Representation Election Procedure, 26062-26089 [2010-11026]
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language ‘‘Charles D. Wien, Michael H.
Beker, or Tolsun N. Waddle, 202–622–
3070 (not a toll-free number).’’ is
removed and replaced with the language
‘‘Charles D. Wien or Michael H. Beker,
202–622–3070 (not a toll-free number).’’.
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2010–11079 Filed 5–10–10; 8:45 am]
BILLING CODE 4830–01–P
NATIONAL MEDIATION BOARD
29 CFR Parts 1202 and 1206
[Docket No. C–6964]
RIN 3140–ZA00
Representation Election Procedure
National Mediation Board.
ACTION: Final rule.
AGENCY:
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SUMMARY: As part of its ongoing efforts
to further the statutory goals of the
Railway Labor Act, the National
Mediation Board (NMB or Board) is
amending its Railway Labor Act rules to
provide that, in representation disputes,
a majority of valid ballots cast will
determine the craft or class
representative. This change to its
election procedures will provide a more
reliable measure/indicator of employee
sentiment in representation disputes
and provide employees with clear
choices in representation matters.
DATES: Effective Date: The final rule is
effective June 10, 2010.
FOR FURTHER INFORMATION CONTACT:
Mary Johnson, General Counsel,
National Mediation Board, 202–692–
5050, infoline@nmb.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Under Section 2, Ninth of the Railway
Labor Act (RLA or Act), it is the duty
of the National Mediation Board (NMB
or Board) to investigate representation
disputes ‘‘among a carrier’s employees
as to who are the representatives of such
employees * * * and to certify to both
parties, in writing * * * the name or
names of the individuals or
organizations that have been designated
and authorized to represent the
employees involved in the dispute, and
certify the same to the carrier.’’ 45 U.S.C.
152, Ninth. Upon receipt of the Board’s
certification, the carrier is obligated to
treat with the certified organization as
the employee’s bargaining
representative.
The RLA authorizes the NMB to hold
a secret ballot election or employ ‘‘any
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other appropriate method’’ to ascertain
the identities of duly designated
employee representatives. Section 2,
Ninth. The Board’s current policy
requires that a majority of eligible voters
in the craft or class must cast valid
ballots in favor of representation. This
policy is based on the Board’s original
construction of Section 2, Fourth of the
RLA, which provides that, ‘‘[t]he
majority of any craft or class of
employees shall have the right to
determine who shall be the
representative of the craft or class
* * *.’’ 45 U.S.C. 152, Fourth.
The language of Section 2, Fourth and
Section 2, Ninth was added to the RLA
as part of the 1934 amendments and was
directed at the continuing problem of
company unions. As the Supreme Court
noted:
Experience had shown, before the
amendment of 1934, that when there was no
dispute as to the organizations authorized to
represent the employees, and when there was
willingness of the employer to meet such
representative for a discussion of their
grievances, amicable adjustment of
differences had generally followed and
strikes had been avoided. On the other hand,
a prolific source of dispute had been the
maintenance by the railroads of company
unions and the denial by railway
management of the authority of
representatives chosen by their employees.
Virginian Ry. Co. v. System Fed’n No.
40, 300 U.S. 515, 545–546 (1937)
(citations omitted). The Report of the
House Committee on Interstate and
Foreign Commerce on the 1934
amendments states that
[t]he Railway Labor Act of 1926, now in
effect, provides that representatives of the
employees, for the purpose of collective
bargaining, shall be selected without
interference, influence, or coercion by
railway management, but it does not provide
the machinery necessary to determine who
are to be such representatives. These rights
of the employees under the present act are
denied by railway managements by their
disputing the authority of the freely chosen
representatives of the employees to represent
them. A considerable number of railway
managements maintain company unions,
under the control of the officers of the
carriers, and pay the salary of the employees’
representatives, a practice that is clearly
contrary to the purpose of the present
Railway Labor Act, but it is difficult to
prevent it because the act does not carry
specific language in respect to that matter.
H.R. Rep. No. 73–1944, at 1 (1934).
Accordingly, the report notes that
‘‘[m]achinery is provided for the taking
of a secret ballot to enable the Board of
Mediation to determine what
representatives the employees desire to
have negotiate for them with
managements of the carriers in matter
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affecting their wages and working
conditions.’’ Id.
The Board originally interpreted the
language of Section 2, Fourth as
requiring a majority of all those eligible
to vote to choose a representative rather
than a majority of the votes cast. As
noted in the Notice of Proposed
Rulemaking (NPRM), however, this
interpretation of Section 2, Fourth, was
reached ‘‘not on the basis of legal
opinion and precedents, but on what
seemed to the Board best from an
administration point of view.’’ 1 NMB
Ann. Rep. 19 (1935). That same Board
also noted, ‘‘[w]here, however, the
parties to a dispute agreed among
themselves that they would be bound by
a majority of the votes cast, the Board
took the position that it would certify on
this basis, on the ground that the
Board’s duties in these cases are to settle
disputes among employees.’’ Id. In 1947,
United States Attorney General Tom C.
Clark, responding to a question from the
NMB on its authority under Section 2,
Fourth, stated his opinion that
the National Mediation Board has the power
to certify a representative which receives a
majority of the votes cast at an election
despite the fact that less than a majority of
those eligible to vote participated in the
election. While the National Mediation Board
has this power, it need not exercise it
automatically upon finding that a majority of
those participating were in favor of a
particular representative.
40 U.S. Op. Att’y Gen. 541, at 544–545
(1947).
On November 3, 2009, the NMB
published a NPRM in the Federal
Register inviting public comments for
60 days on a proposal to amend its RLA
rules to provide that, in representation
disputes, a majority of ballots cast will
determine the craft or class
representative. 74 FR 56,750. In its
NPRM, the Board stated its belief, based
on the language of the RLA, principles
of statutory construction, and Supreme
Court precedent, that it has the
authority to reasonably interpret Section
2, Fourth to allow the Board to certify
as collective bargaining representative
any organization which receives a
majority of valid ballots cast in an
election. While acknowledging that it
has reaffirmed its policy of certifying a
representative based on a majority of
eligible voters on several occasions
since 1935, the Board noted that this
construction of Section 2, Fourth was
adopted in an earlier era, under
circumstances that are different from
those prevailing in the rail and air
industries today. Further, the Board
noted that the current election
procedures provide no opportunity for
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employees to cast a ballot against
representation and presume that the
failure or refusal of an eligible voter to
participate in an NMB-conducted
election to be the functional equivalent
of a ‘‘no union’’ vote. Specifically, the
Board proposed modifying its election
procedures to determine the craft or
class representative by a majority of
valid ballots cast and provide
employees with an opportunity to vote
‘‘no’’ or against union representation.
Subsequently, the NMB published a
Notice of Meeting in the Federal
Register inviting interested parties to
attend an open meeting with the Board
to share their views on the proposed
rule changes regarding representation
election procedures. Meeting Notice, 74
FR 57,427 (Nov. 6, 2009).
II. Notice-and-Comment Period
In response to the NPRM, the NMB
received 24,962 submissions during the
official comment period from a wide
variety of individuals, employees, air
and rail carriers, trade and professional
associations, labor unions, Members of
Congress, law firms, and others.
(Comments may be viewed at the NMB’s
Web site at https://www.nmb.gov)
Additionally, the NMB received written
and oral comments from the 31
individuals and representatives of
constituent groups under the RLA that
participated in the December 7, 2009
open meeting.
Nearly 98 percent of the comments
received in response to the NPRM were
either: (1) Very general statements; (2)
personal anecdotes of experience or
participation in the NMB’s election
procedures; or (3) identical or nearly
identical ‘‘form letters’’ or ‘‘postcards’’
sent in response to comment initiatives
sponsored by various constituent groups
such as the International Association of
Machinists (IAM) and the Association of
Flight Attendants (AFA). The remaining
comments reflect strongly held views
for and against the NMB’s proposed
change. The NMB has carefully
considered all of the comments,
analyses, and arguments for and against
the proposed change.
Although the Board is aware that the
notice-and-comment period of the
Administrative Procedure Act (APA) is
not a referendum, it notes that the
majority of the comments it received
supported the proposed change. In
addition to agreeing with the Board’s
position that it has the statutory
authority to make this change and that
the legislative history of the RLA
supports such a change, these
commenters applauded the NPRM as a
positive change that would ensure that
the majority of those who vote in a
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representation election will determine
the outcome of that election. Many
commenters in support of the NPRM
noted that the current rule is contrary to
common standards of democracy where
the outcome of an election is
determined by the majority of those who
vote. Because a number of employees
will not participate in any election, they
argued, the current rule handicaps
unions that must achieve what amounts
to a ‘‘supermajority’’ in order to secure
representation. Some commenters
supporting the NPRM stated that the
Board should follow the procedures
utilized by the National Labor Relations
Board (NLRB) so all employees under
private-sector Federal labor law will be
subject to uniform representation
election procedures. They argue that the
election procedures in NMB elections
can be confusing to some employees
and frustrating to others who wish to
vote against union representation but
have no way to do so. Congressman
Glenn Nye and others state that aviation
and rail workers should not be subject
to a more ‘‘onerous process’’ than other
workers when deciding whether to seek
union representation. Other commenters
in favor of the NPRM argue that there
has been a decrease in union organizing
and this change will help reverse that
trend. A number of political scientists
stated that ‘‘the proposed rule change
represents a shift from long-established
practice, but it is a shift long overdue.
Since 1935, when the [original
procedure] was adopted, electoral
technology has improved and our
perspective on good electoral practice
progressed. The old rule reflects the
thinking of an earlier era; the proposed
change is consistent with the current
state of our knowledge and
understanding.’’ 1 Some of the
arguments in favor of the NPRM will be
discussed in greater detail in the
discussion that follows; however, the
preamble will focus on the Board’s
response to the substantive arguments
raised by those opposed to the NPRM.
III. Summary of Comments on the
NMB’s Proposed Change To its Election
Procedures
While the NPRM only concerns one
aspect of the Board’s election
procedures, namely the Board’s
interpretation of Section 2, Fourth in
determining how best to ascertain the
clear, uncoerced choice of a bargaining
representative, if any, by the affected
employees, the commenters expressed
1 Professors
Margaret Levi, Elinor Ostrom, Robert
Keohane, Robert Putnam, Peter Katzenstein, Henry
Brady, Dianne Pinderhughes, Kent Jennings, Ira
Katznelson, and Theda Skocpol submitted a
comment in support of the NPRM.
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widely divergent views of the proposed
change and the Board’s deliberation and
process in formulating the NPRM. The
major comments received and the
Board’s response to those comments are
as follows.
A. Motions for Disqualification
Following the close of the comment
period under the NPRM, by letter dated
January 8, 2010, ATA 2 requested that
Board Members Harry Hoglander and
Linda Puchala disqualify themselves
from further participation in the
rulemaking because the ‘‘available facts
give the appearance that Members
Hoglander and Puchala have prejudged
the specific issues.’’ On January 15,
2010, Right to Work also filed a motion
requesting the disqualification of
Members Hoglander and Puchala. After
careful review of the arguments
presented, there is no basis for either
Member Hoglander’s or Member
Puchala’s recusal or disqualification
from the rulemaking. Rulemaking
requires a decision maker to choose
between competing priorities in
proposing a rule. The subject matter of
a rulemaking—and this one is no
exception—is often controversial.
Prejudgment and/or bias is not
established by the mere fact, however,
that a proposal is controversial or that
the decision maker brings his or her
own beliefs, philosophy and experience
to bear when choosing between two
competing interests to propose a policy
course. As discussed below, ATA and
Right to Work have failed to establish ‘‘a
clear and convincing showing that [an
agency member] has an unalterably
closed mind on matters critical to the
disposition of the rulemaking.’’ Ass’n of
Nat’l Adver. v. Fed. Trade Comm’n, 627
F2d 1151, 1154 (DC Cir. 1979).
ATA and Right to Work each
contend 3 that ‘‘[p]ublicly available facts
give the appearance that Members
Hoglander and Puchala have
predetermined the issues raised by the
November 3 NPRM.’’ Neither ATA nor
Right to Work, however, cites any
statements by either Member Hoglander
or Member Puchala concerning the
subject matter of the NPRM as the basis
for their assertion. Instead, they rely on
the following as evidence of bias and
prejudgment:
(1) An alleged inadequacy of the Board’s
process for proposing changes to its election
procedure rules, by publishing an NPRM in
the Federal Register with a 60-day comment
2 ATA members American Airlines, Continental
Airlines, Southwest Airlines, United Airlines, UPS
Airlines, and US Airways did not join in this
motion.
3 Both motions may be viewed at the NMB’s Web
site at https://www.nmb.gov.
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period and holding an open public meeting
rather than a hearing similar to the one held
in Chamber of Commerce, 14 NMB 347
(1987);
(2) Chairman Dougherty’s November 2,
2009 letter to Republican United States
Senators McConnell, Isakson, Roberts,
Coburn, Gregg, Enzi, Hatch, Alexander, and
Burr in which she asserted that she was
excluded from drafting of the NPRM and
excluded from discussions regarding the
timing of the NPRM;
(3) Inferences drawn from the timing of the
NPRM and representation disputes in several
large crafts or classes of employees at the
post-merger Delta Air Lines. ATA and Right
to Work also rely on statements by
Association of Flight Attendants-CWA (AFA)
President Patricia Friend during an August
24, 2009 4 interview on the Union Edge Talk
Radio Show regarding the Board’s
composition and election rules and AFA’s
application regarding the Flight Attendant
craft or class at Delta; and
(4) The leadership positions that Members
Hoglander and Puchala previously held with
the Air Line Pilots Association (ALPA) and
the AFA, respectively.
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It cannot be questioned that parties to
an administrative proceeding have a
right to a fair and open proceeding
before an unbiased decision maker. In
their motions, ATA and Right to Work
challenge both the adequacy and
fairness of the procedure chosen by the
Board majority to propose a change to
the election rules and the Board
majority’s impartiality as decision
makers. As discussed below, the Board
majority finds that there is no merit to
either challenge.
With regard to the procedure chosen
by the Board majority, ATA and Right
to Work characterize informal
rulemaking under the APA as a flawed
process with an inadequate comment
period that did not provide for a
thorough evidentiary hearing that
included the taking of testimony under
oath and the cross-examination of
witnesses. By utilizing the notice-andcomment procedures of informal
rulemaking under the APA, however,
the Board followed an open
administrative process and interested
persons were given an adequate
comment period 5 as well as access to all
meeting testimony and comments
received. 5 U.S.C. 553(c). Under the
APA, the trial-like hearing advocated by
ATA and Right to Work is required only
when an agency engages in formal
4 ATA’s motion cites the original broadcast date
of the interview as August 25, 2009, however, a
search of the archives at https://theunionedge.com
reveals the broadcast date to be August 24, 2009.
5 Executive Order 12,866 states that ‘‘each agency
should afford the public a meaningful opportunity
to comment on any proposed regulation, which in
most cases should include a comment period of not
less than 60 days.’’ Exec. Order No. 12,866, 58 FR
51,735 (1993).
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rulemaking. Formal rulemaking,
however, is used when an agency’s rules
are required by statute ‘‘to be made on
the record after opportunity for an
agency hearing.’’ Id. The RLA contains
no such provision and such formal
procedures have long been disfavored
when not required by statute. See, e.g.,
Vermont Yankee Nuclear Power Corp. v.
Natural Res. Def. Council, 435 U.S. 519
(1978).
ATA and Right to Work also assert
that there is evidence of bias in the
Agency’s failure to follow a procedure
similar to that used in Chamber of
Commerce, 14 NMB 347 (1987), and to
conduct an evidentiary hearing to
consider whether to change its election
rules. See also In re Chamber of
Commerce, 12 NMB 326 (1985) (notice
of hearing). In that case, the Board chose
to not follow the APA procedures
described above because it had not yet
decided whether to initiate the
rulemaking process in response to the
United States Chamber of Commerce’s
(Chamber) petition to amend the Board’s
rules. In its decision on the format of the
proceeding with regard to those
petitions, the Board stated that ‘‘5 U.S.C.
553 refers to the actual rule-making
process, a process which the Board has
not initiated at this time, should it ever
do so.’’ In re Chamber of Commerce, 13
NMB 90, 93 (1986). The Board further
stated that, ‘‘in making its determination
of whether or not to propose
amendments to its rules, [the NMB] has
the discretion to conduct the procedures
preliminary to that determination in any
manner which it finds to be
appropriate.’’ Id. at 94 (emphasis added).
Thus, the Board has in no way bound
itself to the procedures it chose to
follow in the Chamber of Commerce
case. Further, in the Board’s recent
decision in Delta Air Lines, Inc., 35
NMB 129, 132 (2008), it stated that it
would not make a change to its election
procedures ‘‘without first engaging in a
complete and open administrative
process to consider the matter.’’
Contrary to the assertions of ATA and
Right to Work, in deciding to adopt this
change through the informal rulemaking
provisions of the APA, the Board has
followed the appropriate procedure that
provided for public participation, for
fairness to the affected parties, and for
the agency to have before it information
relevant to the particular administrative
problem. MCI Telecommunications
Corp. v. Fed. Commc’n Comm’n, 57
F.3d 1136, 1141 (DC Cir. 1995).
With regard to the impartiality of
Members Hoglander and Puchala as
agency decision makers, ATA and Right
to Work contend that the facts show that
they have prejudged the issues and
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should be disqualified from further
participation. In National Advertisers,
627 F.2d at 1154, the court found that
disqualification of a decision maker in
a rulemaking proceeding is required
‘‘only when there is a clear and
convincing showing that [an agency
member] has an unalterably closed
mind on matters critical to the
disposition of rulemaking.’’ In reaching
this decision, the court rejected the
contention that the standard used to
disqualify a decision maker in an
adjudicatory hearing, namely whether ‘‘a
disinterested observer may conclude
that the [decision maker] has in some
measure adjudged the facts as well as
the law of a particular case in advance
of hearing it,’’ because of the
fundamental differences between the
nature of adjudicatory proceedings and
the nature of rulemaking proceedings.
Id. at 1168 (citing Cinderella Career &
Finishing Sch., Inc. v. Fed. Trade
Comm’n, 425 F.2d 583, 591 (DC Cir.
1970)). The court noted that:
The object of the rule making proceeding
is the implementation or prescription of law
or policy for the future, rather than the
evaluation of a respondent’s past conduct.
Typically, the issues relate not to the
evidentiary facts, as to which the veracity
and demeanor of witnesses would often be
important, but rather to the policy-making
conclusions to be drawn from the facts
* * *. Conversely, adjudication is concerned
with the determination of past and present
rights and liabilities. Normally there is
involved a decision as to whether past
conduct was unlawful, so that the proceeding
is characterized by an accusatory flavor and
may result in disciplinary action.
Id. at 1160 (quoting Attorney General’s
Manual on the Administrative
Procedure Act 14 (1947)).
Because the object of rulemaking is
the implementation of law or policy to
the future, the agency decision maker
functions like a legislator when
participating in rulemaking. The
administrator is expected to bring his or
her views and insights to bear on the
issues confronting the agency. In
requiring ‘‘compelling proof’’ that an
administrator is unable to carry out his
or her duties in a constitutionally
permissible manner to compel
disqualification, the court stated that:
[t]he requirements of due process clearly
recognize the necessity for rulemakers to
formulate policy in a manner similar to
legislative action * * *. We would eviscerate
the proper evolution of policymaking were
we to disqualify every administrator who has
opinions on the correct course of his agency’s
future action.’’
Id. at 1174. For example, in National
Advertisers, 627 F.2d at 1154, the court
determined that the Chairman of the
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Federal Trade Commission (FTC or
Commission) was not disqualified from
participating in rulemaking proposing
restrictions on advertising directed at
children despite public comments in
which he (1) asserted that children
could not distinguish between
advertising and other forms of
communication; (2) cited Supreme
Court precedent giving the Commission
great discretion in declaring unfair trade
practices; and (3) discussed the negative
effects of advertising on children. The
court concluded that these statements
were a discussion of a legal theory by
which the Commission could adopt a
rule if circumstances warranted and did
not demonstrate the Chairman’s
unwillingness or inability to consider
opposing arguments.
As noted above, ATA and Right to
Work do not rely on any statements by
either Member Hoglander or Member
Puchala to establish bias and
prejudgment. They rely only on
statements in an interview given by
Patricia Friend, President of AFA; the
opinion of Chairman Dougherty
expressed in a letter to U.S. Senators;
and inferences drawn by ATA and Right
to Work from the timing of the NPRM
and the Board Members’ biographies.
These statements, opinions, and
inferences are insufficient to compel
either recusal or disqualification. The
transcript of Ms. Friend’s interview
states in relevant part:
Host: And we were talking just very briefly
about the new member that has been
appointed to the NMB, Linda Puchala and
President Friend can you tell us a little bit
about her and what her background is?
Pat Friend: Yes, Linda was—I think I
mentioned this just before the break—she
was from—if I get my dates right, from like
1979 to 1986 the President of the Association
of Flight Attendants. So we’ve known her for
a long time and then for the past five or six
years she actually has worked at the National
Mediation Board specifically doing some
mediation, but mostly running the alternate
dispute resolution part of the Board. Linda is
in my experience, is about one of the best
consensus builders that I’ve ever met so we
were just thrilled that we were able to get her
nominated and confirmed and to do it in
really a timely fashion, you know, I can’t take
credit, full credit for this, because we had
lots of help with in the labor movement and
within the Obama administration, but for a
second tier agency which the National
Mediation Board is, to get a member
nominated and confirmed before July was
really an outstanding effort. There was a lot
of people working on it and—but, it was
very, very important to us that we have a
properly, sort of fair, board in place before
this election between the Northwest and the
Delta Flight attendants takes place.
Exhibit A, p. 6 January 4, 2010 Written
Comment in response to NPRM from
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Delta Airlines. These statements have
no bearing on whether or not Member
Puchala has a closed mind with regard
to the NPRM. Ms. Friend’s statement
establishes only her desire for a fair
administrative process and her support
for Member Puchala’s appointment,
describing Member Puchala as a
‘‘consensus builder.’’ She is not
advocating that the Board make specific
changes to its procedures. Further, Ms.
Friend was not alone in making public
statements in support of Member
Puchala. In a May 5, 2009, Business
Review article, ‘‘Delta backs Obama’s
labor board nominee,’’ Mike Campbell,
Delta executive vice president of human
resources and labor relations, stated
‘‘Ms. Puchala has years of valuable
experience, including time with the
NMB. She enjoys broad support among
the airline industry and labor
community. We look forward to her
confirmation to become a member of the
NMB.’’ In that same interview, Campbell
also stated, ‘‘It is equally important to
our employees to quickly resolve
representation for those workgroups in
which representation remains
unresolved. To that end, we urge the
Senate to confirm Linda Puchala as soon
as possible.’’
ATA and Right to Work also rely on
the differing opinions among the Board
Members as to whether and how to
consider amending the Board’s election
procedures. As Chairman Dougherty’s
dissent to the NPRM makes clear, she
advocated a different approach to the
Board’s consideration of amending the
election rules. The Board majority,
however, followed the mandates of the
APA in considering, drafting, adopting,
and promulgating the NPRM. The APA
requires that a NPRM must include the
following: ‘‘(1) A statement of the time,
place, and nature of public rulemaking
proceedings; (2) reference to the legal
authority under which the rule is
proposed; and (3) either the terms or
substance of the proposed rule or a
description of the subjects and issues
involved.’’ 5 U.S.C. 553(b). The
November 3, 2009 NPRM met these
requirements. To the extent that ATA
and Right to Work question the Board
majority’s deliberative process, the
Board notes that this process is an
internal agency matter and outside the
scope of the rulemaking proceedings.
It is clear that the Chairman disagreed
with her colleagues on both whether
any change to the current voting
procedures is necessary and how such
a change should be proposed. However,
the Chairman’s dissenting views were
published in the Federal Register with
the NPRM and have been incorporated
in many comments opposed to the
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NPRM. Her admittedly different policy
view as a dissenting member does not
establish that Members Hoglander and
Puchala were not free, in theory and in
reality, to change their mind upon
consideration of the presentations and
comments made by those who would be
affected. As the court in National
Advertisers, recognized:
An administrator’s presence within an
agency reflects the political judgment of the
President and Senate. As Judge Prettyman of
this court aptly noted, a ‘‘Commission’s view
of what is best in the public interest may
change from time to time. Commissions
themselves change, underlying philosophies
differ, and experience often dictates
changes.’’
627 F.2d 1151, 1174 (quoting Pinellas
Broadcasting Co. v. Fed. Commc’n
Comm’n, 230 F.2d 204, 206 (DC Cir.
1956), cert. denied. 350 U.S. 1107
(1956)).
ATA and Right to Work infer some
bias because of the existence of
representation disputes among
employees at Delta. As discussed more
fully below in Section III.C., the Board,
however, has continued to carry out all
its obligations in representation matters
including investigating representation
disputes, holding elections and
certifying the results of those elections
during the rulemaking process. Under
Section 2, Ninth of the RLA, neither the
Board nor carriers may initiate a
representation proceeding because
‘‘Congress left no ambiguity in Section 2,
Ninth: the Board may investigate a
representation dispute only upon
request of the employees involved in the
dispute.’’ Ry. Labor Executives’ Ass’n v.
NMB, 29 F.3d 655, 664 (DC Cir. 1994)
(emphasis in original) (deciding the
narrow issue of who can initiate a
representation dispute under Section 2,
Ninth). Therefore, the timing of when
employees or their representatives file
applications or withdraw those
applications is not within the control of
the Board.
Right to Work also contends that an
inference of bias and prejudgment
should be drawn from the fact that
Members Hoglander and Puchala
previously held leadership positions in
unions. This contention has no merit.
An administrative official is presumed
to be objective and ‘‘capable of judging
a particular controversy fairly on the
basis of its own circumstances.’’ United
States v. Morgan, 313 U.S. 409, 421
(1941). Whether the official is engaged
in adjudication or rulemaking, the mere
proof that he or she has taken a public
position, expressed strong views or
holds an underlying philosophy with
respect an issue in dispute cannot
overcome that presumption. Hortonville
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Joint Sch. Dist. No. 1 v. Hortonville
Educ. Ass’n, 426 U.S. 482 (1976). See
also C & W Fish Co. v. Fox, 931 F.2d
1556, 1564–1565 (DC Cir. 1991) (finding
no clear and convincing evidence of an
unalterably closed mind where
immediately prior to appointment to
position where he adopted a drift gillnet
ban, agency decision maker had served
as chairman of the Florida Marine
Fisheries Commission, was an
outspoken advocate of banning drift
gillnets, and publicly stated that ‘‘this
kind of gear [i.e., drift gillnets] should
be eliminated.’’). Thus, while the prior
union positions held by Members
Hoglander and Puchala may evince an
underlying philosophy, it is hardly clear
and convincing evidence of an
unalterably closed mind.
