resolve the legality under Section 8(b)(4)(i), (ii)(B), and (D) of
the National Labor Relations Act (the Act or NLRA) of several
1 Unless shown otherwise, all further dates refer to the 2012 calen-
dar year.
LONGSHOREMEN LOCAL 8
123
job actions the International Longshore and Warehouse Union,
AFL–CIO (ILWU), and its Locals 8 and 40 undertook to com-
pel the reassignment of work historically performed by workers
represented by Local 48 of the International Brotherhood of
Electrical Workers, AFL–CIO (Local 48) at Terminal 6 (T6),
one of the marine terminals owned by the Port of Portland (the
Port), a municipal subdivision of the State of Oregon, after the
Port leased that facility to ICTSI Oregon, Inc. (ICTSI or Com-
pany).2
This proceeding is intertwined with the unfair labor practice
charge in Case 19–CD–080738 filed by ICTSI against Local 48
on May 10. In that case, the Regional Director for Region 19
of the National Labor Relations Board (NLRB or the Board)
issued a notice of hearing pursuant to Section 10(k) on May
17.3 His 10(k) hearing notice described the work in dispute
(the dockside reefer work)—applicable both here and there—as
follows:
Plugging, unplugging, and monitoring of refrigerated cargo
containers for ICTSI, Inc., at Terminal 6 of the Port of Port-
land, Portland, Oregon.
ILWU Local 8 intervened and participated in the 4-day 10(k)
hearing that commenced on May 24. On August 13, during a
recess in this proceeding, the Board issued its 10(k) decision
and determination in Case 19CD080738 awarding the disputed
work to the Port’s public employees represented by Local 48.
Electrical Workers Local 48 (ICTSI Oregon, Inc.), 358 NLRB
2 In Sec. 8(b)(4) Congress declared that it is an unfair labor practice
for a labor organization to “(i) to engage in, or to induce or encourage
any individual employed by any person engaged in commerce or in an
industry affecting commerce to engage in, a strike or a refusal in the
course of his employment to use, manufacture, process, transport, or
otherwise handle or work on any goods, articles, materials, or commod-
ities or to perform any services; or (ii) to threaten, coerce, or restrain
any person engaged in commerce or in an industry affecting com-
merce,” where in either case the object is “(B) forcing or requiring any
person to cease using, selling, handling, transporting, or otherwise
dealing in the products of any other producer, processor, or manufac-
turer, or to cease doing business with any other person, or forcing or
requiring any other employer to recognize or bargain with a labor or-
ganization as the representative of his employees unless such labor
organization has been certified as the representative of such employees
under the provisions of Section 9” or “(D) forcing or requiring any
employer to assign work to employees in a particular union, trade, craft
or class rather than to employees in another union, trade, craft, or class,
unless the employer is failing to conform to a Board order or certifica-
tion determining the representative of the employees performing the
disputed work.”
3 When reasonable cause exists to believe that a labor organization
has violated Sec. 8(b)(4)(D) as alleged in a timely filed charge, Sec.
10(k) requires the Board to hear and determine the dispute out of which
that unfair labor practice arose unless the parties submit satisfactory
evidence within 10 days after being provided notice that a charge has
been filed that they have adjusted, or have agreed upon a method for
voluntarily adjusting the dispute. See NLRB v Radio & Television
Broadcast Engineers Local 1212 (Columbia Broadcasting System), 364
U.S. 573 (1961). If the parties comply with a work assignment deter-
mination made in a 10(k) proceeding, or their own adjustment means,
Sec. 10(k) provides for the voluntary dismissal of the 8(b)(4)(D)
charge. Here, the 10(k) hearing went forward on May 24 because no
voluntary means of adjusting this dispute had been advanced.
903 (2012) (the 10(k) case). The Board’s decision also af-
firmed the hearing officer’s denial of a motion to intervene in
that proceeding by the Pacific Maritime Association (PMA).
After this hearing closed, the PMA commenced a Leedom v.
Kyne action in the Federal District Court for the District of
Oregon challenging the Board’s authority 10(k) case to award
the dockside reefer work to workers who, by definition, are not
employees under the NLRA, namely the electricians represent-
ed by Local 48 who work for the Port, a public institution. On
June 17, 2013, the court vacated the Board’s decision and de-
termination in the 10(k) case on the ground that the Board
lacked statutory jurisdiction to award the dockside reefer work
at T6 to the Port’s electricians under Section 8(b)(4)(D) of the
Act because they are not employees within the meaning of
Section 2(2).
Following the district court’s decision, Respondent ILWU
filed a motion with me to reopen the record in order to receive
further documentary evidence. I provided all other parties an
opportunity to respond. Following receipt of their responses, I
took official notice of the court’s June 17 order, notified the
parties I would also take official notice of any Board decision
about appealing the court’s order, denied Respondents’ motion
in all other respects, and submitted Respondents’ documents
attached to its motion to reopen to the rejected exhibit file.
I now take official notice of the information provided to all
parties that the Board’s decision to appeal the court’s order
vacating the 10(k) award is still pending. In the absence of a
definitive decision by the Board to accept the district court’s
decision as the law of the case, I deem myself obligated to ap-
ply the Board’s decision in the 10(k) case for purposes of this
administrative adjudication. See Iowa Beef Packers, 144
NLRB 615 (1963), and the cases cited at fns. 1 and 2.
On June 5, ICTSI also filed Case 19–CD–082461 against
ILWU, and Locals 8 and 40 that made the same claims and
involved the same disputants that earlier participated in the
10(k) case. For that reason, the Regional Director held this
charge in abeyance.
ICTSI filed Case 19–CC–082533 against the ILWU and Lo-
cals 8 and 40 on June 6. The Port followed on June 8 by filing
Case 19–CC–082744 against the same labor organizations.
The Regional Director consolidated these two charges and is-
sued a consolidated complaint and notice of hearing on June 24
alleging that the ILWU and Locals 8 and 40 violated Section
8(b)(4)(i) and (ii)(B) (the June complaint).
During this hearing, counsel for the Acting General Counsel
(AGC) moved to amend the June complaint twice. I granted
both motions. The first amendment on July 24 substituted re-
vised substantive allegations in place of those set forth in para-
graph 6(v) and added paragraph 6(y) to the June complaint.
The second amendment to the June complaint dated August 20
(after the Board’s award in the 10(k) case) consolidated Case
19–CD–082461, earlier held in abeyance by the Regional Di-
rector, with the other charges in the June complaint.
The August 20 amendment also made numerous changes to
the substantive allegations in the June complaint. Apart from
the addition of new allegations based on Case 19–CD–082461,
this amendment modified the several allegations originally
124
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
made in the June 20 complaint.4 Specifically, it modified the
allegations in the following subparagraphs of the June com-
plaint: 4(b), 6(b). (c), (f), (g), (i), (j), (k), (l), (m), (n), (o), (p),
(v), and (w), and 12, and the prayer for relief. It also added the
following subparagraphs (shown in the August 20 amendment
document only): 5(d), 6(aa), (bb), (cc), and 11(b) and (c). Fi-
nally, it withdrew the allegations contained in subparagraphs
6(d) and (q) of the June complaint. Together, the July 24 and
August 20 amendments to the June complaint resulted in an
overall allegation that the Respondents had engaged in conduct
that violated Section 8(b)(4)(i), (ii)(B), and (D).
On August 17, following the Board’s 10(k) award in Case
19–CD–080738, ICTSI filed Cases 19–CC–087504 and 19–
CD–087505 against the ILWU, and Locals 8 and 40. After
ITCSI amended both charges on August 22, the Regional Di-
rector consolidated the two cases and issued another consoli-
dated complaint on August 23 (the August complaint) that also
alleged that the ILWU along with its Locals 8 and 40 violated
Section 8(b)(4)(i), (ii)(B), and (D).
On the entire record,5 including my observation of the de-
meanor of the witnesses, and after considering the briefs filed
by the AGC, ICTSI, the Port, the ILWU and its Locals 8 and
40, I make the following
FINDINGS OF FACT
I. JURISDICTION AND LABOR ORGANIZATION STATUS
Respondents admit and I find that the Company, an Oregon
corporation, with an office and place of business located at T6,
is engaged in the business of operating a cargo handling facili-
ty. During the 12-month period prior to June 15, 2012, a repre-
sentative period, ICTSI, in the conduct of its business at T6,
purchased goods and supplies valued in excess of $50,000 di-
rectly from entities located outside the State of Oregon. Re-
spondents further admit, and I find, that ICTSI has been, at all
material times, an employer engaged in commerce within the
meaning of Section 2(2), (6), and (7) of the Act.
Respondents also admit that they are each labor organiza-
tions within the meaning of Section 2(5) of the Act. In addi-
tion, in the 10(k) case, the Board found that IBEW Local 48 is
also a labor organization within the meaning of Section 2(5) of
the Act.
II. ALLEGED UNFAIR LABOR PRACTICES
A. Introduction
This highly complex and very technical labor dispute has
arisen over the performance of a relatively simple work task.
For nearly four decades well-trained, highly-skilled tradesmen
who are represented by an IBEW local union have performed
the dockside reefer work at T6. The work calls upon little, if
any, of the technical craft skills traditionally acquired by these
tradesmen through their rigorous apprenticeship program or
their subsequent job experience performing tasks that would be
4 By that time, the hearing testimony provided counsel for the AGC
with sufficient “discovery” about the identity of the Respondent’s
agents previously alleged as “unknown agents” in the June complaint.
5 I took official notice of the hearing record in the 10(k) case, and
have considered evidence from that record in making my findings here.
very dangerous for untrained workers. Yet this particular work
task takes place smack in the middle of a complex stevedoring
operation traditionally performed by longshore workers and
marine clerks represented by ILWU local unions, an industrial
labor organization concerned with technological advances that
imperil the livelihood of their members.
On the surface, the decisionmaking underlying this division
of labor at T6 could not appear to be more ill-conceived. Ter-
minal Manager Jim Mullen, the onsite ICTSI management offi-
cial affected most by this dispute agreed that this specific work
arrangement, which was confirmed by the NLRB in the middle
of this proceeding, is not an efficient arrangement. Even
though his personal assessment is clearly contrary to his em-
ployer’s interest, the detailed facts described below suggest that
his professional viewpoint is an understatement.
Each of the labor organizations competing for the work,
ILWU Local 8 and IBEW Local 48, assert a contractual basis
for performing the dockside reefer work, claiming that it
amounts to the kind of “maintenance” or “maintenance and
repair” work covered by the collective-bargaining agreements
under which they operate. As detailed below, the contractual
language on which the competing parties rely is vague and
ambiguous. Instead, the applicable collective-bargaining
agreements make only broad references to maintenance work
and the parties arguments over their right to perform this work
fan out from that generic source.
Local 48’s claims rest primarily on the fact that the workers
it represents have performed the disputed work at T6 undis-
turbed for nearly four decades before the time this dispute
arose. Local 8’s claim is grounded essentially on internal inter-
pretations in recent years of provisions in the coastwise
PMA/ILWU collective-bargaining agreement applicable to
West Coast ports which recognize the dockside reefer work as
traditional stevedoring work that must be performed by long-
shore workers with specific exceptions at several ports other
than Portland.
For reasons detailed below, a preponderance of the evidence
supports a conclusion that, when the Port leased its T6 contain-
er facility to ICTSI in May 2010, it reserved the right to per-
form certain work itself, including among other tasks, the
dockside reefer work in accord with the lengthy historical prac-
tice at that terminal. Some of these tasks are specifically
spelled out in the Port’s lease with ICTSI but others are de-
scribed in terms of the work historically performed under the
collective-bargaining agreement between the Port and Local 48.
From the outset, both the Port and ICTSI construed their lease
to include the dockside reefer work within the responsibilities
retained by the Port. Even though the evidence shows that
Local 8 made a demand for the dockside reefer work at the time
that ITCSI actually took over container operations at T6 in
2011, ITCSI promptly rejected that demand citing specific lease
terms. Yet, another year passed on top of the previous four
decades before Local 8, Local 40, and the ILWU initiated vari-
ous actions to directly pressure numerous entities other than the
Port in an effort to secure the assignment of the tasks involved
to the workers represented by Local 8.
LONGSHOREMEN LOCAL 8
125
B. The Setting and the Involved Entities
As noted, the Port of Portland is a political subdivision of the
State of Oregon. It is governed by the Port Commission whose
members are appointed by the Governor of Oregon. The Port
owns T6, a large marine terminal on the Columbia River at
Portland, some 100 nautical miles inland from the Pacific
Ocean. Terminal 6, situated on a 400-plus acre site, is primari-
ly a container terminal designed and equipped to load and un-
load seagoing container vessels, and to park incoming and out-
going cargo containers while awaiting shipment by land or sea.
Some smaller segments of T6 also serve as a terminal for im-
ported autos and for break-bulk goods but this matter concerns
only the container operation. The Port owns and operates three
other nearby marine terminals on the Willamette River, but
none of these other terminals handle containerized cargo nor
are any of these other terminals involved in this proceeding.6
In addition to its marine terminals, the Port also owns and oper-
ates Portland International Airport.
The Port commenced container operations at T6 in 1974.
Between 1974 and 1993, the Port itself operated all aspects of
the terminal, directly employing all of the workers there. The
longshore employees worked under the terms of a local collec-
tive-bargaining agreement described in detail below. From
1993 until February 2011, the Port continued to operate T6 but
retained a stevedoring contractor, Marine Terminals Corpora-
tion and its successor, Ports America (MTC/PA), on a cost-plus
basis to manage the T6 stevedoring operations. Unlike the
Port, MTC/PA held membership in the PMA throughout its
tenure at T6.7
However, the Port continued to directly employ other work-
ers to maintain the physical facilities and equipment it owned at
T6 as well as at other Port-owned terminals. These other work-
ers included the Local 48-represented electricians and others in
the skilled trades pursuant to a collective-bargaining agreement
with the District Council of Trade Unions (DCTU), an umbrella
labor organization in Portland comprised of several different
craft unions plus a municipal workers union. Throughout this
period, the Port also employed administrative and professional
personnel to market its terminal services and to manage its
agreements with the carriers (the steamship lines) using the
Port’s terminal services to process their cargo.
MTC/PA, which continues to conduct operations at other
United States marine terminals, employed the longshore and
marine clerk labor at T6 pursuant to the terms of the PMA’s
coastwise collective-bargaining agreement with the ILWU.
Insofar as is known, MTC/PA never had a collective-bargaining
agreement with any of the craft unions that represent nonsteve-
dore workers in and around T6 or the other Port terminals.
The PMA, a San Francisco-based multiemployer bargaining
agency, negotiates and administers on behalf of its employer
6 Portland is situated at the confluence of the Columbia and
Willamette Rivers.
7 Because the PMA provides its member companies with payroll
services, the Port ceased to have a “payroll relationship” with the Local
8 longshore workers and the Local 40 marine clerks when it engaged
MTC/PA as the stevedoring contractor. Instead, these workers received
their weekly payroll checks from the PMA.
members a coastwise maritime labor agreement with the
ILWU. Its membership includes domestic carriers, internation-
al carriers, and stevedores that operate in California, Oregon,
and Washington. PMA policy is established and controlled by
an 11-member board of directors. The 2011 PMA annual re-
port shows that seven members of the board were officials of
international carriers, two were officials of domestic carriers,
and two were officials of stevedoring companies, similar to
ICTSI, with no carrier operations.
The principal agreement between the PMA and the ILWU is
known as the Pacific Coast Longshore and Clerks Agreement
(PCL&CA). This coastwise agreement applies to all PMA
members engaged in operations at West Coast marine terminals
from San Diego, California, to Bellingham, Washington. The
PCL&CA consists of two documents: (1) the Pacific Coast
Clerks Contract Document (PCCCD) governing the marine
clerks’ terms and conditions of employment, and (2) the Pacific
Coast Longshore Contract Document (PCLCD) governing the
longshore workers’ terms and conditions of employment. The
term of the current PCL&CA runs from July 1, 2008, until July
1, 2014. This dispute deals almost exclusively with the
PCLCD.
By 2006, the Port remained the only public authority directly
operating a marine terminal in the United States. The wide-
spread industry trend toward privatization lead Port executives
to initiate an internal review of the business model then in use
for the operation of T6 with the belief that further privatization
at Portland could lead to greater use of its facilities, one of the
smaller container terminals on the West Coast. Eventually, the
Port began to consider the complete privatization of the T6
container operation using a “concession agreement” model used
at other ports. This model provided for a long-term lease ar-
rangement with a private stevedore that involves a large upfront
payment followed by smaller annual payments.
In the early part of 2007, the Port solicited a Request for
Qualifications (RFQ) throughout the industry from those
deemed qualified to operate T6. The initial RFQ contemplated
a 75-year lease arrangement. In September 2008, the Port pre-
pared and made available to the prospective concessionaires a
draft lease agreement. Importantly, that draft also contained
provisions requiring any potential lessee to honor the historical
division of labor maintained by the Port at T6, a requirement
that is at the core of this dispute. Between that time and No-
vember 2008, the Port received proposals from a dozen pro-
spective terminal operators, including ICTSI’s Manila-based
parent. However, the near collapse of the global shipping mar-
ket that year caused the Port to temporarily abandon this initia-
tive in November.
Port officials notified each of its RFQ respondents about its
decision to put the project on hold. During a conference call to
inform ICTSI officials of the Port’s decision, that company’s
executives urged Port executives to consider an alternate ar-
rangement that involved a much shorter lease term and a small-
er upfront payment. This suggestion led to further telephone
exchanges followed by a bilateral meeting between Port execu-
tives and ICTSI officials in March 2009. Following this initial
meeting, the Port and ICTSI continued negotiate for the next 13
126
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
months over the terms of a T6 lease before reaching an agree-
ment.
In early May, officials of ICTSI’s parent hired Elvis Ganda,
an experienced West Coast marine terminal executive as the
chief executive officer of ICTSI, the subsidiary it established to
operate T6 under the soon-to-be-concluded lease. Ganda then
retained James Mullen, an experienced manager in the industry,
as the T6 terminal manager, and Brian Yockey as the T6 ma-
rine manager responsible for terminal’s vessel operations.
On May 12, 2010, the Port Commission approved a 25-year
lease of T6 to ICTSI. The complex lease terms provided for a
closing date in 90 days plus a transition period while ICTSI
completed preparations for taking over the T6 container opera-
tion. It also provided for the Port to assign all of its carrier
agreements with various container ship owners to ICTSI and
for the sale of a large amount of the equipment the Port owned
in connection with its T6 operations.