ATA and Right to work have
presented no evidence, let alone clear
and convincing evidence, that
establishes that either Member Hog
lander or Member Puchala are unwilling
to appropriately consider comments on
the proposed rule or possess an
unalterably closed mind on the issues in
the NPRM. Accordingly, neither recusal
nor disqualification is necessary.
B. Process Leading to the NPRM
In the oral and written statements
received at the December 7, 2009
meeting and in written comments
submitted pursuant to the NPRM,
commenters including Delta Airlines,
Inc. (Delta), the Air Transport
Association (ATA),6 the Regional
Airline Association (RAA), the Airline
Industrial Relations Conference (AirCon), the National Railway Labor
Conference (NRLC), the labor and
employment law firm of Littler
Mendelson, P.C. (Littler), the National
Air Transportation Association’s Airline
Services Council (ASC), Claude
Sullivan, an RLA practitioner, the
National Right to Work Legal Defense
Foundation, Inc., (Right to Work)),
Regional Air Cargo Carriers Association
(RACCA), Bombardier Aerospace/
Flexjet (Flexjet) and some Members of
Congress suggest that, by proceeding
with the NPRM, the Board has
compromised its neutrality and
surrendered the integrity necessary to
carry out its representation duties under
the Act. These commenters rely on
statements in an August 2009 interview
given by AFA president Patricia Friend,
the withdrawal of pending applications
involving employees at Delta by the
IAM and AFA around the time of the
publication of the NPRM, and two
letters from Chairman Dougherty to
United States Senators Johnny Isakson,
Bob Corker, Jim Bunning, Robert
Bennett, Saxby Chambliss, George
Voinovich and Orrin Hatch as support
for their belief that the Board’s actions
leading up to the NPRM were
inadequate and improper. The
commenters suggest that the Chairman’s
correspondence indicates that the Board
majority acted with undue haste and
followed an inadequate internal process
in deciding to proceed with the NPRM.
Other commenters, including a number
of Republican Members of the United
States House of Representatives,7
simply characterized the NPRM as ‘‘a
politically motivated decision that tilts
airline and rail representation elections
in the favor of organized labor. This
decision is too important to be decided
by two appointed and unelected
Democrats who have chosen to ignore
legal and policy precedents that have
governed representation rules for airline
and rail employees for more than 75
years.’’
The Board disagrees with those
comments that assert that it has
abandoned its neutrality at any point
during this rulemaking. The Board
majority followed the mandates of the
APA in considering, drafting, adopting,
and promulgating the NPRM. The APA
requires that a NPRM must include the
following: ‘‘(1) A statement of the time,
place, and nature of public rulemaking
proceedings; (2) reference to the legal
authority under which the rule is
proposed; and (3) either the terms or
substance of the proposed rule or a
description of the subjects and issues
involved.’’ 5 U.S.C. 553(b). The
November 3, 2009 NPRM met these
requirements. To the extent that the
dissent and other commenters question
the Board majority’s deliberative
process, the Board notes that this
process is an internal agency matter and
outside the scope of the rulemaking
proceedings. In the NPRM, the Board
majority expressed a view that a change
should be proposed and Chairman
Dougherty disagreed. Both views,
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7A
6 ATA is the principal trade and service
organization of the Unites States’ scheduled airline
industry. The following members of the ATA did
not join in the written statement submitted at the
December 7 open meeting: Continental Airlines,
Inc., and American Airlines, Inc. In addition, ATA
member Southwest Airlines, which is neutral on
the NPRM, filed a separate comment. Southwest’s
position is discussed in detail later in this
document.
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comment opposed to the proposed change
was submitted by Representatives Nathan Deal, Roy
Blunt, Paul C. Broun, Gregg Harper, John A.
Boehner, John K. Kline, Lynn A. Westmorland, Jack
Kingston, Bob Goodlatte, Gary Miller, Pete Sessions,
John Campbell, John Linder, Doug Lamborn, Jean
Schmidt, Vern Buchanan, Joe Wilson, Sue Myrick,
Mike Rogers, Rob Bishop, Bob Inglis, Dean Heller,
Harold Rogers, Phil Gingrey, Devin Nunes, Wally
Herger, Eric Cantor, Kevin McCarthy, and Jason
Chaffetz.
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however, were expressed in the NPRM
and have served as a basis for comment.
Some Members of Congress suggest
that the proposed change to the election
procedure is too important to be
entrusted to the appointed members of
the NMB. For the following reasons, the
Board disagrees. First, in the NPRM, the
Board is proposing a change to its own
interpretation of the RLA. Thus, the
‘‘legal and policy precedents’’ at issue
are the Board’s own determinations. It is
without doubt that an agency is free to
change its interpretations and its
policies so long as the new policy or
interpretation is permissible under the
statute, there are good reasons for it, and
the agency believes it to be better. Fed.
Commc’n Comm’n v. Fox Television
Stations, 129 S. Ct. 1880, 1811 (2009).
Second, there are safeguards applicable
to the Board’s actions. While it is true
that the Board Members are not elected
officials subject to recall, they are
subject to confirmation by the Senate
and have limited terms. Third, acting
pursuant to the notice-and-comment
procedures of informal rulemaking
under the APA, the Board followed an
open administrative process and
interested persons were given an
adequate comment period as well as
access to all meeting testimony and
comments received. 5 U.S.C. 553(c).8
Fourth, under the APA, any final rule
promulgated by the Board is subject to
judicial review.
C. NPRM’s Effect on Processing of
Representation Cases
Many of the commenters who
suggested that the Board followed
improper procedures in formulating the
NPRM also suggest, as noted above, that
the NPRM has adversely affected the
neutrality and integrity of the Board’s
representation case processing. Delta, in
particular, states that it and its
employees have been ‘‘singled out for
discriminatory treatment’’ as a result of
the NPRM since ‘‘[r]epresentation cases
at other carriers filed in the summer of
2009 have proceeded to resolution
under the existing rules; only those at
Delta have been delayed, and then
withdrawn, to await the new rules.’’
Contrary to these comments, the Board
has continued to carry out all its
8 Under the APA, a trial-like hearing where
parties can submit evidence and cross examine
witnesses, advocated by some commenters, is only
required when an agency engages in formal
rulemaking. Formal rulemaking, however, has long
been disfavored where not required by statute. The
RLA does not require formal rulemaking. As the
Supreme Court noted in Vermont Yankee, 435
U.S.at 547, a standard of review that would cause
agencies to engage in formal rulemaking in all
instances would lead to a loss of ‘‘all of the inherent
advantages of informal rulemaking.’’
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jlentini on DSKJ8SOYB1PROD with RULES
obligations in representation matters
including investigating representation
disputes, holding elections and
certifying the results of those elections
during the rulemaking process. The
Board has also followed its standard
procedures with respect to the matters
involving IAM, AFA, and Delta.
The decision to initiate a
representation proceeding is not within
the Board’s control. As the United States
Court of Appeals for the District of
Columbia Circuit stated ‘‘Congress left
no ambiguity in Section 2, Ninth: the
Board may investigate a representation
dispute only upon request of the
employees involved in the dispute.’’ Ry.
Labor Executives’ Ass’n, 29 F.3d at 664
(emphasis in original). On July 29, 2009,
AFA filed an application with the Board
alleging that Delta and Northwest Air
Lines (Northwest) constituted a single
carrier for representation purposes with
respect to employees in the Flight
Attendants craft or class. On August 13,
2009, IAM filed three separate
applications alleging that Delta and
Northwest constituted a single carrier
for representations purposes with
respect to employees in the crafts or
classes of Plant Guards, Simulator
Technicians, and Fleet Service.
Consistent with the Board’s standard
practice, each of these applications was
assigned a ‘‘CR’’ file number and was not
docketed as an ‘‘R’’ case.9
Chairman Dougherty’s October 28,
2009, letter, relied on by Delta and
others, expresses her view of the
relationship between the Board’s policy
on the use of hyperlinks and AFA’s
then-pending application regarding the
Flight Attendants craft or class at Delta.
In particular, this letter reflects the
Chairman’s disagreement with her
colleagues over their conclusion that the
Board’s hyperlink policy was an issue
intertwined with the pre-docketing
investigation of AFA’s application.
In a notice dated February 28, 2008,
the Board stated that it had decided to
remove the hyperlink to the voting Web
site from the Agency’s Web site as a
precautionary measure ‘‘to prevent any
outside party from possibly tracking the
IP address of persons who visit the
voting Web site.’’ Removal of Internet
Voting Hyperlink on Board’s Web site,
35 NMB 92 (2008). Noting that the
Board may view use of hyperlinks as
9 Applications invoking the Board’s services in
representation disputes are docketed as ‘‘R’’ cases.
‘‘CR’’ numbers are assigned to applications requiring
pre-docketing investigation, such as craft or class,
system, jurisdiction, or other appropriate issues.
Memorandum: NMB Policy for the Assignment/
Conversion of ‘‘CR’’ files and ‘‘R’’ Case Dockets, 7
NMB 131 (1979). Once the pre-docketing
investigation is complete, the case will be docketed
as an ‘‘R’’ case for resolution pursuant to an election.
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possible evidence of election
interference, the Board requested that
participants in representation elections
not post a hyperlink to the Board’s
voting Web site. Id. Subsequently, the
use of hyperlinks to the Board’s voting
Web site in campaign materials became
an issue in a 2008 representation
election among Delta’s flight attendants.
Delta raised concerns about potential
interference after a hyperlink to the
Board’s voting Web site was included in
e-mails from an AFA organizer to flight
attendant employees. In a
determination, the Board noted its
policy regarding hyperlinks and while
acknowledging that the ‘‘hyperlink in
this instance was included in an email
rather than on a Web site,’’ it reiterated
its statement that ‘‘the Board may
consider hyperlinks to the voting Web
site as possible evidence of election
interference.’’ Notice Re: Carrier and
Union Conduct, 35 NMB 158 (2008). On
July 22, 2009, several days before it filed
its application, AFA requested the
Board to reconsider its hyperlink policy
‘‘because of anticipated representation
elections at Delta Airlines.’’ In the view
of the Board majority, the issue of the
use of hyperlinks in representation
elections had to be resolved before the
Board could move forward with the
investigation of AFA’s application.
Shortly before the publication of the
NPRM, IAM sought withdrawal of its
Fleet Service application. Shortly after
the publication of the NPRM, AFA
sought withdrawal of its Flight
Attendant application. Similar to the
decision to initiate representation
proceedings, the decision whether to
withdraw an application rests solely
with the organization that filed the
application. Upon receipt of those
requests, again pursuant to its standard
procedure, the Board granted the
respective withdrawals. While the
NMB’s bar rules at 29 CFR 1206.4(b)(3)
provide for a one-year bar where a
‘‘docketed application’’ has been
dismissed based on a withdrawal of the
application, no bar applies where the
application was assigned a CR file
number and not ‘‘docketed’’ in the wellestablished sense of the term by
conversion to an ‘‘R’’ case. US Airways,
Inc., 27 NMB 565 (2000); Trans World
Airlines/Ozark Airlines, 14 NMB 343
(1987). The IAM application with
respect to Plant Guards remains under
investigation. The Board issued its
single carrier determination with
respect to the Simulator Technician
craft or class on December 23, 2009,
converted the application to an ‘‘R’’ case,
and authorized a representation election
in the Simulator Technician craft or
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26067
class at Delta on January 11, 2010 with
a tally held on February 25, 2010.
D. The Board’s Statutory Authority for
the Proposed Change
Almost all of the comments received
in opposition to the NPRM question
whether the NMB possesses the
statutory authority to make the
proposed change to its election rules.
For example, Delta cites ‘‘plain
language’’ of Section 2, Fourth and
Section 2, Ninth for the proposition that
the choice of representative must be
made by a ‘‘majority’’ of employees in
the craft or class, and states that the
Supreme Court has approved the
Board’s long-standing interpretation that
‘‘majority’’ is a majority of eligible voters
rather than a majority of ballots cast.
Several commenters opposed to the
NPRM state that language of Section 2,
Fourth which provides that ‘‘[t]he
majority of the craft or class of
employees shall have the right to
determine who shall be the
representative of the craft or class of
employees for the purposes of this
chapter,’’ is a clear statutory mandate
that the Board must certify a
representative on the basis of the
majority of eligible voters.
In contrast, those comments
supporting the NPRM asserted that the
Board has clear statutory authority and
discretion to adopt the proposed change
to its election process. For example, the
TTD states that ‘‘[t]he language of the
RLA itself dictates no particular
procedure to determine the majority
will, much less the election procedure
currently followed by the Board.’’ The
TTD, IAM, AFA, and others note that
during the Board’s history it has used a
variety of methods to resolve
representation disputes, exercising its
discretion as circumstances warranted.
The commenters who question the
Board’s statutory authority essentially
contend that the language of Section 2,
Fourth is unambiguous and compels the
NMB to certify representatives as it does
under its existing procedures: when a
majority of eligible voters in the craft or
class cast vote in favor of representation.
Thus, these commenters contend that
‘‘majority of any craft or class of
employees’’ must only be interpreted to
mean the majority of all eligible voters.
Having reviewed these comments, the
NMB, however, is not persuaded and
continues to believe that the language of
the statute is ambiguous and that the
proposed change—to certify a
representative on the basis of a majority
of valid ballots cast—is within the
Board’s statutory authority and
discretion under the RLA. As noted in
the NPRM, the Board believes that
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under its broad statutory authority it
may reasonably interpret Section 2,
Fourth to certify a representative based
on a majority of ballots cast.
As noted by many comments both
opposing and supporting the NMB’s
proposed change, the language of
Section 2, Fourth was taken from a rule
announced by the NMB’s precursor,
United States Railroad Labor Board
(Railroad Board), under the
Transportation Act of 1920. Virginian
Ry., 300 U.S. at 561. These Railroad
Board decisions submitted as part of the
IAM’s comment on the NPRM lend
support to the NMB’s proposed change.
In Decision No. 119, International Ass’n
of Machinists et al. v. Atchison, Topeka
& Santa Fe Ry. et al., 2 Dec. U.S.
Railroad Board, 87, 96, par. 15, the
Railroad Board held that ‘‘[t]he majority
of any craft or class of employees shall
have the right to determine what
organization shall represent members of
such craft or class.’’ This rule was
interpreted by the Railroad Board in
Decision No. 1971, Brotherhood of
Railway & Steamship Clerks v. Southern
Pacific Lines, 4 Dec. U.S. Railroad Labor
Board 625, 629:
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The Board had previously in principle 15
of Decision No. 119 ruled that ‘‘the majority
of any craft or class of employees shall have
the right to determine what organization
shall represent members of such craft or
class’’ in negotiating agreements.
The purpose of the Railroad Labor Board
was to give all the employees to be affected
the privilege of expressing their choice. The
board could not force any employee nor all
of the employees to vote. It could only give
all a fair opportunity. It was obviously the
meaning and the purpose of the board that
a majority of the votes properly cast and
counted in an election properly held should
determine the will and choice of the class
* * *.
Decision—The Railroad Labor Board
decides that a majority of the legal votes cast
in this election will determine who shall be
the representatives of the employees.
The legislative history of Section 2,
Fourth also supports the NMB’s position
that such an interpretation is not
contrary to either the language of the
RLA. The report of the Senate
Committee on Interstate and Foreign
Commerce on the 1934 amendments,
states ‘‘[t]he bill specifically provides
that the choice of representatives of any
craft of craft shall be determined by a
majority of the employees voting on the
question.’’ S. Rep. No. 73–1065, at 2
(1934).
In his comment opposing the NPRM,
Rep. Darrell Issa also reminds the Board
that under the tenets of statutory
construction, ‘‘it is assumed that
Congress expresses its intent through
the ordinary meaning of its
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language. * * * [and] where the
meaning of the relevant statutory
language is clear, then no further
inquiry is required.’’ In the instant case,
as discussed above, the Board believes
that the language of Section 2, Fourth is
open to interpretation, and would also
note as, Attorney General Tom C. Clark
observed that
when the Congress desires that an election
shall be determined by a majority of those
eligible to vote rather than by a majority of
those voting, the Congress knows well how
to phrase such a requirement. For example,
in Section 8(a)(3)(ii) of the National Labor
Relations Act, as amended by the Labor
Management Relations Act, * * * the
Congress has required that before any union
shop agreement may be entered into, the
National Labor Relations Board must certify
‘that at least a majority of the employees
eligible to vote in such election have voted
to authorize such labor organization to make
such an agreement.’
40 Op. Att’y Gen. at 544 (emphasis in
original).10
Delta also contends that the Supreme
Court has ‘‘examined the statutory
language at issue and [has] approved of
the Board’s long-standing interpretation
of the command of Section 2, Fourth as
requiring majority participation in an
election. ’’ While the Board agrees that
the Supreme Court has upheld the
Board’s current interpretation of Section
2, Fourth, the Board believes the Court’s
decisions support the Board’s view that
the current interpretation is not
compelled by the statute. 11 In Virginian
10 In 1947, United States Attorney General Tom
C. Clark, responding to a question from the NMB
on its authority under Section 2, Fourth, stated his
opinion that the Board has the power to certify a
representative which receives a majority of the
votes cast at an election despite the fact that less
than a majority of those eligible to vote participated
in the election.
11 Delta also cites Switchmen’s Union of North
America v. NMB, 320 U.S. 297, 300 (1943) and
Brotherhood of Railway and Steamship Clerks v.
Ass’n for the Benefit of Non-Contract Employees,
380 U.S. 650, 659 (1965) (ABNE), for the
proposition that the right protected by Section 2,
Ninth is the ‘‘right of the majority of employees in
the craft or class to determine who shall be their
representative.’’ Once again, the Board agrees with
Delta that the RLA gives the Board the power to
resolve representation disputes and to certify a
representative selected by a majority of any craft or
class of employees. In neither decision, however,
did the Court state that the language of Section 2,
Fourth, referring to a ‘‘majority of any craft or class
of employees,’’ can only be read as a ‘‘majority of
eligible voters’’ or that the Board’s current
procedures are compelled by the statute. In
Switchmen’s Union, the Court addressed the
standard of review of the NMB’s representation
determinations and held that it was for the Board
and not the courts to resolve claims involving the
appropriate craft or class. In ABNE, the Court held
that the Board’s current ballot form did not exceed
its statutory authority, but the Court also noted that
‘‘not only does the statute fail to spell out the form
of any ballot that might be used but it does not even
require selection by ballot. It leaves the details to
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Railway , the Court, in rejecting a
challenge to a certification based on a
majority of ballots cast, stated that
Section 2, Fourth of the Railway Labor Act
provides: ‘‘The majority of any craft or class
of employees shall have the right to
determine who shall be the representative of
the craft or class for the purposes of this Act
(chapter).’’ Petitioner construes this section as
requiring that a representative be selected by
the votes of a majority of eligible voters. It
is to be noted that the words of the section
confer the right of determination upon a
majority of those eligible to vote, but it is
silent as to the manner in which that right
shall be exercised.
300 U.S. at 560. Citing its decisions in
political election cases, the Court
continues: ‘‘Election laws providing for
approval of a proposal by a specified
majority of an electorate have been
generally construed as requiring a [sic]
only the consent of the specified
majority of those participating in the
election * * * . Those who do not
participate ‘are presumed to assent to
the expressed will of the majority of
those voting.’ ’’ Id. (internal citations
omitted).
Delta suggests that the Court in
Virginian Railway held that majority
participation is required by Section 2,
Fourth when it noted that ‘‘[i]f in
addition to participation by a majority
of a craft, a vote of the majority of those
eligible is necessary for a choice, an
indifferent minority could prevent the
resolution of a contest, and thwart the
purpose of the act, which is dependent
for its operation upon the selection of
representative.’’ Id. In support of this
argument, Delta also cites the Virginian
Railway Court’s statement that ‘‘[i]t is
significant of the congressional intent
that the language of section 2, Fourth,
was taken from a rule announced by the
United States Railroad Labor Board,
acting under the provisions of the
Transportation Act of 1920 * * * where
it appeared that a majority of the craft
participated in the election. The Board
ruled * * * that a majority of the votes
cast was sufficient to designate a
representative.’’ Id. at 561. Thus, Delta
argues that ‘‘majority participation in the
election was a precondition to
certification’’ and any other reading of
Section 2, Fourth ‘‘undermines
Congress’ evident intent to place the
authority to elect representation (or
choose among representatives) to the
majority of the craft or class, and not to
a mere handful of individuals.’’
The Board agrees that Virginian
Railway involved an election in which
a majority of eligible employees actually
the broad discretion of the Board with only the
caveat that it ‘insure’ freedom from carrier
interference.’’ 380 U.S. at 668–669.
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participated in the election. The Board,
however, is not persuaded that the
language cited by Delta precludes
certification by a majority of ballots cast
since the Court upheld the use of a
presumption that non-voters concur in
the wishes of the majority of voters. Nor
have the courts interpreted Virginian
Railway as Delta does. In National Labor
Relations Board v. Standard Lime &
Stone Co., 149 F.2d 435 (1945), cert.
denied, 326 U.S. 723 (1945), the NLRB
certified a union on the basis of a
majority of ballots cast in an election in
which the majority of employees in the
bargaining unit did not vote. The
employer refused to bargain with the
union because while the union received
a majority of the ballots cast, a majority
of the bargaining unit employees had
not voted in the election. The United
States Court of Appeals for the Fourth
Circuit stated,
On the first and principal question, that
presented by lack of majority participation in
either of the elections, we think that the
conclusive answer is found in the decision of
the Supreme Court in [Virginian Railway]
* * * . In that case both this court and the
Supreme Court held that, in employees’
elections under the Railway Labor Act * * *
for the selection of bargaining
representatives, the political principle of
majority rule should be applied, viz., that
those not participating in the election must
be presumed to assent to the expressed will
of the majority of those voting, so that such
majority determines a choice.
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Id. at 436 (citations omitted). The
Fourth Circuit noted that in Virginian
Railway, ‘‘a majority of the employees
participated in the election, but the
ground of the decision, the political
principle of majority rule with the
presumption that those not voting
assent to the expressed will of the
majority voting, supports the choice
made in an election, whether the
majority of employees has participated
or not.’’ 12 Id. at 436 n. 1. Finally, noting
12 The Fourth Circuit is not alone in this view of
Virginian Railway. See also Int’l Bhd. of Teamsters
v. Bhd. of Ry., Airline & S.S. Clerks, 402 F.2d 196,
204 n. 16 (DC Cir. 1968), cert. denied, 393 U.S. 848
(1968) (noting that the Virginian Railway Court’s
reliance on analogy to political elections served to
support the NLRB’s power to certify a union even
where a majority of the bargaining unit did not
participate and choice of whether or not to follow
Virginian Railway presumption was the NMB’s to
make); ABNE, 380 U.S. at 670 (1965) (characterizing
the ‘‘presumption of Virginian Railway’’ as ‘‘[i]f in
a labor election an employee does not vote, he can
safely be presumed to have acquiesced in the will
of the majority of voters’’ and acknowledging that
the NMB has broad discretion to decide whether or
not to follow this presumption); Continental
Airlines v. NMB, 793 F.Supp. 330, 333–34 n. 5 (D.
DC 1991) (finding that no statutory language
prescribes how the NMB should assess the views
of voters in union elections and citing Virginian
Railway and ABNE for conclusion that in election
cases the NMB has the discretion to treat a nonvoter
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that the purpose of allowing employees
to choose a bargaining representative is
to further the public interest of
preserving industrial peace and prevent
interference with interstate commerce,
the court stated that
[t]his being true, it would be as absurd to
hold that collective bargaining is defeated
because a majority of employees fail to
participate in an election of representatives
as it would be to hold that the people of a
municipality are without officers to represent
them because a majority of the qualified
voters do not participate in an election held
to choose such officers. In the one case, as
in the other, the representative is being
chosen to represent a constituency because it
is in the public interest that the constituency
be represented; and all that should be
necessary is that the election be properly
advertised and fairly held and that the settled
principle of majority rule be applied to the
result.
149 F.2d at 438–39.
In its comments, Delta suggests that
the Board errs in citing precedent
involving the National Labor Relations
Act (NLRA) and discussing the
similarity of the language of both
statutes.13 Delta takes pains to remind
the NMB that the NLRA ‘‘cannot be
imported wholesale into the railway
labor arena. Even rough analogies must
be drawn circumspectly with due regard
for the many differences between the
statutory schemes.’’ Trans World
Airlines v. Indep. Fed’n of Flight
Attendants, 489 U.S. 426, 439 (1989)
as either acquiescing in the will of the majority or
voting for no representation).
13 Delta also argues that the Board cannot rely on
precedent involving the NLRA because an employer
can easily seek court review of an NLRB
certification while an NMB certification is
essentially unreviewable. To be sure, judicial
review of the Board’s decisions has often been
observed to be ‘‘one of the narrowest known to the
law.’’ Int’l Ass’n of Machinists & Aerospace Workers
v. Trans World Airlines, 839 F.2d 809, 811,
amended 848 F.2d 232 (DC Cir. 1988), cert. denied
488 U.S. 820 (1988). This is true, however, because
Congress intended the Board to have the final word
in representation disputes. In Switchmen’s Union,
the Court concluded that this limited role for the
courts was part of the statutory scheme, noting that
the Congressional intent ‘‘seems plain—the dispute
was to reach its last terminal point when the
administrative finding was made. There was to be
no dragging out of the controversy into other
tribunals of law.’’ 320 U.S. at 305; See also ABNE,
380 U.S. 650, 658–660 (1965). Further, unlike the
NLRB, which has broad adjudicatory and remedial
powers, the NMB’s mission is to help the parties to
a dispute reach resolution through determination of
representation disputes and mediation of collectivebargaining controversies. Finally, limited review
does not mean that judicial review is nonexistent.
The Board’s actions are reviewable where the NMB
has committed a ‘‘gross violation’’ of the RLA; where
it has failed to satisfy its obligations under Section
2, Ninth to investigate a dispute; where its actions
are outside its delegated authority under the Act;
or where it has violated a party’s constitutional
rights. Further, judicial review is also available for
the Board’s actions where, as here, it has engaged
in rulemaking under the APA.
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26069
(quoting Bhd. of R. R. Trainmen v.
Jacksonville Terminal Co., 394 U.S. 369,
383 (1969)). The Board disagrees with
Delta. While there are differences in
history and purpose between the NLRA
and the RLA, the Standard Lime case
arose under Sec. 9(a) of the NLRA and
the language of that section was
modeled on Section 2, Fourth of the
RLA. As previously discussed in the
NPRM and in the 1947 Opinion of
Attorney General Tom C. Clark, 40 Op.
Att’y Gen. 541 (1947), Section 9(a) of the
NLRA provides that ‘‘[r]epresentatives
designated or selected for the purposes
of collective bargaining by the majority
of the employees in a unit appropriate
for such purposes, shall be the exclusive
representatives of all the employees in
such unit for the purposes of collective
bargaining * * * .’’ 29 U.S.C. 159(a).
The legislative history of Section 9(a) of
the NLRA states that ‘‘the bill is merely
an amplification and further
clarification of the principles enacted
into law by the Railway Labor Act and
by section 7(a) of the National Industrial
Recovery Act, with the addition of
enforcement machinery of familiar
pattern.’’ H. Rep. No. 74–1147, at 3
(1935).14
Finally, many commenters opposed to
the NPRM also suggest that the Board
lacks authority for its proposed change
in light of a statement by then NMB
Chairman Robert Harris in the minutes
of an executive session of the NMB on
June 7, 1978. The minutes of that
meeting state that following a
discussion relative to congressional
inquiries in reference to petitions for
change in the ballot used in the NMB’s
representation elections, the following
motion by Board Member Harris was
adopted by unanimous vote:
In view of the unchanged forty-year history
of balloting in elections held under the
Railway Labor Act, the Board is of the view
that it does not have the authority to
administratively change the form of the ballot
used in representation disputes. Rather, such
a change if appropriate should be made by
the Congress.
This statement appears in meeting
minutes rather than in a published
decision. The only context provided by
those minutes is that, after a
‘‘discussion’’ in which Board Members
George Ives, David Stowe, and Robert
Harris expressed their ‘‘opinions,’’ a
14 See also New York Handkerchief Mfg. Co. v.
NLRB, 114 F. 2d 144, 149 (7th Cir. 1940) (‘‘From a
comparison of the language of the two Acts, it
becomes evident that the Labor board is given
precisely the same authority under the Labor Act
as is the Mediation Board under the Railway Labor
Act.’’) The fact that the NLRB and the NMB have
interpreted similar statutory language in different
ways lends support to the NMB’s view that the
language of Section 2, Fourth is ambiguous.
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motion was adopted. There is no record
of the information considered by those
Board members before they adopted the
motion. In short, there is nothing to
suggest that this ‘‘motion’’ was intended
as a final definitive statement of Agency
policy. Assuming, arguendo, that this
statement was a final, definitive
statement of policy, an administrative
agency, such as the NMB, is free to
change a view it believes to have been
grounded upon a mistaken legal
interpretation. Good Samaritan Hosp. v.
Shalala, 508 U.S. 402, 417 (1993).
While it places great emphasis on the
statement by the 1978 Board, Delta
suggests that the NPRM’s ‘‘heavy’’
reliance on a 1947 Opinion of Attorney
General Tom Clark is misplaced since
the opinion ‘‘has no legal force.’’ The
NMB, an independent executive agency,
disagrees. Congress created the Office of
Attorney General in the Judiciary Act of
1789, assigning that office the duty of
giving ‘‘advice and opinion upon
questions of law when required by the
President of the United States, or when
requested by the heads of any of the
departments, touching any matters that
may concern their departments.’’
Judiciary Act of 1789, ch. 20, 35, 1 Stat.
73, 93 (1845) (codified as amended in 28
U.S.C. 511). It is generally understood
that the opinions of the Attorney
General, and, more recently the Office of
Legal Counsel, will become the
controlling view of the executive
branch. Randolph D. Moss, Executive
Branch Legal Interpretation, 52 Admin.
L. Rev. 1303, 1318–1319 (2000). ‘‘Few,
however, dispute the proposition that,
whether for legal reasons, to promote
uniformity and stability in executive
branch legal interpretation or to avoid
the personal risk of being ‘subject to the
imputation of disregarding the law as
officially pronounced,’ executive branch
agencies have treated [these] opinions as
conclusive and binding [since the early
nineteenth century].’’ Id. at 1319–1320
(citations omitted). Accordingly, based
on the language of the RLA, its
legislative history, and legal precedent,
the Board believes that the proposed
change to its election procedures does
not exceed its statutory authority.
E. Comments Regarding Procedural
Deficiencies
Chairman Dougherty, in her dissent,
and most commenters opposed to the
rule change criticized the procedure
used by the Board in initiating the
rulemaking process, arguing that the
Board should have followed the
procedure it set for itself when
considering changing election
procedures in the past. In 1985, the
Board received a petition from the
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Chamber requesting that rules be
amended to include decertification
procedures. That petition was followed
by a petition from the IBT requesting
that the Board consider making
additional changes to election
procedures, including the change
proposed in the current rulemaking
process. Instead of initiating rulemaking
at that time, the Board chose to
consolidate both requests and held a
hearing to determine whether to
propose any of the changes at issue.
Several commenters have referred to
those procedures as the ‘‘Chamber
procedures’’ and argued that the Board
is bound to follow those procedures.
ATA and Air-Con describe the
procedures in place in 1985 as
including ‘‘pre-hearing opening and
response briefs, evidentiary hearings,
and post-hearing briefs.’’ ATA and other
commenters, citing the Board’s more
recent opinion in Delta Air Lines, Inc.,
35 NMB 129 (2008), suggest that by
publishing the NPRM, the Board has
deviated from its promise that it would
not make a change in the election
procedures without a ‘‘complete and
open administrative process.’’
In the Chamber decision cited by
these commenters the Board noted that
it had the discretion to conduct those
proceedings in ‘‘any manner which it
finds to be appropriate.’’ Chamber of
Commerce, 13 NMB 90, 94 (1986). The
prior Board’s choice of procedure in
1985 in no way binds the current Board
to the ‘‘Chamber procedures.’’ Neither
does the 2008 Delta decision, promising
an open administrative process. In this
matter, the Board it has chosen to
comply with the requirements of the
APA in deciding to move ahead with
proposing changes through the
rulemaking process.15
The Board is free to amend its rules
at any time, even in the absence of a
rulemaking petition, and has in no way
precluded itself from utilizing the
notice-and-comment procedures of the
APA. 29 CFR 1206.8(a). The Board did
not receive an official rulemaking
petition to make these changes in the
election procedure. The Board received
a request from TTD to make changes to
its Representation Manual to allow for
the election procedures described in the
NPRM. Concluding that the change
could not be made by simply amending
the Representation Manual, the Board
15 TTD and other commenters in support of the
proposed rule have suggested that the Board is not
required to follow the rulemaking procedures in the
APA to make such a change to its election
procedures. Because the Board has complied with
the requirements of Section 553 of the APA, this
preamble will not discuss the issue of whether the
Board was required to do so.
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decided to engage in informal
rulemaking under the APA to consider
the changes. Under the APA, when an
agency decides to initiate the informal
rulemaking process, it must draft a
proposed rule and submit it to the
notice-and-comment process of Section
553 of the APA. 5 U.S.C. 553. An agency
must give interested parties ‘‘an
opportunity to participate in the
rulemaking through submission of
written data, views, or arguments with
or without opportunity for oral
presentation.’’ Id. § 553(c). The APA
does not require hearings or oral
arguments and does not specify the
length of the notice-and-comment
period. Executive Order 12,866 states
that ‘‘each agency should afford the
public a meaningful opportunity to
comment on any proposed regulation,
which in most cases should include a
comment period of not less than 60
days.’’ Exec. Order No. 12,866, 58 FR
51735 (1993). By following the
requirements of the APA and providing
a public meeting and a 60-day comment
period, the Board believes that it
followed a process that allowed all
interested persons to participate.
The Supreme Court has long rejected
the view that an agency can be required
to provide procedures greater than those
outlined in the APA when engaged in
rulemaking. See, e.g., Vermont Yankee,
435 U.S. 519 (holding that agencies are
free to grant additional procedural
rights, such as discovery and
evidentiary hearings, but courts cannot
impose these procedures). According to
the Supreme Court, it is a basic ‘‘tenet’’
of administrative law that agencies be
free to create their own rules of
procedure, provided that the minimum
requirements of the APA are met. Id. at
543.
In 1985, the Board chose not to follow
the APA procedures described above
because it had not yet decided whether
to initiate the rulemaking process in
response to the Chamber’s petition. In
defending this decision, the Board
stated that ‘‘5 U.S.C. 553 refers to the
actual rule-making process, a process
which the Board has not initiated at this
time, should it ever do so.’’ Chamber of
Commerce, 13 NMB 90, 93 (1986). The
Board has in no way bound itself to the
procedures it chose to follow in
response to the Chamber’s petition in
1985. Upon the receipt of a rulemaking
petition, the Board has discretion in
how to proceed. According to the
Board’s regulations, it shall, upon
receiving a petition, ‘‘consider the same,
and may thereupon either grant or deny
the petition in whole or in part, conduct
an appropriate hearing thereon and
make other disposition of the petition.’’
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29 CFR 1206.8(c). In fact, in 1985, the
Chamber itself appealed the decision
that there be a full evidentiary hearing.
As noted in the Board’s Determination
of Appeals in that matter,
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The Chamber had proposed instead that
the Board receive written submissions and
schedule subsequent oral argument, if
necessary. The Chamber bases its arguments
on the premise that ‘a trial-type hearing will
* * * degenerate into an extended free-forall replete with protracted procedural
quarrels and hours of irrelevant testimony.’ It
is the Chamber’s position that an oral hearing
is not required by the [APA].
Chamber of Commerce, 13 NMB at 91.
In 1985, the Board was free to respond
to the Chamber’s petition by entering
the rulemaking process but it chose not
to and announced another procedure.
The Board has discretion in how it
chooses to respond to rulemaking
petitions.
Related comments opposing the
NPRM suggest that the Board showed
bias and predetermination by providing
a brief legal justification for the election
change in the NPRM. According to
ATA, ‘‘the NPRM announces and
defends a particular outcome as
opposed to issuing a neutral invitation
for participation and comment’’ as it had
done in 1985. The Board provided such
a justification because it decided to
propose a rule change following the
rulemaking procedures of the APA. An
NPRM must include the following: ‘‘(1)
A statement of the time, place, and
nature of public rulemaking
proceedings; (2) reference to the legal
authority under which the rule is
proposed; and (3) either the terms or
substance of the proposed rule or a
description of the subjects and issues
involved.’’ 5 U.S.C. 553(b). The NPRM
published on November 3, 2009
complied with these requirements. The
request for comments in 1985 was not
part of rulemaking proceedings under
the APA and did not require such
explanation. Providing this explanation
allowed interested parties to respond to
the Board’s reasoning either through a
written comment or during the public
meeting. Interestingly, other
commenters opposed to the rule, such
as Delta Airlines and Flexjet, argued
that the NPRM did not provide enough
legal justification for the change. They
argue, for example, that the Board did
not adequately describe the changed
circumstances that justify the proposed
rule. Courts have held that notice of a
proposed rule must ‘‘fairly appraise
interested persons of the subjects and
issues the agency was considering.’’ See,
e.g., United Steelworkers of Am. v.
Schuylkill Metals Corp. 828 F.2d 314,
317 (5th Cir. 1987) (internal citations
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omitted). The Board believes that its
NPRM has provided information
necessary for the parties to understand
the agency’s rationale and have a fair
opportunity to respond and that its
explanation for the change is not
evidence of bias or predetermination. As
discussed below, the Board believes that
it has provided a sufficient justification
for this rule change.
Other comments questioning the
Board’s procedure suggest that the
notice-and-comment process did not
provide an opportunity to cross examine
witnesses and respond to evidence
presented at the public meeting held on
December 7, 2009. According to ATA,
[t]he Board’s one-day ‘meeting’ on December
7, 2009 was an inadequate substitute for the
taking of testimony under oath and the crossexamination of witnesses. . . . several persons
spoke to alleged facts of potential relevance
to the issues under consideration and even
offered what purported to be expert
testimony. The Board cannot rely on such
informal and untested factual assertions and
satisfy the APA.
As noted above, the APA does not
require the sort of trial-like hearing that
these commenters advocate. Such
procedures are only required when an
agency participates in the formal
rulemaking procedures of the APA.
Formal rulemaking is used when ‘‘rules
are required by statute to be made on
the record after opportunity for agency
hearing.’’ 5 USC 553(c). The RLA
contains no such provision and the
Board is not required to engage in
formal rulemaking.16 In addition, courts
have determined that due process does
not demand evidentiary hearings when
agencies promulgate rules. See, e.g.,
Nat’l Advertisers, 627 F.2d 1151. The
evidentiary requirements in informal
rulemaking are no greater than those
required by Congress in passing
legislation. According to the court in
National Advertisers, ‘‘Congress is under
no requirement to hold an evidentiary
hearing prior to its adoption of
legislation, and ‘Congress need not
make that requirement when it delegates
the task to an administrative agency’’’
627 F.2d at 1166 (citing Bowles v.
Willingham, 321 U.S. 503, 519 (1944)).
Although there was no opportunity
for cross examination during the
December 7, 2009 public meeting,
16 Sections 556 and 557 of the APA describe
formal rulemaking procedures, including a trialtype hearing where parties can submit evidence and
cross examine witnesses. 5 U.S.C. 556(d). Such
formal procedures have long been disfavored where
not required by statute. In Vermont Yankee, the
Supreme Court stated that a standard of review that
would cause agencies to engage in formal
rulemaking would lead to a loss of ‘‘all the inherent
advantages of informal rulemaking.’’ 435 U.S. at
547.
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interested persons did have the
opportunity to publicly respond to
statements made at that meeting and
many did so. The transcript of the
meeting and all public comments were
made available to the public via the
NMB website within a few days.
Comments received following the public
meeting did address evidence presented
during that meeting. For example, Delta
provided a lengthy response to data on
voter suppression presented by Dr. Kate
Bronfenbrenner at the public meeting,
arguing that Dr. Bronfenbrenner’s study
was biased and outdated. Delta also
responded with its own discussion of
voter suppression based on data
received from the Board. The Board has
reviewed these comments and their
relevance to the Board’s justification for
the change in election procedure is
addressed elsewhere in this preamble.
In summary, after considering the
issues raised in TTD’s letter the Board
decided to utilize the notice-andcomment procedures of the APA to
propose changes to its election process.
Interested persons were given an
adequate comment period and access to
all meeting testimony and comments
received. The Board followed an open
administrative process and the volume
and quality of the comments received
indicates that interested persons had the
information they needed to
appropriately respond.
F. Justification for the Proposed Change
Several commenters opposed to the
NPRM as well as Chairman Dougherty
in her dissent have suggested that the
Board has not provided adequate
justification for this change in election
procedures. These commenters argue
that because the Board has adhered to
the current representation rules for
decades, it needs a particularly
compelling justification to change these
rules. For example, Flexjet commented
that ‘‘[t]he Board’s NPRM does not
provide any persuasive reason for
changing a rule that has been in place
for 75 years.’’ Other commenters, such
as Delta, cited case law for the argument
that the rule change requires greater
justification and must pass stricter legal
scrutiny because the current rule has
been in place for a long time. In her
dissent to the NPRM, Chairman
Dougherty also suggested that the Board
is subject to greater scrutiny because it
is changing a long-standing policy.
Commenters discussed the various
justifications for the rule change
outlined in the NPRM and provided
additional policy reasons in support of
and in opposition to the proposed
change. Before addressing these specific
issues, the Board would like to first
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address the standard of review applied
by courts in a review of a change in
agency regulations. While the Board, of
course, believes that there are
compelling reasons to make this change
to the representation election procedure
at this time, it notes that the fact that the
current procedures have been in place
for decades does not compel it to
provide a greater justification than
would be required if it were creating
representation rules for the first time or
greater than those relied upon when the
current procedures were set in place.
In its recent decision in Fox, the
Supreme Court found that the Federal
Communications Commission (FCC) did
not violate the APA when it changed its
policy towards isolated uses of
expletives in television broadcasts by
issuing notices of apparent liability to
Fox Television after a Golden Globes
broadcast that included ‘‘fleeting
expletives.’’ 129 S.Ct. 1800. The facts of
that case are relevant here, because the
FCC changed a long-standing policy
when it decided that the single, nonliteral use of certain words was
actionably indecent under the statutory
ban on indecent broadcasts. Id. at 1807.
Previously, the FCC had determined
that ‘‘deliberate and repetitive’’ use of an
expletive was required for a finding of
indecency. Id. The Court determined
that the FCC’s actions were not arbitrary
and capricious under the APA, rejecting
the Court of Appeals’ determination that
the FCC was required to explain ‘‘ ‘why
the original reasons for adopting the
[displaced] rule or policy are no longer
dispositive’ as well as ‘why the new rule
effectuates the statute as well or better
than the old rule.’ ’’ Id. at 1810 (internal
citations omitted).
Justice Scalia, writing for the plurality
in Fox, held that the fact that an agency
is changing course does not require a
court to apply a higher standard of
review to the agency’s actions. An
agency must, however, provide a
reasoned explanation for a rule change.
Justice Scalia described the appropriate
standard as follows:
[T]he requirement that an agency provide
reasoned explanation for its action would
ordinarily demand that it display awareness
that it is changing position. An agency may
not, for example, depart from a prior policy
sub silentio or simply disregard rules that are
still on the books. And of course the agency
must show that there are good reasons for the
new policy. But it need not demonstrate to
a court’s satisfaction that the reasons for the
new policy are better than the reasons for the
old one; it suffices that the new policy is
permissible under the statute, that there are
good reasons for it, and that the agency
believes it to be better, which the conscious
change of course adequately indicates. This
means that the agency need not always
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provide a more detailed justification than
what would suffice for a new policy created
on a blank slate.
Id. at 1811 (emphasis in original,
citations omitted).
Several commenters and Chairman
Dougherty would hold the Board to the
higher standard of review endorsed by
the Second Circuit Court of Appeals and
explicitly rejected by the Supreme Court
in Fox. For example, Delta, although
citing the Supreme Court’s decision in
Fox, demands that the Board provide ‘‘a
cogent explanation for this about face’’
and an explanation of the changed
circumstances that justify a change in
policy at this time. Delta also cites
Motor Vehicle Manufacturers Ass’n of
United States v. State Farm Mutual
Automobile Insurance Co., 463 U.S. 29
(1983), for the proposition that the
Board has not adequately justified this
change in policy even though the
Supreme Court rejected the Second
Circuit Court of Appeals’ reading of
State Farm when it said that ‘‘our
opinion in State Farm neither held nor
implied that every agency action
representing a policy change must be
justified by reasons more substantial
than those required to adopt a policy in
the first instance.’’ Fox, 129 S.Ct. at
1810.17
To return briefly to the facts in the
Fox decision, one of the primary reasons
cited by the FCC for its change in policy
toward the single use of expletives was
what it referred to as the ‘‘first blow
theory’’ that ‘‘[e]ven isolated utterances
can be made in ‘pandering * * * vulgar
and shocking’ manners * * * and can
constitute harmful ‘first blows’ to
children.’’ Id. at 1812 (internal citations
omitted). The Court of Appeals, in its
decision that was overturned by the
Supreme Court, held that the FCC’s
action was arbitrary and capricious
under the APA because it did not
explain why it changed its view about
the ‘‘first blow theory’’ in the 30 years
since it first adopted the policy that
fleeting expletives were not indecent.
Fox Television Stations, Inc. v. Fed’l
Commc’n Comm’n, 489 F.3d 444, 458
(2d Cir. 2007), overruled by Fox, 129 S.
Ct. 1800. The Second Circuit Court of
Appeals stated:
For decades broadcasters relied on the FCC’s
restrained approach to indecency regulation
and its consistent rejection of arguments that
isolated expletives were indecent. The
agency asserts the same interest in protecting
children as it asserted thirty years ago, but
17 The Supreme Court in State Farm set aside the
Department of Transportation’s rescission of a
recently-promulgated safety standard because the
agency ‘‘failed to supply the requisite reasoned
analysis in this case.’’ 463 U.S. at 57 (internal
quotation omitted).
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until the Golden Globes decision, it had
never banned fleeting expletives. While the
FCC is free to change its previously settled
view on this issue, it must provide a
reasoned basis for that change.
Id. at 461. This view, that an agency
must provide a greater justification
when it’s changing course than it does
when it acts in the first instance, is
precisely what the Supreme Court
overruled in Fox. The FCC did not
explain why exposure to fleeting
expletives was more damaging to
children today than it was thirty years
ago, but it was not required to do so in
order to make the policy change that it
did.
The Fox opinion has been cited by
courts in subsequent reviews of agency
decisionmaking. See, e.g., Handley v.
Chapman, 587 F.3d 273, 282 (5th Cir.
2009) (‘‘[A]n agency effecting a policy
change is not required to show a more
convincing rationale for the new policy
than for the old.’’); Westar Energy, Inc.
v. Fed Energy Regulatory Comm’n, 568
F.3d 985, 989 (DC Cir. 2009) (holding
that the agency provided an adequate
justification for its policy and the fact
that it was a change in policy ‘‘required
no additional or special explanation.’’).
Judicial review of an agency’s change in
policy includes a consideration of
whether the agency recognizes that it is
changing policy (as opposed to simply
ignoring current policy), has statutory
authority for such change, has a good
reason for the change, and believes that
the new policy is better than the
previous policy.
A discussion of the Board’s statutory
authority to make this change is in
Section III.D. The Board believes that
this change will more accurately
measure employee choice in
representation elections. The current
election procedures do not allow
employees to vote ‘‘no’’ or to cast a ballot
against representation.18 In addition,
18 In its comment, Littler suggests that the
Supreme Court in ABNE, 380 U.S. at 669 n.5,
observed ‘‘that the Board’s current election
procedures ‘might well be more effective’ at
determining the representational desires of the
majority of the craft or class’’ than the procedure
proposed by the NPRM. This overstates the
Supreme Court’s view of the Board’s current
election procedures. ABNE involved a challenge to
the form of the Board’s ballot, namely the failure
of the ballot to provide employees with the option
to vote against representation. The Court recognized
that the RLA left the details of the ballot to the
‘‘broad discretion’’ of the Board, 380 U.S. at 668–
669, and that the Board’s decision on this matter
was not subject to judicial review without a
showing that the Board exceeded its statutory
authority. Id. at 669. In the footnote cited by Littler,
after noting that the legislative history of the Act
supports the view that employees have the right to
representation, the Court stated that ‘‘[u]sing the
Board’s ballot an employee may refrain from joining
a union and refuse to bargain collectively. All he
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any voter who abstains from voting, for
any reason, is counted by the Board as
a vote against representation.
The Board is not persuaded by
commenters who suggest that everyone
who does not vote in an NMB election
is opposed to representation. The NLRC
asserted that there is no evidence to
suggest that employees abstain from
voting in NMB elections for any reason
other than to maintain the status quo of
no representation. In fact, in
representation elections where
individuals do have the ability to
explicitly vote against representation,
such as in NLRB-sponsored elections or
Laker ballot NMB re-run elections,19
some individuals do not cast ballots. In
support of the NPRM, IBT provided
evidence that there is a 12 percent
nonparticipation rate in Laker ballot
elections and an even higher
nonparticipation rate in NLRBsponsored elections. In those elections,
individuals have a clear method of
making their support for the status quo
of no representation known and yet
some individuals choose to not do so. It
cannot be assumed that those who do
not participate are uniformly opposed to
representation. Although many
individuals who do not participate in
NMB elections may be opposed to
representation, providing a clear
method of registering that choice would
provide the Board with a more accurate
measure of employee sentiment.
There are many reasons why
individuals chose not to vote in any
election. Commenters discussed some of
these reasons. Americans for Democratic
Action cites several reasons individuals
do not vote in political elections, such
as travel, illness, or apathy. The
political scientists expressed concerns
that nonvoters’ preferences are not
accurately measured by treating them as
need do is not vote and this is considered a vote
against representation under the Board’s practice of
requiring that a majority of the eligible voters in a
craft or class actually vote for some representative
before the election is valid. The practicalities of
voting—the fact that many who favor some
representation will not vote—are in favor of the
employee who wants ‘no union.’ Indeed, the
method proposed by the Board might well be more
effective than providing a ‘no union’ box, since, if
one were added, a failure to vote would then be
taken as a vote approving the choice of the majority
of those voting. This is the practice of the National
Labor Relations Board.’’
Id. at 669 n.5. The Court then concluded that
‘‘[w]e venture no opinion as to whether the Board’s
proposed ballot will best effectuate the purposes of
the Act. We do say that there is nothing to suggest
that in framing it the Board has exceeded its
statutory authority.’’ Id. at 671.
19 A Laker ballot is a ‘‘yes’’ or ‘‘no’’ ballot with no
write-in option. It is sometimes administered by the
Board after a finding of election interference. See
Laker Airways, Ltd., 8 NMB 236 (1981). Laker
ballots will be discussed further below.
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‘‘no’’ votes, stating that ‘‘[t]here is
absolutely no reason to presume nonvoters wish to cast a negative vote.’’