The lease contained two provisions discussed in more detail
below designed to retain the historical work jurisdiction of the
craft workers long employed by the Port under its collective-
bargaining agreement with the DCTU. The lease also required
ICTSI to reimburse the Port for the services performed by the
Port’s employees at T6, including the disputed dockside reefer
work involved here.
In preparation for operating T6, ICTSI entered into a “ser-
vice/use” agreement with the Terminal Maintenance Corpora-
tion (TMC) so the latter could continue to carry on its business
on the premises at the terminal. TMC, under agreements with
the various carriers that use T6 services, performs repair,
maintenance, and cleaning work on the carrier-owned or leased
equipment, including repairs to container chassis, refrigerated
containers (reefers), nonrefrigerated containers (cans), and
diesel generators (gensets) that provide electrical power to op-
erate the reefers while in transit over land. None of the work
performed by TMC is in dispute. TMC employs mechanics
represented by Local 8. Dave Echels manages the TMC opera-
tion; Preston Foster oversees the work of the Local 8-
represented employees.
ICTSI joined the PMA in or about June 2010, after the lease
was signed and approved but well in advance of commencing
its T6 operations on February 12, 2011.
C. The Disputed Dockside Reefer Work at T6
To preserve their contents, certain commodities passing
through a marine terminal must be shipped in refrigerated con-
tainers. The carriers own or rent all of the containers, including
the reefers. The determination as to whether a commodity must
be transported in a reefer is one made between the shipper and
the carrier.
When a reefer is required, the shipping documents will in-
clude the specified temperature and ventilation settings. After
the shipping documents are complete, the carrier books the
reefer into the terminal. The booking process shows the ex-
pected arrival date of the reefer at the terminal as well as other
details necessary for terminal personnel to receive and handle
the reefer until it is loaded on the carrier’s ship for transport to
another marine terminal for offloading. The temperature and
ventilation settings specified in the shipping documents must be
maintained throughout the reefer’s transit.
Reefers arrive at T6 by truck, train, or barge. From the per-
spective the longshore workers, marine clerks, and electricians
at T6, the process is essentially the same regardless of the
means used to transport a reefer to, or away from, the terminal.
In transit to the terminal, the refrigeration unit is operated by
the genset. Once at the terminal, the genset is removed and the
reefer is plugged into a permanent electrical outlet on the ter-
minal grounds. Since 1974, or going back through all the time
the Port operated T6 directly and with the aid of its contract
stevedore MTC/PA, the Port-employed electricians performed
the work of plugging and unplugging the reefers as well as
regularly monitoring the reefers to insure that the proper tem-
perature and ventilation levels were maintained throughout its
stay at T6. However, when reefers arrived at the terminal on a
container ship or were loaded onto a ship for transport, long-
shore workers represented by Local 8 boarded the ship and
performed the plugging and unplugging work. Hence, one
employee group (Local 48 electricians) has historically per-
formed the dockside reefer work while the other group (Local 8
longshore workers) performed the identical work aboard ships
berthed at T6.
When a truck carrying a “live” (refrigerated) export load en-
ters the terminal gate, it first goes through a mechanized securi-
ty scan. The driver then moves the vehicle on to the scales for
a weight check. While at the scales, the driver initiates contact
with one of ICTSI’s marine clerks represented by Local 40.
During this gate transaction, the driver provides information
concerning the load and the marine clerk designates a “yard
spot” where the reefer will ultimately be unloaded or
“decked.”8 The clerk then instructs the driver to pull up to the
reefer check-in area (reefer blocks) a short distance beyond the
scales to await an initial inspection by a Port-employed electri-
cian.
Meanwhile, the marine clerk also notifies a Port-employed
electrician about the arrival of a reefer and provides the electri-
cian with relevant information that includes the reefer number,
its specified temperature and ventilation settings, and other
relevant data including the reefers’ section and slot assign-
ment.9 After receiving this report, a Port electrician assigned to
be “on the gate” that day proceeds to the reefer check-in area to
verify and record the arrival temperature and ventilation set-
tings shown on the reefer’s gauges. If the settings conform to
the information provided by the marine clerk, the electrician
instructs the driver to proceed to its assigned spot in the con-
tainer yard and follows the truckdriver to that location in his
own vehicle.
If, upon the initial inspection at the reefer blocks, the electri-
cian finds the reefer’s temperature and ventilation settings are
outside the carrier’s specifications, this condition is immediate-
ly reported to a marine clerk. The clerk, in turn, informs a car-
8 A large portion of the T6 acreage consists is devoted to the “con-
tainer yard,” essentially a parking lot for containers divided into sec-
tions and spots where the containers are stacked.
9 A system also exists for the Port electricians’ office to receive an
automatic email that provides the same information.
LONGSHOREMEN LOCAL 8
127
rier representative and requests instructions as to whether to
accept a “bad load.” On occasion, the carrier might request
TMC, the carriers’ equipment maintenance subcontractor at the
site, to have a mechanic inspect and correct the problem if pos-
sible. If the TMC mechanic quickly succeeds, the reefer might
be accepted; if not, the carrier might direct the marine clerk to
reject the reefer for shipment. Regardless, the carrier makes all
decisions about the handling of questionable loads. Estimates
as to how frequently a bad load arrives ranged from once a
week to once every 3 weeks.
Absent any problem, a TMC mechanic (also provided notice
about the arrival of a reefer) meets the truckdriver at the desig-
nated container location, removes the genset (also owned by the
carrier) and takes it to the TMC shop at the terminal. When
that is complete, a Local 8-represented operator employed by
ICTSI “decks” the reefer, i.e., removes the reefer from the truck
chassis utilizing a machine called a “reach stacker” and puts the
reefer into the designated spot at the container yard, which
might involve stacking the reefer on top of one or more reefers
already decked in that designated spot. After the reefer has
been decked, the Local 48-represented Port electrician then
plugs the reefer into a receptacle on a nearby reefer electrical
bank, checks briefly for the proper operation of the container’s
refrigeration unit, and enters the reefer into a monitoring log
maintained by the Port electricians.
Typically, a reefer will remain in the container yard a few
days awaiting shipment. During that time, Port electricians
monitor the reefers twice daily to insure that the temperature
and ventilation settings have remained at the specified level.
The monitoring process requires a visual inspection of each
reefer and recording the readings reflected on the reefer’s gages
in the monitoring log.10 Although it varies by season, usually
there are about 60 reefers at T6 awaiting shipment at any given
time.
D. The Relevant Labor Relations History at T6
Over the years, the Port has employed various craft workers
at T6, including electricians represented by Local 48, pursuant
to its agreement with the DCTU.11 The relevant portion of the
scope of the work provision contained in the most recent DcTU
agreement, effective from July 1, 2009, through June 30, 2012,
provides as follows:
This Agreement shall cover all construction, demolition, in-
stallation, and maintenance assignments which have been his-
torically and consistently performed by employees covered
under this Agreement, and such work assignments will con-
tinue under this Agreement at all marine cargo handling facili-
10 It is unclear whether the Local 8 longshore workers or the ship’s
own personnel performs this monitoring work after the reefer is loaded
aboard ship and while it remains berthed at T6.
11 Along with Local 48, the other constituent members of the DCTU
based on the labor organizations signatory to the most recent collective-
bargaining agreement with the Port are: Pacific Northwest Regional
Council of Carpenters; Plumbers Local 290; Municipal Employees
Local 483; Painters District Council, Local 55; Operating Engineers
Local 701; and Boilermakers Local 500. None of these other unions
figure directly in this dispute.
ties owned and operated by the Port, including any marine
cargo handling facilities leased and operated by the Port.
. . . .
The scope of this Agreement shall include any marine cargo
handling facilities leased by the Port to an independent opera-
tor to the extent the Port retains the responsibility for the
maintenance or repair of any such leased facility or facilities.
In the event the Port leases any existing facilities that are cov-
ered under this Agreement to an independent operator, and
such operator is responsible for maintenance of such facility,
the jurisdiction of the respective crafts shall be maintained in
respect to any personnel employed by such operator to per-
form work covered by the scope of this Agreement and such
employees performing such work shall receive not less than
the terms and conditions of this Agreement.
Presumably, Port officials concluded at some time that this
nebulous scope of work provision or it predecessor, applicable
to all of the workers in all of the trades employed by the Port
under the DcTU agreement, included the specific tasks of plug-
ging, unplugging, and monitoring reefers decked at T6 and
assigned that work to the electricians covered by the DCTU
agreement. No one provided the underlying rationale for this
anomalous assignment decision obviously made long ago but
ICTSI continued the practice of using the Port’s electricians to
perform the disputed reefer work rationalizing that the lease
required it to honor the historical work jurisdiction of those
workers whose terms and conditions of employment were pro-
vided for under the Port/DCTU agreement.
Unquestionably, the Local 48-represented electricians have
many other responsibilities in connection with their facility
maintenance responsibilities. Quite unlike the reefer work,
these other responsibilities appear to require the knowledge,
training, and skills ordinarily associated with tradesmen who
work in that craft. A March 2010 position description for a
Port “Marine Electrician” summarizes the work functions of a
Port electrician. The functions shown in the job description
document include an estimate of the amount of time a Port
electrician might expect to spend performing a particular task
along with a summary description of the separate tasks listed in
order of their importance. It shows the following:
(50%) 1. Perform maintenance of electrical control systems
on Port container cranes; the ability to troubleshoot and repair
large DC motors and DC motor controls; Trouble-shoot elec-
trical and electronic controls, including relay logic, Program-
mable Logic Controller (PLC) programming and trouble
shooting, and radio and/or micro-wave controls. Perform
maintenance of electrical distribution systems from voltages
that range from 120 to 12.5KV volt branch circuits.
(30%) 2. Repair and/or replace any and all electrical systems
at Marine facilities.
(10%) 3. Install and start-up new equipment, associated feed-
ers, branch circuits and controls.
(10%) 4. Gate receipt check in, plug/unplug, and monitor re-
frigerated containers, Maintain accurate temperature records.
128
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
From the inception of container operations at T6, ILWU Lo-
cals 8 and 40 represented the Port’s longshore workers and
marine clerks, respectively.12 The most recent collective bar-
gaining agreement between the Port and these ILWU local
unions was entered into in 1984 (the 1984 Port/ILWU agree-
ment). Save for some very limited attachments not relevant
here, the 1984 Port/ILWU agreement is a four-page, double-
spaced document with half of the last page reserved for the
parties’ signatures.
Leal Sundet, the ILWU Coast Committeeman for the Pacific
Northwest area and a key player in this dispute, accurately de-
scribed the 1984 Port/ILWU agreement as a “me too” agree-
ment that effectively adopted the terms of the 1984
PMA/ILWU coastwise collective-bargaining agreement with a
few reservations.13 The 1984 Port/ILWU agreement looked to
the far more detailed PMA/ILWU collective-bargaining agree-
ment for the essential terms and conditions of employment of
the workers in the longshore and marine clerks unit at T6. It
contained nine sections. At best, only four have relevance here:
Section 1 recites that the parties have abided by the
terms of “all previous ILWU-PMA Agreements
and shall now abide by the terms and conditions of
the current ILWU-PMA Longshore and Clerks
Agreements, dated July 12, 1984 . . . subject to any
provisions of such agreements that may be found to
be illegal or unenforceable.
Section 2, stripped of irrelevant verbiage, provides
that the Port will continue to employ “members of
ILWU Local Nos. 8, and 40 to perform work as-
signments as specified in the ILWU-PMA Agree-
ment dated July 12, 1984, at any ‘Public Cargo
Handling Facilities’ operated by the Port . . ..”
Section 8 contains four sentences addressing the
term of the agreement. The first sentence is a zip-
per clause. The second provides that the agreement
will be effective from July 1, 1984 “until at least
5:00 P.M., July 1, 1987.” The third provides for an
automatic renewal on a yearly basis absent a writ-
ten notice by May 1 of each year about a party’s
desire to modify the agreement. The final sentence
provides for the agreement to remain in effect dur-
ing the negotiation of a new agreement.
Section 9 provides the Agreement “shall be binding
on the (Port’s) successors and assigns.”
12 In addition, ILWU Local 92 has historically represented the fore-
men and walking bosses at T6. Their duties include relaying manage-
ment’s assignments directives to the longshore workers and marine
clerks. Local 92 is not involved in this proceeding.
13 Sundet formerly worked at the PMA for approximately 8 years
and then switched sides. The Longshore Division Coast Committee is a
four-member body consisting of the ILWU president and a vice presi-
dent along with two elected coast committeemen (one representing
California terminals and the other represents the Northwest terminals)
that negotiates and administers the PMA/ILWU collective-bargaining
agreement. Before his election as a coast committeeman, Sundet held
several positions with two Oregon ILWU locals, including at least a
partial term as Local 8’s president. Sundet is quite knowledgeable
about the industry and its labor relations history.
Sundet testified without contradiction that the Port at one
time belonged to the PMA, but was expelled from that mul-
tiemployer organization following a strike in the early 1970s.
No evidence shows that the Port itself ever belonged to the
PMA during any period when it directly operated T6 as a con-
tainer terminal.
The AGC’s brief cites subsection 5D of the 1984 Port/ILWU
agreement in support of the contention that Locals 8 and 40 are
contractually obligated to honor the traditional assignment of
the disputed reefer work at T6. A similar finding was made in
the 10(k) case. 358 NLRB 903, 906. Entirely apart from the
fact that the cited language in section 5D appears to apply to
jurisdictional allocations between the ILWU and the Teamsters
rather than the IBEW or any other DCTU labor organization,
this argument presupposes that the ICTSI assumed and became
bound by the 1984 Port/ILWU agreement when it leased the T6
container terminal. I have concluded that ICTSI never became
bound by the 1984 Port/ILWU agreement.
Claims abound in this case that the 1984 Port/ILWU agree-
ment somehow remained viable as the principal agreement
covering the terms and conditions of employment of the long-
shore workers and marine clerks at T6 after ICTSI commenced
operating the facility by way of its annual renewal clause. I
find those claims lack convincing evidentiary support. In fact,
Sundet testified, again without contradiction, that the Port had
in the past notified Local 8 that the 1984 Port/ILWU agreement
was “null and void.” While his testimony alone would not be
sufficient to establish that the automatic renewal provision of
the 1984 Port/ILWU agreement had been forestalled at some
time in the past, his testimony is sufficient to cast a shadow
over the current vitality of that agreement. But that aside, it is
clear that when ICTSI took over the operation of T6, it did not
adopt the 1984 Port/ILWU agreement.
But even assuming the continued viability of the 1984
Port/ILWU agreement for some period after its initial expira-
tion date, that changed when MTC/PA directly employed the
longshore workers and marine clerks as both of those entities
became and remained PMA members until ICTSI took over the
actual operation of T6 in February 2011. As such, both
MTC/PA and ICTSI would have been directly bound to the
successive PMA/ILWU agreements rather than the local me-too
agreement negotiated by the Port.
Furthermore, the only reference to the 1984 Port/ILWU
agreement in the T6 lease agreement merely states that the Port
provided the lessee with a copy of that agreement. Although
the 1984 Port/ILWU agreement provides for its application to
the parties’ successors, there is no evidence that ICTSI adopted
that agreement and the lease did not require it to do so. Clearly,
ICTSI had no legal duty otherwise to adopt the 1984
Port/ILWU agreement. NLRB v Burns Security Services, 406
U.S. 272 (1972) (holding that a successor employer does not
automatically assume its predecessor’s collective-bargaining
agreement). Unquestionably, ICTSI has all the indicia of a
successor employer at T6 under the Burns doctrine.
In addition, ICTSI’s conduct negates any claim that it ever
intended to adopt the 1984 Port/ILWU agreement and imple-
ment its terms. Instead, on May 18, 2010, Ganda submitted an
LONGSHOREMEN LOCAL 8
129
application on behalf of ICTSI for PMA membership and that
application was accepted the following month. Additionally,
Ganda testified that it had been ICTSI’s intention from the
outset to become and operate as a PMA member. Some degree
of confirmation of that intention can be found in the fact that
Mullen became a member of the PMA’s Pacific Northwest
Oregon and Columbia River Area Steering Committee, a highly
improbable appointment for an official of an entity connected
to the PMA only by means of a local me-too agreement. For
these reasons, I have concluded that ICTSI’s actions demon-
strate that it chose not to adopt the 1984 Port/ILWU agreement.
Instead, it chose to become bound directly to the existing
PMA/ILWU agreement when it applied for and became a
member of the PMA.
The Respondents’ work preservation claim under National
Woodworkers14 is grounded on their belief that ITCSI Oregon
became bound directly by all of the terms of the PCL&CA
when it became a PMA member and that this coastwise collec-
tive-bargaining agreement requires member companies to use
ILWU-represented workers to perform the disputed reefer work
at Portland. As with the DCTU agreement, the PCLCD por-
tion of that agreement makes no specific reference to the dis-
puted reefer work. But section 1.7 of the PCLCD provides that
it applies to “the maintenance and repair of containers of any
kind . . . and the movement incidental to such maintenance and
repair.” Section 1.71 provides that the agreement applies to the
“maintenance and repair of all stevedore cargo handling
equipment” and section 1.76 requires that the “Employers shall
assign work in accordance with Section 1 provisions and as
may be directed by the CLRC or an arbitration award.” [Em-
phasis added.] Section 1.76 further requires employers to de-
fend decisions of the CLRC or the coast arbitrator in any “legal
proceeding” and states that the PMA “shall participate along
with the individual Employers assigning the work in any legal
proceeding.”15
The PCL&CA is administered by the Coast Labor Relations
Committee (CLRC) that oversees the application of the agree-
ment for the entire West Coast. It is composed of representa-
tives of the ILWU and the PMA. The entities have an equal
voting power within the committee so that all CLRC decisions
are either unanimous or deadlocked. Contractually, deadlocked
decisions may be referred to the coast arbitrator, currently John
Kagle, for resolution. With rare exception, the CLRC meets in
San Francisco where the headquarters of both organizations are
located. The decisions made by the CLRC bind all parties at all
West Coast ports. A decision by the CLRC that the dockside
reefer work at T6 is work covered by section 1 of the PCLCD is
the foundation for the Respondents’ arguments in this dispute.