Reasons for failing to cast a vote include
indifference, neutrality, a belief that
their vote will not be counted for some
reason, or pressure to not vote. A
comment in favor of the proposed rule
from a number of United States House
Representatives notes that the current
rule ‘‘is all the more flawed in a setting
where voter rolls include significant
numbers of furloughed employees who
are not in communication with other
voters.’’ 20 According to some
commenters, voters should have the
right to be neutral or indifferent about
a representation election. Congressman
Jerry F. Costello comments that it is
unfair to assign a ‘‘no’’ where no vote has
20 On December 7, 2009, Representatives James L.
Oberstar, George Miller, John Dingell, John Conyers
Jr., David Obey, Fortney ‘‘Pete’’ Stark, Henry
Waxman, Edward J. Markey, Norman Dicks, Dale
Kildee, Nick Rahall, Ike Skelton, Barney Frank,
Howard Berman, Rick Boucher, Marcy Kaptur,
Sander Levin, Solomon Ortiz, Gary Ackerman, Paul
Kanjorski, Peter Visclosky, Peter DeFazio, John
Lewis, Jerry Costello, Frank Pallone Jr., Eliot Engel,
Nita Lowey, Donald Payne, Jose Serrano, Neil
Abercrombie, David Price, Rosa DeLauro, James
Moran, Collin Peterson, Eleanor Holmes Norton, Ed
Pastor, Jerrold Nadler, Xavier Becerra, Sanford
Bishop Jr., Corrine Brown, James Clyburn, Bob
Filner, Raymond ’’Gene’’ Green, Luis Gutierrez,
Maurice Hinchney, Tim Holden, Eddie Bernice
Johnson, Carolyn Maloney, Lucille Roybal-Allard,
Bobby Rush, Robert ‘‘Bobby’’ Scott, Bart Stupak,
Nydia Velaquez, Melvin Watt, Lynn Woolsey,
Bennie Thompson, Sam Farr, Lloyd Doggett,
Michael Doyle, Sheila Jackson-Lee, Patrick
Kennedy, Zoe Lofgren, Jesse Jackson Jr., Elijah
Cummings, Earl Blumenauer, Jane Harman, Marion
Berry, Leonard Boswell, Danny Davis, William
Delahunt, Carolyn Kilpatrick, Dennis Kucinich,
Carolyn McCarthy, James McGovern, Bill Pascrell
Jr., Steve Rothman, Loretta Sanchez, Brad Sherman,
Adam Smith, John Tierney, Robert Wexler, Lois
Capps, Barbara Lee, Robert Brady, Brian Baird,
Tammy Baldwin, Shelley Berkley, Michael
Capuano, Joseph Crowley, Charles Gonzalez, Rush
Holt, Dennis Moore, Grace Napolitano, Janice
Schakowsky, David Wu, Joe Baca, Susan Davis,
Mike Honda, Steve Israel, James Langevin, Rick
Larsen, Betty McCollum, Adam Schiff, Diana
Watson, Stephen Lynch, Timothy Bishop, Dennis
Cardoza, Raul Grijalva, Kendrick Meek, Michael
Michaud, Brad Miller, Tim Ryan, Linda Sanchez,
David Scott, Chris Van Hollen, Stephanie Herseth
Sandlin, Russ Carnahan, Jim Costa, Al Green, Brian
Higgins, Daniel Lipinski, Gwen Moore, Doris
Matsui, Albio Sires, Jason Altmire, Michael Arcuri,
Bruce Braley, Christopher P. Carney, Kathy Castor,
Yvette D. Clarke, Steve Cohen, Joe Courtney, Keith
Ellison, John J. Hall, Phil Hare, Mazie K. Hirono,
Paul Hodes, Henry ‘‘Hank’’ Johnson, David
Loebsack, Christopher Murphy, Patrick Murphy, Joe
Sestak, Zachary Space, Betty Sutton, Timothy Walz,
John A. Yarmuth, Laura Richardson, Niki Tsongas,
Andre Carson, Donna F. Edwards, Marcia L. Fudge,
John Boccieri, Gerald E. Connolly, Alan Grayson,
Deborah ‘‘Debbie’’ Halvorson, Mary Jo Kilroy, Larry
Kissell, Eric J.J. Massa, Gary C. Peters, Chellie
Pingree, Mark H. Schauer, Harry Teague, Dina
Titus, Paul Tonko, Mike Quigley, Judy Chu, John
Garamendi, Louise Slaughter, Tom S. P. Perriello,
John Sarbanes, Edolphus Towns, Maxine Waters,
Madeleine Bordallo, Wm. Lacy Clay, Steve
Driehaus, and Eni F. H. Faleomavaega submitted a
comment in support of the proposed rule.
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been cast. A comment in support of the
NPRM submitted by 39 United States
Senators states that ‘‘[e]mployees must
have a choice to vote for union
representation, against union
representation, or not to vote at all.’’ 21
In his comment, Professor Jamin
Raskin notes that some individuals are
bound by religious principle to refrain
from voting in any type of election. At
the Open Meeting, Reginald ‘‘Willy’’
Robinson, a member of the IBT, spoke
about his personal knowledge of many
individuals who do not participate in
representation elections due to religious
beliefs. As noted by Professor Raskin,
these individuals have the right to
refrain from the duties of full union
membership due to religious objections
yet when they choose to refrain from
taking a position in a representation
election, the current procedure treats
their nonparticipation as a ‘‘no’’ vote,
taking the choice away from employees
who are willing and able to take on the
duties of representation. Several
commenters suggest that ignoring these
factors and attributing a ‘‘no’’ vote to
everyone who does not participate in an
election creates an unfair bias against
representation. The Association of
Professional Flight Attendants (APFA)
states that ‘‘individuals should be able to
abstain without skewing the election
results.’’
The Board agrees with those
commenters who argue that this
proposed rule will allow the Board to
determine each individual’s true intent
with regard to representation. Under
Section 2, Ninth of the RLA, the Board
is required to investigate representation
disputes and designate the employees’
choice of representative. This change
will allow the Board to more accurately
determine the employees’ true choice.
The Board will no longer impose a
position on those who abstain from
participating in a representation
election by treating nonparticipation as
a vote against representation. Employees
who are opposed to representation will
have the opportunity to vote according
to that view. Employees who have no
opinion about a representation dispute
or wish to abstain from voting for any
21 On December 7, 2009, Senators Tom Harkin,
Barbara A. Mikulski, Jack Reed, Sherrod Brown, Jeff
Merkley, Christopher J. Dodd, Patty Murray,
Bernard Sanders, Robert P. Casey Jr., Al Franken,
Robert C. Bryd, Carl Levin, John F. Kerry, Barbara
Boxer, Ron Wyden, Tim Johnson, Debbie Stabenow,
Frank R. Lautenberg, Benjamin L. Cardin, Patrick J.
Leahy, Arlen Specter, Daniel K. Akaka, Russell D.
Feingold, Richard Durbin, Charles E. Schumer,
Maria Cantwell, Robert Menendez, Amy Klobuchar,
Sheldon Whitehouse, Jeanne Shaheen, Roland W.
Burris, Paul G. Kirk, Claire McCaskill, John D.
Rockefeller IV, Tom Udall, Edward E. Kaufman,
Kirsten E. Gillibrand, Jon Tester, and Daniel Inouye
submitted a comment in favor of the proposed rule.
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reason will no longer be counted as a
vote against representation.
Although the Board is aware that
under Fox it is not required to provide
an explanation as to ‘‘why the original
reasons for adopting the [displaced] rule
or policy are no longer dispositive,’’ 129
S.Ct. at 1810, it notes that there is little
evidence that there were strong policy
reasons for the prior Board’s adoption of
the current representation rules. As
Justice Kennedy noted in his concurring
opinion in Fox, the amount of
explanation required when an agency
changes policy may depend on whether
the previous policy was based on factual
or scientific findings and the reliance
interests of the public. Id. at 1822–23
(Kennedy, J., concurring). Justice Scalia,
in his plurality opinion, also stated that,
although justification is not ‘‘demanded
by the mere fact of policy change,’’ a
greater justification can be necessary
when a change disregards ‘‘facts and
circumstances that underlay * * * the
prior policy.’’ Id. at 1811. That is not the
case here. As noted in the NPRM, the
1934 Board initially adopted the current
representation election rules based ‘‘on
what seemed to the Board best from an
administration point of view,’’ and did
not articulate a rationale for the current
rule. 1 NMB Ann. Rep. 19 (1935).
Further, there is evidence that the
current procedures were adopted in
response to an era of widespread
company unionism within railroads, a
factor that has ceased to be an issue in
the railroad industry. As described by
one court:
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[T]he company union had the following
attributes: employees of the railroad were
permitted to spend considerable time on
union affairs without deduction by the
company from their pay; the company would
pay expenses incurred by union members or
supporters in recruiting new members; the
company would expect and receive reports
from the union supporters concerning
recruitment efforts; and the company would
discharge or discriminate against supporters
of rival unions.
Aircraft Mechanics Fraternal Ass’n v.
United Airlines, Inc., 406 F.Supp. 492,
497 (N.D. Cal. 1976). Company unions
became common following the passage
of the Transportation Act of 1920, the
predecessor to the RLA that included no
prohibitions against employers
interfering in the selection of employee
representatives and relied on voluntary
collective bargaining. Frank N. Wilner,
Understanding the Railway Labor Act
50–51 (2009). By the time the RLA was
passed in 1926, ‘‘carriers had ‘broken the
backs’ of many unions by the device of
company unions on individual’s
properties.’’ Hearing Before the
Subcomm. of the S. Comm. On Labor
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and Public Welfare, 81st Cong. 12 (1950)
(testimony of George Harrison, Int’l VP,
Transportation Workers of America).
The RLA failed to restore power to
independent unions and when the 1934
amendments to the RLA were passed,
there were over 700 agreements between
carriers and company unions,
representing 20 percent of the total
number in the industry. Id. at 13.
The Board was given its statutory
mandate to investigate representation
disputes in part because of these
company unions, which the 1934
amendments also outlawed. ‘‘It was this
carrier influence over self-organization,
as it has been exercised over the years,
that was the principal target of the 1934
amendments.’’ Id. After the 1934
amendments gave the Board authority to
certify representatives, the Board likely
concluded that requiring a majority of
eligible voters to vote in favor of
representation by an independent union
would more effectively demonstrate
employee intent to those carriers who
had just previously refused to
voluntarily recognize these independent
unions. Employers could not claim that
the independent unions did not have
the support of employees when the
Board required an absolute majority of
votes in favor of representation in order
to certify. When carriers agreed to be
bound by a majority of votes cast, the
Board would certify on that basis rather
than on the basis of a majority of eligible
voters. In its First Annual Report the
Board stated that ‘‘[w]here, however, the
parties to a dispute agreed among
themselves that they would be bound by
a majority of the votes cast, the Board
took that position that it would certify
on that basis.’’ 1 NMB Ann. Rep. 19
(1935).
During this period, almost all railway
workers were represented by either an
independent union or a company union.
Because almost all employees were
already organized and most elections
involved disputes between unions, the
NMB’s early election ballots provided a
choice among representatives without
the option to vote against
representation. The high degree of
organization in the railroad industry at
that time led to the assumption that all
class or crafts would be organized and
for this reason, there was likely no
consideration given to the possibility
that employees would vote against
representation. These factors no longer
exist today. The majority of NMB
elections list only one employee
representative. Providing employees
with the option to vote against
representation was likely not a pressing
concern to the Board during an era
when most employees were already
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represented. There is no longer the
assumption in either the railroad or
airline industries that all class or crafts
will be organized, yet there remains no
way for employees to vote against
representation.
Although the problem of company
unions and the high degree of
representation in the railroad industry
likely led to the current representation
procedure, there is little concrete
evidence of the 1934 Board’s process for
adopting that procedure. As stated in
the Board’s First Annual Report, the
current procedures developed for
administrative reasons during a time
when most employees covered by the
Act were already members of some type
of union. Another indication that the
current procedure was merely the result
of circumstances as they existed in the
1930s was the fact noted above that the
early Board did not utilize this
procedure exclusively. When the parties
agreed, the Board would certify based
on the majority of votes cast, indicating
that the earlier Boards did not believe
that certifying based on the majority of
eligible voters was necessary for it to
fulfill its statutory obligations. Early
Boards recognized that they had the
discretion to utilize either procedure in
representation elections.
Many commenters provided
additional arguments for and against the
NPRM. Commenters in favor of the rule
change argue that there have been
additional changed circumstances since
the current rules were first put into
place. The APFA noted that increased
technology and communication allows
all employees to be adequately informed
about the election process and there is
no longer the risk that ‘‘an informed
minority will overwhelm an oblivious
majority,’’ a risk that might have existed
in prior decades due to lack of
communication among nationwide class
or crafts. Further expanding on the
changes in technology, along with a
more educated workforce, Frank N.
Wilner included the following analysis
in his comments in favor of the rule
change:
During the 1930s, there was a
communications challenge—in employee
reading comprehension as well as the ability
to communicate by electronic means
(including telephone) * * * By requiring
that a majority of eligible employees vote in
favor of representation, the procedure better
assured that the majority would be aware of
the election and for what they were voting.
The Board notes that these changes in
technology, along with its own recent
changes in election procedures, make it
unlikely that a majority of employees in
a craft or class will be inadequately
informed about either organizing efforts
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or how to vote for their preference in an
election.22
IAM argues that changes in
technology have provided employers
with increased methods of intimidating
employees and preventing them from
voting in favor of representation. The
Communication Workers of America
(CWA) argue that rather than
encouraging all employees to vote their
preference, the current rule encourages
employers to take actions that
undermine the election process.
According to CWA, these actions
include inflating the lists of eligible
voters and intimidating prospective
voters. Comments and public meeting
testimony from CWA, Dr. Kate
Bronfenbrenner, the ALPA, and others
included discussions of employer
intimidation techniques and tactics.
Commenters opposed to the NPRM,
including Delta, argue that issues
related to carrier conduct raised in the
public meeting and in comments
submitted by unions are irrelevant
because carriers have the right to
encourage employees to not participate
in an election. These commenters also
point out that the Board has expertise in
determining whether there has been
election interference and providing
appropriate remedies in those
situations.
Several commenters note that the
current representation procedures have
not been an obstacle to union organizing
and the proposed change is, therefore,
unnecessary. The American Short Line
and Regional Railroad Association
commented that over 65 percent of nonmanagement employees in short line
and regional railroads have union
representation. Delta and Littler pointed
out that unions enjoy greater success
under NMB elections than under the
22 Commenter Watco Companies, Inc. and
Genesee & Wyoming, Inc. (Watco) suggests that the
Board adopt a quorum requirement in
representation elections. In their view, the Board
should require a certain level of participation in any
election before certifying a bargaining
representative on the basis of a majority ballots cast.
As discussed in section III.D., Congress has not
mandated any such requirement for elections under
the RLA and the Board has the discretion to
conduct elections based on a majority of votes cast
despite the fact that less than a majority of eligible
employees choose to participate in the election.
Further, as discussed in Section III.D., the
presumption of Virginian Railway is that if ‘‘an
employee does not vote, he can safely be presumed
to have acquiesced in the will of the majority of
voters.’’ ABNE, 380 U.S. 650, 670 (1965). There is
also no evidence that there will be ‘‘de minimus’’
participation in NMB elections following the rule
change as suggested by Watco. If, however, the
Board was presented with a situation in which the
Board itself believed or a participant contended that
the election was unrepresentative because eligible
employees were denied or prevented from
exercising their right to vote, the Board would
investigate and impose an appropriate remedy.
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voting procedure used by the NLRB.
Since 1935, unions have achieved
certification in 68 percent of NMB
elections but in only 58 percent of
NLRB-sponsored elections. Delta further
noted that in 2009, certification was the
outcome of 73 percent of NMB
elections.
In contrast to the commenters
opposed to the rule change, many in
favor of the change argue that unions
have become less successful in winning
representation elections in recent years.
IAM notes that NMB elections resulted
in certification in the vast majority of
instances during the early years of the
RLA. For example, in 1935, 94 percent
of elections resulted in certification
while this is no longer the case.
The Board is aware that these issues,
union success and carrier interference
in representation elections, are ones that
many of the commenters feel very
strongly about. The decision to change
the current representation procedures
and publish the NPRM, however, was
not based on these factors. The Board
cannot speculate as to the effect of this
change in either of these areas.
Regarding election interference, the
Board has always investigated
allegations and provided appropriate
remedies when it has found that a
carrier engaged in election interference.
It is the Board’s statutory duty to
investigate representation disputes and
ensure that elections are free from
carrier interference. Nothing in the
NPRM alters the Board’s commitment to
its duty under the RLA. The Board has
not taken the position that current
procedures need to change because
carriers have been engaging in higher
levels of voter suppression or election
interference. In fact, commenters such
as Delta are correct when they note that
some of the testimony regarding voter
suppression inaccurately portrayed
some carrier conduct that the Board has
in the past determined is not election
interference. The Board has repeatedly
stated that accurately portraying the
way an employee can vote no is not
interference. Delta Airlines. Inc, 30
NMB 102 (2002); Express Airlines I, 28
NMB 431 (2001); Delta Air Lines, Inc.,
27 NMB 484 (2000); American Airlines,
26 NMB 412 (1999).
Likewise, the Board has not proposed
this change to increase the rate of union
success in representation elections. The
Board is of the opinion that there is no
way to determine the exact effect that
this change will have on union
organizing efforts; however, the Board
believes that this change will allow it to
more accurately determine employee
sentiment in representation elections.
Any predictions about whether unions
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26075
will be more successful under the
procedures outlined in that NPRM are
mere speculation, as demonstrated by
the conflicting viewpoints presented by
the commenters about union success
rates. Many factors beyond the control
of the Board affect whether a union will
be successful in an election, including
the economy, the culture among
employees in the craft or class,
resources utilized by unions and
carriers during the election process, and
the reputation of the union. While
commenters opposed to this rule are
correct that those who are opposed to
union representation do not need the
option of voting ‘‘no’’ because they can
currently ‘‘vote’’ against representation
by choosing not to cast a ballot, this
method does not provide a measure of
those employees who do not wish to
vote either for or against representation
or those who fail to vote for any other
reason. The Board continues to believe
that assigning a ‘‘no’’ vote to everyone
who does not participate in an election
does not provide the most accurate
measure of those employees’ views
about representation.
Despite the contention by commenters
such as Delta that the Board is bound by
its prior declaration that this change is
unnecessary, the Board believes that the
proposed change is essential to fulfilling
its statutory mission to ascertain
employee preference with regard to
representation. Delta cites the Board’s
statement in 1987 that it would only
make such a change if mandated by the
RLA or if doing so was ‘‘essential to the
Board’s administration of representation
matters.’’ Chamber of Commerce, 14
NMB at 360. The Board does believe
this change is essential but also notes
that it is not bound by its prior
statements on this issue and is free to
consider changed circumstances, such
as those discussed above, in
determining whether to change
representation procedures, despite
refusing to do so in the past. According
to the Supreme Court, ‘[r]egulatory
agencies do not establish rules of
conduct to last forever; they are
supposed, within the limits of the law
and of fair and prudent administration,
to adapt their rules and practices to the
Nation’s needs in a volatile, changing
economy.’’ American Trucking Ass’n v.
A.T. & S.F. R. Co., 387 U.S. 397, 416
(1967). Agencies are free to reconsider
past interpretations and overturn past
rulings. Id. As stated by the court in
National Advertisers, ‘‘a ‘[c]ommission’s
view of what is best in the public
interest may change from time to time.
Commissions themselves change,
underlying philosophies differ, and
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experience often dictates changes.’ ’’ 627
F.2d at 1174. (citing Pinellas
Broadcasting Co. v. Fed. Commc’n
Comm’n, 230 F.2d 204, 206 (DCCir.
1956)). Despite the arguments of many
commenters opposed to the NPRM, the
Board is not bound by the statements or
policy views expressed by the Board in
the past.
The proposed change will ensure that
all employees in a class or craft have the
opportunity to register their support for
or opposition to a union, as well as
allow individuals the right to abstain
from participating without that choice
being treated as a compulsory vote
against representation. The Board is
statutorily mandated to investigate
disputes over representatives and to
utilize an ‘‘appropriate method of
ascertaining’’ the authorized
representative of the employees.
According to the Supreme Court, it is
‘‘the duty of the Mediation Board, when
any dispute arises among the carrier’s
employees, ‘as to who are the
representatives of such employees,’ to
investigate the dispute and to certify, as
was done in this case, the name of the
organization authorized to represent the
employees.’’ Virginian Ry., 300 U.S. at
544. This proposed change will allow
the Board to more accurately ascertain
employee desires regarding
representation.
G. Effect of the Proposed Change on
Stability in Labor Relations
Several comments and Chairman
Dougherty’s dissent express concern
that the rule change could destabilize
labor relations in the industries covered
by the RLA. These comments address
two types of stability in the industries.
First, the comments address stability as
measured by incidents of strikes,
lockouts, or other work stoppages.
Second, comments addressed concerns
about continuity of representation
among the classes and crafts represented
by unions. They raise concerns that the
proposed changes will lead to union
raiding, more frequent elections, and
increased changes in representation.
ASC, in its comment in opposition to
the rule change, argues that the
‘‘proposed change will lead to
certification of minority representatives.
This will foster instability in contract
negotiations and may adversely affect
the stability of carrier operations
resulting in a potential increase in
interruptions to commerce.’’ According
to Littler, the current rule ‘‘quells any
doubt about the authority of the selected
representative.’’ Littler argues that
carriers who are aware that the majority
of the craft or class supports the
representative are more likely to
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understand the need to work
cooperatively with the employee
representative.
Commenters also voice concern that
the proposed rule will lead to an
increase in raiding and inter-union
conflicts. They argue that changes in
representation may become
commonplace if the proposed rule is
instituted and unions will be
‘‘constantly concerned’’ about rival
unions. NRLC argues that the
certification of representatives with
broad support among employees results
in long-term and stable relationships
between carriers and unions. TTX
Company, a freight rail services
company, argues that the current rule
contributes to stability and that union
raiding and decertification efforts occur
rarely. According to TTX, unions
currently do not need to worry about
potential challengers to their status as
representatives and this could change
with the proposed rule. These
commenters expressed concern that the
rule change could be, as stated by
NRLC, an ‘‘invitation to rival unions’’ to
file representation petitions and seek to
replace current representatives.
Commenters who support the rule
change argue that representation
procedures are not the source of
stability within labor relations in the
railroad and airline industries. IAM
noted that the Board has on many
occasions certified unions who do not
receive a majority of votes cast in an
election. This occurs when there are two
unions seeking to represent a craft or
class. If a majority of all eligible
employees vote for representation, the
Board certifies the union receiving more
votes. In its First Annual Report the
Board stated that it would sometimes
certify unions based on majority of votes
cast. 1 NMB Ann. Rep. 19 (1935). The
Board has on many occasions held
Laker ballot elections, where
certification is based on the majority of
votes cast. The Board has on occasion
held Key Ballot elections, resulting in
certification unless the majority of votes
cast are opposed to representation.
There is no evidence that any of these
measures have led to instability in the
airline or railroad industries.
In its comment in support of the rule
change, the Transportation
Communications International Union
(TCU) noted that unions do not rely on
the results of representation elections to
determine whether employees support a
strike. Employee support of a union will
vary over time. Additionally, TCU
argues that the idea that less union
support will lead to more strikes is
counterintuitive. A union that is not
supported by its members will be
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unlikely to convince them to support a
strike, while a union that enjoys a great
amount of support is more likely to gain
authorization for a strike from its
members. IAM cites its own
requirement that two-thirds of its voting
membership authorize a strike. A union
will only strike when it has the strong
support of its members.
The Board notes that no concrete
evidence has been presented in support
of the argument that the proposed rule
change will lead to instability in the
form of increased strikes or work
stoppages in the industries. The specific
procedure at issue in the NPRM is not
linked to the stability cited by the
commenters. Although many
commenters cited the Board’s own
statements regarding stability, the Board
did not provide any evidence for its
assertion that this change in election
procedures would lead to instability
when confronted with the issue in 1987.
Chamber of Commerce, 14 NMB 347,
362 (1987). Aside from the possibility
that the current procedure was
instituted in response to the problem of
company unions, which themselves
caused strife in labor relations, there is
little or no evidence that the current
procedures were instituted to prevent
strikes or work stoppages. Like many
other arguments presented in opposition
to this proposed rule, the argument that
it will lead to labor instability is based
on mere speculation.23
Stability, defined as a lack of
disruptions caused by strikes and work
stoppages, has been attributed to the
existence of collective bargaining
agreements and the mediation processes
outlined in the Railway Labor Act. In its
First Annual Report, the Board itself
attributed the absence of strikes during
the prior two years to the mediation
procedures in the Act and by the
existence of collective bargaining
agreements. 1 NMB Ann. Rep. 36 (1935)
(‘‘The extent to which labor relations are
governed by such agreements is the
measure of the extent to which law,
democratically made by employees as
well as employers, has been substituted
for the rule of economic force and
warfare in the railroad industry’’). In
23 In her dissent, Chairman Dougherty criticizes
the Board for dismissing some concerns about
instability as mere speculation. In fact, some of the
concerns raised by commenters and by our
dissenting colleague are based on speculation born
from the unproven assumption that there will be
little participation in representation elections. We
have no reason to believe that this rule change will
lead to the parade of horribles, such as unlawful
work stoppages, envisioned by these commenters.
None of the comments, nor the dissent, point to any
examples of this type of action occurring and it
would be imprudent for the Board to make policy
determinations based on speculation.
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Detroit & Toledo Shoreline Railroad v.
United Transportation Union, 396 U.S.
142, 149 (1969), the Supreme Court
described the Board’s bargaining
process as ‘‘almost interminable’’ but
considered this a positive description of
a process that prevented disruptions in
commerce. The Court said that
The Act’s status quo requirement is central
to its design. Its immediate effect is to
prevent the union from striking and
management from doing anything that would
justify a strike. In the long run, delaying the
time when the parties can resort to self-help
provides time for tempers to cool, helps
create an atmosphere in which rational
bargaining can occur, and permits the forces
of public opinion to be mobilized in favor of
a settlement without a strike or lockout.
Moreover, since disputes usually arise when
one party wants to change the status quo
without undue delay, the power which the
Act gives the other party to preserve the
status quo for a prolonged period will
frequently make it worth-while for the
moving party to compromise with the
interests of the other side and thus reach
agreement without interruption to commerce.
Id. at 150.
Even prior to the 1934 amendments
giving the Board the authority to certify
representatives, the RLA was known for
its conciliation process. According to a
1926 New York Times editorial, ‘‘[a]s a
last resort a strike is possible; but it can
come only after every other resource,
including long delay, has been
exhausted.’’ Railway Labor and the
Public, N.Y. Times, March 17, 1926 (as
cited in Frank N. Wilner, Understanding
the Railway Labor Act 55 (2009)). A
1936 Harvard Law Review article did
not list the Board’s representation
procedures as one of the several factors
leading to stable labor relations:
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This Act assumes that the basis for stable,
amicable labor relations is the periodic
negotiation of collective agreements between
carriers and strong, independent unions
representing the employees. It is made
unlawful for a carrier to interfere in any way
with the organization of its employees, as by
promoting and financing company unions, by
influencing or coercing employees to join or
not to join any labor organization; and,
specifically carriers are forbidden to require
any person seeking employment to sign an
agreement promising to join or not to join a
labor organization.
Calvert Magruder, A Half Century of
Legal Influence upon the Development
of Collective Bargaining, 50 Harv. L.
Rev. 1071, 1087 (1936). These
discussions of stability in railway labor
relations make no mention of the
Board’s representation procedures or
definition of majority under the Act.
Stability in the industries has been
attributed over the years to the Act’s
mediation process, the existence of
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collective bargaining agreements, and
the restriction on carrier interference in
representation matters. The proposed
rule would not change any of these
factors.24
The Board notes that extraneous
factors beyond its control have also
apparently had an impact on the
number of strikes or work disruptions.
The number of strikes has decreased in
recent years, with no change in the
representation process in NMB
elections. Union commenters attribute
this decrease at least in part to the
Supreme Court’s decision in Trans
World Airlines v. Independent Ass’n of
Flight Attendants, 489 U.S. 426 (1989),
permitting carriers to hire permanent
replacements for striking workers. This
also indicates that the current
representation election procedures are
not a contributing factor to the incidents
of work stoppages in the railroad and
airline industries.
The argument that carriers have better
working relationships with unions that
have greater support among employees
overlooks the fact that carriers are
required by law to treat with Boardcertified representatives of employees.