As a coast committeeman, Sundet personally participated in
the negotiation of the 20082014 PCL&CA on the union side
and frequently participates as an ILWU representative on the
CLRC. Prior to 1978, he testified, the dockside maintenance
and repair work (which from ILWU’s perspective always in-
cluded the reefer work at issue here) had been left to local
14 National Woodwork Mfrs. Assn. v NLRB, 386 U.S. 612 (1967).
15 The PMA did not seek to intervene in this unfair labor practice
proceeding.
agreements. However, under the 1978 PMA/ILWU agreement,
the maintenance and repair work became subject to the coast-
wise PCLCD. Still, that agreement provided that PMA em-
ployers with a past practice of subcontracting maintenance and
repair work to employers that did not employ ILWU-
represented labor before the effective date of the 1978 agree-
ment could continue to engage in this practice. Ultimately, this
exception was construed to permit those PMA employers to
transport their exemption to other locations, thereby leading to
the spread of this subcontracting practice at the expense of jobs
the ILWU members considered to be their own.
Sundet further testified that the 2008 agreement ended the
subcontracting of all maintenance and repair work except at
those locations where a PMA member company had an existing
collective-bargaining agreement with another labor organiza-
tion to perform that work. In exchange for this concession
from the PMA that the ILWU thought would stem the erosion
of maintenance and repair jobs for the workers it represented,
the ILWU agreed to cooperate with the introduction of addi-
tional mechanical and robotic equipment at West Coast termi-
nals designed to improve efficiency even though these techno-
logical advances would inevitably displace some ILWU equip-
ment operators.
This arrangement was implemented within the 2008
PMA/ILWU agreement by means of a Letter of Understanding
(LOU) attached to the 2008 PCLCD. The LOU designated
excepted locations to the 2008 prohibition against subcontract-
ing by labeling them as “red-circled,” meaning that the existing
practice of using non-ILWU labor could continue but only at
those site-specific locations. From the ILWU’s perspective,
this approach served to stop the further spread of the practice of
using non-ILWU labor to perform maintenance and repair
work. The LOU did not recognize any red-circle work at any
Portland terminal.
Sundet either could not or would not explain the complete
exclusion of the Portland terminals from the LOU’s red-circling
process even though the electricians at T6 had historically per-
formed the dockside reefer work there. Bill Wyatt, the Port’s
executive director, also stated in a June 12 letter responding to
a carrier executive pressuring the Port to reassign the dockside
reefer work to ILWU-represented workers that he could not
understand the exclusion of the Portland terminals from the
LOU.
However, I find it fair to infer the obvious: the reason no
work at any Portland terminal (including specifically the T6
dockside reefer work) was red-circled in the 2008 LOU un-
doubtedly resulted from the fact that MTC/PA, then the PMA-
member stevedore contractor at T6, maintained no non-ILWU
bargaining agreements at Portland that would qualify for red-
circling under the LOU process. In addition, the Port, which
did maintain the critical non-ILWU agreement with the DCTU
that is at issue here, did not qualify to participate in the LOU
red-circling process because it was not a PMA member. The
Respondents’ brief at page 7 effectively concedes as much. It
states:
Terminal 6 was not red-circled because at the time of the
2008 contract negotiations, the Port of Portland controlled the
130
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
work as the terminal operator and was neither a member of
PMA nor subject to the terms of the PCLCA. The red circle
exception applied only to the negotiating companies who had
direct CBA with other unions.
For reasons described later, I find these procedural formulations
that precluded essential parties from participating in negotiating
the 2008 LOU exceptions amounts to the Respondents’ Achil-
les heel affecting the entire outcome of this case.
E. The ILWU’s Initial Efforts to Obtain the
Dockside Reefer Work at T6
Paragraph 5 of the June complaint alleges Respondents had a
dispute with the Port over the dockside reefer work and that it
engaged in a variety of activities to compel the Port to reassign
that work from the Port electricians to employees they repre-
sent.
ILWU officials knew about and followed the Port’s lease ne-
gotiations with ICTSI.16 Sundet asserted several times that he
had received a verbal assurance before the conclusion of the
lease negotiations with ICTSI from Sam Ruda, the Port’s direc-
tor of marine and industrial development at the time, that the
Port would not stand in the way of the ILWU acquiring the
dockside reefer work when the new lessee took over at T6 if the
ILWU obtained it through some available arbitral process.
On February 10, 2011, 2 days before the Company com-
menced the actual operation of T6, Labor Relations Commit-
teeman (LRC) William O’Neil from Local 8 sent a letter to
Ganda welcoming his company to the terminal as its new oper-
ator. The letter also sought to stake Local 8’s claim to several
types of work, including the dockside reefer work. In relevant
part O’Neil’s letter stated:
In regards to our future relationship, the Union wishes to re-
mind ICTSI that the 2008 Memorandum (sic) of Understand-
ing requires that PMA-member companies recognize their ob-
ligations under the PCLCD. The Union understands that the
contract changed significantly in 2008 in the areas of mainte-
nance and repair of all PMA-member company equipment on
any dock owned or leased by PMA-member companies.
To that end, the Union feels that the PCLCD is clear on reefer
repair, chassis repair, chassis tires, reefer monitoring, plug-
ging/unplugging of reefers in the yard, and the repair and
maintenance of all other equipment owned or operated by any
PMA-member companies. The Union asks that you respond
to this letter in writing related to the issues mentioned above
stating your future intent of supplying that work to the ILWU
workforce.
Ganda rejected O’Neil’s claim to the dockside reefer work in
a letter dated February 15.17 The reasons he provided state:
Please rest assured that ICTSI has carefully considered
its obligations to the Union under the 2008–2014 PCLCD
16 At the time, Bruce Holte, Local 8’s secretary-treasurer, served as
a member of the Port Commission. In his role as a commissioner, he
voted to approve the lease.
17 Following O’Neil’s lead, Ganda copied Sundet with his response.
Sundet claimed to have no recollection of Ganda’s February 15 letter
even though he conceded he could have received it.
and the July 2008 Memorandum of Understanding and
plans to meet those obligations. However, certain work
mentioned in your letter, for example, the plugging, un-
plugging and monitoring of reefer units as well as other
electrical work, such as on the container cranes, is not
within ICTSI’s control. As you know, ICTSI is operating
Terminal 6 pursuant to a 25-year lease with the Port of
Portland, a lease that was entered into before ICTSI be-
came a PMA member subject to the PCLCD. During the
course of negotiations leading to the execution of that
lease, the Port insisted that certain work that had for many
years been performed by Port employees pursuant to the
Port’s labor agreement with the District Council of Trade
Unions continue to be the Port’s responsibility. As a re-
sult, Section 323(a) of the lease states that, for so long as
the DCTU agreement with the Port remains in effect, the
DCTU-represented employees of the Port must continue to
perform all DTCU work covered under the DCTU Agree-
ment. In entering into the lease, ICTSI had to agree to ac-
cept the Port’s utilization of the DCTU employees to pro-
vide that work and ICTSI is further compelled, under Sec-
tion 2.8, not to take any action that would cause the Port to
be in violation of the DCTU Agreement.
It is ICTSI’s understanding that the DCTU-represented
employees of the Port have performed the plugging, un-
plugging and monitoring of the reefer units at Terminal 6
since the terminal commenced operations in 1974. Simi-
larly, the DCTU-represented employees of the Port have
been performing electrical work on the cranes at Terminal
6 for many years. This work has clearly been covered by
DCTU Agreement in the past and continues to be so cov-
ered.
Under these circumstances, ICTSI has no right to con-
trol the work in question and must, consistent with its
lease obligations, refrain from any action that would inter-
fere with the continued performance by Port employees of
work that that they have historically performed and that is
covered by the DCTU Agreement.
Section 2.8 of the Port/ICTSI lease referenced in Ganda’s letter
states:
The Lessee acknowledges that the DCTU Work is subject to
the DCTU’s jurisdiction under the DCTU Agreement. For so
long as the DCTU Agreement remains in effect with respect
to the Terminal, the Lessee shall not (i) perform, or except as
permitted hereunder, cause to be performed, at the Terminal
any DCTU Work or (ii) undertake any other action that would
cause the Port to be in violation of the terms of the DCTU
Agreement. The Lessee shall be responsible for any claims,
including any labor claims that arise from the Lessee’s failure
to comply with this Section 2.8. [GC Exh. 22 at 40.]
And section 3.23(a) of the lease, also referenced in Ganda’s
letter, provides:
The Port shall, for so long as the DCTU Agreement remains
in effect with respect to the Terminal, make available to the
Lessee the DCTU Employees for the provision of the DCTU
Work. The Lessee shall accept the Port’s utilization of the
LONGSHOREMEN LOCAL 8
131
DCTU Employees with respect to the provision of the DCTU
Work and shall, in accordance with Section 3.23(d), accept
work performed by the DCTU Employees at such time as the
Lessee determines that such work complies with the provi-
sions of this Agreement (including the Operating Standards)
and applicable Law. The Port shall have responsibility for the
conduct of the DCTU Employees in performing the DCTU
Work. [GC Exh. 22 at 58.]
Section 3.23(e)(ii) of the lease, not cited in Ganda’s letter,
supports a conclusion that ICTSI had a mandatory obligation to
use DCTU labor to perform all historical work those labor or-
ganizations had always performed at T6, including the dockside
reefer work. It states:
In the event the DCTU Agreement is not in effect with respect
to the Terminal, the Lessee shall not be required to utilize the
DCTU Employees with respect to the provision of the DCTU
Work and the provisions of Sections 3.23(a) through (d) shall
no longer apply. [GC Exh. 22 at 59–60; emphasis added.]
The lease agreement defines DCTU Work as “the work to be
undertaken by the Port at the Terminal by the DCTU employ-
ees subject to the DCTU Agreement.” It defines DCTU Em-
ployees as “the employees of the Port subject to the DCTU
agreement” and the DCTU Agreement as “the agreement be-
tween the Port and the DCTU at the Marine Terminals, effec-
tive July 1, 2005 to June 30, 2009, and all amendments there-
to.” (GC Exh. 22 at 6.)
Following the February 2011 O’Neil/Ganda exchange of cor-
respondence, the Company used the Port’s electricians to do the
dockside reefer work.
Beginning on March 9, some 13 months after O’Neil
claimed the dockside reefer work on behalf of Local 8-
represented workers, and continuing through August 21, Local
8 filed lost-time grievances (also occasionally referred to as
pay-in-lieu grievances) against ICTSI and the PMA-member
carriers whose ships transported reefers into and out of T6.
Altogether Local 8 filed 83 separate grievances in that period
but many alleged contract violations occurred on multiple days.
The grievances sought lost pay for longshore workers from the
Company and the carriers for each occasion when the Port elec-
tricians performed the dockside reefer work.18
These grievances set in motion the contractual dispute reso-
lution mechanism in the PCLCD. The initial step, conferences
within the joint port labor relations committee composed of
PMA/ICTSI representatives and Local 8 officials, failed to
resolve any of them. Initially, the Portland area PMA labor
relations representatives represented ICTSI and the carriers,
and defended their positions denying liability for the pay-in-
lieu grievances. Eventually, a hearing was scheduled before
Area Arbitrator Jan R. Holmes on May 31.
After the arbitration hearing was scheduled, ICTSI’s attor-
ney, Michael Garone, contacted Todd Amidon, a senior lawyer
in the PMA’s legal department to discuss the grievances. The
two exchanged a few phone calls and emails in the early part of
18 The March-August grievances are the key component of the alle-
gations in the August complaint but serve only as background for the
allegations in the June complaint.
May. Garone sent a draft brief to Amidon the he had prepared
in support of the Company’s position. After reviewing Ga-
rone’s draft and discussing the grievances with the PMA’s la-
bor relations professionals, Amidon conducted a telephone
conference with Garone, Terminal Manager Mullen, and the
Portland PMA labor relations representative, Mike Dodd. Am-
idon provided them with the PMA professional staff’s pessi-
mistic assessment that a successful defense could be mounted
against the pay-in-lieu grievances. He provided this summary:
In preparation for the conference call (with Garone,
Mullen and Dodd), I consulted with labor relations staff
after reading (Garone’s draft) brief to try and learn more
about the merits of the case. I spoke to (Richard) Marzano
(PMA’s Coast Director for Contract Administration and
Arbitration) and I spoke to Andy Hathaway who is the
(PMA) area manager for the Pacific Northwest and Mr.
Dodd.
So then I then explained to ICTSI our assessment of
the likelihood that ICTSI would prevail on this grievance.
And I explained that there were really two issues that they
were bringing up themselves. One was whether or not this
work is work covered by Section 1, the jurisdictional pro-
visions of the Pacific Coast Longshore Contract Document
and (second) was whether or not even if that work is cov-
ered under the collective-bargaining agreement, ICTSI’s
argument that its lease agreement with the Port precluded
it from assigning this work to the ILWU would carry the
day and be a valid defense to the jurisdictional assignment.
So I covered the first issue and explained that under
our assessment, that ICTSI has virtually no chance of win-
ning. I’m sorry, no chance of winning on the jurisdiction-
al issue. That it was clear in our mind that the on dock
plugging, unplugging and monitoring of refrigerated con-
tainers is work covered by the Section 1 of the agreement
with the only exception being the red circle provisions
which carve out in some terminals work that is not within
the ILWU’s jurisdiction.
And then I also explained that we saw next to no
chance that ICTSI would prevail in this argument, that the
lease with the Port excused it from complying with the ju-
risdictional provisions of the contract.
I also went over a few other provisions in the collec-
tive bargaining agreement that I had mentioned to Mr. Ga-
rone in an email that I thought were going to be important
and significant to this case. One is Section 1.74 that talks
about as I recall no subterfuge. And I mentioned that, you
know, I really—we really thought it would be a significant
obstacle under the agreement even if the arbitrator would
consider the lease agreement which we didn’t think she
would. But even if she did, for ICTSI to persuade her that
this wasn’t some form of subterfuge for ICTSI to be taking
work away from the ILWU and we spoke about Section
1.82 of the collective bargaining agreement which is a
provision that mentions that companies that join the PMA
after the agreement was formed in 2008 are bound by all
its terms. And so that’s another reason why we don’t
think that the arbitrator would be persuaded by your lease
132
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
agreement argument you—the deal is you got to come in
ready to take the agreement, every bit of it, not parts – not
the parts you didn’t give away to somebody else.
And then finally I spoke at length about Section 1.76
of the collective bargaining agreement which is a provi-
sion that says that once the Coast Labor Relations Com-
mittee or an arbitrator has determined that work belongs to
the ILWU under the collective bargaining agreement,
PMA and its member companies must participate with the
ILWU in defending that work assignment. And if I didn’t
quote that directly, exactly right, I’ll just refer you to the
PCLCD.
Following this call, the PMA made an executive decision
that the dockside reefer work at Portland belonged to ILWU-
represented worker under section 1 of the PCLCD. On May 18,
James McKenna, PMA’s president and chief executive officer,
and Amidon conducted a conference call with Garone, Ganda,
and Mullen to inform them of PMA’s decision to favor the
ILWU’s claim for the dockside reefer work. When the ICTSI
group protested, McKenna told the Company’s officials and its
attorney that they had to “take one for the team,” a retort that
meant the PMA could no longer support their position so the
Company needed to assign the dockside reefer work to ILWU
workers.
On May 23, the CLRC convened a special meeting at the
ILWU’s request to consider ICTSI’s continued use of the Port’s
Local 48-represented electricians to perform the dockside reefer
work. The minutes of the meeting (CLRC-012-2012) reflect
that Sundet attended as one of the ILWU committee mem-
bers.19 As the following excerpt from the meeting minutes
reflect, this high-level committee reached a unanimous conclu-
sion that the dockside reefer work at T6 belonged to the ILWU-
represented employees:
The Committee reviewed the 2008-2014 PCLCD, specifically
the new language in Section 1.7 and sub-sections and the
‘Red Circle” LOU (Letter of Understanding), along with Ka-
gel Award C-07-2011. After discussion and consideration of
the matter, and in accordance with its authority under Section
17.26 and 17.27 of the PCLCD, the CLRC agreed the work in
dispute, currently being performed by other than ILWU
workers, is work that is covered by Section 1.7 at the Termi-
nal 6 facility in Portland and shall be performed by ILWU
represented workers. The Committee further agreed that, in
this instance and under the facts of this case, the terms of the
lease with the Port of Portland does not alter ICTSI’s contrac-
tual obligation to the ILWU under the PCL&CA.
The Committee instructs ICTSI to assign the subject work to
ILWU represented Longshore personnel in accordance with
the PCLCD and this CLRC agreement. The Committee fur-
ther instructs ICTSI to comply with Section 1.76, PCLCD.
[Emphasis added.]
19 The other committee members representing the ILWU were the
ILWU president and two other ILWU representatives. Marzano repre-
sented the PMA but, according to Amidon, once PMA President
McKenna reached a decision to back the ILWU’s claim for the
dockside reefer work at T6, Marzano became obliged to do the same.
The Kagel Award C-07-2011, noted in CLRC-012-2012, af-
firmed an earlier award of a subordinate area arbitrator finding
that the work of plugging and unplugging reefers onboard ships
was PCLCD section 1 work. Presumably, the CLRC cited the
Kagel Award because the work is virtually identical whether
performed dockside or aboard ship. Under the contractual rules
of construction contained in section 17 of the PCLCD, deci-
sions of the CLRC constitute a binding interpretation of the
PMA/ILWU collective-bargaining agreement. As a result, this
CLRC action effectively mooted parallel grievance processing
at the local level because those representatives, including the
area arbitrator, would have been bound to apply CLRC-012-
2012. In fact, on June 4 Portland area arbitrator Holmes did
exactly that.
F. The June Complaint Allegations
1. Complaint paragraph 6(a): Threats at the May 21 Gan-
da/Sundet meeting
Complaint paragraph 6(a) alleges that Sundet made a variety
of threats on May 21 in furtherance of the ILWU’s dispute with
the Port over the dockside reefer work during a meeting be-
tween the two at Stanford’s Restaurant located in the Portland
airport.
Two days before the specially-convened CLRC meeting that
ordered the Company to assign the dockside reefer work to the
ILWU-represented workers discussed above, Sundet arranged
through Local 8 President Jeff Smith to meet with Company
CEO Ganda on May 21 at Stanford’s en route back from Seattle
to his office in San Francisco. Ganda said that Sundet began
their meeting that day by asking if the PMA had instructed the
Company to express a preference for the ILWU to perform the
dockside reefer work at the upcoming NLRB 10(k) hearing on
May 24. Before Ganda could answer, Sundet told him that he
did not have a choice because the ILWU would be unhappy if
he did not state at the 10(k) hearing that the Company preferred
to have the dockside reefer work performed by ILWU labor.
Sundet then broadsided Ganda with a whole series of threats
(some direct, some implied) designed to influence the Compa-
ny’s preference at the 10(k) hearing. By Ganda’s account,
Sundet told him that the Company “would pay the price”; that
the ILWU “can fuck you”; that if Ganda knew him he would
know that he was the “guy that can fuck you badly”; that he
could not guarantee what would happen with Hanjin, the Kore-
an-based container carrier that, at the time, accounted for slight-
ly more than 80 percent of the T6 business; that he would make
sure that Hanjin did not renew its contract with ICTSI when the
current one expired; that the PMA would not have allowed
ICTSI to join the PMA if it had known what its lease agreement
with the Port said about the disputed work; and that the PMA
could fine ICTSI and expel it from membership.
Throughout, Ganda asserted that the Company was caught in
the middle of a jurisdictional battle that it had nothing to do
with and if Sundet set out to drive business away from T6, he
would be hurting his own membership. Sundet claimed to
Ganda that he had a verbal agreement with the Port executives
to go along with the assignment of the disputed reefer work to
the ILWU while foregoing any claim the electrical maintenance
work on the Port’s T6 cranes, also performed by the Local 48
LONGSHOREMEN LOCAL 8
133
electricians, in exchange for the ILWU’s support of the T6
lease before the Port Commission.
Ganda, who persisted in his reluctance to take a position he
thought contrary to the lease terms for fear that the Port would
claim a breach of that agreement, told Sundet that he felt like he
had a gun being held to his head. In response, Sundet told him,
“And I’m holding the other gun to your head.”
Sundet next proposed that ITCSI permit PMA to speak on its
behalf at the 10(k) hearing, but Ganda quickly rejected that
suggestion on the ground that the PMA was not a party to the
lease his firm had with the Port. Sundet also told Ganda that
the future of further automation projects currently underway
and in the planning stage depended on the ability of PMA to
assure the ILWU that the PMA member-companies would hon-
or the ILWU’s jurisdiction claims. The meeting ended when
the time came for Sundet to catch a plane.
Although Sundet provided an even more detailed and graph-
ic account of this meeting, he denied making the threats Ganda
attributed to him, including the threats about causing problems,
forcing carriers to bypass T6, or shutting down that terminal.
But he admittedly believed that the Company’s pending
8(b)(4)(D) charge giving rise to the 10(k) hearing scheduled for
later that week amounted to a contrivance between ICTSI and
Local 48 to interfere with what he perceived to be the likely
success of the parallel Local 8 grievances in contractual dispute
resolution pipeline at that time. Sundet told Ganda at the outset
of their meeting that the 10(k) proceeding initiated by the
Company amounted to “an aggressive . . . [a]nd a manipulative
act” on its part that undermined the PMA/ILWU agreement.
Sundet subscribes to the widely-held view that the only fac-
tor that really counts in a Board 10(k) proceeding is the em-
ployer’s work-assignment preference. Hence, after criticizing
the Company for invoking the NLRB procedures, Sundet urged
Ganda to state the Company’s preference at the 10(k) hearing
for ILWU-represented workers to perform the dockside reefer
work. If he did that, Sundet assured Ganda, “there’s no harm
here, because then the Board will rule that it’s ILWU work,
guaranteed.” Ganda declined to do that citing the Company’s
lease with the Port. When Sundet pressed for an explanation,
Ganda told him the lease required that his firm use the Port
electricians to perform the dockside reefer work.
Sundet claimed that he had never heard of this lease re-
quirement before. Regardless of the veracity of this claim,20
Sundet pressed Ganda to state a preference for ILWU workers
anyway because there would be nothing Local 48 could do
about a 10(k) award to the ILWU. If Local 48 tried to picket,
Sundet asserted, the NLRB would promptly seek a 10(l) injunc-
tion against that type of activity and “then it’s all over with . . .
everything’s fine.” Obviously skeptical of Sundet’s assertions,
Ganda said he would have to talk with his lawyers.
Failing to obtain Ganda’s immediate acquiescence to express
a preference for the ILWU-represented workers, Sundet then
argued that the Company’s strategy of seeking a 10(k) determi-
20 As noted above, Sundet had been copied on the exchange of let-
ters between Local 8’s O’Neil and Ganda in February 2011 where
Ganda explained that ICTSI could not use ILWU-represented labor on
the disputed reefer work because of the lease terms.
nation would not work. He asserted that even if the Board
awarded the disputed reefer work to the Local 48-represented
workers, it would have nothing to do with the carriers who
owned the reefers because they also belonged to the PMA, and
thereby had an obligation to honor the PMA/ILWU agreement.
“You need to understand,” Sundet admittedly told Ganda, “the
carriers can’t come to Portland if they’re in violation of the
(PMA/ILWU) agreement.”
Ganda again demurred saying he needed to speak with the
Company’s lawyers. He added that he felt like the Port had a
gun to his head and that “you’ve got a gun to my head.” Sun-
det replied that he needed to decide “which gun’s got the bigger
bullet.” Sundet asked: “What can the Port do to you?” When
Ganda replied that the Port might sever the lease and require
payments, Sundet scoffed at his response, asking if he believed
what he had just said, and then provided an alternate answer
seemingly based on his instinctive assessment of the situation:
Do you really think the Port’s going to do that? The Port
barely got you to sign the lease. They have nobody else out
there. They’ve got nothing. The Port’s not going to do that.
It’s not going to happen.
After having said that, Sundet offered to speak with Port of-
ficials to obtain their assurance to renegotiate the problematic
lease terms provided the Company expressed a preference to
have the ILWU-represented workers perform the disputed reef-
er work. Asked if that would be satisfactory, Ganda indicated
that it might be but that he still needed to speak with his law-
yers. Their discussion concluded with Sundet telling Ganda:
Okay; okay, fine. Let me talk to the Port and we’ll see if we
can’t get it to where it’s all right for you to pick us in this
10(k) process, and then all this can go away. Maybe that’s a
better solution than us even going to the arbitration.
In fact, Sundet did speak the following day or the day after
with Dan Pippenger, the Port’s general manager of marine op-
erations. He sought an assurance from Pippenger that the Port
would not act against ITCSI Oregon if that company expressed
a preference for the use of ILWU-represented workers at the
10(k) hearing. According to Sundet, Pippenger could only state
to him that there was no “Plan B” at T6 other than ICTSI, but
he would have to get the assurance Sundet sought from “up-
stairs.” Sundet never heard back from Pippenger or any other
Port official concerning this subject.
2. Complaint paragraphs 6(b) and (aa): the May 24 threats
(a) Complaint paragraph 6(aa) alleges that on May 24 in the
hearing room at the Portland NLRB office, Sundet threatened
to shut down the Company’s operations unless it began using
workers represented by Local 8 in place of Port electricians to
perform the dockside reefer work.
The 10(k) hearing commenced May 24 in the subregional of-
fice at Portland. Lyle Denning, a Port electrician represented
by Local 48, attended the first day of the 10(k) hearing. He sat
in the front row of the spectator section just in front of John
Mikan, a gearlocker foreman at T6 who is represented by an
ILWU local. Sundet sat at the ILWU counsel table 2 or 3 feet
in front of Denning. Toward the end of the morning session,
Sundet turned around and, speaking to Mikan, said that they
134
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
were going to “shut down ICTSI.” Sundet did not deny the
remark that Denning attributed to him.
(b) Complaint paragraph 6(b) alleges that on May 24, outside
the Portland hearing room, Sundet threatened to shutdown the
Company’s operations unless it began using workers represent-
ed by Local 8 in place of Port electricians to perform the
dockside reefer work.
The second event on May 24 occurred during a chance en-
counter between Terminal Manager Mullen and Sundet on the
street outside the hearing room after the close of the first day of
the 10(k) hearing. Mullen recalled that they first exchanged
pleasantries and then Sundet turned to the dispute. Sundet told
Mullen that the Port had really “screwed” the Company.
Speaking of his company’s predicament, Mullen admitted that
they were in a really tough spot but went on the tell Sundet that
the ILWU did not have to “hard time” them, meaning engage in
various types of work actions. That prompted Sundet to tell
him that the ILWU could not allow a company to sign a lease
with a port authority, join the PMA, and then keep ILWU
workers from their work. Mullen told Sundet that “we’ve got a
gun to either side of our head,” and explained that the Company
could not break its lease with the Port. Sundet responded by
telling him that was what ICTSI had to do.
The two continued their exchange for a few more moments
until Sundet, by this time somewhat angry and animated,
claimed that Ruda had assured him the ILWU could have the
dockside reefer work if they obtained it by an arbitration award
and that he (Ruda) had perjured himself at the hearing that day
by testifying there was no such deal. Toward the end of their
exchange, Sundet told Mullen that ICTSI needed to give the
disputed work to the ILWU. After Mullen replied that he did
not “see that happening,” Sundet told him “you might as well
tell Hanjin and Hapag to pack up because we’re going to send
them packing.” According to Mullen, these two carriers ac-
count for nearly 98 percent of the Company’s work at T6.
The 10(k) hearing concluded on May 30. At some later time,
Sundet told Stephen Hennessey, PMA’s chief operating officer,
and PMA Coast Director Marzano that the PMA carriers need-
ed to know that if the 10(k) proceeding ultimately resulted in
the assignment of the dockside reefer work outside the scope of
the PCLCD (as did happen), the carriers would be in violation
of the PCLCD. Sundet admitted that he wrote letters to the
PMA carriers around the same time stating as much. This
could not have been news to the carriers as Local 8 had been
filing pay-in-lieu grievances against them since March claiming
violations of the PCLCD because the carriers permitted work
on their reefers at T6 to be performed by non-ILWU labor.
3. Complaint paragraph 6(y): The May 25 threats
Complaint paragraph 6(y) alleges that Local 8 President Jeff
Smith threatened in a telephone conversation that the Port was
going to kick the Company out of T6 and that the Respondents
would cause Hanjin to stop doing business at the Port.21 Ac-
cording to ICTSI’s CEO Ganda’s uncontradicted, credible tes-
timony (Smith did not testify) Smith demanded during a tele-
21 Complaint par. 6(y) (set forth in the July 24 amendment to the
June complaint) alleges erroneously that this conversation occurred on
June 5.
phone call around 5 p.m. on May 25 that the Company assign
the dockside reefer work to Local 8 workers. Smith told Ganda
that if this demand was not met, the ILWU would put ICTSI
out of business and would run every Hanjin container out of
Portland.
4. Complaint paragraph 6(c): the June 1 and 3 slowdowns
Complaint paragraph 6(c) alleges that unnamed agents of the
Respondents appealed to and ordered Company employees to
engage in a work slowdown on June 1 and 3 by having those
workers perform work at reduced speeds in order to pressure
the Company to use workers represented by Local 8 in place of
Port electricians to perform the dockside reefer work.
On June 1, shortly after the close of the 10(k) hearing, the
Local 8-represented workers at T6 engaged in intermittent
slowdown activities. Brian Yockey, the Company’s marine
manager at T6, attended a June 1 meeting on the third floor of
the administration building. From that location, Yockey could
view nearly the entire container yard to the north. At around 2
p.m. that day, he observed about a dozen trucks lined up in the
container yard sections where the import reefers are placed and
reach stacker operators, represented by Local 8, “just sitting
there.”22 The longer Yockey watched the more he became
convinced that an intentional slowdown was in progress. This
is his account of his observations at the time:
What I observed that day was the reach stacker operator
would sit there, and he would wait for minutes on end. And
then he would roll forward. And he would place the beam on
top of the container to be delivered. And he would sit there
and he would wait for minutes on end. And then he would
pick it up, and then he would back up and he would wait.
Then the truck driver would pull forward. And the (reach)
stacker would sit there holding the container, and he would
wait for minutes on end. And then he would pull forward.
And then he would sit the container down on the chassis.
And then he would wait. And then he would unlock the
frame. And then he would pick it up. And then he would
back up. And then, you know, like I said, instead of it taking
a minute, it would take six, seven, eight minutes.
After watching what was going on for about half an hour,
Yockey drove around other areas of the container yard in his
pickup. During his drive, he noticed four to six other reach
stack operators performing their work in the same slow fashion.
Yockey said no unusual conditions existed that would justify
such a variance from the ordinary work pace.
On June 3, Port electrician Denning worked from 8 a.m. to
3:30 p.m. during the loading and unloading of an unnamed
container ship. If reefers are offloaded from a ship, the electri-
cian responsible for plugging it in after it is spotted in the con-
tainer yard follows the longshore driver from the dock area to
22 Import containers are typically stored in one of the 70s sections at
T6 while awaiting transport from the terminal to a location in Portland
or environs. The reach stackers are motorized industrial machines used
in the stevedoring industry to lift containers and transport them short
distances as needed. The reach stackers and a similar device called a
toploader are the two primary types of container handling equipment in
use at T6.
LONGSHOREMEN LOCAL 8
135
the yard location where it is decked. Denning recalled that
throughout the shift that day the drivers would creep along at
about 1 mile per hour for no apparent reason. Ordinarily, he
said, they operated at or near the terminal limit of 15 miles per
hour.
In addition, Denning recalled that two cranes were used to
offload from the ship that day. He also observed that the Local
8-represented crane operators also worked at a very slow pace
throughout the shift. Ordinarily, Denning reported, the crane
operators offload up to 25 containers per hour but on June 3
they offloaded only 3 or 4 containers per hour.
5. Complaint paragraphs 6(e), (f), (g), and (bb): the June 4
“self-assignment” activity, the refusal to refer workers, and the
work stoppage
On June 4 the container ship Hanjin Washington had docked
at the T6 berth 605 to off load empty containers and to take
aboard loaded containers. The relevant events of the day began
with conduct that Sundet characterized as the “self-assignment”
of the dockside reefer work to employees represented by Local
8.23
(a) Complaint paragraph 6(f) alleges that Local 8 LRC Mul-
cahy and other agents of Respondents caused TMC workers to
engage in a work slowdown on June 4 to support Respondents’
dispute with the Port over the dockside reefer work by doing
that work rather than their assigned duties.
On June 4 around 10 a.m., Port electrician Zackary Oliver
observed Brian Correll, a TMC mechanic represented by Local
8, unplugging one of the decked reefers and confronted him
about it. Correll told Oliver that he did not want to do that
work but the order “came down from the top” so he had to do
it. Port electrician Denning also observed Correll unplugging a
different reefer that morning. Oliver and Denning saw Correll
unplug about six reefers that day.
After learning of this activity, Todd Staple, the Port’s marine
maintenance manager, complained to Mullen about the TMC
mechanics performing the dockside reefer work normally per-
formed by his Port electricians. Mullen promptly requested
that TMC Manager Preston Foster instruct the TMC workers to
quit doing the dockside reefer work. Mullen also called Dave
Echels, TMC’s West Coast manager, and gave him the same
message. After their conversation, Echels sent Mullen an email
threatening to hold ICTSI liable for any losses resulting from
grievances brought against TMC because of Mullen’s “stand
down” directive.
Although this evidence fails to implicate Mulcahy in any di-
rective to Correll about performing dockside reefer work on
June 4, Correll’s assertion that he did so unwillingly because of
an order from the top, when considered with the record as a
whole supports the conclusion I have reached that the directive
came from an some responsible agent at Local 8.
(b) Complaint paragraph 6(bb) alleges that on June 4 Local
8 LRC Stuart Wilson caused a work stoppage in support of
23 Sundet rationalized the “self-assignment” tactic by asserting that
it amounts to an exception to the contractual no-strike commitment
when done in response to an employer’s failure to comply with a col-
lective-bargaining agreement.
Respondents’ dispute with the Port by refusing to refer quali-
fied workers from the hiring hall to the Company.
Around 3 p.m., the deadline for requesting or releasing a
night gang under the local hiring hall rules, Marine Manager
Yockey sought the assignment of a night gang to continue the
Hanjin Washington work through Stuart Wilson, a Local 8
labor relations committeeman. Wilson refused to cooperate in
securing a night gang for Yockey because he was “pissed at
Elvis Ganda for everything that was going on with the electric
work at Terminal 6.” As a result, no work was performed on
the Hanjin Washington that night. In the morning, the ship
departed T6 without unloading all of the empty containers des-
tined for Portland and without loading all of the containers that
had been scheduled for shipment aboard that vessel.
(c) Complaint paragraph 6(e) alleges that Local 8 LRC Mul-
cahy threatened on June 4 to shut down the Company’s opera-
tion at T6 unless the Company used workers represented by
Local 8 in place of the Port electricians to perform the dockside
reefer work.
Early in the afternoon on June 4, PMA labor relations repre-
sentative Mike Todd notified Mullen that Local 8 had requested
an immediate arbitration hearing over the assignment of the
dockside reefer work. Area Arbitrator Holmes conducted a
hearing concerning the dispute later that afternoon in the first
floor conference room at the T6 administration building. Todd,
Mullen, and Marine Manager Yockey appeared on behalf of the
Company. Jack Mulcahy, at the time a member of Local 8’s
labor relations committee and an admitted agent of that union
up to July 12 (see Jt. Stipulation 1), and other unnamed mem-
bers of Local 8’s labor relations committee represented the
union.
At the conclusion of the hearing, Arbitrator Holmes found
ICTSI out of compliance with CLRC-012-2012 and directed
that it start assigning the dockside reefer work to employees
represented by Local 8. Mullen told Arbitrator Holmes that the
Company would not implement with the award.24 A short
while later Mullen accompanied by Yockey approached the
union contingent in the parking lot to speak with Mulcahy and
the union contingent. When Mullen attempted to explain the
Company’s position again, Mulcahy greeted him with an exple-
tive and then said: “[I]f you’re not going to follow the contract,
neither are we, all bets are off.” Although Yockey recalled
these remarks by Mulcahy were uttered in the conference room,
his account otherwise corroborates Mullen’s. None of the un-
ion agents involved testified. Although I find the evidence fails
to show that Mulcahy made a threat to close down the Compa-
ny’s operations, I find that he did threaten the Company with
unspecified reprisals by way of his “all bets are off” remark
following his intentionally hostile greeting when Mullen ap-
proached him.