This duty is found in Section 2, Ninth
of the RLA, which states that ‘‘Upon
receipt of such certification the carrier
shall treat with the representative so
certified as the representative of the
craft or class for the purposes of this
chapter.’’ The Supreme Court has
reiterated this obligation, affirming that
carriers have the obligation to bargain
exclusively with the certified
representative and this obligation is
mandatory and enforceable in the
courts. Virginian Ry., 300 U.S. at 544–
45. The Supreme Court has also stated
that the Act requires that carriers ‘‘meet
and confer with the authorized
representative of its employees, to listen
to their complaints, to make reasonable
efforts to compose differences * * * .’’
ABNE, 380 U.S. at 658. Whether a
carrier feels that the representative has
sufficient support among employees
24 In regards to comments about whether it will
be more difficult for unions to ratify tentative
agreements under the proposed rule, the Board
notes that contract ratification is an internal union
matter. Whatever a union’s internal procedure is for
ratifying a tentative agreement, this process
generally occurs months or years after certification.
A union’s support among its members is constantly
in flux. Even under the current election procedure,
a union that is certified with the support of a
majority of the class or craft could find itself unable
to convince its membership to support a tentative
agreement. Additionally, difficulty in ratifying
rarely leads to a work stoppage. The Board’s
mediation procedures, including the maintenance
of the status quo, the cooling-off period, and the
possibility of a Presidential Emergency Board, will
remain the same, ensuring the NMB will continue
to assist the parties in reaching agreements and
avoid disruptions in air or rail transportation.
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should not affect that carrier’s
willingness to bargain with or work
cooperatively with a representative.
Carriers are legally obligated to treat
with any representative certified by the
Board.
The Board would also like to remark
on several commenters’ use of the
expression ‘‘minority union’’ or
‘‘minority representative,’’ a repeated
theme in comments opposed to the
NPRM. A representative certified under
the proposed rule would not be a
‘‘minority union.’’ A ‘‘minority union’’ is
a union that does not represent all
employees and only bargains on behalf
of its members. The Board does not
certify minority unions and will not do
so under the proposed rule. The Board
requires certified representatives to
bargain on behalf of all members of a
systemwide class or craft and this
requirement will not change under the
proposed rule.25 Part of the principle of
exclusive representation under the RLA
is the obligation of certified
representatives to represent all
employees fairly and without
discrimination. Steele v. Louisville &
Nashville R.R., 323 U.S. 192 (1944).
Under the proposed rule, certified
representatives will remain the
exclusive representative of all members
in a craft or class and the duty of fair
representation will obligate them to
represent all employees, even those who
vote against representation. Attempts to
characterize a certified representative
under the proposed election rule as a
‘‘minority union’’ are misleading and
inaccurate.
With regard to concerns about union
raids and stability in employee
representatives, the Board notes that it
is not changing its showing of interest
requirements. Any individual or
organization seeking to represent
employees who are already represented
will still need to provide authorization
cards from more than fifty percent of the
class or craft in order to file a
representation petition. For this reason,
it is unlikely that there will be a great
increase in ‘‘raiding’’ among unions. The
Board recognizes that some
commenters, such as Southwest Airlines
(Southwest), request that there be a
uniform showing of interest requirement
regardless of whether the employees are
currently represented by a union.
25 Minority unions are also not certified by the
NLRB. Unions have argued, in seeking NLRB
recognition of minority unions, that there was a
practice, common in the 1930s, of companies
bargaining with unions representing only a
minority of employees at a workplace. Steven
Greenhouse, Seven Unions Ask Labor Board to
Order Employers to Bargain, N.Y. Times August 15,
2007.
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Southwest argues that this change
would bring these rules in to conformity
with the procedures of the NLRB.
Southwest referred to the ‘‘anomalous
situation’’ where the showing of interest
requirements for a class or craft that is
already represented is higher than the
number of voters that would be required
to win a representation election under
the proposed rules.
In the Board’s view, maintaining the
higher showing of interest requirement
for crafts or classes that are already
represented will prevent the types of
disruptions in representation that
several commenters express concern
about. While it is true that the showing
of interest requirement would often be
greater than the number of votes that a
challenging union will need to win an
election, an authorization card does not
bind an employee to vote in favor of
representation. Based upon the showing
of interest and the Board’s investigation,
an election is authorized. During this
critical period, unions and employers
conduct campaigns to inform employees
about the pros and cons of
representation. Maintaining this strong
showing of interest requirement will
ensure that representation elections
only occur where a significant number
of employees are open to the possibility
of changing representatives.
In summary, there is no evidence that
the proposed rule change will create
instability in labor relations. The NPRM
does not affect the numerous factors that
contribute to stability in the airline and
railroad industries, such as the
mediation process and the existence of
collective bargaining agreements. The
Board has diverged from the current
election procedure in many instances,
including using other forms of ballots to
carry out its statutorily-mandated duty
to prevent carrier interference in
representation elections, without threats
to stability.
H. Decertification Under the RLA
The majority of comments opposed to
the NPRM as well as our dissenting
colleague suggest that any change to the
Board’s interpretation of ‘‘majority of the
craft or class’’ must also re-examine
decertification under the RLA. These
commenters suggest that the two issues,
certification based on a majority of
ballots cast and decertification are
inextricably linked because (1) under
the NLRA, bargaining representatives
are certified based on a majority of
ballots cast and the NLRA explicitly
provides for decertification petitions;
and (2) in 1985, the Board consolidated
the IBT’s request to change existing
rules regarding election procedures to
allow employees to vote ‘‘no’’ and to
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certify representatives on the basis of
majority of ballots cast with an earlierfiled request from the Chamber of
Commerce that the Board amend its
rules to include formal decertification
provisions. Int’l Bhd. of Teamsters, 13
NMB 1 (1985). For example, ATA and
AIRCON assert that the
Board historically has recognized the close
relationship between the ‘‘minority rule’’
ballot and decertification and the wisdom for
the two issues to be addressed in tandem.
Accordingly, when the Board last considered
the same proposed voting rule change on an
industry-wide basis, it simultaneously
considered a proposal to adopt a formal
decertification procedure.
As an initial point, the Board
disagrees with the comments’
supposition that the NPRM will
inevitably lead to ‘‘minority unions’’ or
‘‘minority rule,’’ and also that all
requests to change its election
procedures must be addressed in the
same proceeding. Under the proposed
rule, the employees will cast votes
either for or against representation or
refrain from voting altogether and
acquiesce in the will of the voting
majority. The choice is theirs. It is
certainly possible that in some elections
the number of employees who actually
cast a ballot may be less than a majority
of those eligible to vote, but it is not the
preordained outcome of every election.
What is certain is that under the
proposed rule, the Board will no longer
substitute its presumption for an
employee’s intent.
The Board believes that the method it
uses to measure employee intent in
representation elections is not
intertwined with decertification. The
commenters point to the NLRA, but it
must be noted that the NLRA
specifically provides for a
decertification process. The 1947 TaftHartley Amendments to the NLRA
added not only the union shop
provisions discussed below in Section
III.I., but also a provision allowing an
employee, group of employees, or any
individual or labor organization acting
on their behalf to file a petition asserting
that the currently certified or recognized
bargaining representative no longer
represents the employees in the
bargaining unit. 29 U.S.C.
159(c)(1)(A)(ii). No similar provisions
were included in the RLA of 1926 or
any subsequent amendments.
The Board also does not believe that
it must consider all requests to change
its election procedures in the same
proceeding. To be sure, in 1985, the
Board chose to consolidate all requests
for changes to its rules into a single
proceeding. The Board, however, is not
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required to follow that procedure in
every instance.
Other commenters simply state that
the Board should provide for a more
direct means of decertifying an
incumbent union. For example, Flexjet
states that ‘‘the Board must also change
the rules to allow a majority of
employees to vote the union out if they
are displeased with the union.’’
Similarly, Right to Work suggests in its
written comment submitted prior to the
December 7, 2010 open meeting that it
is inappropriate for an exclusive
bargaining representative to be certified
on the basis of a ‘‘mere majority of
employees voting in an election’’
because ‘‘it is extremely difficult for
employees to remove a union once it is
certified as their exclusive bargaining
agent, particularly because the NMB has
not established a formal process for
decertification.’’ ATA and AIRCON state
that it ‘‘would not be merely imprudent
for the Board to abandon the ‘majority
rule’ while failing contemporaneously
to adopt a straightforward
decertification process.’’ Southwest
states that, while it is ‘‘neutral’’ on the
NPRM, it believes ‘‘the final rule should
ensure that any new election procedures
are applied broadly and consistently to
cover representation and decertification
procedures.’’
The courts have recognized, and the
Board agrees, that employees have the
right to reject representation. ABNE, 380
U.S. 650. Implicit in that right is the
Board’s power to certify that there is no
representative. Teamsters, 402 F.2d at
202 (DC Cir. 1968); Russell v. NMB, 714
F.2d 1332 (5th Cir. 1983) (finding that
since employees have right under the
RLA to opt for non-representation, the
Board could not refuse to process a
representation application after it
determined that applicant intended to
terminate collective representation if
certified). While not as direct as some
commenters might like, the Board’s
existing election procedures allow
employees to rid themselves of a
representative. Currently, an individual
employee or group of employees who no
longer desire to be represented by a
union must solicit a showing of interest
from their fellow employees and file an
application with the Board. In the
resulting election, employees have the
opportunity to vote for the incumbent or
for the applicant with the understanding
that the applicant if certified will
subsequently disclaim interest in the
craft or class extinguishing the
certification. Under current election
procedures, there is no opportunity to
vote ‘‘no’’ or against representation
entirely. Employees who want to vote
‘‘no’’ must instead abstain from voting.
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The proposed change will give these
employees the opportunity to
affirmatively cast a ballot for ‘‘no
union.’’ Thus, in these circumstances,
the NPRM would give employees an
opportunity to vote for the incumbent,
for the applicant, or to cast a ballot for
no representation.
Southwest also suggests that the
Board should amend its showing of
interest requirement to require a 35%
showing of interest regardless of
whether the employees in the craft or
class at issue are represented or
unrepresented. The Board’s current
election rules require a 35% showing of
interest among employees who are
unrepresented and a more than 50%
showing of interest among employees
who are already represented and
covered by an existing collective
bargaining agreement.
The Board does not believe that its
showing of interest requirements should
be changed. In carrying out its
obligations under the RLA, the Board
must balance competing statutory goals
and the current showing of interest
requirements are justified in the Board’s
view by the benefit these requirements
provide to preserve stability in
collective bargaining relationships.
It is well-settled that a major objective
of the RLA is ‘‘avoidance of industrial
strife, by conference between the
authorized representatives of employer
and employee.’’ ABNE, 380 U.S. at 658
(quoting Virginian Ry., 300 U.S. at 547).
The Russell court recognized that
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[i]t cannot be gainsaid that the Act does in
fact encourage collective bargaining as the
mode by which disputes are to be settled and
work stoppages avoided. Under the Act,
Congress gave unions ‘‘a clearly defined and
delineated role to play in effectuating the
basic congressional policy of stabilizing labor
relations in the industry.’’ * * * The Board
is therefore correct when * * * it argues that
one of the Board’s purposes is to support
collective bargaining.
714 F.2d 1332, 1342–43 (internal
citations omitted). Thus, the Board must
also foster stability in collective
bargaining relationships to maintain
industrial peace. As many commenters
point out in opposition to the NPRM,
representation elections and organizing
campaigns which necessarily precede
them cause unsettled labor conditions
and foster instability. As previously
discussed, the Board believes that
changing its showing of interest
requirements would more likely lead to
instability than the proposed change to
how it measures employee intent. For
this reason, the Board has long required
a majority showing of interest before
authorizing an election that will disturb
an existing collective bargaining
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relationship and it will continue to do
so.
I. Impact of the Proposed Change on
Section 2, Eleventh of the RLA
In their comment, U.S. Senators
Lamar Alexander, Robert Bennett,
Richard Burr, Saxby Chambliss, Bob
Corker, Michael Enzi, Orrin Hatch, and
Johnny Isakson state their concern that
[i]f minority unions are indeed permitted,
both we and many of our colleagues will also
be concerned with the impact of the
mandatory union shop provisions which are
permitted nationwide under Section 2,
Eleventh of the Railway Labor Act. Unlike,
the NLRA, the RLA has no carve-out or
exclusion permitting the operation of state
‘‘right-to-work’’ laws. If the unions which are
seeking mandatory dues payments do not
have the active support of a majority of
employees as shown in a secret-ballot
election, it would not be appropriate to
require employees who do not support the
minority union to pay dues to that
organization where state law is intended to
protect their right to refuse to do so.
The Board believes that the proposed
change will not affect Section 2,
Eleventh for two reasons: First, the
Board does not believe that its proposed
change will lead to the certification of
representatives that lack the support of
a majority of employees; and second,
the difference between the union
security provisions of the NLRA and
RLA are premised not on whether
majority of the craft or class means
majority of eligible voters or majority of
ballots cast but rather on a recognition
of the interstate nature of air and rail
transportation.
As discussed in Section III.D., the
Board believes it has the statutory
authority to certify a collective
bargaining representative based on a
majority of ballots cast whether or not
there is majority participation in that
election. Thus, the Board disagrees with
the Senators’ characterization of the
NPRM as permitting the certification of
‘‘minority unions.’’ There is no basis to
believe that certification based on a
majority of ballots cast results in a
representative supported by a minority
of employees in the craft or class. As
previously stated, under the proposed
change, employees will be able to vote
for or against representation or refrain
from voting and acquiesce in the will of
the majority. The Board does not certify
minority unions under its current
election procedures and will not do so
under the proposed rule. The Board
requires certified representatives to
bargain on behalf of all members of a
class or craft and this requirement will
not change under the proposed rule.
Once certified by the Board as exclusive
representative of a craft or class, the
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26079
union has an obligation to represent
fairly all employees in that craft or
class.26 Under the proposed rule,
certified representatives will remain the
exclusive representative of all members
in a craft or class and the duty of fair
representation will obligate them to
represent all employees, even those who
vote against representation. Attempts to
characterize a certified representative
under the proposed election rule as a
‘‘minority union’’ are misleading and
inaccurate.
Section 2, Eleventh provides that,
notwithstanding the law of ‘‘any State,’’
a carrier and an organization may make
an agreement requiring all employees
within a stated time to become a
member of that organization provided
there is not discrimination against any
employee and that membership in the
organization is not denied or terminated
for ‘‘any reason other than failure of the
employee to tender the periodic dues,
initiation fees, and assessments (not
including fines and penalties) uniformly
required as a condition of acquiring or
retaining membership.’’ 45 U.S.C. 152,
Eleventh. Section 2, Eleventh, or the
‘‘union shop’’ provision of the RLA was
added in 1951. Union shop agreements
had been outlawed under the 1934
amendments when union shop
agreements were used by employers to
establish and maintain company unions
‘‘thus effectively depriving a substantial
number of employees of their right to
bargain collectively.’’ S.Rep. No.81–
2262, at 3 (1951). By 1950, company
unions in this field had practically
disappeared. Id.
The legislative history also indicates
that Section 2, Eleventh was intended to
extend to ‘‘railroad labor the same rights
and privileges of the union shop that are
contained in the Taft-Hartley Act.’’ 96
Cong. Rec. 17,055 (1951) (remarks of
Rep. Brown). The RLA’s union shop
provision was ‘‘substantially the same as
those of the Labor-Management
Relations Act [of 1947 or Taft-Hartley]
as they have been administered and that
such differences as exist are warranted
by experience or by special conditions
existing among employees of our
railroads and airlines.’’ Id.
The legislative history notes that these
‘‘special conditions’’ were the Federal
nature of regulation of rail and air
carriers and the system-wide
representation and bargaining required
under the RLA. In the floor debate in the
House, in response to a question about
26 Although the duty of fair representation is not
explicitly set forth in the RLA, the courts have
found that implicit in the principle of exclusive
representation is the obligation to represent
employees fairly and without discrimination.
Louisville & Nashville R.R., 323 U.S. 192 (1944).
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whether Section 2, Eleventh would
recognize the validity of State right to
work laws or supersede those laws, Rep.
Biemiller stated:
We must recognize that all aspects of the
economics of the railroad industry are under
national control, not under State control.
Since the passage of the Interstate Commerce
Act in 1887, it has been wisely recognized
that all matters relating to railroads whether
they be rates or labor problems are much
better handled by the Federal Government
than they are by the various State
governments. If we were to break down this
Federal control in the field of railway labor
we would be setting a precedent that could
only lead to chaos in the entire railroad
industry, because certainly the question of
rates and other problems must stay in Federal
hands. I think that point should be
recognized very clearly when one talks about
the possibility of trying to have State labor
legislation apply to problems of railroad
labor. After all we must also recognize that
the contracts that are made between railroad
management and railroad labor are made on
a system basis; they are not made on a Statewide basis; some will cover as many as
thirteen or fourteen States in their various
terms. To try to break those down in terms
of the conflicting laws of the thirteen or
fourteen States covered by a particular
railroad system would lead inevitably only to
chaos.
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96 Cong. Rec. 17,236 (1951). The
differences in the union shop provisions
of Section 2, Eleventh and the
provisions of the NLRA were based on
the recognized differences between the
industries at issue. Representative
Heselton stated that the House
Committee on Interstate and Foreign
Commerce specifically rejected adding
language that would exclude union
shop coverage in right to work states:
The second difference is the omission of
the requirement contained in section 14(b) of
the Labor-Management Relations Act [of
1947], which reads as follows:
Nothing in this act shall be construed as
authorizing the exclusion or application of
agreements requiring membership in a labor
organization as a condition of employment in
any State or Territory in which such
execution or application is prohibited by
State or Territorial law.
Again, the committee [the House
Committee on Interstate and Foreign
Commerce] considered this carefully but
decided not to include it. I think no one will
dispute the fact that if any of our business
units is primarily interstate in character, it is
the transportation business and particularly
railroads and airlines. Under the Railway
Labor Act, agreements must be system-wide,
and in an overwhelming number of
instances, cross many State lines. Seniority
districts lap over from one State to another.
Therefore any requirement which would
exclude union shop coverage in those States
prohibiting union shop agreements would be
both illogical and unworkable.
96 Cong. Rec. 17238 (1951).
Thus, the decision by Congress to preempt State laws that would otherwise
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ban union shops is due to the interstate
nature of air and rail transportation, the
history of Federal rather than State
regulation of those industries, and the
system-wide bargaining required under
the Act. It is not premised on an
interpretation of the ‘‘majority of craft or
class’’ language of Section 2, Fourth.
J. Cost of the Proposed Change to the
Board’s Election Procedures
In their comments, Littler and WestJet
each raise the issue of the potential
additional cost of the Board’s proposed
change to its election rules. Littler
suggests that costs ‘‘which may flow
from the rule change’’ will affect both
the Board itself as well as the regulated
entities in the air and rail industries.
Littler states that:
The Board has not analyzed whether and
how the new rule will increase the number
of elections conducted by the Board in a
given fiscal year, and whether the Board will
need to increase its staff to conduct those
additional elections within the required
statutory timeframe. Carriers and unions will
also bear additional costs if elections are
more frequent due to the administrative
requirements the Board places on them
during the elections, not to mention the costs
associated with conducting and organizing
election campaigns more frequently.
WestJet, a Canadian company,
expressed its concern that the proposed
rule would negatively affect any future
decision to invest in the U.S. market
because
[f]rom a financial standpoint, the likelihood
of immediate unionization without support
from a true majority of employees represents
a substantial cost increase that WestJet could
not ignore when making a decision to employ
U.S. workers. This is not because of an
increase in wages and benefits, which
WestJet sets at competitive levels. Rather, it
would be the immediate costs associated
with union elections, negotiations and
grievances/arbitrations that would dissuade
WestJet from expanding and creating jobs for
U.S. citizens.
Both Littler and WestJet assume that
implementing the proposed change
must inevitably lead to more
applications, more elections, and, as
WestJet characterizes it, ‘‘immediate
unionization.’’ Neither Littler nor
WestJet, however, offers any factual
support for their assumptions. The
decision to invoke the Board’s services
in a representation dispute rests entirely
with an individual union or the affected
employees. It is not a matter for the
Board or for the carrier. The decision to
proceed with an election depends upon
the Board’s investigation of the dispute
and a determination that certain
threshold requirements have been met
such as the showing of interest needed
to trigger an election. See, e.g., 29 CFR
1206.2, 1206.5; NMB Representation
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Manual §§ 3.601, 19.6, 19.601. Further,
holding a representation election does
not automatically result in a union
victory. This has certainly been the
Board’s experience under its current
procedures and it is also true under the
NLRA where bargaining representatives
are certified based on a majority of
ballots cast. For example, in its
comment, Litter states
Our review of Board election data since
1935 shows that the union win rate in Boardconducted elections approaches sixty-eight
percent (68%). By comparison, the union win
rate in elections held during the same period
under the NLRA, utilizing the election
process currently being proposed by the
Board, was only fifty-eight percent (58%).27
The proposed change does not add a
fee, require a payment or impose new
burdens on either the Board or the
participants in the election. The
proposed rule would provide for
certification of an employee
representative based on a majority of
ballots cast rather than a majority of
eligible voters. Thus, the proposed
change affects only one part of the
Board’s election procedure: The method
used by the NMB to determine the
outcome of a self-organization vote by
employees after an application has been
filed, and an election has been
authorized. The Board believes that,
regardless of the method used to
determine the outcome of a
representation election, it will continue
to function within the budget
appropriated by Congress and
expeditiously resolve representation
disputes under the RLA by investigating
all applications filed and, when
appropriate holding elections, as it has
since 1934.28 Further, as discussed
below, the Board also believes that the
proposed change to its election
27 In its comment, Delta provides similar
statistics, stating that ‘‘[r]eview of NMB decisions
reveals that the union success rate in NMBconducted election under the RLA has been
approximately 67.23% from 1935 to date. In
contrast, the union success rate in NLRB elections
has been approximately 54% from 1948 to date.
(Data prior to 1948 is limited).’’
28 It should also be noted that the ‘‘required
statutory timeframe’’ noted by Littler refers to the
language of Section 2, Ninth that provides that ‘‘it
shall be the duty of the Mediation Board, upon
request of either party to the dispute, to investigate
such dispute and to certify to both parties, in
writing, within thirty days’’ the name of the
individual or organization authorized to represent
the affected employees. It is well-settled that this
time provision is directory rather than mandatory.
See, e.g., Air Florida v. NMB, 534 F. Supp. 1, 11
(S.D. Fla. 1982) (citing System Fed’n v. Virginian
Railway, 11 F. Supp. 621, 627 (E.D. Va. 1935), aff’d.
84 F.2d 641 (4th Cir. 1936), aff’d. 300 U.S. 515
(1937)); In re Continental Airlines, Corp., 50 B.R.
342, 348 n. 3 (S.D.Tex. 1985).
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jlentini on DSKJ8SOYB1PROD with RULES
procedures will not impose any
additional requirements or costs than
are already necessary to effectuate the
Congressional intent to guarantee
employees in the air and rail industries
the right to organize and chose a
collective bargaining representative free
from any carrier interference or
influence.
The NPRM does not alter the limited
role prescribed by statute for carriers in
representation disputes. From its
inception, the NMB has understood that
Congress intended to eliminate the
carrier, as a party, from any
representation dispute. 1 NMB Ann Rep
4 (1935). Under Section 2, Ninth of the
Act, the Board is authorized to resolve
disputes between employees as to
whom, if anyone, shall represent them
in collective bargaining. The dispute is
not between employees and the carrier.
Thus, as the courts have long
recognized, the only proper parties to
the NMB’s representation proceedings
are employees and their potential
bargaining representatives. ABNE, 380
U.S. at 667. As has been previously
discussed, carriers cannot invoke the
NMB’s services in a representation
dispute. Ry. Labor Executives’ Ass’n, 29
F.3d at 664–66 (DC Cir. 1994). Carriers
have no vote in representation elections
and the Act forbids them from
interfering or influencing their
employees’ organizational efforts and
choice of representative.29 Littler refers
to the ‘‘administrative requirements’’
demanded by the Board during the
election, but the only direct burden
provided by the RLA is authority to
have access to carrier records when
necessary. Thus, the Board requires the
carrier to supply the information needed
for holding an election, such as a list of
eligible employees in the craft or class.
The carrier’s limited role in
representation proceedings has long
been recognized by the courts. In ABNE,
the Court rejected the carrier’s claim
that it should be accorded a greater role
in the Board’s representation
investigations, noting that ‘‘while the
Board’s investigation and resolution of a
dispute * * * might impose some
additional burden upon the carrier, we
cannot say that the latter’s interest rises
to a status which requires the full
panoply of procedural protections.’’ 380
U.S. at 668. In In re Continental
29 45 U.S.C. Section 151a. The second and third
general purposes of the Act are ‘‘(2) to forbid any
limitation upon freedom of association among
employees or any denial, as a condition of
employment or otherwise, of the right of employees
to join a labor organization; [and] (3) to provide for
the complete independence of carriers and of
employees in the matter of self-organization to carry
out the purposes of this chapter * * * .’’
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Airlines, Corp., 50 B.R. 342 (S.D.Tex.
1985), the bankruptcy court rejected
Continental’s argument that a
representation election among its
employees should be stayed because the
substantial costs of responding to any
union campaign would irreparably harm
its reorganization efforts. The
bankruptcy court stated that
At best, that argument is irrelevant—for
Continental’s anti-union activity is a purely
voluntary undertaking. At worst, the
substantial expenditures contemplated could
possibly be illegal—for the RLA repeatedly
prohibits carriers from in any way interfering
with or influencing employees’
organizational efforts or choice of a
bargaining representative.
50 B.R. at 354. Likewise, the NPRM does
not alter the role or obligation of the
union in a representation dispute. The
Board once again notes that decision to
undertake an organizing campaign and
file an application with the Board rests
entirely with the union. The union
applies its own cost benefit analysis to
make that decision and the Board has no
basis for concluding that the change
proposed by the NPRM will outweigh
every other consideration that goes into
such a decision. Once a union has
invoked the Board’s process, it has
surely determined that the costs of
seeking an election are worth bearing.
Finally, the Board notes that the
proposed rule has been reviewed with
regard to the requirements of the
Regulatory Flexibility Act (RFA) 30 and,
pursuant to Section 605 of the RFA, the
Board has certified that the proposed
rule will not have a significant
economic impact on a substantial
number of small entities. Clarification to
NPRM, 74 FR 63,695 (Dec. 4, 2009).
K. Effect of the NPRM on Other Election
Procedures
In its comments in opposition to the
NPRM, ASC suggests that the Board has
created uncertainty for its constituents
by failing to undertake a global overhaul
of its election procedures.31 The Board
30 Under the RFA, a Federal agency must prepare
a regulatory flexibility analysis and assessment of
the economic impact of its proposed rule on small
business entities, unless the agency certifies that the
proposed rule will not have a significant economic
impact on a substantial number of small entities,
and provides a factual basis for that certification. 5
U.S.C. 601, et seq.