(d) Complaint paragraph 6(g) alleges that Local 8 agents
Mulcahy, De La Cruz, Johnson, and others appealed to and
ordered the Company’s crane operators and loader operators to
24 The Company’s refusal to implement the area arbitrator’s award
resulted in the prompt issuance of CLRC 013-2012 affirming the award
and its directive requiring ICTSI’s compliance.
136
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
engage in a work stoppage in support of Local 8’s dispute with
the Port over the assignment of the dockside reefer work.
Following his encounter with Mullen and Yockey after the
arbitration hearing, Mulcahy drove from the administration
building parking lot northward onto the terminal property, and
Mullen, accompanied by Yockey, went to his office on the
second floor of the administration building. From that vantage
point, Mullen and Yockey could see that the cranes used for
loading and unloading the Hanjin Washington had stopped and
that all other operations had come to a halt. Yockey said he
observed the cranes “parked in the home position,” meaning the
position used when operators enter and exit the crane. Yockey
described the ripple effect throughout the terminal operation
when cranes actively loading a vessel stop operating as hap-
pened that day:
I (saw) the cranes parked in the home position. That’s where
the operators get in and out of the cranes. So they’re obvious-
ly not driving. That also impacts all other aspects of our oper-
ation. The reach stackers . . . (are) there to handle containers.
If the crane is not handling containers, the reach stackers are
at a standstill. The truck drivers, they’re transporting contain-
ers from the yard to the vessel. If the cranes aren’t moving,
the truck drivers are in standby, if you will.
Assistant Marine Manager Harvey Witham, who directs the
loading and unloading of vessels at T6 and supervises the long-
shore and marine clerks involved with that task, was on duty
overseeing the Hanjing Washington stevedoring work during
the late afternoon of June 4. This work utilized three cranes
(each with two operators) and three gangs of longshore work-
ers. Witham said the crane operators and all three gangs ceased
working at about 6:05 p.m. and congregated in the breakroom
for a discussion with Mulcahy, Torre Delacruz, another un-
named Local 8 labor relations committeeman, and Kevin John-
son, a Local 8 business agent.
Witham described near frantic efforts to get the crews back
to work. He first requested one of his foremen to direct the
crews back to work a couple of times but none of the crew-
members complied with the foreman’s instruction. Witham
then called for the general foreman, who happened to be on
board the vessel at the time, to come down and instruct the
crews to return to work. The general foreman did so but with-
out success. At about 6:20 p.m., the meeting between the crews
and the union officials finally ended and the crews began to
return to work. Whitman estimated that the direct cost of this
unauthorized work stoppage that lasted about half an hour at
approximately $2000 per crew.
6. Complaint paragraphs 6(h), (i), (j), (k), and (cc): the
June 5 work stoppages
On June 5, the officials of Local 40 became overtly involved
in supporting Local 8’s effort to secure the dockside reefer
work-by-work actions. Dane Jones, the Local 40 secretary-
treasurer and business agent, received a copy of CLRC-012-
2012 shortly after May 23. He first conferred with Local 40’s
president, Dawn DesBrisay, the union’s executive board, and
its labor relations committee about the CLRC decision. He
then informed the Local 40 membership that the dockside reef-
er work “was properly assigned to ILWU Local 8 mechanics.”
Complaint paragraphs 6(h), (i), (j), (k), and (cc) allege indi-
vidual segments of various short work stoppages that occurred
on June 5 when the Company’s marine clerks began instructing
truckdrivers with arriving reefer to bypass the reefer blocks
where the Port electricians normally performed their initial
check and proceed straight to their assigned drop spot in the
container yard. Based on the account provided below, I find
this action resulted from a coordinated effort by agents of Lo-
cals 8 and 40.
Port electrician Oliver overheard a radio communication be-
tween an unidentified Company marine clerk represented by
Local 40 on the morning of June 5 asking for a company gear-
locker mechanic represented by Local 8 to unplug a reefer in
section 46. Oliver arrived at the location first and unplugged
the reefer but throughout the rest of the day he observed other
company mechanics plugging in reefers in other areas of the
container yard.
Around 9:30 a.m. that day, Port electrician Hines went to the
reefer check-in area after receiving a text message about an
incoming reefer. When he arrived there, he saw a truckdriver
skip the usual stop at the reefer check-in blocks and proceed
directly to a drop spot in section 48. Hines followed the truck
and spoke to its driver about bypassing the reefer check-in
blocks. The driver told Hines that the marine clerk he had spo-
ken with during the initial check-in stop instructed him to pro-
ceed directly to his drop spot without the usual reefer check-in
stop.
By that time, a contingent of others largely unknown to
Hines arrived in company pickups and a lengthy conference
followed. After about an hour, the driver was instructed to
return to the reefer blocks and go through the proper check-in
procedure. Hines followed and completed the usual reefer
check-in report.
Thereafter, Hines and the truckdriver returned to the as-
signed drop location in section 48. A reach-stack operator lift-
ed the container from the truck and the truckdriver drove away.
When the operator started to lower the container, an unidenti-
fied longshore worker, ignoring the safety notice on all reach
stackers warning persons to remain 40 feet away, grabbed the
electrical cable and handed it off to other longshore workers
present who plugged it into a nearby electrical bank. Hines
said that Mike Nastari, the Company’s crane and power man-
ager, promptly fired the three longshore workers involved.
Based on Nastari’s more detailed recollection of the event
and the participants, I find that at least the final aspects of this
engagement probably occurred in the early afternoon. By Nas-
tari’s account, Terminal Manager Mullen alerted him late in the
morning of June 5 to be on the lookout for gearlocker mechan-
ics that Nastari oversees performing the dockside reefer work.
After receiving Mullen’s alert, Nastari checked the day’s deliv-
ery schedule and learned that several reefers would be delivered
to the terminal early that afternoon.
Around 1 p.m., Nastari saw Local 8 Business Agent Johnson
and Local 40 President Dawn DesBrisay in reefer section 49
along with three gearlocker employees. Suspicious of the mo-
tive for their unusual presence in that area of the container yard,
LONGSHOREMEN LOCAL 8
137
Nastari summoned another company manager and a general
foreman to join him at that area. When they arrived, Nastari
and the other two learned that the gearlocker workers were
there to perform the dockside reefer work on a reefer expected
to arrive soon. Nastari told them the Company did not want
them to perform that work and directed the mechanics to return
to their normal duties at some distance from where they were.
They ignored his instruction. When the reefer arrived and was
lowered into place, the three mechanics proceeded to plug it
into the electrical bank receptacle. Nastari promptly terminated
the three workers.
Around 2:45 p.m. on June 5, Container Gate Manager Noa
Lidstone instructed Verl Green, a marine clerk supervisor rep-
resented by Local 40, “to continue to direct his clerks to call the
electricians for all plugging and unplugging of reefers on the
terminal and to make sure that they flow the trucks to the reefer
check-in area.” DesBrisay, who was present at Green’s desk at
the time, told Lidstone that the marine clerks would not call the
electricians because that was Local 8’s work. After Lidstone
insisted that the clerks call the Port electricians, DesBrisay told
him, “[W]e don’t care if the ships sit out here or if they don’t
call Portland, we’re not going to call the electricians to plug in
reefers.”
Around 3:30 p.m., Nastari fired the two remaining gearlock-
er workers in the presence of Business Agent Johnson after
they too ignored his direction to go back to their regular work
rather than engaging in the dockside reefer work. These termi-
nations left the Company with no mechanics to handle any
rolling stock repairs or spills at the terminal.
Soon thereafter, Gate Manager Noa Lidstone began hearing
several reports by the Local 8 machine operators reporting var-
ious mechanical breakdowns. Ordinarily, the gearlocker me-
chanics would be dispatched to repair the breakdowns. Nastari
proposed to Local 8 Business Agent Johnson, still present at the
terminal, to put the last two mechanics he fired back to work if
they agreed to refrain from performing the reefer work. John-
son refused the proposal.
Because of the absence of mechanics to perform the essential
equipment repairs, the terminal closed approximately 30
minutes early that day. Lidstone estimated that about 90 trucks
had entered T6 by that time and were waiting to be unloaded.
He said that all of those transactions had to be canceled and the
trucks sent away. Later, it was determined that the spate of
reported equipment failures required almost no repair work
other than replacing a single fuse on one loader. As a result, all
were back in service on the second shift by 6:30 p.m.
7. Complaint paragraphs 6(l), (m), and (n): the June 6
work stoppages
(a) Complaint paragraph 6(l) alleges that Respondents
caused employees to engage in a work stoppage by blocking a
reach stacker operator’s access to four outgoing reefers.
Shortly before 10 a.m. on June 6, Marine Manager Yockey
noticed that four trucks had been lined up in the vicinity of the
two principal reefer sections of the container yard for an unusu-
al length of time. When he went to the area to investigate, he
saw a TMC truck with some of that Company’s mechanics
blocking access to reefers that were to be loaded on the waiting
trucks. As the TMC mechanics had no duties that required
their presence in the area, Yockey contacted Gate Manager
Lidstone to get the TMC truck moved.
Earlier Lidstone had arranged for a machine operator to go to
the area to load the four containers on the trucks sent to
transport them.25 By the time he arrived at that area of the con-
tainer yard, a company truck with some gear locker mechanics
had pulled alongside of the TMC truck so that the reach stacker
operator had no access to load the containers onto the waiting
trucks. Because the gearlocker mechanics had no work in the
area, Lidstone contacted Terry Murphy, the Company’s
maintenance and repair manager who oversees their work, to
get them out of the way. He also contacted TMC Manager
Preston Foster to arrange for the removal of the TMC truck. By
the time the two trucks with the TMC mechanics and the Com-
pany’s gearlocker mechanics finally moved, the operator’s
access to the reefers that needed to be loaded on the waiting
trucks had been blocked for over half an hour.
(b) Complaint paragraph 6(m) alleges Respondents’ respon-
sibility for the Company’s Local 8-represented mechanics in-
sisting to the point of termination on performing the dockside
reefer work instead of their own, company-assigned job duties
on June 6.
Over the course of the morning on June 6, Terry Murphy
fired 13 of the Company’s mechanics he encountered either
individually or in small groups in the reefer sections of the
container yard where they had no assigned work to perform.
When Murphy inquired about what they were doing there, he
was told in each instance that they were there to perform the
dockside reefer work that came along that morning. Murphy
directed all of the mechanics he encountered to return to their
normal work area and perform their assigned work. He termi-
nated them when they refused or ignored his directive.
(c) Complaint paragraph 6(n) alleges Respondents’ responsi-
bility for a work stoppage that occurred when the Company’s
operators took their equipment out of service on June 6.
At the start of the first shift on June 6, the Company had 10
container loading machines in operation. Between 11:30 a.m.
and noon, after Murphy fired some or all of the mechanics that
day, the machine operators took 8 of the 10 loading machines
out of service. Four were removed allegedly because they did
not have fire extinguishers on board, two purportedly had
maintenance issues, and two supposedly could not be disen-
gaged from the containers they had lifted. Murphy, who over-
sees the shop responsible for repairing and returning this
equipment to service, claimed that he had never experienced so
many pieces of equipment taken out of service in such a short
period during all of his 35 years in this line of work.
Shortly after the end of the lunch period at 1 p.m., Lidstone
saw Local 8 Business Agent Johnson meeting with the Compa-
ny’s loader operators (the employees who had taken their
equipment out of service) in the corral area, a parking area
between the administration building and the power shop where
25 These four containers had been left behind when the Hanjin
Washington departed T6 on June 4 without its full load due to the
slowdown that day. An arrangement had been made to transport the
four containers to Seattle by truck for loading onto that ship at that port.
138
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
the motorized loading equipment is parked when not in use.
Lidstone approached the group and through his foreman di-
rected the operators to go back to work because fire extinguish-
ers were not required on the loaders.26 The operators ignored
his order and walked away toward a nearby building.
Lidstone then requested that Johnson contact Local 8 LRC
Stuart Wilson with whom Lidstone had discussed the fire ex-
tinguisher issue in the past. After Johnson spoke with Wilson
twice, he told Lidstone that the four operators who had taken
their equipment out of service over the fire extinguisher ques-
tion could go back to work if Lidstone’s foreman first conduct-
ed a safety instruction that included information about the loca-
tion of the fire extinguishers at the terminal. Lidstone agreed.
Following the foreman’s brief safety class, the four operators
started to return to work. One immediately refused claiming,
for the first time, that his machine had a transmission problem.
The three others returned to work.
Due to a failure to comply with certain overtime rules, 2 of
the 5 loaders still operating were taken out of service so that by
2:30 p.m., only 3 of the Company’s 10 loaders remained in
operation. Between 4 and 5:30 p.m. the operators of those
three loader machines removed them from service, one for
unknown reasons, another because of loud noises, and the third
because it could not be disengaged from a container. These
actions forced Lidstone to close the terminal gate half an hour
early that day. He estimated that 60 or so trucks waiting to get
into the terminal were turned away. He also cancelled the
transactions for about 17 trucks already on the terminal grounds
and sent them “on their way.”
At 6 p.m. that day, an arbitration proceeding was com-
menced by Arbitrator Holmes to consider these actions. At the
conclusion of that hearing, she decided that the Local 8 officers
and members were not guilty of creating a work stoppage or
engaging in a job action.27 However, she directed that Local 8
“provide skilled mechanics as needed” and refrain from giving
directions to those workers contrary to work instructions pro-
vided by the Company.
8. Complaint paragraph 6(o): the June 7 work stoppage
Complaint paragraph 6(o) alleges that Local 8 LRCs Mul-
cahy, Wilson, De La Cruz, and Business Agent Johnson caused
a work stoppage at T6 on June 8 by refusing to provide the
Company with qualified mechanics.
Early in the morning of June 7, Maintenance and Repair
Manager Murphy called the hiring hall asking to have 14 me-
chanics dispatched to T6 for the first shift starting at 8 a.m.
Murphy needed skilled mechanics to repair the loader equip-
ment taken out of service on June 6. Specifically, Murphy
sought workers with the following skill sets: four qualified
crane mechanics, four qualified reach stacker and top loader
mechanics, two qualified shop mechanics, two certified weld-
ers, a parts man familiar with the Company’s computerized
inventory and parts system, and a gearman yard-support person,
in effect a mechanics helper.
26 Lidstone asserted without contradiction that there had not been
any fire extinguishers on the motorized loading machines for years.
27 Based on the evidence before me I respectfully disagree with this
finding by the arbitrator.
As the workers dispatched from the hiring hall began arriv-
ing at the gearlocker building, one of the workers gave Murphy
the “dispatch pad” showing that all of the workers were casuals,
or entry level workers who are typically the least skilled hiring
hall registrants. For that reason, Murphy and Gate Manager
Lidstone started interviewing them to determine precisely the
skills they claimed to possess.
During the course of these interviews, Ken Elliott, a TMC
mechanic represented by Local 8, came into the breakroom and
told the worker to stop talking to the managers. Elliott then
proceeded out to the gearlocker shop floor and the dispatched
workers followed him. Murphy and Lidstone followed. Out on
the shop floor Lidstone protested that Elliott had no authority to
be involved in the matter because he did not work for the Com-
pany. Elliott claimed that he still had the right to speak with
the workers as his “brothers” and that Lidstone needed to speak
with Local 8 Business Agent Johnson.
By the time Elliott interrupted the interviews, Murphy had
talked with nine of the dispatched workers and found that only
two certified welders possessed the skills he had requested. For
that reason, Murphy returned all 14 of the dispatched workers
to the hiring hall at the direction of Terminal Manager Mullen.
Before the men actually left the premises, Business Agent
Johnson and Local 8 LRC DeLaCruz arrived at the gearlocker
shop and spoke with the dispatched workers.
When Johnson and DeLaCruz finished speaking with the
dispatched workers, they spoke with Murphy, asking his rea-
sons for rejecting the two welders. Murphy told the union
agents that they needed to speak with Mullen, the company
official who made the decision to return all of the dispatched
workers. A short while later, the Company made the decision
to retain the two welders and a certified diesel mechanic. By
that time one of the welders had left the premises and could not
be reached. In any event, the qualified mechanics provided by
the hiring hall was insufficient to complete the repairs on all the
equipment taken out of service on June 6.28 As a result, the
terminal remained closed at least during the day shift because it
did not have enough operable front-end loaders and reach
stackers to warrant opening for business.
An arbitration hearing commenced at 11 a.m. that morning
concerning the union’s failure to dispatch the qualified mechan-
ics from the hiring hall as requested by the Company. At the
conclusion of that hearing, Arbitrator Holmes decided that the
Local 8 officers and members created a work stoppage at T6 on
the first shift by failing to provide the skilled manpower the
Company properly requested. She directed Local 8 to cease
such actions and immediately provide the Company with work-
ers having the necessary training and experience to perform the
work required by the Company. She also directed the workers
to follow the Company’s direction concerning their work as-
signments.
28 Lidstone accused Business Agent Johnson of violating the arbitra-
tor’s decision by failing to provide qualified workers that day. Johnson
shrugged Lidstone’s criticism off, reminding him that the Company had
fired its entire work force the day before.
LONGSHOREMEN LOCAL 8
139
9. Complaint paragraphs 6(p) and (v): the June 8 work
stoppage resulting from Respondents’ refusal to dispatch
sufficient workers from the hiring hall
Complaint paragraph 6(p) alleges that Respondents, by Mul-
cahy, Wilson, and other agents caused a work stoppage at T6
on June 8 by again refusing to provide the Company with quali-
fied mechanics. Complaint paragraph 6(v) makes a similar
allegation concerning the Respondents refusal to furnish the
Company with loader operators on June 10.29 Both allegations
pertain to Local 8’s failure or refusal to dispatch personnel
requested by the Company from the hiring hall.
On June 7, Lidstone placed an order with the Local 8 hiring
hall asking to have eight loader operators referred for day-shift
work the following day. When he confirmed the placement of
the order on Local 8’s dispatch office recording at about 6 p.m.
that day, he also heard the Company’s request for 14 mechanics
on the day shift the following day.
About 6:30 a.m. on Friday, June 8, Mullen received a call
from LRC members Mulcahy and Wilson concerning the num-
ber of top loader operators the Company needed that day.