31 ASC, in its comment, also asks whether the
Board has left in ‘‘limbo’’ a request from the IBT that
the Board change its policies and require carriers
in representation disputes to provide the applicant
organization with a list of employee names and
addresses (comparable to the Excelsior list required
in NLRB representation cases). This request was
made in the context of a representation case
involving Continental Airlines with the IBT
requesting that the ‘‘Board provide the organization
with a list of employee names and addresses in this
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26081
does not believe that the NPRM creates
uncertainty regarding its election
procedures. As has been previously
discussed, the proposed change affects
only one part of the Board’s election
procedure: The method used by the
NMB to determine the outcome of a selforganization vote by employees after an
application has been filed and an
election has been authorized.
1. Second Elections/Run-Off Elections
ASC expresses its concern that the
NPRM does not address how the change
in interpretation of ‘‘majority of the craft
or class’’ will affect multi-union
elections. While the Board
acknowledges that its Representation
Manual, which provides procedural
guidance to participants,32 will have to
be modified once the proposed change
becomes effective, the Board’s existing
rule regarding run-off elections
continues to apply and addresses ASC’s
concerns. The Board’s rule provides:
(a) If in an election among any craft or class
no organization or individual receives a
majority of the legal votes cast, or in the
event of a tie vote, a second or run-off
election shall be held forthwith: Provided,
That a written request by an individual or
organization entitled to appear on the runoff
ballot is submitted to the Board within ten
(10) days after the date of the report of results
of the first election.
(b) In the event a run-off election is
authorized by the Board, the names of the
two individuals or organizations which
received the highest number of votes cast in
the first election shall be placed on the runoff ballot, and no blank line on which voters
may write in the name of any organization or
individual will be provided on the run-off
ballot.
(c) Employees who were eligible to vote at
the conclusion of the first election shall be
eligible to vote in the run-off election except
(1) those employees whose employment
case.’’ During the pre-docketing investigation of this
case, the IBT, by letter dated December 7, 2009,
withdrew the request in that case and asked to
proceed to an immediate election under the existing
election procedures. The Board granted the request,
an election was authorized, and the tally was held
on February 12, 2010.
ASC also states the Board should not ignore the
impact of the NPRM on ‘‘critical standards that the
Board has consistently and historically applied. For
instance, the Board has long recognized the
propriety of system-wide crafts or classes.’’ While
the Board appreciates ASC’s concerns, the change
proposed in the NPRM is limited to modifying the
method used to determine the craft or class
representative based on a majority of valid ballots
cast rather than a majority of eligible voters and to
provide employees with an opportunity to vote ‘‘no’’
or against union representation. The NPRM has no
impact on the Board’s policies and case law with
respect to craft or class or system determinations.
32 The Representation Manual is an internal
statement of agency policy and not a compilation
of regularly promulgated regulations having the
force and effect of law. Hawaiian Airlines v. NMB,
107 LRRM 3322 (D. Haw. 1979), aff’d without op.
659 F.2d 1088 (9th Cir. 1981).
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relationship has terminated, and (2) those
employees who are no longer employed in
the craft or class.
29 CFR 1206.1. Applying the existing
run-off rule to the hypothetical election
tally proposed by ASC, namely that
where 100 ballots are cast with 20 for
Union A, 45 for Union B, and 35 for no
representation, a run-off election will be
held between union A and union B
provided one submits a timely written
request to appear on the ballot as
required by 1206.1(a). It is equally clear
under the existing rule, that where a
majority of employees have cast valid
ballots for representation, the
appropriate choice once a run-off
election is authorized is between the
two individuals or organizations that
received the highest number of votes.
The Board disagrees with ASC’s
assertion that, under the NPRM, there is
no basis for aggregating votes cast for
representation. To the contrary, where a
majority of employees indicate a
preference for representation, the
Board’s duty is to determine which
individual or organization is the
ultimate employee choice through a
run-off election.33
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2. Election Interference Remedies
The ASC raised a concern over the
fact that the proposed rule would result
in what is currently referred to as a
Laker ballot being used in all NMB
elections. Currently, a Laker ballot is
sometimes used in a re-run election
following the Board’s determination of
carrier election interference. In recent
years, it has been used on occasions
when the Board has determined that a
standard re-run election would not
allow it to ascertain the desires of
employees regarding representation.
See, e.g., Aeromexico, 28 NMB 309
(2001) (determining that carrier’s postelection interviews of members of the
craft or class interfered with laboratory
conditions, violated the secrecy of the
ballot, coerced employees in the
exercise of their rights, and interfered
with Board’s investigation).
It is inaccurate to describe the rule in
that way because the Board has never
33 Contrary to our dissenting colleague’s
contention, the Board has never suggested that the
purpose of the NPRM is to conform the NMB’s
voting procedures to those of the NLRB. As the
Board has repeatedly noted, the aim of the Board
is to more accurately ascertain the clear, uncoerced
choice of a bargaining representative, if any, by the
affected employees. Further, in the hypothetical
Chairman Dougherty poses in her dissent, a
majority of those casting ballots have indicated a
preference for a bargaining representative.
Accordingly, the only question left to be
determined is which of the two organizations will
ultimately be chosen as the affected employees’
representative. A run-off election under the Board’s
existing rules will resolve that question.
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indicated that it was changing its ballot
to remove the write-in option. The Laker
ballot is a yes/no ballot and does not
include a write-in option. In the NPRM,
the Board proposed a narrowly focused
change to its election procedures to
allow that a majority of valid ballots cast
will determine the craft or class
representative. The NPRM did not
describe the new election procedures as
identical to either NLRB election
procedures or to the Board’s Laker ballot
procedures. Nor did it describe the
proposed rule as resulting in a yes/no
ballot. Under the new rule, the Board
will provide an opportunity for
employees to vote ‘‘no’’ or against union
representation. This change is required
where certification is based on a
majority of ballots cast, because to
ensure employee freedom of choice,
voters need to be able to choose not to
be represented. Under the new rule, the
Board will no longer presume that the
failure or refusal of an eligible employee
to vote is a vote against representation.
Instead, employees who do not wish to
be represented will affirmatively vote
‘‘no.’’ The rule does not alter the Board’s
practice of allowing write-in votes.34
Write-in votes are a common
characteristic of all NMB elections
except where a run-off or Laker election
is conducted. International Total
Services, 16 NMB 231, 233 (1989)
(rejecting union objection to inclusion
34 Since under the rule, the Board is maintaining
its practice of allowing write-in votes there is no
substantive change requiring additional comment as
suggested by our dissenting colleague. Chairman
Dougherty states that ‘‘this rulemaking violates the
‘logical outgrowth test’ ’’ because interested parties
could not have reasonably anticipated the final rule
from the draft rule in NPRM. To be sure, ‘‘logical
outgrowth’’ test applies where an agency changes its
final regulation in some way from the proposed
regulation for which it provided notice and
requested comment, as required under the APA.
City of Waukesha v. EPA, 320 F.3d 228, 245 (DC
Cir. 2003). In the instant rulemaking, however, the
Board is adopting the proposed rule as the final
rule. The NPRM described the proposed changes to
the election procedures with the required
specificity. The Board proposed to certify
representatives based on a majority of ballots cast
and, as an inherent part of this change, to provide
eligible voters with the opportunity to vote ‘‘no’’ or
against representation. The Board did not propose
to depart from its longstanding write-in practice.
The Board did not propose other changes to its
election rules. There is no basis to assert that
interested parties did not understand what changes
to comment upon since the Board sought comment
on the only changes it is proposing to make.
Further, since the Board has always counted valid
write-in votes as votes for representation and will
continue to do so, there is no potential effect on the
outcome of elections. Valid votes for the applicant
organization or any other organization or individual
will be counted as votes for representation. The
change under the rule is that only ‘‘no’’ votes will
be counted as votes against representation. This
change was clearly set forth in the NPRM,
commented upon by interested parties, and adopted
as part of the final rule.
PO 00000
Frm 00026
Fmt 4700
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of write-in option since the provision
for write-in votes in NMB elections has
remained largely unchanged for over 50
years). Moreover, the Board’s experience
has shown that the write-in vote is an
effective means for permitting employee
freedom of choice, as in some cases
write-in candidates have received
sufficient votes to be certified by the
Board. Id. See also, Zantop Int’l
Airlines, Inc., 9 NMB 70, 77 (1981) (The
write-in option ‘‘allows the eligible voter
to indicate whether he desires
representation by the applicant
organization or any other organization
or individual. Such a ballot allows the
Board to ascertain the name of the duly
designated and authorized
representative of the employees.’’).35
ASC, in its comment, expressed
concern that the Key ballot, currently
used as a remedy only in egregious
instances of election interference, will
become more widely used because, in
its view, the Laker ballot remedy is no
longer an option. When the Key ballot
is used, an election results in union
certification unless a majority of eligible
voters return votes opposing
representation. Key Airlines, 16 NMB
296 (1989). It has been used rarely by
the Board except in cases of most
egregious carrier interference. See, e.g.,
Washington Central Railroad, 20 NMB
191 (1993) (carrier polled employees
about union support, discharged union
supporters, and tried to coerce an
employee to withdraw a lawsuit based
on the carrier’s violations of the RLA).
The Board has sole authority to
determine the remedy for election
interference. See, e.g. LGS Lufthansa
Serv. v. NMB, 116 F.Supp.2d 181 (D.DC
2000) (holding that the Board’s decision
to hold a Laker ballot election was
unreviewable by the court); Aircraft
Mechanics Fraternal Ass’n v. United
Airlines, Inc., 406 F.Supp. 492 (N.D.
Cal. 1976). Unlike the NLRB, the Board
does not have the power to issue unfair
labor practices charges; however, under
Section 2, Ninth of the Act, the Board
has the duty to ensure that employees’
choice of representative is made without
carrier influence, interference or
coercion. See United Airlines, 406
F.Supp. at 498 n.5, 502–03. (‘‘Thus the
1934 amendments gave plenary power
to the Board to deal with employer
influence in the designation of
representatives, rendering judicial
intervention unnecessary.’’) The test in
any case of alleged interference in a
35 In affirming the Board’s determination in
Zantop, the court of appeals held that the RLA gives
the Board the discretion to select the form of ballot
and such a selection is not subject to judicial
review. Zantop Int’l Airlines, Inc. v. National
Mediation Bd., 732 F.2d 517, 521 (6th Cir. 1984).
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Board election is whether the laboratory
conditions which the Board seeks to
promote have been contaminated.
Zantop International Airlines, 6 NMB
834 (1979). In order to remedy such
interference and ensure that employees
are able to choose their representative
without carrier interference, the Board
has on occasion fashioned an election
with rules differing than those under
what has been its standard ballot. In
response to carrier interference in Laker
Airways, Ltd., 8 NMB 236 (1981), the
Board held a ballot box election with a
yes/no ballot. In Laker, the majority of
those employees actually casting ballots
determined the outcome of the election,
regardless of whether a majority of
employees participated in the election.
Id. at 257.
While the Laker ballot has been used
in instances of carrier interference, the
most common remedy for election
interference has been a re-run election
using the Board’s standard election
procedures. In recent years, a standard
re-run election has been the Board’s
remedy in even very serious instances of
election interference. See, e.g.,
Stillwater Central Railroad, Inc., 33
NMB 100 (2006) (carrier conducted
frequent meetings, interrogated
employees about their union views, and
granted wage increases and improved
working conditions during the
laboratory period); Pinnacle Airlines
Corp., 30 NMB 186 (2003) (carrier
wrongfully terminated a union
supporter and engaged in surveillance
of employees during the laboratory
period).
The Board has the discretion to
respond to allegations of election
interference as it sees fit according to
the unique facts of each case before it.
See Switchmen’s Union, 320 U.S. 297.
Under the rule, the Board will continue
to investigate allegations of election
interference and determine when
laboratory conditions have been tainted.
The Board will consider appropriate
remedies, including the Key ballot
remedy, on a case by case basis,
determine what is most appropriate, and
explain its rationale in each case.
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IV. Conclusion
Based on the rationale in the
proposed rule and this rulemaking
document, the Board hereby adopts the
provisions of the proposal as a final
rule. This rule will apply to applications
filed on or after the effective date.
Dissenting Statement of Chairman
Dougherty
Chairman Dougherty dissented from
the action of the Board majority in
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adopting this rule. Her reasons for
dissenting are set forth below.
For 75 years, through twelve
Presidential administrations, the
National Mediation Board (NMB or
Board) has conducted representation
elections by requiring that a majority of
eligible voters in a craft or class vote in
favor of representation in order for a
representative to be certified. This
method of voting provides the most
certain way of determining whether the
majority of the craft or class
affirmatively desires to change the
status quo, and, as the Board has stated
many times, it serves the Board’s
primary statutory mandate of
maintaining labor stability in the airline
and railroad industries.
I dissent from the rule published
today for the following reasons: (1) The
timing and process surrounding this
rule change harm the agency and
suggest the issue has been prejudged; (2)
the Majority has not articulated a
rational basis for its action; (3) the
Majority’s failure to amend its
decertification and run-off procedures
in light of its voting rule change reveals
a bias in favor of representation and is
fundamentally unfair; and (4) the
Majority’s inclusion of a write-in option
on the yes/no ballot was not
contemplated by the Notice of Proposed
Rulemaking (NPRM) and violates the
notice-and-comment requirements of
the Administrative Procedure Act
(APA).1
I also note the conflicting nature of
several portions of this rule and
preamble. As discussed further below,
in several instances the Majority
arbitrarily favors a rationale when it
advantages the cause of representation,
and then rejects the identical rationale
when it supports the right of employees
to be unrepresented. These strategic
inconsistencies contribute to the
appearance that this rulemaking has
been a premeditated attempt to
advantage certain interests over others.
Procedural Concerns
In my dissent to the NPRM, I voiced
concerns about the negative perceptions
this rule change and its process have
created for the NMB. I renew those
concerns here. For decades, the Board
consistently upheld the current election
rule and repeatedly promised its
constituents that any consideration of a
rule change would follow the
1 I do not address the Board’s statutory authority
to make the rule change because my strong view
that this rulemaking is bad public policy and
violates the APA gives me sufficient cause to
dissent from the action of the Majority and makes
it unnecessary for me to reach the question of
statutory authority.
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procedures used in 1985 following
petitions from the International
Brotherhood of Teamsters (IBT) and the
Chamber of Commerce (Chamber). Delta
Air Lines, Inc., 35 NMB 129 (2008);
Chamber of Commerce, 14 NMB 347
(1987). The Board has also consistently
stated that it would require a heightened
standard of proof. Delta, 35 NMB at 132;
Chamber, 14 NMB at 356. Even if my
colleagues believe they are not legally
obligated to comply with the Board’s
previously established standards, the
Board should have carried through on
the promises made to its constituents.
An agency should not always act simply
because it thinks the law does not
prohibit it from acting. I believe
independent agencies have an
obligation to avoid even the appearance
of impropriety. The Board’s failure to do
so in this instance has damaged the
Board’s reputation. This damage could
have been prevented had the Board
chosen to follow a more participatory
procedure.
My colleagues have provided
absolutely no reason for their failure to
comply with the Board’s past promises
except that they believe they are not
legally bound. This leaves the
impression that they rejected the more
searching procedure because their
minds were already made up about the
outcome. The Majority’s failure to
follow the procedures and standards the
Board had set for itself—so soon after a
majority-changing Presidential election
and in the midst of several large
representation elections 2—creates the
perception that the Board prejudged the
issue and is acting out of political
motivation. My concerns about political
motivation and prejudgment are
deepened by the fact that, as I
previously discussed in a letter to
several United States Senators,3 I was
excluded from the process of crafting
the NPRM and given bizarre and
arbitrary deadlines for drafting a
dissent—actions which defied any
reasonable, innocent explanation. In the
interest of preserving the good
reputation of this independent agency
and avoiding the appearance of
predetermination, we should have
2 That some view this rule change as intertwined
with large elections at Delta is made clear by the
fact that both the International Association of
Machinists (IAM) and the Association of Flight
Attendants (AFA) withdrew representation
applications either shortly before or on the day the
NPRM was published. The AFA’s withdrawal letter
dated November 3, 2009, in NMB Case No. CR–6957
plainly stated it was withdrawing its application in
anticipation of the rule change.
3 The letter was sent on November 2, 2009 to
United States Senators Johnny Isakson, Bob Corker,
Jim Bunning, Robert Bennett, Saxby Chambliss,
George Voinovich and Orrin Hatch.
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followed the Chamber of Commerce
procedures and been mindful of
appearances relating to the current
representation landscape.
Two entities, the Air Transport
Association (ATA) and the National
Right to Work Legal Defense Foundation
(Right to Work), filed motions to
disqualify Members Hoglander and
Puchala from consideration of this rule
change because of alleged prejudgment.
In denying the motions for their own
recusal, my colleagues claim ‘‘[t]he
Board majority followed the mandates
of the APA in considering, drafting,
adopting, and promulgating the NPRM.’’
However, the Majority has failed to
address or explain my exclusion and
other procedural defects in the filing of
the NPRM, including the censorship of
my dissent from the NPRM. These
defects should be explained, and their
impact on the issue of prejudgment and
inconsistency with the APA should be
addressed. Because the Majority has not
addressed these issues, I do not join my
colleagues in rejecting the motions for
disqualification.
Insufficient Justification for the Rule
Change
The Majority’s stated justification for
the rule change is that ‘‘this change will
more accurately measure employee
choice in representation elections.’’ This
justification fails the APA’s arbitrary
and capricious test because the assertion
that the new rule will be better than the
old rule at measuring employee choice
is incorrect. Additionally, the Majority
has failed to provide a rational basis for
the timing of the change and has
ignored the complexities of the RLA and
the Board’s frequently-affirmed reasons
for its current election rule. The
capriciousness of the Majority’s stated
justification is further demonstrated by
its decision to ignore the RLA’s labor
stability mandate in making this rule
change while simultaneously relying on
it as an excuse for not making another
change.
As an initial matter, the Majority’s
assessment of the burdens placed on it
by the APA is incorrect. The Majority
suggests that Federal Communication
Commission v. Fox Television Stations,
129 S. Ct. 1880 (2009), allows it to
change 75 years of precedent without
providing a reason why this change is
necessary at this time. In the preamble,
the Majority takes the position that Fox
requires only the barest minimum
justification and does not require
explanation of its rejection of the
reasons for the existing rule. This
ignores Justice Scalia’s statement in Fox
that ‘‘a reasoned explanation is needed
for disregarding facts and circumstances
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that underlay or were engendered by the
prior policy.’’ Id. at 1811. Also, Justice
Kennedy’s concurrence clearly states:
‘‘an agency’s decision to change course
may be arbitrary and capricious if the
agency ignores or countermands its
earlier factual findings without reasoned
explanation for doing so,’’ and ‘‘[a]n
agency cannot simply disregard contrary
or inconvenient factual determinations
it made in the past. * * *’’ 4 Id. at 1824
(Kennedy, J., concurring).
Fox also does not overrule the
significant body of APA law requiring
that an agency ‘‘examine the relevant
data and articulate a satisfactory
explanation for its action including a
rational connection between the facts
found and the choice made.’’ Motor
Vehicle Mfr. Ass’n of the United States
v. State Farm Auto. Ins. Comp., 463 U.S.
29, 43 (1983) (internal citation omitted).
Moreover, ‘‘an agency changing its
course must supply a reasoned analysis.
* * * [I]f it wishes to depart from its
prior policies, it must explain the
reasons for its departure.’’ Panhandle E.
Pipeline Co. v. Fed. Energy Regulatory
Comm’n, 196 F.3d 1273, 1275 (DC Cir.
1999) (internal citations omitted). Thus,
the Majority must give a rational
explanation for the new rule, and it
must also give a rational explanation for
the decision to make the change and
reject the facts and circumstances
underlying the old rule.
I first dispute the Majority’s
contention that the new rule will more
accurately measure employee choice.
The most accurate way to measure
whether a majority of a craft or class
affirmatively desires representation is to
require that a majority of eligible voters
vote in favor of representation.
Anything short of this does not
determine whether a majority of voters
truly desires to change the status quo.
As the National Railway Labor
Conference (NRLC) stated in its
comment, ‘‘there is no evidence for the
assumption that any significant
percentage of employees who do not
vote do so because of reasons other than
a desire to maintain the status quo.’’ The
Board has very clear voting instructions,
and there is no evidence employees are
unable to understand that a failure to
vote is not an affirmative vote for
representation. As aptly stated in 2003
by the Air Line Pilots Association
4 When, as in Fox, there is no majority opinion,
the Court’s holding is the position taken by those
justices ‘‘who concurred in the judgments on the
narrowest grounds.’’ Marks v. United States, 430
U.S. 188, 193 (1977) (internal citation omitted).
Both Justice Scalia’s plurality opinion and Justice
Kennedy’s concurring opinion agree that agencies
cannot simply ignore prior determinations. See Fox,
129 S. Ct. at 1811.
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(ALPA) in response to the Board’s
request for comments on the
implementation of Telephone Electronic
Voting (TEV), ‘‘the Board’s successful
balloting process * * * allows a voter to
effectively cast a vote against any and
all representation by simply not
submitting a ballot.’’ (Emphasis in
original)
The Majority claims that this rule
does not accurately measure the intent
of those who do not vote because of
illness, travel, religious reasons, apathy,
or a desire to abstain from voting. The
plight of those who are unable to vote
due to illness, travel, or religious
objections is of equal concern under
either voting rule and does not support
a rule change. For example, in an
election under the new rule if a majority
of votes cast are for ‘‘no union,’’ a
religious objector who prefers
representation but could not vote in the
election would be just as
disenfranchised under the new rule as
he or she hypothetically would be under
the current rule.5 The same is true for
someone who is unable to vote because
of illness or travel.6 The argument made
by several commenters that the new rule
is better because it is appropriate to
assume those who do not vote wish to
‘‘acquiesce in the will of the majority’’
simply does not apply to individuals
who are somehow prevented from
voting even though they may have a
preference in the election. Thus, the
new rule is no better measure of the
intent of these individuals, and these
hypotheticals do not provide a rational
basis for the new rule. As for those who
do not vote due to apathy or a desire to
abstain from voting, their votes are
appropriately measured as not
affirmatively desiring a change in the
status quo.7 Moreover, the current rule
5 Although I am sympathetic—under either rule—
to the argument that there are employees who may
not be able to vote due to religious reasons, we
received only anecdotal, second-hand accounts that
this occurs, and there is no evidence it is
widespread. In the rare case where someone is
unable to vote due to religious objections, surely the
Board could find a way to accommodate these
employees without changing an important 75-yearold rule that serves a critical function in carrying
out the Board’s statutory mandate.
6 I also note that concerns about inability to vote
due to travel or illness are purely speculative. The
Board always allows at least three weeks (and
frequently longer) for voting to take place.
Employees are able to vote (or not vote) from a
telephone or computer anywhere in the world.
There is no evidence in the record that travel or
illness is preventing anyone from expressing choice
under the NMB’s current rule.
7 As discussed below, in addition to providing a
good measure of intent, requiring affirmative votes
for representation plays an important role under the
RLA. Requiring everyone who wants a change in
the status quo to register an affirmative vote ensures
true majority support for certified representatives
and furthers the RLA’s statutory mandate of
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is a much better measure of the intent
of non-voters than the new rule.8 Under
the current system, the NMB, unions,
and often carriers spend a great deal of
time and resources making sure
employees know exactly what it means
if they do not vote. Thus, when an
employee chooses not to vote under the
current rule, there is far more certainty
of his or her intent than there will be
under the new rule. The new rule does
not provide a better measurement of the
intent of those who do not vote, and the
Majority has not sufficiently supported
this rationale.
Even assuming the new rule provides
a better measurement of employee
intent than the current rule, the Majority
has failed to articulate any valid reason
for making this arbitrary change at this
time. To be sure, ‘‘an agency must be
given ample latitude to ‘adapt their
rules and policies to the demands of
changing circumstances.’ ’’ State Farm,
463 U.S. at 41 (internal citation omitted,
emphasis added). However, this
assumes some changed circumstances
underlie the rulemaking. As discussed
above, an agency must articulate and
support a rational basis for making a
change. The Board articulated its
rationale for the current rule 60 years
ago (see Sixteenth Annual Report,
discussed below) and has consistently
confirmed it ever since, including as
recently as 2008. Delta Air Lines, Inc.,
35 NMB 129, 132 (2008). Moreover, the
Board has never before expressed
concern about whether the current rule
provides a sufficient measurement of
employee choice. To the contrary, the
manner in which the NMB has
conducted elections has for 75 years
maintaining labor stability. The interests of apathy
or a theoretical ‘‘right’’ to abstain from voting—
mentioned nowhere in the RLA—cannot possibly
trump the explicitly articulated statutory mandate
of avoiding interruptions to commerce, which is
best served by the current rule.
8 The analogy to political elections made by some
commenters in favor of the rule is misplaced. As
several opposing commenters noted, union
elections under the NMB often address the
threshold question of whether there is to be
representation at all. That question is already
settled in political elections. Moreover, elected
officials stand for re-election after a set period of
years. Clearly no such re-certification requirement
applies to unions. Quite the contrary, once they
have been elected, Board procedures make it
extremely difficult for unions to be removed.
Quorum requirements, cited by several
commenters, including NRLC, labor and
employment law firm Littler Mendelson, P.C.
(Littler), and Watco Companies, Inc. and Genesee &
Wyoming, Inc. (Watco), are also prevalent in voting
procedures around the world and provide the more
appropriate analogy in the RLA context where it is
particularly important to ensure that a small faction
does not dictate the outcome of the elections. The
issue of decertification and the importance of true
majority support under the RLA are discussed more
fully later in my dissent.
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been considered an excellent method of
measuring employee choice. As the
Supreme Court stated in Brotherhood of
Railway and Steamship Clerks v. Ass’n
for the Benefit of Non-Contract
Employees, (ABNE), ‘‘the fair and
equitable manner in which the Board
has discharged its difficult function is
attested by the admirable results it has
attained.’’ 380 U.S. 650, 668 (1965). In
the words of ALPA in its 2003 TEV
comments, ‘‘[t]he Board’s balloting
procedures are well-established, timetested and should be maintained.’’
ALPA also described the Board’s
election history as ‘‘balanced and
successful.’’ As recently as 2008, the
Board rejected a request to change its
voting procedures and affirmed its
reliance on the Chamber of Commerce
decision discussed below. Delta Air
Lines, 35 NMB at 132.
What, then, has caused the Board to
suddenly decide that the new rule is
better than the old rule? The Majority
does not offer any changed
circumstances or any explanation
whatsoever for why employee choice is
now a dispositive concern when it was
not as recently as 2008. Courts have
found arbitrary and capricious an
agency’s reversal where it has recently
affirmed its previous policy and
provided no reasons for the timing of
the change. See MCI Worldcom, Inc. v.
Gen. Serv. Admin., 163 F.Supp.2d 28
(D.DC 2001) (holding that the agency’s
actions were arbitrary and capricious
when it changed a policy two years after
assuring the parties that it would not be
making that change). Without any
explanation for the newfound concern
for employee choice, our constituents
are left to draw unattractive inferences
involving a shift in political power and
the imminence of several large
representation elections—the only
circumstances that have changed at the
Board since the current election rule
was definitively articulated in 1985 and
last upheld in 2008.
Not only has the Majority failed to
explain the timing of the rule change, it
has also failed to provide ‘‘a reasoned
explanation * * * for disregarding facts
and circumstances that underlay or
were engendered by the prior policy,’’ as
required by Fox. 129 S. Ct. at 1811. In
dismissing its obligation to explain its
rejection of the Board’s rationale for the
current rule, the Majority argues
essentially that the Board had no
rationale, relying on an early annual
report suggesting the Board adopted the
current rule based on what the Board
deemed best ‘‘from an administration
point of view.’’ The Majority also cites
some commenters’ speculation that the
rule was initially a reaction to
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widespread company unionism. The
Majority’s reliance on these
‘‘justifications’’ is disingenuous. As the
Majority knows, the Board has long
viewed its current election procedure as
necessary to carry out the Board’s
statutory mandate of maintaining stable
labor relations in the airline and
railroad industries. The primary
purpose of the RLA is ‘‘to avoid any
interruption to commerce or to the
operation of any carrier engaged
therein.’’ 29 U.S.C. § 151a(1). The Board
first recognized that its current election
rule was essential to carrying out this
statutory duty in its Sixteenth Annual
Report:
In conducting representation elections the
Board has for many years followed a policy
of declining to certify a representative in
cases where less than a majority of the
eligible voters participated by casting valid
ballots. This policy is based on Section 2,
Fourth of the act which provides that ‘‘the
majority of any craft or class of employees
shall have the right to determine who shall
be the representatives of the craft or class.’’
These provisions appear to fully support the
Board in declining certifications in cases
where only a minority of the eligible
employees participates in elections. * * *
Under the Railway Labor Act it is the
primary duty of carriers and employees ‘‘to
exert every reasonable effort to make and
maintain agreements concerning rates of pay,
rules, and working conditions and to settle
all disputes * * * in order to avoid any
interruptions to commerce or to the operation
of any carrier growing out of any dispute
between the carrier and the employees
thereof.’’ The Board is of the opinion that this
duty can more readily be fulfilled and stable
relations maintained by a requirement that a
majority of eligible employees cast valid
ballots in elections conducted under the act
before certifications of employee
representatives are issued.
16 NMB Ann. Rep. 20 (1950).
This rationale has been repeatedly
affirmed in the Board’s Annual Reports.
Chamber of Commerce, 14 NMB at 355
(citing the NMB’s 44th through 49th
Annual Reports). Most significantly, the
Board’s rationale was emphatically
articulated in 1986 when, after receiving
competing requests to change its voting
rules, the Board engaged in an extensive
fact-finding process involving live
testimony, cross examination of
witnesses, and a period for comment.
Chamber of Commerce, 13 NMB 90
(1986). Subsequently, the Board issued
a decision affirming the current rule and
providing a further discussion of the
reasons for the rule:
One need look no further than to the area
of potential strikes to conclude that
certification based upon majority
participation promotes harmonious labor
relations. A union without majority support
cannot be as effective in negotiations as a
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union selected by a process which assures
that a majority of employees desire
representation. * * * * *
The level of proof required to convince the
Board the changes proposed are essential is
quite high, and has not been met. The IBT
proposals would render Board election
procedures similar to those of the National
Labor Relations Board. Yet the degree of
organization among employees covered by
the Railway Labor Act is significantly higher
than that among employees covered by the
NLRA. This fact is one of many factors which
persuade the Board that it should not alter its
current representation election procedures.
Chamber of Commerce, 14 NMB at 362–
363.
This labor stability rationale—
definitively laid out after extensive factfinding in the Chamber of Commerce
decision—is the relevant yardstick
against which the sufficiency of the
Majority’s justification for the rule
change must be measured. There can be
no doubt that the reason for the Board’s
current election rule is to effectuate the
Board’s mandate to maintain stability in
the airline and railroad industries, not
hypothetical past concerns about
company unionism or mere
administrative convenience.
The Majority dismisses concerns
about labor stability, stating that these
concerns are ‘‘mere speculation’’ and
that stability is related only to the
existence of collective bargaining
agreements and the Board’s mediation
function. Thus, the Majority argues—
incredibly—that every Board over the
last 60 years has simply been wrong.
Unfortunately for the Majority, they
cannot ignore the past findings of the
Board merely because they are
‘‘inconvenient.’’ Fox, 129 S. Ct. at 1824
(Kennedy, J., concurring). The
conclusions in the Chamber of
Commerce decision that the duty to
make and maintain collective bargaining
agreements ‘‘can be more readily
fulfilled and stable relations maintained
by a requirement that a majority of
eligible employees cast valid ballots’’
and that ‘‘a union without majority
support cannot be as effective in
negotiations as a union selected by a
process which assures that a majority of
employees desire representation’’ were
upheld after extensive fact-finding.
Moreover, the record of this rulemaking
contains several comments supporting
these findings based on the wideranging experience of commenters such
as Union Pacific Railroad Company
(UP), TTX Company (TTX), Watco,
NRLC, Littler, the National Air
Transportation Association’s Airline
Services Council (ASC), the Cargo
Airline Association (CAA), and the
Regional Airline Association (RAA).
The primary statutory goal of the RLA—
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‘‘to avoid any interruption to commerce
or to the operation of any carrier
engaged therein’’—is the very first item
mentioned in the general purposes
section of the act and is not limited to
the Board’s mediation function. Indeed,
there are several examples of distinctive
practices the Board employs outside of
the mediation function in recognition
and furtherance of the goal of avoiding
labor unrest. For example, unions under
the RLA must organize across an entire
transportation system 9—often over
enormously wide geographic areas
including large numbers of people. This
requirement to organize system-wide
crafts or classes clearly serves the goal
of labor stability. See Charles Rhemus,
The National Mediation Board at Fifty,
16 (1985) (‘‘The system-wide bargaining
units * * * are essential to stability
and continuity of service in both
transportation modes.’’). Moreover, the
NMB requires a higher showing of
interest—more than 50 percent of the
craft or class—to challenge an
incumbent. This is contrasted with a 30
percent requirement at the National
Labor Relations Board (NLRB). The
Majority itself emphasizes the role of
this representation rule in maintaining
labor stability. In rejecting calls to
reduce the showing of interest
requirement, the Majority states: ‘‘[T]he
Board must also foster stability in
collective bargaining relationships to
maintain industrial peace.’’ The Majority
also states ‘‘[i]n the Board’s view,
maintaining the higher showing of
interest requirement for crafts or classes
that are already represented will prevent
the types of disruptions in
representation that several commenters
express concern about.’’ Thus, the
Majority is happy to acknowledge the
stabilizing role of representation
procedures when it suits its purposes,
but summarily dismisses it when it is
‘‘inconvenient.’’
Additionally, the Majority has missed
the point on several of the labor stability
arguments. In dismissing the labor
stability issue, the Majority focuses on
authorized work stoppages as the sole
source of instability. However, several
commenters expressed concerns that
unions without true majority support
will (1) have more difficulty ratifying
agreements made in collective
bargaining; (2) be more susceptible to
9 It is well settled that the Board applies the term
‘‘craft or class’’ under the RLA on a system-wide
basis. Delta Air Lines Global Servs., 28 NMB 456,
460 (2001); American Eagle Airlines, 28 NMB 371,
381 (2001); American Airlines, 19 NMB 113, 126
(1991); America West Airlines, Inc., 16 NMB 135,
141 (1989); Houston Belt & Terminal Railway, 2
NMB 226 (1952).
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organizing drives; 10 and (3) be unable to
prevent unauthorized work stoppages
by a membership that does not feel
allegiance to the certified
representative.11 The Majority did not
adequately address the disruptions to
the public, employees, unions, and
carriers caused by these specific issues,
even in the absence of an authorized
work stoppage. In particular, the rule’s
preamble is completely silent on
whether it would be more difficult for
a union without true majority support to
prevent unauthorized work stoppages.
This failure is clear evidence of the
arbitrary and capricious nature of this
rulemaking. See State Farm, 463 U.S. at
43 (‘‘Normally an agency rule would be
arbitrary and capricious if the agency
has * * * entirely failed to consider an
important aspect of the problem
* * *’’).
In summary, the Majority has not
provided a rational explanation for its
new rule, the timing of the rule change
or the rejection of the facts and
circumstances underlying the current
rule.
Decertification
My colleagues’ failure to seek
comment on or incorporate a
decertification provision is further
evidence that the Majority’s action is
biased and does not meet the APA’s
arbitrary and capricious standard. If the
Board is going to elevate the cause of
measuring employee intent above all
else in order to overturn its
longstanding election rules, those same
interests—as well as basic fairness—
dictate that the Board must give
employees a clear means of choosing
not to be represented. The Majority
dismisses arguments regarding
decertification, asserting only that the
current ‘‘procedure’’ is sufficient. Given
that the stated purpose of the rule
change is to ‘‘more accurately measure
employee choice,’’ the Majority’s
position on decertification strains
credulity. The most confusing and
10 The Majority states that the concerns about
union raiding are misplaced because the showing
of interest requirements will remain the same. This
ignores the fact that, regardless of the showing of
interest requirements, a weak union is more likely
to face organizing drives which, according to
several commenters, are in and of themselves
disruptive.
11 These commenters include, RAA, UP, TTX,
Watco, NRLC, Littler, ASC, and CAA. With regard
to work stoppages, the Majority cites a commenter’s
claim that a weak union is less likely to win a strike
vote for a union-approved work stoppage. The
Majority also cites the Board’s mediation function
as the Board’s primary protection against strikes.
These points totally ignore the question of a weak
union’s inability to prevent unauthorized work
stoppages. Neither a failed strike vote nor the
Board’s mediation function addresses this type of
interruption.
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obfuscatory practice in all of the Board’s
representation procedures is the Board’s
convoluted decertification process. This
process, not the current voting rule, is
clearly the biggest obstacle to employee
expression of choice under the RLA.
Under the current decertification
procedure, employees who no longer
wish to be represented by a union must
select an individual to stand for election
(the so-called ‘‘straw man’’), convince a
majority of the eligible voters in the
craft or class to sign authorization cards
for that individual (while attempting to
explain that this individual is not
actually going to represent them), and
then file an application with the Board.
If the requisite showing of interest is
met, an election is authorized, and the
employees must either vote for the
‘‘straw man,’’ with the hope that he will
later disclaim interest in representing
the craft or class, or abstain from
voting.12 The Majority not only ignores
the obvious burdens this process places
on employee free choice but also claims
the new rule will make this procedure
more direct by allowing employees to
vote ‘‘no union’’ in these circumstances.
To the contrary, adding the ‘‘no union’’
option to the ballot without removing
the straw man requirement will only
make the procedure more confusing.
Employees will be faced with a ballot
that has both the name of the straw man
and the ‘‘no union’’ option. Some
employees desiring ‘‘no union’’ will
think they should vote for the straw
man—since that is the name for whom
they signed an authorization card—and
some will vote for ‘‘no union.’’ Yet these
vote counts will not be consolidated in
favor of decertification—to the contrary,
the union will be decertified only if one
of these options receives a majority of
the votes cast—an outcome made less
likely by the Majority’s new rule.
The Majority’s insistence that the
current procedure is sufficient and its
refusal to request a full briefing on the
issue are mystifying. If my colleagues
are truly interested in protecting
employee free choice, they should
eliminate the straw man and give
employees a clear process for expressing
their choice for no representation. I can
only conclude that my colleagues do not
really desire to know employees’ true
intent when it comes to decertification.
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12 Incidentally,
the ‘‘straw man’’ also has to
explain to the voters that in this particular election,
a vote for the straw man is actually a vote ‘‘for
representation’’ and will effectively be considered a
vote for the incumbent if the incumbent receives a
majority of the votes cast. This problem would not
be solved under the new rule because, as discussed
later, without eliminating the straw man
requirement, the addition of a ‘‘no union’’ option on
the ballot will actually make things more confusing
for employees.
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Apparently, employee choice only
matters to the Majority when it relates
to changing the status quo from no
representation to representation and not
the other way around. This
unprincipled approach further
demonstrates that the rule change lacks
a rational basis and violates the APA.
The bias against allowing employees
to choose to be unrepresented also
violates the body of law surrounding the
right to choose to be unrepresented
under the RLA. There is no dispute that
employees have the right to reject a
bargaining representative. The
legislative history of the Act supports
this view. ABNE, 380 U.S. at 669 n. 5
(1965). In International Brotherhood of
Teamsters v. Brotherhood of Railway,
Airline & Steamship Clerks, 402 F.2d
196 (DC Cir. 1968) (BRAC), the court
rejected the contention that the Board’s
statutory authority is limited to
certifying unions. Citing ABNE, the
court stated:
[this] argument does not and cannot vault
over the hurdle erected by the Supreme
Court’s decision in [ABNE]. There the
Supreme Court indicated that employees
under the Railway Labor Act were to have
the option of rejecting collective
representation entirely. The decision
precludes a ruling that the board’s sole power
is to certify someone or group as an employee
representative, imposing on the carrier a duty
to treat with that representative. We think
that the Board has the power to certify to the
carrier that a particular group of employees
has no representative to carry on the
negotiations contemplated by the Railway
Labor Act, thereby relegating the carrier and
its employees to employment relationships
and contracts not presently governed by the
Railway Labor Act.
Id. at 202 (citation omitted). See also
Russell v. NMB, 714 F.2d 1332 (5th Cir.
1983).
Even my colleagues acknowledge that
employees have the right under the Act
to be unrepresented. Thus, I cannot
understand their unwillingness to
respond to the requests and comments
seeking a direct procedure for
employees to exercise that right.
Instead, the new rule, together with the
tortuous straw man decertification
process, creates a scheme under which
a union may be certified with far less
than majority support and yet
employees cannot decertify without
overcoming the confusion inherent in
the process and gathering authorization
cards from a majority of the eligible
voters—a requirement far more onerous
than was required to certify the union
in the first place.13 This imbalance
13 The Majority insists the showing of interest to
trigger a straw man decertification election must
remain at over 50 percent of eligible voters. In light
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creates a preference for representation
that infringes on the rights made clear
by the courts in their decisions in
ABNE, BRAC, and Russell.
Run-Off Procedures
Additional imbalance is created by
the Majority’s position on run-off
procedures in the wake of the rule
change. The Majority cites with
approval commenters who argue the
rule change is appropriate to conform to
procedures utilized by the NLRB ‘‘so all
employees under private-sector labor
law will be subject to uniform
representation election procedures.’’ In
adjusting the Board’s run-off
procedures, however, the Majority
rejects the NLRB’s approach. At the
NLRB, after an election conducted with
the ‘‘majority of votes cast’’ standard, if
no single ballot option receives a
majority of the votes cast, and the ‘‘no
union’’ option receives one of the two
highest numbers of votes, the run-off is
between the ‘‘no union’’ option and the
entity with the other highest number of
votes. Under the current NMB
procedures, if a majority of eligible
voters vote for representation, a run-off
election is held between the two unions
with the highest numbers of votes, and
the union receiving the majority of the
votes cast will be certified. Without the
certainty that a majority of eligible
voters desire representation, the Board
would not currently hold the run-off
between two unions. Under the new
rule, a ‘‘no union’’ option would be
added to the ballot for the initial
election, but if no ballot option receives
a majority of votes cast, the Majority
would allow a run-off election only
between the two organizations receiving
the highest number of votes. In the runoff election, there would never be a ‘‘no
union’’ option, and the union with the
majority of the votes cast would be
certified. This would be the case even
if the two organizations on the ballot
did not receive votes from a majority of
eligible voters in the initial election.
Thus, even though the new rule
removes the certainty in the initial
election that a majority of the craft or
class desires representation, the only
choice the employees will have in the
run-off election will be for
of the rule change allowing a union to be certified
on the basis of a majority of ballots cast, the
Majority should adjust the showing of interest
requirements for employees who desire to be
unrepresented. If, as the Majority suggests, the labor
stability rationale does not support keeping the
current election rule, the Majority should not be
able to argue it necessitates keeping the current
showing of interest requirements. The combination
of the rule change and the failure to adjust the
showing of interest places the rights of unions
ahead of the rights of employees.
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representation. Consider the example of
an election with 500 employees. On the
ballot are Union A, Union B and ‘‘no
union.’’ Union A receives 50 votes,
Union B receives 175 votes and ‘‘no
union’’ receives 200 votes. In spite of the
fact that ‘‘no union’’ received more votes
than Union A or B, and in spite of the
fact that fewer than half of the eligible
employees voted for representation, the
only choice the employees will have in
the run-off election will be between
Unions A and B. It is impossible to see
how this serves the Majority’s stated
goal of better measuring employee
intent. Moreover, it is perplexing that
the Majority would choose to follow the
analogy of the NLRB in changing the
voting rule and yet reject it in this
instance. As with its opportunistically
inconsistent positions in the areas of
showing of interest and decertification,
this is another example of the Majority
relying on justifications and analogies
when they support procedures that
facilitate representation and eschewing
them when they support an employee’s
right to be unrepresented.
Write In Option
The Majority’s discussion of election
interference remedies mentions that the
new ballot effectuating its rule change
will include a write-in option in
addition to the yes/no options. This
casual reference—made for the first time
near the end of the rule’s lengthy
preamble—is the only place the
Majority has indicated any intention to
add a write-in option to the yes/no
ballot. Neither the NLRB ballot nor the
NMB’s Laker ballot has a write-in
option. The NPRM did not raise the
possibility that the new ballot would
have a write-in option and thus differ
from the NLRB or Laker ballot. Not
surprisingly, therefore, none of the
commenters discussed the impact of
adding a write-in option to the yes/no
ballot. In fact, several commenters made
references to both the NLRB ballot and
the Laker ballot, demonstrating that
commenters believed the ballot would
have only yes/no options.
Because the Board neither sought nor
received comments on the write-in
option, we have had no opportunity to
hear or consider the possible
consequences of having both the yes/no
options and a write-in option on the
ballot. Assuming some voters will use
the write-in option, its inclusion could
affect the outcomes of elections under
the revised rule. Thus, it is a substantive
change that should have been aired in
the notice-and-comment process.
Including the write-in option on the
ballot without including it in the rule
text and without seeking comment on it
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16:21 May 10, 2010
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is a clear violation of the APA and
further evidence this rule is fatally
flawed. See Small Refiner Lead PhaseDown Task Force v. E.P.A. 705 F.2d 506,
549 (DC Cir. 1983) (‘‘Agency notice must
describe the range of alternatives being
considered with reasonable specificity.
Otherwise, interested parties will not
know what to comment on, and notice
will not lead to better-informed agency
decisionmaking.’’). Moreover, without
another round of notice and comment,
this rulemaking violates the ‘‘logical
outgrowth test’’ because ‘‘interested
parties could not reasonably have
‘anticipated the final rulemaking from
the draft [rule].’ ’’ American Water
Works Ass’n v. EPA, 40 F.3d 1266 (DC
Cir. 1994) (quoting Anne Arundel
County v. EPA, 963 F.2d 412, 418 (DC
Cir. 1992).
This APA violation is not cured by
the Majority’s claim that it is merely
maintaining the Board’s long-standing
practices of providing a write-in option
and counting write-in votes as votes for
representation. Both of these practices
are inextricably intertwined with other
elements of the current ballot and voting
procedures, such as the absence of a ‘‘no
union’’ option and the requirement that
a majority of eligible voters vote in favor
of representation. The decision to
change the latter features necessarily
calls into question the former. In light
of the fundamental transformation of the
Board’s ballot and voting procedures at
issue in this rulemaking, interested
parties could not have anticipated—and
did not anticipate—that the Majority
would add the write-in components to
its new framework.
In conclusion, the rule change my
colleagues are implementing is an
unprecedented departure for the NMB
and represents the most dramatic policy
shift in the history of the agency.
Against this backdrop, the Board should
have proceeded with the utmost caution
and relied only on the most settled and
profound need for making such a
change. Instead, the Majority has
engaged in a rulemaking process that is
procedurally and substantively flawed,
harmful to the agency, and lacks
sufficient justification.
Consequently, I strongly disagree with
its decision to make this change.
Chairman Elizabeth Dougherty.
This rule does not contain
information collection requirements that
require approval by the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
3507 et seq.).
Frm 00032
Fmt 4700
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The NMB certifies that this rule will
not have a significant impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.). The rule affects only
the Board’s election process and the
method used by the Board to determine
the outcome of a self-organization vote
by employees. The rule will not directly
affect any small entities as defined
under the Regulatory Flexibility Act.
National Environmental Policy Act
This rule will not have any significant
impact on the quality of the human
environment under the National
Environmental Policy Act (42 U.S.C.
4321 et seq.).
List of Subjects in 29 CFR Parts 1202
and 1206
Air carriers, Labor management
relations, Labor unions, Railroads.
■ Accordingly, for the reasons discussed
in the preamble, the NMB amends 29
CFR chapter X as follows:
PART 1202—RULES OF PROCEDURE
1. The authority citation for 29 CFR
part 1202 continues to read as follows:
■
Authority: 44 Stat. 577, as amended; 45
U.S.C. 151–163.
2. Section 1202.4 is revised to read as
follows:
■
§ 1202.4
Secret ballot.
In conducting such investigation, the
Board is authorized to take a secret
ballot of the employees involved, or to
utilize any other appropriate method of
ascertaining the names of their duly
designated and authorized
representatives in such manner as shall
insure the choice of representatives by
the employees without interference,
influence, or coercion exercised by the
carrier. Except in unusual or
extraordinary circumstances, in a secret
ballot the Board shall determine the
choice of representative based on the
majority of valid ballots cast.
PART 1206–HANDLING
REPRESENTATION DISPUTES UNDER
THE RAILWAY LABOR ACT
3. The authority citation for 29 CFR
part 1206 continues to read as follows:
■
Authority: 44 Stat. 577, as amended; 45
U.S.C. 151–163.
Paperwork Reduction Act
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Regulatory Flexibility Act
§ 1206.4
[Amended]
4. Amend § 1206.4(b)(1) by removing
the phrase ‘‘less than a majority of
eligible voters participated in the
election’’ and by adding in its place the
■
E:\FR\FM\11MYR1.SGM
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Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Rules and Regulations
phrase ‘‘less than a majority of valid
ballots cast were for representation.’’
Dated: May 5, 2010.
Mary Johnson,
General Counsel, National Mediation Board.
[FR Doc. 2010–11026 Filed 5–10–10; 8:45 am]
BILLING CODE 7550–01–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 363
Securities Held in TreasuryDirect
AGENCY: Bureau of the Public Debt,
Fiscal Service, Treasury.
ACTION: Final rule.
TreasuryDirect® is an
account-based, book-entry, online
system for purchasing, holding, and
conducting transactions in Treasury
securities. This final rule benefits
TreasuryDirect® customers by
simplifying the procedures for advance
scheduling of marketable Treasury
security purchases, enhancing the
process of scheduling reinvestments of
marketable Treasury securities, and
improving the procedures when the
proceeds of the maturing security are
insufficient to pay for a new security.
DATES: Effective Date: May 15, 2010.
ADDRESSES: You can download this
Final Rule at the following Internet
addresses: https://
www.publicdebt.treas.gov or https://
www.gpoaccess.gov/ecfr.
FOR FURTHER INFORMATION CONTACT:
Elisha Whipkey, Director, Division of
Program Administration, Office of Retail
Securities, Bureau of the Public Debt, at
(304) 480–6319 or
elisha.whipkey@bpd.treas.gov.
Susan Sharp, Attorney-Adviser, Dean
Adams, Assistant Chief Counsel,
Edward Gronseth, Deputy Chief
Counsel, Office of the Chief Counsel,
Bureau of the Public Debt, at (304) 480–
8692 or susan.sharp@bpd.treas.gov>.
SUPPLEMENTARY INFORMATION:
TreasuryDirect® is an online, accountbased system for individuals and
entities to purchase, hold, and conduct
transactions in eligible Treasury
securities. This final rule makes changes
to the procedures for purchasing and
reinvesting marketable Treasury
securities.
TreasuryDirect® currently allows a
customer to schedule a marketable
security purchase up to five years in
advance. Because the auction schedule
for marketable Treasury securities
cannot be predicted with certainty that
jlentini on DSKJ8SOYB1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
16:21 May 10, 2010
Jkt 220001
far in advance, some scheduled security
purchases must be canceled when no
matching security is available at that
time. This final rule limits the advance
scheduling of new purchases of
marketable securities. One day each
week, marketable securities that are
scheduled for auction within 8 weeks
will be made available on the
TreasuryDirect® Web site for scheduling
a purchase. These securities are the only
marketable securities available for
advance purchase. Marketable security
purchases scheduled before May 15,
2010, to take effect after July 9, 2010,
will be canceled.
Treasury is streamlining the
procedures for reinvesting marketable
Treasury securities purchased and held
in TreasuryDirect®. Prior to the effective
date of this rule, a customer was
required to take several steps to reinvest
a marketable security. First, the
customer had to determine the date that
the security matured, then direct that
the proceeds of the maturing security be
used to purchase a certificate of
indebtedness, and then schedule a new
purchase to coincide with the maturity
date of the original security, with the
payment for the new security being
made using the redemption proceeds of
the certificate of indebtedness. Any
purchase of a marketable security in
which the payment was made through
the redemption proceeds of the
customer’s certificate of indebtedness
was treated as a reinvestment. The new
procedure will streamline the
reinvestment process by permitting the
customer to schedule automatic
reinvestments without requiring the
customer to calculate dates and
schedule purchases. Reinvestments will
be limited at any one time to 25 times
for a 4-week bill, 7 times for a 13-week
bill, 3 times for a 26-week bill, and once
for all other marketable security types.
The customer can schedule a
reinvestment either at the time of
purchase or after the security is issued
into the account. However, the customer
cannot schedule, edit, or cancel a
reinvestment when the maturing
security goes into a closed book period,
or when a noncompetitive bid for the
replacement security is no longer
accepted, whichever comes first.
Because of the changes made to the
reinvestment process, any marketable
security purchase scheduled prior to the
effective date of this rule, and with an
effective issue date on or after the
effective date of this rule (except for
purchases scheduled to take effect after
July 9, 2010, which, as noted above, will
be canceled), will be treated as a new
purchase, even if the transaction would
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26089
have been treated as a reinvestment
prior to this rule.