When Mullen told them that they had ordered eight, they asked
why they needed eight when they did not have that many top
loaders running. Mullen responded that the Company also
hoped to get mechanics back to repair the out of service load-
ers. Mulcahy first responded by saying that he had told Mullen
yesterday that, in reference to the requested dispatch of the
mechanics, “was not going to happen.” When Mullen pressed
the two union agents for the referral of three specific loader
mechanics, Mulcahy told him that all three were sick.30
Later that morning, four top loader operators arrived at T6
for work. Mullen and Lidstone met them and ascertained that it
was not likely that others would arrive for work. Lidstone’s
foreman contacted the Local 8 dispatch office and was told that
only those four had signed up for the work. When none of the
14 mechanics requested by the Company appeared for work,
Murphy called the dispatch office and was told that there were
no qualified mechanics available to send the Company that day.
Since the Company only had four loader operators and no me-
chanics, it closed the gate a 4 p.m. when about 60 trucks were
in line to enter.
10. Complaint paragraphs 6(r), (s), and (t): the June 9
slowdown and work stoppages
On June 9, officials of the ILWU, Local 8, and Local 40 left
a Longshore Division caucus, a coastwise gathering of ILWU
members and officials, in San Diego to attend a meeting in
Portland.31 In addition to Sundet, those making this trek in-
29 Complaint par. 6(v) mistakenly alleges that the refusal to furnish
loader operators occurred on June 10. The evidence shows that the
refusal to fill the complete order for the loader operators occurred on
June 8.
30 Two days later, Mulcahy called Mullen offering to refer the three
“sick” mechanics requested on June 8 if Mullen dropped the employer
complaint against the workers fired for performing the dockside reefer
work and make them whole. Mullen refused the offer.
31 Sundet said this caucus is convened from time to time. He de-
scribed the caucus as the highest policy making body in the ILWU
cluded the ILWU President Robert McEllrath, Local 8 officers
Smith and Mulcahy, and Local 40 Secretary-Treasurer and
Business Agent Dane Jones. Jones estimated that 30 to 40
officials and members of the ILWU, Local 8, and Local 40
attended this meeting in Portland and that no minutes were
kept. As seen below, one of the officials in attendance de-
scribed the purpose of the meeting as one to reinforce the
ILWU’s support for Local 8’s efforts to obtain the T6 dockside
reefer work.
Evidence of job actions by workers represented by Local 8
and Local 40 in the immediate aftermath of this obviously sig-
nificant meeting reflects conduct plainly designed to disrupt the
Company’s operations at T6. The credible and uncontradicted
evidence also shows a declaration by Mulcahy, a responsible
Local 8 official who had traveled from San Diego to attend the
Portland meeting that day, that the ILWU wanted to “run [the
Company] out of town.”
(a) Complaint paragraph 6(r) alleges that Respondents’
caused a work stoppage on June 9 at T6 in furtherance of its
efforts to obtain the dockside reefer work for ILWU workers by
encouraging employees to take breaks at the same time rather
than at staggered times.
According to Terminal Manager Mullen, there has been a
“continuous operation agreement” in effect at T6 for years.32
The first shift begins at 8 a.m. and ends at 5 p.m. The second
shift begins at 6 p.m. and ends at 3 a.m.33 During each of these
shifts, the crews are entitled to three breaks. The breaks consist
of a 1-hour lunchbreak at the end of the first 4 hours of duty,
and two 15-minute breaks, one in the middle of the first 4 hours
and another in the middle of the last 4 hours. The entire crew
always stops working for the lunchbreak. However, the parties
have adhered to a continuous operation agreement when work-
ing on a ship in port. Under that agreement, the entire crew
does not stop for the 15-minute breaks. Instead, the crew
members stagger their 15-minute breaks in order to maintain a
continuous flow of containers to and from the ship.
On June 9 two ships, the Westwood Olympia and the Hanjin
Geneva, docked at T6. The Company worked its first shift
crews to unload and load the Westwood Olympia. In the morn-
ing, the crews worked a continuous operation through the mid-
morning break period but the crews did not work through the
midafternoon break. Instead, work on the Westwood Olympia
came to a halt while all crewmembers stopped work for the
midafternoon break. The crews ignored the Company’s di-
rective to go back to work. The Company utilized three second
shift crews to work on the Hanjin Geneva. All crewmembers
stopped working at the same time for the two 15-minute breaks
during that shift.
Longshore Division with authority over all other officials and commit-
tees in that labor organization.
32 Sec. 2.3 of the PCLCD provides that longshoremen are to have
“due regard” for “the continuity and nature of the work” when they take
their 15-minute breaks. Sec. 2.31 provides that they “shall take their
relief as directed by the employer, and there shall be no abuse of . . .
relief periods by the employees.”
33 Occasionally, the Company utilizes the shorter 3rd shift author-
ized by the PCLCD that starts at 3 a.m. and ends at 8 a.m. The breaks
for this abbreviated shift were not described.
140
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
(b) Complaint paragraph 6(s) alleges that on June 9 Re-
spondents encouraged company drivers and crane operators to
engage in a slow down at T6 in furtherance of their efforts to
obtain the dockside reefer work for workers they represent by
operating their equipment at reduced speeds.
Noah Scheidel, the Company’s stevedore manager, was on
duty at T6 from 4 p.m. on June 9 until about 5 a.m. on June 10.
Early in the shift, Scheidel observed the trucks, cranes, and
other equipment used to load and unload the two ships in port
moving very slowly. After observing the slow movement of
the Company’s equipment for awhile, Scheidel got in his own
pickup and followed some of the slow moving company truck-
drivers in the container yard. He clocked several driving 5
miles per hour or less. Typically, these trucks move at or close
to the terminal speed limit of 15 miles per hour.
Terminal Manager Mullen came to T6 at approximately 8:30
p.m. that night and drove around for about an hour observing
the slow moving equipment operators before calling a PMA
labor relations representative to arrange an immediate hearing
before Arbitrator Holmes over the ongoing slow down. After
the hearing, she found the Company was still out of compliance
with CLRC-012-2012 but went on to make the following find-
ings about the slowdown:
5. The Union, its officers and members are engaging in
a slowdown, tantamount to a work stoppage, in violation
of Sections 11.1 and 11.2, PCLCD.
6. The Union is in violation of (a prior arbitration deci-
sion) by engaging in job action.
7. The workforce shall return to normal production
levels, immediately, and shall maintain normal production
levels on all subsequent shifts.
8. ICTSI shall direct relief periods as stipulated under
the terms of the PCLCD.
(GC Exh. 15.) As seen below, this slowdown continued
throughout the weekend into June 11.
(c) Complaint paragraph 6(t) alleges that Respondents
caused a work stoppage at T6 in furtherance of their efforts to
obtain the dockside reefer work for ILWU workers when the
Company’s marine clerks and planners represented by Local 40
failed to notify the Port’s electricians about reefers scheduled to
arrive and depart on a ship docked at T6 on June 9.
During Scheidel’s June 9–10 duty period, the Westwood
Olympia and the Hanjin Geneva were in port. When a ship
calls at the port for unloading and loading, Scheidel said that all
of the crews receive a packet from the planners in the marine
manager’s office who are represented by Local 40 showing
“which containers are going to go to and from the ship and how
they’re going to be positioned . . . [e]ither on the ship or in the
yard.” At the start of the second shift that day, the Port’s lead
electrician notified Scheidel that he had not received the pa-
perwork for the night’s work. For years the planner routinely
made a copy of these materials and marked it for the electri-
cians so they know what reefers to plug and unplug during the
shift and where those reefers are located. Upon checking into
the matter, Scheidel learned that the night planner had not made
a copy for the electricians so he asked that one be made. That
prompted the planner to ask Scheidel if he was “directing” him
to do so and Scheidel said that he was.
11. Complaint paragraphs 6(u), (w), and (x): the June 10 shut-
down threat, the slowdown, and the work stoppage
(a) Complaint paragraph 6(u) alleges that on June 10 Local 8
LRC Mulcahy threatened to shut down the stevedore operations
unless the Company reassigned the dockside reefer work.
A recess occurred near the conclusion of Arbitrator Holmes’
hearing discussed above in connection with complaint para-
graph 6(s). By that time, it was early in the morning of June
10. During this break while the parties awaited the arbitrator’s
decision, LRC Mulcahy and Terminal Manager Mullen spoke
briefly in a separate room at the T6 administration building.
Mulcahy told Mullen that the ILWU agreed to back Local 8’s
pursuit of the dockside reefer work at the June 9 meeting at-
tended by those who came from the San Diego caucus meeting
and others. Mullen credibly testified that Mulcahy then said:
[I]t was their plan to run ICTSI out of town. He further said
that he didn’t—they wanted to shut us down and he didn’t
care if any ships came to Portland again or not, that the ILWU
never wanted ICTSI (to) enter into the lease with the Port.
And they do not want us to be members of PMA.
(b) Complaint paragraph 6(w) alleges that Local 8 Business
Agent Kevin Johnson caused a slowdown at T6 on June 10 in
support of Respondents’ dispute with the Port by requiring an
unreasonable amount of safety signage beneath the cranes op-
erating at the time.
The safety committee at T6 specifies the number, the type
and the configuration of the safety signage at T6.34 As of June
10 the safety committee rules required a single A-frame type of
sign to be set up at the end of the gangway on the dock when a
crane was in operation. That sign stated: “Warning, cranes
working overhead.” The purpose of the rule was to alert per-
sons going aboard the ship that a crane was in operation above
them. It is the responsibility of the gearlocker workers to put
out the sign when the crane is in operation.
On the morning of June 10, Marine Manager Yockey spoke
to Local 8 Business Agent Johnson at the foot of the gangway
about the break schedule that he had prepared for use while the
crews worked on the ship in port that day. There is no evidence
that Johnson said anything about the absence of the safety sign.
At about 8:30 a.m., however, Yockey heard a call over the ra-
dio network saying that the business agent was there and that
work had to stop because of a health and safety issue. Yockey
left the ship and, after finding Johnson near the entrance to the
dock office, asked why they were “standing by.” Johnson told
him they had to stop because the safety signage had not been
put up.
Yockey acknowledged that he had not noticed previously
whether the sign was in place. In any event, Yockey told a
foreman to get someone to put out the safety sign. When that
was done, Yockey asked Johnson if it was okay to resume
work. Johnson then insisted that another sign be placed at the
34 The members of the safety committee include the terminal man-
ager, the marine manager, other company managers and representatives
from the three local unions that represent Longshore workers at T6.
LONGSHOREMEN LOCAL 8
141
top of the gangway. Although that was not required by the
existing safety policy, Yockey arranged to have an old sign
placed at that location. When that was done, Johnson okayed a
return to work.
After work had resumed for about half an hour, another radio
call directed that work stop again because of a health and safety
issue. Yockey again found Johnson who insisted on this occa-
sion that more signs were needed. Although Yockey thought
that the added signs Johnson wanted posted along the ship
walkway were unnecessary and not required by the safety poli-
cy, he directed one of the stevedore managers to make a dozen
more signs and post them as Johnson wanted. When that was
finished, Johnson insisted that the safety tape be placed along
the walkway used by the crews to get to their work area, a
measure that had never been done before. After losing about an
hour of worktime over Johnson’s safety requirements, the
crews finally resumed work about midmorning.
(c) Complaint paragraph 6(x) alleges that Respondents’
agents caused a work stoppage in support of their dispute with
the Port by encouraging Local 8-represented workers to per-
form the dockside reefer work notwithstanding contrary in-
structions from company managers.
Stevedore Manager Scheidel again worked the second shift
on June 10. Shortly after the second shift started at 6:30 p.m.,
he arranged to have three of the Company’s mechanics as-
signed to replace a cracked window on one of the cranes sched-
uled for use on the Hanjin Geneva. The window still had not
been replaced by approximately 9 p.m., when Scheidel noticed
the three mechanics plugging in reefers in the container yard.
He directed them to quit plugging in the reefers and go back to
their job replacing the crane window. They ignored his di-
rective. Before the window was finally changed, the crane had
been out of service for approximately 4 hours.
G. The August Complaint Allegations
The August complaint addresses the conduct of Respondents
both before and after the issuance of the Board’s 10(k) decision
and determination on August 13 awarding the dockside reefer
work to the Port’s employees represented by Local 48. The
allegation in complaint paragraph 7(a) asserts that Respondents
continued to “file, process and maintain grievances” against
ICTSI, TMC, and six carriers following the Board’s August 13
decision.35 This refers largely to the 83 grievances discussed
previously as background for the allegations in the June com-
plaint.
Complaint paragraph 7(b) alleges that the ILWU itself
“maintained and refused to withdraw a ‘Complaint for Confir-
35 The six carriers are Cosco North America, Inc.(Cosco), Hamburg
Sud North America, Inc.(Hamburg Sud), Hanjin Shipping America,
LLC (Hanjin); Hapag Lloyd America, Inc.(Hapag), “K” Line America,
Inc. (“K” Line), and Yang Ming America Corporation (Yang, Ming).
Each of these carriers along with the Company and TMC had one or
more lost-time grievances filed by Local 8 or Local 40 between March
and August 2011 that related to the Company’s failure to assign the
dockside reefer work to the ILWU-represented longshore workers and
marine clerks. The Local 40 grievances claim lost-time pay for the
recordkeeping aspect of the dockside reefer work performed by Port
electricians.
mation and Enforcement of Final and Binding Rulings under
Collective Bargaining Agreement’” filed against ITCSI in the
U.S. District Court for the District of Oregon that sought to
compel the assignment of the dockside reefer work to employ-
ees represented by Local 8.
Complaint paragraph 7(c) alleges that ILWU Coast Commit-
teemen Sundet and Ortiz threatened Cosco, Hanjin, Hapag, and
“K” Line that Locals 8 and 40 would prosecute pay-in-lieu
grievances against each of them if the dockside reefer work was
not assigned to ILWU-represented workers.
The parties filed a factual stipulation with multiple exhibits
attached pertaining to the August complaint. Based on that
stipulation and the attached exhibits, I make the following find-
ings relevant to the allegations in the August complaint:
1. On August 13, 2012, pursuant to Section 10(k) of the Act,
the Board issued an award in the 10(k) case providing that the
Port’s employees represented by Local 48 are entitled to per-
form the dockside reefer work at T6.
2. Between March 9, 2012, and August 21, 2012, Respond-
ent Local 8 filed 83 lost-work opportunity grievances against
ICTSI, TMC, and several carriers, including Cosco, Hamburg
Sud, Hanjin, Hapag Lloyd, “K” Line, and Yang Ming, seeking
reimbursement to employees it represents at T6 because those
employees were not assigned to perform the plugging, unplug-
ging, and monitoring of refrigerated cargo containers at T6 (the
dockside reefer work).
3. On August 1, 2012, Respondent Local 40 filed a lost-
work opportunity grievance against ICTSI seeking reimburse-
ment to employees it represents at T6 because employees “oth-
er than” the employees it represents performed the work of
checking in refrigerated cargo containers on July 23, 2012.
4. On August 22, 2012, Mullen36 sent the PMA and each of
the Respondents an email dated August 22, 2012, that (1) de-
manded that all of the dockside reefer lost-work opportunity
grievances “be immediately withdrawn” and (2) requested the
PMA to notify Arbitrator Holmes that it would be unnecessary
for her to rule on Local 40’s lost-work opportunity grievance
related to the reefer “check-in” and initial monitoring work then
pending before her because the Board awarded that work to
Local 48 in the 10(k) case.
5. On August 22, 2012, Respondent Local 40 Secretary-
Treasurer/Business Agent Jones sent Mullen an email stating:
As we proved by testimony and exhibit in the arbitration hear-
ing of the 7th of this month, the work of cargo receipt is dis-
tinct and separate from the disputed plugging, unplugging,
and monitoring work for which you solicited the 10(k) hear-
ing , the findings of which have no legal binding upon your
business decisions. This distinction has been previously clari-
fied in two coast arbitrations C-202008 and C-6-2008 which
are final and binding upon the parties.
Accordingly, ILWU Local 40 expects that you will assign all
clerical work relative to the receipt of cargo including check-
ing, inspection, and operationally necessary confirmations of
36 By the time he sent this email, Mullen had become ICTSI’s direc-
tor of labor management and terminal services.
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DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
data necessary to perform clerks’ work to ILWU Local 40
represented marine clerks.
6. Since August 13, 2012, Respondent Local 8 and Re-
spondent Local 40 have continued to maintain and process the
grievances described in paragraphs 2 and 3, above.
7. On June 13, 2012, the ILWU and the PMA filed the
“Complaint for Confirmation and Enforcement of Final and
Binding Rulings under Collective Bargaining Agreement”
(confirmation complaint) against ICTSI with the United States
District Court for the District of Oregon seeking confirmation
of CLRC-012-2012 and CLRC-013-2012.
8. On August 14, 2012, ICTSI Counsel Michael Garone sent
Respondents’ counsel Robert Remar an email requesting in
light of the Board’s decision in the 10(k) case that: (a) the
ILWU-represented mechanics and clerks immediately “stand
down” and permit the Port’s electricians to perform the
dockside reefer work; (b) the ILWU-represented mechanics and
clerks take no action to perform the dockside reefer work and
refrain from interfering in any way with the performance of that
work by the Port and its electricians; (c) confirm immediately
that the Respondents intend to abide by the decision in the
10(k) case; and (d) confirm that the ILWU intends to withdraw
the confirmation complaint because it is at variance with the
Board’s decision in the 10(k) case.
9. Since August 13, 2012, Respondent International has
maintained and has not withdrawn the confirmation complaint.
10. On August 15, 2012, Respondent International, by Coast
Committeemen Sundet and Ray Ortiz Jr. sent letters, identical
in substance, to S.Y. Kim, managing director of Hanjin, Chris
von Kannewurff, senior vice president of “K” Line, Wolfgang
Freese, president of Hapag, Lloyd, and Dave Ebert, assistant
vice president of Cosco that asserted the following: (a) the car-
riers each had “the primary and ultimate responsibility for all
contractual (PCL&CA) handling, maintenance and repair” of
their equipment; (b) the fact that ICTSI, the carriers “contrac-
tor” at T6, fails to comply with the PCL&CA for whatever
reason does not alter their “independent and primary” obliga-
tion under the PCL&CA; (c) the decision in the Board’s 10(k)
case does not provide their companies with any defense for
their violations of the PCL&CA; (d) effective that day, Locals 8
and 40 would prosecute lost work opportunity grievances
against them for each refrigerated container if the dockside
work of plugg-ing/unplugging and monitoring is “subcontract-
ed” to others outside the PCL&CA bargaining unit.
11. On August 16, 2012, Hanjin Senior Vice President of
Sales/Marketing Operations Mike Radak sent officials of ICTSI
and the Port of Portland an email dated August 16, 2012, with
the August 15 Sundet/Ortiz letter attached, demanding that
“ICTSI use ILWU labor to service our reefers.” The email
threatened that their “failure to do so will result in grievances
and subsequent fines to (Hanjin) by the ILWU . . . (in which
event Hanjin) will look to ICTSI for compensation on any and
all legal costs and financial penalties levied against us by the
PMA and ILWU for violating the master contract.” The email
characterized the situation as “urgent” and ask that the recipi-
ents “[a]dvise your concurrence.” There is no evidence that
the recipients concurred with the demand contained in Radak’s
email.
H. Analysis and Conclusions
1. The 8(b)(4)(i) and (ii)(B) allegations
Section 8(b)(4)(B) reflects “the dual congressional objectives
of preserving the right of labor organizations to bring pressure
to bear on offending employers in primary labor disputes and of
shielding unoffending employers and others from pressures in
controversies not their own.” NLRB v. Denver Building &
Trades Council, 341 U.S. 675, 692 (1951). Here, the parties
sharply disagree about the identity of the primary employer (or
“offending”) employer and the others that can be characterized
as “unoffending” employer that we characterize these days as
neutrals.
The AGC contends that the Port is the primary employer
based on the right of control test the Board applies to distin-
guish primary employers from neutral employers in cases of
this type. Accordingly, the AGC argues that the various forms
of pressure the Respondents asserted against others violated the
secondary boycott proscriptions in Section 8(b)(4)(B). Re-
spondents argue that Section 8(b)(4)(B) protects economic
action against parties who are not really “neutral” or who are
not “wholly uncon-cerned” in a labor dispute such as the one
here. Respondents assert that neither ICTSI nor the carriers can
be characterized as neutral or wholly unconcerned here because
they are bound by the coastwise PCLCD that obligates them to
honor the section 1 jurisdictional mandates of that contract
document as interpreted in CLRC-012-2012 and CLRC-013-
2012 and/or authorized arbitrators. As I find that CLRC-012-
2012 and CLRC-013-2012 suffer from a fundamental flaw, I
disagree with Respondents’ contentions.
In Plumbers Local 438 (George Koch Sons, Inc.), 201 NLRB
59, 63 (1973), enfd. 490 F.2d 323 (4th Cir. 1973), the Board
reiterated its analytical approach to cases of this kind:
. . . [O]f late, the Board has characterized its approach simply
in terms of a right-of-control test. The test as stated would
seem to imply that the Board looked solely at the pressured
employer’s “contract right to control” the work at issue at the
time of the pressure to determine whether that pressure was
primary or secondary. In fact, this is not now the Board’s ap-
proach nor was it ever.
[T]he Board has always proceeded with an analysis of (1)
whether under all the surrounding circumstances the union’s
objective was work preservation and then (2) whether the
pressures exerted were directed at the right person, i.e., at the
primary in the dispute. For the reasons set forth, supra, we
think this approach fully conforms with National Woodwork
and is in fact compelled by Section 8(b)(4)(B). In following
this approach, however, our analysis has not nor will it ever
be a mechanical one, and, in addition to determining, under all
the surrounding circumstances, whether the union’s objective
is truly work preservation, we have studied and shall continue
to study not only the situation the pressured employer finds
himself in but also how he came to be in that situation. And if
we find that the employer is not truly an “unoffending em-
ployer” who merits the Act’s protections, we shall find no
LONGSHOREMEN LOCAL 8
143
violation in a union’s pressures such as occurred here, even
though a purely mechanical or surface look at the case might
present an appearance of a parallel situation.
That being understood, the right of control test the Board uti-
lizes presumes that an employer is a neutral entitled to the pro-
tection afforded under Section 8(b)(4)(B) if “when faced with a
coercive demand from its union, (it) is powerless to accede to
such a demand except by bringing some form of pressure on an
independent third party.” Electrical Workers Local 501 (Atlas
Co.), 216 NLRB 417 (1975). If the “pressured employer can-
not himself accede to the union’s wishes, the [union’s] pressure
is secondary because it is undertaken for its effect elsewhere.”
Id. But an employer who intentionally places himself in such a
position in order to avoid his contractual commitments under a
union agreement cannot be deemed “an unoffending employer”
entitled to the protection of Section 8(b)(4)(B). Painters Dis-
trict Council No. 20 (Uni-Coat Spray Painting), 185 NLRB 930
(1970).
a. The Respondents’ work preservation claim
The Respondents assert that its conduct alleged as unlawful
by the AGC constituted lawful work preservation activities. In
the 10(k) case, the Board rejected Respondents’ work preserva-
tion claim, based on its finding that Local 48 workers have
been performing the dockside reefer work since 1974. “Where,
as here,” the Board said, “a union claiming work for employees
who have not previously performed it, the objective is not work
preservation but work acquisition.” Regardless of the potential
binding effect of the Board’s decision in the 10(k) case due to
the district court’s order, the quoted sentence in the Board’s
decision comports with long-established precedent the Board
cited. Based on this record, I conclude that Respondents lack a
valid work preservation claim with respect to the dockside reef-
er work because it has never been a function performed by the
employees they represent at T6. Sheet Metal Workers Local
27, 321 NLRB 540 (1996).
Earlier I referred to an Achilles heel affecting the outcome of
this case. Essentially, the defect is this: I find there is no valid
contractual underpinning for the work preservation claims the
Respondents, with the assistance in this instance of their PMA
ally, make here.37 The Respondents’ work preservation claims
as to the dockside reefer work are grounded in section 1 of the
PCLCD along with the 2008 LOU red-circling process as inter-
preted in CLRC-012-2012 and CLRC-013-2012 and/or author-
ized arbitrators who operate under the authority of the PMA
and the ILWU. A cursory reading of CLRC-012-2012 and
CLRC-013-2012 shows that the PMA and the ILWU assert that
the fundamental work allocation at T6 was altered by the 2008
LOU. In order to do that, the parties to this contract would
need the Port’s consent in one form or another and there is no
evidence that the Port ever granted its consent.
It is a fundamental tenant of American labor law that the au-
thority of a multiemployer bargaining agency, such as the
PMA, is consensual in nature. See, e.g., Greenhoot, Inc., 205
37 The NLRB has authority to interpret a provisions in a collective-
bargaining agreement offered as a defense to an unfair labor practice.
NLRB v. C & C Plywood, 385 U.S. 421, 425–430 (1967).
NLRB 250 (1973). Here, the bargaining arrangement on which
the PMA and the ILWU rely as the basis for removing the
dockside reefer work at T6 from the jurisdiction of Local 48
workers employed by the Port and assigning it to the workers
represented by Local 8 was achieved by means of the red-
circling process they invented at the bargaining table in 2008. I
find the PMA and the ILWU simply had no legally cognizable
authority to make such an arrangement between themselves.
The Port, which clearly controlled the work at the time, was not
a member of the PMA nor was its consent to the LOU ar-
rangement sought and obtained by any other means. Sundet’s
call to Port agent Pippenger between his Stanford restaurant
meeting with Ganda on May 21 and his participation in formu-
lating CLRC-012-2012 on May 23 suggests that he consciously
or unconsciously recognized this state of affairs. The fact that
neither Pippenger nor any other Port official provided Sundet
with the assurance he sought in that call reinforces the conclu-
sion I have reached here that the Port never consented in any
manner to the LOU arrangement as to the Portland terminals.
In fact, the Port obviously continued to treat the subject as
one over which it retained full control when it entered into the
T6 lease with ICTSI in 2010 with provisions that maintained
the historical work jurisdiction of the DCTU unions. For this
reason, the application of the LOU red-circle arrangement by
the PMA and the ILWU to T6 in the manner described in
CLRC-012-2012 and CLRC-013-2012 would first require that
they have the Port’s consent. The fact of the matter is that they
did not have that requisite consent in 2008 or at any other rele-
vant time. Hence, I find the LOU arrangement and directives
reflected in CLRC-012-2012 and CLRC-013-2012 are ineffec-
tive at the very least as to the T6 container operation.
Any claim that the Port’s consent to the LOU red-circling ar-
rangement at Portland on the basis of the 1984 Port/ILWU
agreement would lack merit. The 1984 Port/ILWU agreement,
by its terms only bound the Port to the 1984 coastwise agree-
ment. It makes no mention of the Port being bound to any suc-
cessor coastwise agreement. Hence, entirely aside from the fact
that the Port has not employed workers under that agreement
for more than two decades, I find that there is no basis on
which to conclude that the 1984 Port/ILWU agreement remains
viable for any purpose, let alone for the purpose of binding the
Port in some convoluted manner to the 2008 LOU red-circling
process. Gem Management Co., 339 NLRB 489 fn. 2 (2003)
(me too agreements must be strictly confined to their precise
terms).
b. The primary/secondary issue
I agree with the AGC’s contention that the Port is the prima-
ry employer based on the Board’s right of control test. NLRB v.
Enterprise Assn. of Steam, Hot Water, Hydraulic Sprinkler,
Pneumatic Tub, Ice Machine & Gen. Pipefitters, 429 U.S. 507.
(1977) (Enterprise Assn.) (work stoppage by subcontractor’s
employees over the use of precut and prethreaded pipe in viola-
tion of subcontractor’s union contract found unlawful second-
ary activity because the general contractor, who specified the
use of the pipe in issue, was the primary employer).
There are striking parallels between the Enterprise Assn.
case and this situation. Throughout the operation of T6 as a
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DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
container facility, the Port has always controlled the dockside
reefer work. It originally made the decision that the Local 48
electricians would perform that work when it directly operated
the Port. Between 1993 and 2011, the Port continued this prac-
tice when it used MTC/PA as the stevedore contractor. Finally,
when the Port leased the T6 container operation to ICTSI, it
carefully reserved the historical practices that developed over
the years with respect to the work performed by the constituent
unions in the DTCU, including Local 48. No evidence shows
that the Port ever relinquished its control at anytime to anyone
over the historical practice of using Port electricians to perform
the dockside reefer work.
Hence, similar to the situation in Enterprise Assn., Respond-
ents here pressured ICTSI and the carriers in order to achieve
effects “elsewhere.” The elsewhere in this case could only
have been the Port because the Port had always insisted that its
own employees represented by Local 48 perform the dockside
reefer work. Consequently, Respondents’ activities directed
against ICTSI and the carriers that are alleged as unlawful un-
der Section 8(b)(4)(B) in the AGC’s complaint constituted
secondary activity in that it ultimately sought to cause the Port
to relinquish its control over the dockside reefer work so that it
could be performed by ICTSI’s employees represented by Lo-
cal 8. Plumbers Local 438 (George Koch Sons, Inc.), supra at
62–63.
The Respondents’ assertions that ICTSI and the carriers are
the primary employers under the right of control test lacks mer-
it. Their claim that ICTSI became a primary employer in this
dispute when it became a PMA member and thereby obligated
to assign the dockside reefer work in accord with determina-
tions made under the PCLCD is fatally flawed for the reason,
discussed above, that the parties to the PCLCD had no authority
when they entered into the 2008 LOU red-circle arrangement to
restructure the Port’s long-established allocation of the
dockside reefer work to its own electricians.
But aside from that conclusion, even if one accepts the Re-
spondents’ claim that the longshore and marine clerks unit at
Portland merged into the coastwise unit when the ICTSI joined
the PMA in 2010 and commenced operating T6 in 2011, Local
8 workers have never performed the dockside reefer work at
T6. Instead, that work had always been performed by employ-
ees in a non-ILWU unit. Nothing about this transition would
justify the contraction of the scope of the work performed by
the electricians unit given the bargaining history at T6.
In PCMC/Pacific Crane Maintenance Co., 359 NLRB 1206
(2013) (the PCMC case), the ILWU advanced a similar argu-
ment to justify its recognition as the representative of a unit of
employees in place of another union that historically represent-
ed the unit following a change in the employer’s identity. The
Board rejected the ILWU’s claim that the “historical bargaining
unit did not survive the transfer of the unit work from (the old
employer to the new employer) and that the (old employer’s
mechanics) were lawfully merged into the ILWU-PMA bar-
gaining unit.” In the Board’s view, the traditional community-
of-interest factors survive such changed circumstances when it
comes to determining whether a historically recognized unit
remains appropriate for bargaining. In such cases, the Board
accords significant weight to the parties’ history of bargaining
and a party claiming that changed circumstances overcome a
long bargaining history has the burden of proving that there are
compelling reasons sufficient to overcome the significance of a
long bargaining history. Id. slip op. at 6.
Unlike the PCMC case, which involved an entire unit, this
case involves only a small segment (10 percent according to the
electricians’ job description) of the unit work performed histor-
ically by the Local 48-represented Port employees. Still, the
mere fact that ICTSI joined the PMA and became subject to a
collective-bargaining agreement concluded in mid-2008 with-
out any apparent regard for the historical bargaining relation-
ships at Portland does not strike me as satisfying the “compel-
ling circumstances” burden articulated in PCMC that would
justify the absorption of work duties historically performed by
workers in another unit. This is especially true where, as here:
(1) the Port specifically sought to preserve the integrity of the
Local 48 unit work (and that of the other DCTU organizations)
in the T6 lease documents; (2) numerable other comparable
situations were “red-circled” at other West Coast terminals and
have been allowed to continue under the terms of the LOU; and
(3) neither the Port nor its contract stevedores had standing in
2008, or at any other time, to participate in negotiating the LOU
red-circling arrangement. As I have concluded that ICTSI did
not become duty bound to assign the dockside reefer work to
employees in the longshore unit when it joined the PMA, I find
Respondents’ reliance on ICTSI’s PMA membership as a basis
for concluding that ICTSI is a primary employer lacks merit.
This argument is largely indistinguishable from the claim made
and emphatically rejected by the Supreme Court long ago in the
Sand Door case.38
The Respondents also argue that the right to control the
dockside reefer work rests with the carriers because of their
ownership interest in the reefers. I also reject this claim.
Though it is true that the carriers own or lease all of the reefers,
they purchase available terminal services necessary to load,
unload and store their containers from the terminal owners or
operators. Until the carriers in this case began receiving threats
that the ILWU would file grievances against them unless they
took steps to insure that the dockside reefer work was per-
formed by ILWU labor, there has never been any attempt by
the carriers to interfere with the entrepreneurial decisions of the
terminal service providers at T6 concerning which work groups
performed what service dockside. If so, those efforts would
presumably have been memorialized in the terminal tariffs the
Port published that controlled terminal service charges in the
absence of a special terminal service agreement which the ma-
jor carriers that pickup and deliver containers at Portland have
negotiated. Respondents’ have pointed to nothing in these
terminal service agreements that would warrant the conclusion
that the carriers mere ownership interest in the containers ena-
bled them to define for the terminal operator what work group
could perform what function dockside. Accordingly, I also
reject Respondents’ claim that the carriers qualify as primary
employers under the Board’s right of control test.
Finally, a few of Respondents’ witnesses claimed that the
lease protections for the DCTU’s historical work were a subter-
38 Carpenters Local 1976, v. NLRB, 357 U.S. 93, 105 (1958).
LONGSHOREMEN LOCAL 8
145
fuge designed to avoid the PCLCD section 1 requirement that
all maintenance and repair work including the dockside reefer
work at Portland be assigned to ILWU workers. The record
contains absolutely no support for a claim of this sort. To the
contrary, the record shows that the Port established those pro-
tections in early drafts of the lease published during the RFQ
period that occurred well in advance of its direct negotiations
with ICTSI. Simply put, there is no evidentiary basis for a
conclusion that the DCTU provisions in the T6 lease agreement
were deliberately hatched by ICTSI in order to avoid the as-
signing the dockside reefer work to ILWU represented employ-
ees.
c. The 8(b)(4)(i) and (ii) conduct
The Respondents’ conduct set forth in subsection F, above,
constitutes inducement of employees and coercion of employ-
ers within the meaning of Section 8(b)(4)(i) and (ii). Long-
shoremen Assn. Local 1248, 195 NLRB 273, 274 (1972). The
credible evidence supporting all but seven of the allegations
reflects direct leadership and participation in these activities by
one or more persons admitted to be an agent of the Respond-
ents. Other than the allegations of threats that Sundet made to
Ganda at their airport meeting, Respondents did not seriously
contest any of the AGC’s evidence concerning the 8(b)(4)(i)
and (ii) conduct. And as I credit Ganda’s account about the
threatening language Sundet used at this meeting over Sundet’s
denials, I include these threats in this finding.
As to the other seven allegations—6(c) (the June 1 and 3
slowdowns); 6(f) (TMC worker Correll performing the plug-in
work); 6(l) (blocking access to reefers for loading); 6(m) (self-
assignment activity by 13 mechanics resulting in their termina-
tion); 6(r) (breach of the continuous work arrangement with a
ship in port); 6(t) (the deliberate failure by the planner to pre-
pare paperwork for Port electricians); and 6(x) (the self-
assignment to dockside reefer work that delayed the replace-
ment of a crane window)—I find the evidence sufficient to
infer that the employee conduct in these instances was induced
and encouraged by Respondents’ agents even though a specific
agent(s) cannot be identified in connection with these actions.
Such a conclusion is warranted for these reasons: (1) Correll’s
statement that his direction to perform the dockside reefer work
“came from the top”; (2) Respondents’ agents directly engaged
in a variety of threats and other actions that had an objective
consistent with the activities by the individual employees in
these seven instances; (3) the complete absence of evidence that
any aspect of this dispute is attributable to a spontaneous em-
ployee uprising; and (4) the evidence establishing that Re-
spondents’ agents condoned insubordinate employee conduct
present in these instances coupled with conduct by Respond-
ents’ agents that reinforced the impact of the employee activity
by, for example, refusing to dispatch qualified workers from the
hiring hall to replace workers terminated for outrageously in-
subordinate conduct.
In a nutshell, I find that Respondents, in an effort to secure
the reassignment of the dockside reefer to workers represented
by Local 8, threatened ICTSI officials on May 21, 24, and 25
with adverse consequences if they did not accede to the reas-
signment demand, and then orchestrated a systematic sabotage
of ICTSI’s operations at T6 between June 1 and 10 that also
adversely affected the operations of the carriers. In fact, some
carriers chose to bypass Portland altogether because of the ef-
fects of the slowdowns and work stoppages at T6.
d. The object of Respondents’ conduct
Having concluded that Respondents lack a valid work
preservation defense, that the Port is the primary employer
under the Board’s right of control test, and that the nature of
Respondents’ conduct between May 21 and June 10 fits (i) and
(ii) proscriptions of Section 8(b)(4)(B), the only remaining
question is whether Respondents’ engaged in the conduct de-
scribed in section F, above, for a “cease doing business” object.
To satisfy the cease doing business object required under
Section 8(b)(4)(B), it need only to be shown that the union’s
secondary activities sought to alter the way in which the prima-
ry employer traditionally operates. NLRB v. Operating Engi-
neers Local 825, 400 U.S. 297, 304–305 (1971). Accordingly,
it is enough to establish violation here if the Respondents en-
gaged in secondary activities in order to cause the Port to aban-
don its historical practice of using its own electricians to per-
form the dockside reefer work.
Respondents conduct here had an unlawful cease doing busi-
ness object within the meaning of Section 8(b)(4)(B). Their
activities between May 21 and June 10 pressured ICTSI and the
carriers—all neutral employers—to seek the relinquishment of
the Port’s control over the dockside reefer work for the benefit
of the ILWU-represented workers at T6. To achieve this end
would require that ICTSI and the Port renegotiate the provi-
sions in the T6 lease requiring the lessee to honor the traditional
work assignments that the Port sought to maintain at the termi-
nal. Failing a change in the lease terms or some other accom-
modation from the Port, the Respondents, as was threatened on
June 9, planned “to run ICTSI out of town.” By engaging in
conduct disruptive of the operations of ICTSI and the carriers at
T6 in order to cause the Port to relinquish its control over the
dockside reefer work, Respondents violated Section 8(b)(4)(i)
and (ii)(B) as alleged. Plumbers Local 438 (George Koch
Sons, Inc.), supra.
2. The 8(b)(4)(i) and (ii)(D) allegations
With respect to the 8(b)(4)(D) allegations, the AGC contends
that the Board’s decision in the 10(k) case settled the dockside
reefer work assignment against Respondents. Accordingly,
counsel for the AGC argues that the Respondents’ continued
pursuit of the dockside reefer work by processing grievances
filed before and after the decision in the 10(k) case, the court
action seeking affirmation of CLRC-012-2012 and CLRC-013-
2012, and the demands and threats against the carriers after the
decision in the 10(k) case violates Section 8(b)(4)(D). Re-
spondents concede that they have not withdrawn their pending
lawsuit against ICTSI because the unfair labor practice route is
the only means by which they can test the Board’s decision in
the 10(k) case. However, Respondents contend that the
Board’s 10(k) determination does not bar them from pursuing
their contractual remedies against the carriers for money dam-
ages resulting from the subcontracting of the dockside reefer
work in violation of the PCLCD.
146
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Based on the rationale in Longshoremen ILWU Local 32
(Weyerhauser Co), 271 NLRB 759 (1984), enfd. 773 F.2d 1012
(9th Cir. 1985), cert denied 476 U.S. 1158 (1986), I have con-
cluded that Respondents violated Section 8(b)(4)(D) by filing
and processing the pay-in-lieu grievances whenever the Port’s
electricians performed the dockside reefer work at T6 from
March 20l2 onward. And, as noted in that case, the Board’s
10(k) decision takes precedence over the contractual dispute
resolution mechanisms reflected in CLRC-012-2012 and
CLRC-013-2012. For this reason, I find Respondents further
violated Section 8(b)(4)(D) by filing and maintaining the law-
suit in the Federal district court for the unlawful, self-serving
purpose of obtaining the court’s affirmation of the decisions
made in CLRC-012-2012 and CLRC-013-2012 that undermine
the Board’s award in the 10(k) case. Bill Johnson’s Restau-
rants Inc. v. NLRB, 461 U.S. 731 fn. 5 (1983). Hence, my rec-
ommended remedial order will require Respondents to with-
draw this lawsuit.
Respondents’ contend that the Board’s 10(k) determination
here does not bar them from pursuing contractual remedies
against the PMA carriers whenever the Port’s electricians per-
form the dockside reefer work on their containers at T6. This
argument is based on a variety of Board and court cases finding
that a union does not violate Section 8(b)(4)(D) following the
issuance of a 10(k) award by pursuing pay-in-lieu grievances
against employers not involved with the disputed work assign-
ment covered by the Board’s award. See, e.g. AGC Oregon-
Columbia Chapter v. Operating Engineers Local 701, 529 F.2d
1395, 1397–1398 (9th Cir. 1976), cert. denied 429 U.S. 822
(1976); Miron v. Operating Engineers Local 139, 44 F.3d 558,
567 (7th Cir.1995); Hutter v. Operating Engineers Local 139,
862 F.2d 641, 645 (7th Cir. 1988); Sheet Metal Workers Local
27 (E. P. Donnelly), 357 NLRB 1577 (2011); and Carpenters
Local 33 (AGC of Massachusetts), 289 NLRB 1482 (1988).
Respondents argue that the holdings by the courts and the
Board in these cases establish its right to pursue contractual
remedies against the PMA carriers, the owners or lessees of all
the reefers involved, separate from ICTSI based on their failure
to require the use of ILWU labor to perform the dockside reefer
work in accord with PCLCD section 1 as interpreted in CLRC-
012-2012 and CLRC-013-2012.
I find those cases factually distinguishable from the situation
here. They all involve subcontracting practices in the construc-
tion industry. Unlike the situation found here, the right to con-
trol work assignments almost always pass with the subcontract
without altering the permanent business structures. As a result,
the cases Respondents cite reflect instances where it is possible
for a separate, identifiable cause of action to arise under the
separate collective-bargaining agreements of the contractor and
its subcontractor. In that setting, the contractor need only to be
more careful when choosing the next subcontractor or when
drafting the terms of a particular subcontract.
An entirely different structure exists at T6. Contrary to Re-
spondents contention, there is no “subcontracting” arrange-
ment. Instead, the business structure established between the
Port and ICTSI is a long-term lease agreement, a real estate
arrangement for a portion of the Ports’ marine terminals which
memorializes the requirement that the lessee adhere to tradi-
tional work assignments that had been in effect at the T6 for the
previous four decades. This business structure, seemingly
common in the industry because the Port was supposedly the
last to adopt it, is dependent for its economic vitality on the
willingness of the carriers in the shipping industry to use the
stevedore services provided at T6. Under Respondents’ theory,
it can be anticipated that there will be thousands of the disputed
work assignments each year during the 25-year lease term, each
giving rise to a separate pay-in-lieu grievance that would be
highly destructive. Whatever else may be said of the arrange-
ment at T6, it is not one that involves subcontracting on a con-
tainer-by-container basis.
As a practical matter, the result sought by Respondents
would compel the PMA carriers to either: (1) forego doing
business altogether at T6 (as some did for limited periods at the
height of this dispute); (2) pay an unending monetary exaction
to the ILWU workers at T6 because they are not permitted to
do the dockside reefer work at T6; or (3) pressure the Port and
ICTSI to alter their T6 lease agreement to permit longshore
workers represented by Local 8 to perform the dockside reefer
work. The economic pressure that would likely result from a
variety of sources should the carriers opt for either the first or
second option would inevitably lead them to insist on the third
option (as some have already done), which would effectively
drive a dagger straight through the heart of the Board’s 10(k)
award concerning the dockside reefer work at T6. Hence, I
conclude that importing the rule applied in construction indus-
try cases cited by Respondents to this situation would effective-
ly nullify the Board’s award in the 10(k) case.
In addition, as I have previously found, the parties to the
PCLCD never received proper authorization from the Port to
enter into their 2008 LOU arrangement on which they rely to
gobble up the Port’s historically-exercised right to assign the
dockside reefer work (or see to it that it is so assigned) to its
own employees represented by Local 48. This conclusion,
deeply rooted in the Board’s well-established policies applica-
ble to multiemployer collective bargaining relationships, ra-
tionally compels the finding I now make that Respondents
simply have no contractual foundation that the Board must or
should recognize for their pursuit of monetary damages against
the PMA carriers under the PCLCD for abiding by the existing
dockside reefer work assignments. Accordingly, I find Re-
spondents violated Section 8(b)(4)(ii)(D) as alleged by pursuing
pay-in-lieu grievances and the lawsuit against the PMA carriers
who have done business at T6 after ICTSI commenced opera-
tions there in 2011 under its lease with the Port.
CONCLUSIONS OF LAW
1. The Port is a person within the meaning of Section 2(1)
and Section 8(b)(4) of the Act.
2. ICTSI, TMC, COSCO, Hanjin, “X” Line, Hamburg Sud,
and Hapag Lloyd are persons and employers within the mean-
ing of Section 2(1), (2), and Section 8(b)(4) of the Act.
3. ILWU, Local 8, Local 40 (collectively Respondents), and
Local 48 each are a labor organization within the meaning of
Section 2(5) of the Act
4. By threatening or impliedly threatening to shut down or
otherwise disrupt ICTSI’s operations at Terminal 6 in Portland,
LONGSHOREMEN LOCAL 8
147
Oregon, in order to force or require ICTSI or any other person
to cease doing business with the Port or any other person, Re-
spondents have engaged in unfair labor practices affecting
commerce within the meaning of Section 8(b)(4)(ii)(B), and
Section 2(6) and (7) of the Act.
5. By failing and refusing to fulfill ICTSI’s timely requests
for the referral of qualified employees for work at Terminal 6 in
accord with the Pacific Coast Longshore and Clerks Agreement
in order to force or require ICTSI or any other person to cease
doing business with the Port or any other person, Respondents
have engaged in unfair labor practices affecting commerce
within the meaning of Section 8(b)(4)(ii)(B) and Section 2(6)
and (7) of the Act.
6. By inducing and encouraging employees to withhold their
services, to engage in slowdowns and work stoppages, or to
interfere with the lawful and proper work assignments of other
employee groups that perform services at Terminal 6 in Port-
land, Oregon, in order to force or require ICTSI or any other
person to cease doing business with the Port or any other per-
son, Respondents have engaged in unfair labor practices affect-
ing commerce within the meaning of Section 8(b)(4)(i) and
(ii)(B) and Section 2(6) and (7) of the Act.
7. By filing, processing, maintaining and prosecuting griev-
ances or lawsuits or threatening to engage in such conduct
against ICTSI, COSCO North America, Inc., Hanjin Shipping
America, LLC, “X” Line America, Inc., Hamburg Sud North
America, Inc., and Hapag Lloyd America Inc., in order to force
or require any of them or any other similarly situated neutral
employers or persons to cease doing business with the Port,
Respondents have engaged in unfair labor practices affecting
commerce within the meaning of Section 8(b)(4)(ii)(B) and
Section 2(6) and (7) of the Act.
8. By filing, maintaining, and prosecuting grievances or
lawsuits or threatening to engage in such conduct against
ICTSI, COSCO North America, Inc., Hanjin Shipping America,
LLC, “X” Line America, Inc., Hamburg Sud North America,
Inc, and Hapag Lloyd America Inc., or other similarly situated
neutral employers or persons in order to force or require the
Port to assign the dockside reefer work at T6 to employees who
are members of, or represented by, Respondent Local 8, rather
than to employees who are members of, or represented by,
Local 48, Respondents have engaged in unfair labor practices
affecting
commerce
within
the
meaning
of
Section
8(b)(4)(ii)(D) and Section 2(6) and (7) of the Act.
REMEDY
Having found that the Respondents have engaged in certain
unfair labor practices, my recommended order will require that
they cease and desist therefrom and take certain affirmative
action designed to effectuate the policies of the Act.
The June and August complaints both request that Respond-
ents be required to “post Notices at all International Longshore
and Warehouse Union and its Locals’ offices/facilities in Ore-
gon, and to mail copies of said Notices to all of Respondents’
members working in Oregon from March 1, 2012 to the pre-
sent.” The AGC’s brief provides no rationale in support of this
statewide remedial request and no supporting evidence was
adduced at the hearing.
There are several local unions affiliated with the ILWU in
the State of Oregon in addition to Locals 8 and 40 involved in
this case. An ILWU website39 lists the following: Local 5 in
Portland serving warehouse, retail, and allied warehouse work-
ers; Local 12 in North Bend serving longshore workers; Local
28 in Portland serving security officers; Local 50 in Astoria
serving longshore workers; Local 53 in Newport serving long-
shore workers; and Local 92 in Portland serving walking bosses
and foremen. Although there is evidence pertaining to the
walking bosses and foremen from Local 92 in this case, there is
no evidence that they participated in any manner in the unfair
labor practices found above. And there is no evidence that any
officers or members of any other ILWU local union in Oregon
were involved in this dispute. In the absence of evidence show-
ing some form of participation by the other Oregon local unions
in the unfair labor practices involved here, I deny the AGC’s
request that these other local unions be required to post the
notices on behalf of the ILWU and Locals 8 and 40. The notice
posting requirement will be limited to the facilities of the
ILWU, and Locals 8 and 40.
The AGC also seeks to have signed copies of the notices fur-
nished to the PMA and the neutral employers doing business at
T6 during the relevant time period for posting if they so chose.
Accordingly, my recommended order will require that each of
the Respondents furnish signed copies of the notice for posting
to PMA, ICTSI, TMC, COSCO North America, Inc., Hanjin
Shipping America, LLC, “X” Line America, Inc., Hamburg Sud
North America, Inc., and Hapag Lloyd America Inc.
The proposed notice to members attached to the AGC’s brief
contains certain instructive language to the Respondents’ agents
and to the PMA and PMA carriers. I reject the AGC’s request
to include this language in the notice to members on the ground
such instructions are not appropriate for inclusion in a notice to
members.
On these findings of fact and conclusions of law and on the
entire record, I issue the following recommended40
ORDER
The Respondents, International Longshore and Warehouse
Union, AFL–CIO, San Francisco, California, International
Longshore and Warehouse Union, Local 8, AFL–CIO, Port-
land, Oregon, and International Longshore and Warehouse
Union, Local 40, AFL–CIO, Portland, Oregon, their officers,
agents, and representatives, shall
1. Cease and desist from
(a) Inducing and encouraging employees of ICTSI Oregon,
Inc. (ICTSI) to withhold their services, engage in slowdowns
and work stoppages, or interfere with the lawful and proper
work assignments of other employee groups that perform ser-
vices at Terminal 6 in Portland, Oregon, in order to force or
require ICTSI, any sea-going carrier using the services provid-
39 See http://www.ilwu.org/?page_id=315.
40 If no exceptions are filed as provided by Sec. 102.46 of the
Board’s Rules and Regulations, the findings, conclusions, and recom-
mended Order shall, as provided in Sec. 102.48 of the Rules, be adopt-
ed by the Board and all objections to them shall be deemed waived for
all purposes.
148
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ed at terminal 6, or any other person to cease doing business
with the Port of Portland at terminal 6.
(b) Directly or indirectly threatening in any manner to shut
down or otherwise disrupt ICTSI’s operations at terminal 6 in
Portland, Oregon, in order to force or require ICTSI or any
other person to cease doing business with the Port of Portland
at its terminal 6.
(c) Failing and refusing to fulfill ICTSI’s timely requests for
the referral of qualified employees for work at terminal 6 in
accord with the Pacific Coast Longshore and Clerks Agreement
in order to force or require ICTSI or any other person to cease
doing business with the Port at Terminal 6.
(d) Filing, processing, maintaining and prosecuting griev-
ances or lawsuits or threatening to engage in such conduct
against ICTSI, Terminal Maintenance Corporation (TMC),
COSCO North America, Inc., Hanjin Shipping America, LLC,
“X” Line America, Inc., Hamburg Sud North America, Inc.,
and Hapag Lloyd America Inc., or any other similarly situated
neutral employer using the services provided at terminal 6,
Portland, Oregon, in order to force or require any of them or
any other neutral employers or persons to cease doing business
with the Port of Portland.
(e) Filing, maintaining, processing, and prosecuting griev-
ances or lawsuits or threatening to engage in such conduct
against ICTSI, TMC, COSCO North America, Inc., Hanjin
Shipping America, LLC, “X” Line America, Inc., Hamburg Sud
North America, Inc., and Hapag Lloyd America Inc., or other
similarly situated neutral employers or persons in order to force
or require the Port of Portland to assign the work of plugging,
unplugging, and monitoring the conditions of the refrigerated
containers while positioned on the dock at Terminal 6 to em-
ployees who are members of, or represented by, Respondent
Local 8, rather than to employees who are members of, or rep-
resented by, the International Brotherhood of Electrical Work-
ers, Local 48, AFL–CIO.
2. Take the following affirmative action necessary to effec-
tuate the policies of the Act.
(a) Within 14 days from the date of this order, withdraw the
Complaint for Confirmation and Enforcement of Final and
Binding Rulings under Collective-Bargaining Agreement filed
against ICTSI Oregon, Inc. in the Federal District Court for the
District of Oregon.
(b) Within 14 days after service by the Region, post at their
offices in Portland, Oregon, and San Francisco, California,
copies of the attached notice marked “Appendix.”41 Copies of
the notice, on forms provided by the Regional Director for Re-
gion 19 after being signed by the Respondents’ authorized rep-
resentatives, shall be posted by the Respondents and maintained
for 60 consecutive days in conspicuous places including all
places where notices to members are customarily posted. In
addition to physically posting the paper notices, the notices
shall be distributed electronically, such as by email, posting on
an intranet or on an internet site, and/or other electronic means,
if the Respondents customarily communicate with their mem-
bers or the employees it represents by such means. Reasonable
steps shall be taken by the Respondents to ensure that the notic-
es are not altered, defaced, or covered by any other material.
(c) Sign and return to the Regional Director sufficient copies
of the notice for physical and/or electronic posting by ICTSI
Oregon, Inc., TMC, COSCO North America, Inc., Hanjin Ship-
ping America, LLC, “X” Line America, Inc., Hamburg Sud, and
Hapag Lloyd America Inc., if willing, at all places or in the
same manner as notices to employees are customarily posted.
(d) Within 21 days after service by the Region, file with the
Regional Director a sworn certification of a responsible official
on a form provided by the Region attesting to the steps that the
Respondents have taken to comply.
41 If this Order is enforced by a judgment of a United States court of
appeals, the words in the notice reading “Posted by Order of the Na-
tional Labor Relations Board” shall read “Posted Pursuant to a Judg-
ment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board.”