In addition, the procedure is changing
whenever there are insufficient funds
from the maturing security to pay the
full purchase price of the replacement
security. Previously, in that event,
TreasuryDirect® would cancel the
transaction. This final rule provides
that, in the event that the proceeds of
the maturing security are insufficient to
pay the full purchase price of the
replacement security, the additional
amount will be paid by either debiting
the customer’s primary account at a
financial institution or by using the
redemption proceeds from the
customer’s certificate of indebtedness.
The source for the additional funds
depends on how the maturing security
was acquired. If the maturing security
was purchased within TreasuryDirect®
prior to the effective date of this rule, or
purchased after the effective date of this
rule and the source of the funds to
purchase the security was a debit from
a financial institution account, or if the
maturing security was received through
a transfer, then the customer’s primary
account at a financial institution will be
debited for the additional amount. If
there are insufficient funds in the
customer’s primary account at a
financial institution, the reinvestment
will be canceled. If the maturing
security was purchased after the
effective date of this rule using
redemption proceeds from the
customer’s certificate of indebtedness,
then a redemption from the customer’s
certificate of indebtedness will be made
for the additional funds. If the amount
available for redemption from the
certificate of indebtedness is insufficient
to pay the additional amount, the
reinvestment will be canceled.
Procedural Requirements
Executive Order 12866. This rule is
not a significant regulatory action
pursuant to Executive Order 12866.
Administrative Procedure Act (APA).
Because this rule relates to United
States securities, which are contracts
between Treasury and the owner of the
security, this rule falls within the
contract exception to the APA, 5 U.S.C.
553(a)(2). As a result, the notice, public
comment, and delayed effective date
provisions of the APA are inapplicable
to this rule.
Regulatory Flexibility Act. The
provisions of the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq., do not apply
to this rule because, pursuant to 5
U.S.C. 553(a)(2), it is not required to be
issued with notice and opportunity for
public comment.
E:\FR\FM\11MYR1.SGM
11MYR1
Agencies
[Federal Register Volume 75, Number 90 (Tuesday, May 11, 2010)]
[Rules and Regulations]
[Pages 26062-26089]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11026]
=======================================================================
-----------------------------------------------------------------------
NATIONAL MEDIATION BOARD
29 CFR Parts 1202 and 1206
[Docket No. C-6964]
RIN 3140-ZA00
Representation Election Procedure
AGENCY: National Mediation Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: As part of its ongoing efforts to further the statutory goals
of the Railway Labor Act, the National Mediation Board (NMB or Board)
is amending its Railway Labor Act rules to provide that, in
representation disputes, a majority of valid ballots cast will
determine the craft or class representative. This change to its
election procedures will provide a more reliable measure/indicator of
employee sentiment in representation disputes and provide employees
with clear choices in representation matters.
DATES: Effective Date: The final rule is effective June 10, 2010.
FOR FURTHER INFORMATION CONTACT: Mary Johnson, General Counsel,
National Mediation Board, 202-692-5050, infoline@nmb.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Under Section 2, Ninth of the Railway Labor Act (RLA or Act), it is
the duty of the National Mediation Board (NMB or Board) to investigate
representation disputes ``among a carrier's employees as to who are the
representatives of such employees * * * and to certify to both parties,
in writing * * * the name or names of the individuals or organizations
that have been designated and authorized to represent the employees
involved in the dispute, and certify the same to the carrier.'' 45
U.S.C. 152, Ninth. Upon receipt of the Board's certification, the
carrier is obligated to treat with the certified organization as the
employee's bargaining representative.
The RLA authorizes the NMB to hold a secret ballot election or
employ ``any other appropriate method'' to ascertain the identities of
duly designated employee representatives. Section 2, Ninth. The Board's
current policy requires that a majority of eligible voters in the craft
or class must cast valid ballots in favor of representation. This
policy is based on the Board's original construction of Section 2,
Fourth of the RLA, which provides that, ``[t]he majority of any craft
or class of employees shall have the right to determine who shall be
the representative of the craft or class * * *.'' 45 U.S.C. 152,
Fourth.
The language of Section 2, Fourth and Section 2, Ninth was added to
the RLA as part of the 1934 amendments and was directed at the
continuing problem of company unions. As the Supreme Court noted:
Experience had shown, before the amendment of 1934, that when
there was no dispute as to the organizations authorized to represent
the employees, and when there was willingness of the employer to
meet such representative for a discussion of their grievances,
amicable adjustment of differences had generally followed and
strikes had been avoided. On the other hand, a prolific source of
dispute had been the maintenance by the railroads of company unions
and the denial by railway management of the authority of
representatives chosen by their employees.
Virginian Ry. Co. v. System Fed'n No. 40, 300 U.S. 515, 545-546 (1937)
(citations omitted). The Report of the House Committee on Interstate
and Foreign Commerce on the 1934 amendments states that
[t]he Railway Labor Act of 1926, now in effect, provides that
representatives of the employees, for the purpose of collective
bargaining, shall be selected without interference, influence, or
coercion by railway management, but it does not provide the
machinery necessary to determine who are to be such representatives.
These rights of the employees under the present act are denied by
railway managements by their disputing the authority of the freely
chosen representatives of the employees to represent them. A
considerable number of railway managements maintain company unions,
under the control of the officers of the carriers, and pay the
salary of the employees' representatives, a practice that is clearly
contrary to the purpose of the present Railway Labor Act, but it is
difficult to prevent it because the act does not carry specific
language in respect to that matter.
H.R. Rep. No. 73-1944, at 1 (1934). Accordingly, the report notes that
``[m]achinery is provided for the taking of a secret ballot to enable
the Board of Mediation to determine what representatives the employees
desire to have negotiate for them with managements of the carriers in
matter affecting their wages and working conditions.'' Id.
The Board originally interpreted the language of Section 2, Fourth
as requiring a majority of all those eligible to vote to choose a
representative rather than a majority of the votes cast. As noted in
the Notice of Proposed Rulemaking (NPRM), however, this interpretation
of Section 2, Fourth, was reached ``not on the basis of legal opinion
and precedents, but on what seemed to the Board best from an
administration point of view.'' 1 NMB Ann. Rep. 19 (1935). That same
Board also noted, ``[w]here, however, the parties to a dispute agreed
among themselves that they would be bound by a majority of the votes
cast, the Board took the position that it would certify on this basis,
on the ground that the Board's duties in these cases are to settle
disputes among employees.'' Id. In 1947, United States Attorney General
Tom C. Clark, responding to a question from the NMB on its authority
under Section 2, Fourth, stated his opinion that
the National Mediation Board has the power to certify a
representative which receives a majority of the votes cast at an
election despite the fact that less than a majority of those
eligible to vote participated in the election. While the National
Mediation Board has this power, it need not exercise it
automatically upon finding that a majority of those participating
were in favor of a particular representative.
40 U.S. Op. Att'y Gen. 541, at 544-545 (1947).
On November 3, 2009, the NMB published a NPRM in the Federal
Register inviting public comments for 60 days on a proposal to amend
its RLA rules to provide that, in representation disputes, a majority
of ballots cast will determine the craft or class representative. 74 FR
56,750. In its NPRM, the Board stated its belief, based on the language
of the RLA, principles of statutory construction, and Supreme Court
precedent, that it has the authority to reasonably interpret Section 2,
Fourth to allow the Board to certify as collective bargaining
representative any organization which receives a majority of valid
ballots cast in an election. While acknowledging that it has reaffirmed
its policy of certifying a representative based on a majority of
eligible voters on several occasions since 1935, the Board noted that
this construction of Section 2, Fourth was adopted in an earlier era,
under circumstances that are different from those prevailing in the
rail and air industries today. Further, the Board noted that the
current election procedures provide no opportunity for
[[Page 26063]]
employees to cast a ballot against representation and presume that the
failure or refusal of an eligible voter to participate in an NMB-
conducted election to be the functional equivalent of a ``no union''
vote. Specifically, the Board proposed modifying its election
procedures to determine the craft or class representative by a majority
of valid ballots cast and provide employees with an opportunity to vote
``no'' or against union representation. Subsequently, the NMB published
a Notice of Meeting in the Federal Register inviting interested parties
to attend an open meeting with the Board to share their views on the
proposed rule changes regarding representation election procedures.
Meeting Notice, 74 FR 57,427 (Nov. 6, 2009).
II. Notice-and-Comment Period
In response to the NPRM, the NMB received 24,962 submissions during
the official comment period from a wide variety of individuals,
employees, air and rail carriers, trade and professional associations,
labor unions, Members of Congress, law firms, and others. (Comments may
be viewed at the NMB's Web site at https://www.nmb.gov) Additionally,
the NMB received written and oral comments from the 31 individuals and
representatives of constituent groups under the RLA that participated
in the December 7, 2009 open meeting.
Nearly 98 percent of the comments received in response to the NPRM
were either: (1) Very general statements; (2) personal anecdotes of
experience or participation in the NMB's election procedures; or (3)
identical or nearly identical ``form letters'' or ``postcards'' sent in
response to comment initiatives sponsored by various constituent groups
such as the International Association of Machinists (IAM) and the
Association of Flight Attendants (AFA). The remaining comments reflect
strongly held views for and against the NMB's proposed change. The NMB
has carefully considered all of the comments, analyses, and arguments
for and against the proposed change.
Although the Board is aware that the notice-and-comment period of
the Administrative Procedure Act (APA) is not a referendum, it notes
that the majority of the comments it received supported the proposed
change. In addition to agreeing with the Board's position that it has
the statutory authority to make this change and that the legislative
history of the RLA supports such a change, these commenters applauded
the NPRM as a positive change that would ensure that the majority of
those who vote in a representation election will determine the outcome
of that election. Many commenters in support of the NPRM noted that the
current rule is contrary to common standards of democracy where the
outcome of an election is determined by the majority of those who vote.
Because a number of employees will not participate in any election,
they argued, the current rule handicaps unions that must achieve what
amounts to a ``supermajority'' in order to secure representation. Some
commenters supporting the NPRM stated that the Board should follow the
procedures utilized by the National Labor Relations Board (NLRB) so all
employees under private-sector Federal labor law will be subject to
uniform representation election procedures. They argue that the
election procedures in NMB elections can be confusing to some employees
and frustrating to others who wish to vote against union representation
but have no way to do so. Congressman Glenn Nye and others state that
aviation and rail workers should not be subject to a more ``onerous
process'' than other workers when deciding whether to seek union
representation. Other commenters in favor of the NPRM argue that there
has been a decrease in union organizing and this change will help
reverse that trend. A number of political scientists stated that ``the
proposed rule change represents a shift from long-established practice,
but it is a shift long overdue. Since 1935, when the [original
procedure] was adopted, electoral technology has improved and our
perspective on good electoral practice progressed. The old rule
reflects the thinking of an earlier era; the proposed change is
consistent with the current state of our knowledge and understanding.''
\1\ Some of the arguments in favor of the NPRM will be discussed in
greater detail in the discussion that follows; however, the preamble
will focus on the Board's response to the substantive arguments raised
by those opposed to the NPRM.
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\1\ Professors Margaret Levi, Elinor Ostrom, Robert Keohane,
Robert Putnam, Peter Katzenstein, Henry Brady, Dianne Pinderhughes,
Kent Jennings, Ira Katznelson, and Theda Skocpol submitted a comment
in support of the NPRM.
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III. Summary of Comments on the NMB's Proposed Change To its Election
Procedures
While the NPRM only concerns one aspect of the Board's election
procedures, namely the Board's interpretation of Section 2, Fourth in
determining how best to ascertain the clear, uncoerced choice of a
bargaining representative, if any, by the affected employees, the
commenters expressed widely divergent views of the proposed change and
the Board's deliberation and process in formulating the NPRM. The major
comments received and the Board's response to those comments are as
follows.
A. Motions for Disqualification
Following the close of the comment period under the NPRM, by letter
dated January 8, 2010, ATA \2\ requested that Board Members Harry
Hoglander and Linda Puchala disqualify themselves from further
participation in the rulemaking because the ``available facts give the
appearance that Members Hoglander and Puchala have prejudged the
specific issues.'' On January 15, 2010, Right to Work also filed a
motion requesting the disqualification of Members Hoglander and
Puchala. After careful review of the arguments presented, there is no
basis for either Member Hoglander's or Member Puchala's recusal or
disqualification from the rulemaking. Rulemaking requires a decision
maker to choose between competing priorities in proposing a rule. The
subject matter of a rulemaking--and this one is no exception--is often
controversial. Prejudgment and/or bias is not established by the mere
fact, however, that a proposal is controversial or that the decision
maker brings his or her own beliefs, philosophy and experience to bear
when choosing between two competing interests to propose a policy
course. As discussed below, ATA and Right to Work have failed to
establish ``a clear and convincing showing that [an agency member] has
an unalterably closed mind on matters critical to the disposition of
the rulemaking.'' Ass'n of Nat'l Adver. v. Fed. Trade Comm'n, 627 F2d
1151, 1154 (DC Cir. 1979).
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\2\ ATA members American Airlines, Continental Airlines,
Southwest Airlines, United Airlines, UPS Airlines, and US Airways
did not join in this motion.
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ATA and Right to Work each contend \3\ that ``[p]ublicly available
facts give the appearance that Members Hoglander and Puchala have
predetermined the issues raised by the November 3 NPRM.'' Neither ATA
nor Right to Work, however, cites any statements by either Member
Hoglander or Member Puchala concerning the subject matter of the NPRM
as the basis for their assertion. Instead, they rely on the following
as evidence of bias and prejudgment:
---------------------------------------------------------------------------
\3\ Both motions may be viewed at the NMB's Web site at https://www.nmb.gov.
(1) An alleged inadequacy of the Board's process for proposing
changes to its election procedure rules, by publishing an NPRM in
the Federal Register with a 60-day comment
[[Page 26064]]
period and holding an open public meeting rather than a hearing
similar to the one held in Chamber of Commerce, 14 NMB 347 (1987);
(2) Chairman Dougherty's November 2, 2009 letter to Republican
United States Senators McConnell, Isakson, Roberts, Coburn, Gregg,
Enzi, Hatch, Alexander, and Burr in which she asserted that she was
excluded from drafting of the NPRM and excluded from discussions
regarding the timing of the NPRM;
(3) Inferences drawn from the timing of the NPRM and
representation disputes in several large crafts or classes of
employees at the post-merger Delta Air Lines. ATA and Right to Work
also rely on statements by Association of Flight Attendants-CWA
(AFA) President Patricia Friend during an August 24, 2009 \4\
interview on the Union Edge Talk Radio Show regarding the Board's
composition and election rules and AFA's application regarding the
Flight Attendant craft or class at Delta; and
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\4\ ATA's motion cites the original broadcast date of the
interview as August 25, 2009, however, a search of the archives at
https://theunionedge.com reveals the broadcast date to be August 24,
2009.
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(4) The leadership positions that Members Hoglander and Puchala
previously held with the Air Line Pilots Association (ALPA) and the
AFA, respectively.
It cannot be questioned that parties to an administrative proceeding
have a right to a fair and open proceeding before an unbiased decision
maker. In their motions, ATA and Right to Work challenge both the
adequacy and fairness of the procedure chosen by the Board majority to
propose a change to the election rules and the Board majority's
impartiality as decision makers. As discussed below, the Board majority
finds that there is no merit to either challenge.
With regard to the procedure chosen by the Board majority, ATA and
Right to Work characterize informal rulemaking under the APA as a
flawed process with an inadequate comment period that did not provide
for a thorough evidentiary hearing that included the taking of
testimony under oath and the cross-examination of witnesses. By
utilizing the notice-and-comment procedures of informal rulemaking
under the APA, however, the Board followed an open administrative
process and interested persons were given an adequate comment period
\5\ as well as access to all meeting testimony and comments received. 5
U.S.C. 553(c). Under the APA, the trial-like hearing advocated by ATA
and Right to Work is required only when an agency engages in formal
rulemaking. Formal rulemaking, however, is used when an agency's rules
are required by statute ``to be made on the record after opportunity
for an agency hearing.'' Id. The RLA contains no such provision and
such formal procedures have long been disfavored when not required by
statute. See, e.g., Vermont Yankee Nuclear Power Corp. v. Natural Res.
Def. Council, 435 U.S. 519 (1978).
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\5\ Executive Order 12,866 states that ``each agency should
afford the public a meaningful opportunity to comment on any
proposed regulation, which in most cases should include a comment
period of not less than 60 days.'' Exec. Order No. 12,866, 58 FR
51,735 (1993).
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ATA and Right to Work also assert that there is evidence of bias in
the Agency's failure to follow a procedure similar to that used in
Chamber of Commerce, 14 NMB 347 (1987), and to conduct an evidentiary
hearing to consider whether to change its election rules. See also In
re Chamber of Commerce, 12 NMB 326 (1985) (notice of hearing). In that
case, the Board chose to not follow the APA procedures described above
because it had not yet decided whether to initiate the rulemaking
process in response to the United States Chamber of Commerce's
(Chamber) petition to amend the Board's rules. In its decision on the
format of the proceeding with regard to those petitions, the Board
stated that ``5 U.S.C. 553 refers to the actual rule-making process, a
process which the Board has not initiated at this time, should it ever
do so.'' In re Chamber of Commerce, 13 NMB 90, 93 (1986). The Board
further stated that, ``in making its determination of whether or not to
propose amendments to its rules, [the NMB] has the discretion to
conduct the procedures preliminary to that determination in any manner
which it finds to be appropriate.'' Id. at 94 (emphasis added). Thus,
the Board has in no way bound itself to the procedures it chose to
follow in the Chamber of Commerce case. Further, in the Board's recent
decision in Delta Air Lines, Inc., 35 NMB 129, 132 (2008), it stated
that it would not make a change to its election procedures ``without
first engaging in a complete and open administrative process to
consider the matter.'' Contrary to the assertions of ATA and Right to
Work, in deciding to adopt this change through the informal rulemaking
provisions of the APA, the Board has followed the appropriate procedure
that provided for public participation, for fairness to the affected
parties, and for the agency to have before it information relevant to
the particular administrative problem. MCI Telecommunications Corp. v.
Fed. Commc'n Comm'n, 57 F.3d 1136, 1141 (DC Cir. 1995).
With regard to the impartiality of Members Hoglander and Puchala as
agency decision makers, ATA and Right to Work contend that the facts
show that they have prejudged the issues and should be disqualified
from further participation. In National Advertisers, 627 F.2d at 1154,
the court found that disqualification of a decision maker in a
rulemaking proceeding is required ``only when there is a clear and
convincing showing that [an agency member] has an unalterably closed
mind on matters critical to the disposition of rulemaking.'' In
reaching this decision, the court rejected the contention that the
standard used to disqualify a decision maker in an adjudicatory
hearing, namely whether ``a disinterested observer may conclude that
the [decision maker] has in some measure adjudged the facts as well as
the law of a particular case in advance of hearing it,'' because of the
fundamental differences between the nature of adjudicatory proceedings
and the nature of rulemaking proceedings. Id. at 1168 (citing
Cinderella Career & Finishing Sch., Inc. v. Fed. Trade Comm'n, 425 F.2d
583, 591 (DC Cir. 1970)). The court noted that:
The object of the rule making proceeding is the implementation
or prescription of law or policy for the future, rather than the
evaluation of a respondent's past conduct. Typically, the issues
relate not to the evidentiary facts, as to which the veracity and
demeanor of witnesses would often be important, but rather to the
policy-making conclusions to be drawn from the facts * * *.
Conversely, adjudication is concerned with the determination of past
and present rights and liabilities. Normally there is involved a
decision as to whether past conduct was unlawful, so that the
proceeding is characterized by an accusatory flavor and may result
in disciplinary action.
Id. at 1160 (quoting Attorney General's Manual on the Administrative
Procedure Act 14 (1947)).
Because the object of rulemaking is the implementation of law or
policy to the future, the agency decision maker functions like a
legislator when participating in rulemaking. The administrator is
expected to bring his or her views and insights to bear on the issues
confronting the agency. In requiring ``compelling proof'' that an
administrator is unable to carry out his or her duties in a
constitutionally permissible manner to compel disqualification, the
court stated that:
[t]he requirements of due process clearly recognize the necessity
for rulemakers to formulate policy in a manner similar to
legislative action * * *. We would eviscerate the proper evolution
of policymaking were we to disqualify every administrator who has
opinions on the correct course of his agency's future action.''
Id. at 1174. For example, in National Advertisers, 627 F.2d at 1154,
the court determined that the Chairman of the
[[Page 26065]]
Federal Trade Commission (FTC or Commission) was not disqualified from
participating in rulemaking proposing restrictions on advertising
directed at children despite public comments in which he (1) asserted
that children could not distinguish between advertising and other forms
of communication; (2) cited Supreme Court precedent giving the
Commission great discretion in declaring unfair trade practices; and
(3) discussed the negative effects of advertising on children. The
court concluded that these statements were a discussion of a legal
theory by which the Commission could adopt a rule if circumstances
warranted and did not demonstrate the Chairman's unwillingness or
inability to consider opposing arguments.
As noted above, ATA and Right to Work do not rely on any statements
by either Member Hoglander or Member Puchala to establish bias and
prejudgment. They rely only on statements in an interview given by
Patricia Friend, President of AFA; the opinion of Chairman Dougherty
expressed in a letter to U.S. Senators; and inferences drawn by ATA and
Right to Work from the timing of the NPRM and the Board Members'
biographies. These statements, opinions, and inferences are
insufficient to compel either recusal or disqualification. The
transcript of Ms. Friend's interview states in relevant part:
Host: And we were talking just very briefly about the new member
that has been appointed to the NMB, Linda Puchala and President
Friend can you tell us a little bit about her and what her
background is?
Pat Friend: Yes, Linda was--I think I mentioned this just before
the break--she was from--if I get my dates right, from like 1979 to
1986 the President of the Association of Flight Attendants. So we've
known her for a long time and then for the past five or six years
she actually has worked at the National Mediation Board specifically
doing some mediation, but mostly running the alternate dispute
resolution part of the Board. Linda is in my experience, is about
one of the best consensus builders that I've ever met so we were
just thrilled that we were able to get her nominated and confirmed
and to do it in really a timely fashion, you know, I can't take
credit, full credit for this, because we had lots of help with in
the labor movement and within the Obama administration, but for a
second tier agency which the National Mediation Board is, to get a
member nominated and confirmed before July was really an outstanding
effort. There was a lot of people working on it and--but, it was
very, very important to us that we have a properly, sort of fair,
board in place before this election between the Northwest and the
Delta Flight attendants takes place.
Exhibit A, p. 6 January 4, 2010 Written Comment in response to NPRM
from Delta Airlines. These statements have no bearing on whether or not
Member Puchala has a closed mind with regard to the NPRM. Ms. Friend's
statement establishes only her desire for a fair administrative process
and her support for Member Puchala's appointment, describing Member
Puchala as a ``consensus builder.'' She is not advocating that the
Board make specific changes to its procedures. Further, Ms. Friend was
not alone in making public statements in support of Member Puchala. In
a May 5, 2009, Business Review article, ``Delta backs Obama's labor
board nominee,'' Mike Campbell, Delta executive vice president of human
resources and labor relations, stated ``Ms. Puchala has years of
valuable experience, including time with the NMB. She enjoys broad
support among the airline industry and labor community. We look forward
to her confirmation to become a member of the NMB.'' In that same
interview, Campbell also stated, ``It is equally important to our
employees to quickly resolve representation for those workgroups in
which representation remains unresolved. To that end, we urge the
Senate to confirm Linda Puchala as soon as possible.''
ATA and Right to Work also rely on the differing opinions among the
Board Members as to whether and how to consider amending the Board's
election procedures. As Chairman Dougherty's dissent to the NPRM makes
clear, she advocated a different approach to the Board's consideration
of amending the election rules. The Board majority, however, followed
the mandates of the APA in considering, drafting, adopting, and
promulgating the NPRM. The APA requires that a NPRM must include the
following: ``(1) A statement of the time, place, and nature of public
rulemaking proceedings; (2) reference to the legal authority under
which the rule is proposed; and (3) either the terms or substance of
the proposed rule or a description of the subjects and issues
involved.'' 5 U.S.C. 553(b). The November 3, 2009 NPRM met these
requirements. To the extent that ATA and Right to Work question the
Board majority's deliberative process, the Board notes that this
process is an internal agency matter and outside the scope of the
rulemaking proceedings.
It is clear that the Chairman disagreed with her colleagues on both
whether any change to the current voting procedures is necessary and
how such a change should be proposed. However, the Chairman's
dissenting views were published in the Federal Register with the NPRM
and have been incorporated in many comments opposed to the NPRM. Her
admittedly different policy view as a dissenting member does not
establish that Members Hoglander and Puchala were not free, in theory
and in reality, to change their mind upon consideration of the
presentations and comments made by those who would be affected. As the
court in National Advertisers, recognized:
An administrator's presence within an agency reflects the
political judgment of the President and Senate. As Judge Prettyman
of this court aptly noted, a ``Commission's view of what is best in
the public interest may change from time to time. Commissions
themselves change, underlying philosophies differ, and experience
often dictates changes.''
627 F.2d 1151, 1174 (quoting Pinellas Broadcasting Co. v. Fed. Commc'n
Comm'n, 230 F.2d 204, 206 (DC Cir. 1956), cert. denied. 350 U.S. 1107
(1956)).
ATA and Right to Work infer some bias because of the existence of
representation disputes among employees at Delta. As discussed more
fully below in Section III.C., the Board, however, has continued to
carry out all its obligations in representation matters including
investigating representation disputes, holding elections and certifying
the results of those elections during the rulemaking process. Under
Section 2, Ninth of the RLA, neither the Board nor carriers may
initiate a representation proceeding because ``Congress left no
ambiguity in Section 2, Ninth: the Board may investigate a
representation dispute only upon request of the employees involved in
the dispute.'' Ry. Labor Executives' Ass'n v. NMB, 29 F.3d 655, 664 (DC
Cir. 1994) (emphasis in original) (deciding the narrow issue of who can
initiate a representation dispute under Section 2, Ninth). Therefore,
the timing of when employees or their representatives file applications
or withdraw those applications is not within the control of the Board.
Right to Work also contends that an inference of bias and
prejudgment should be drawn from the fact that Members Hoglander and
Puchala previously held leadership positions in unions. This contention
has no merit. An administrative official is presumed to be objective
and ``capable of judging a particular controversy fairly on the basis
of its own circumstances.'' United States v. Morgan, 313 U.S. 409, 421
(1941). Whether the official is engaged in adjudication or rulemaking,
the mere proof that he or she has taken a public position, expressed
strong views or holds an underlying philosophy with respect an issue in
dispute cannot overcome that presumption. Hortonville
[[Page 26066]]
Joint Sch. Dist. No. 1 v. Hortonville Educ. Ass'n, 426 U.S. 482 (1976).
See also C & W Fish Co. v. Fox, 931 F.2d 1556, 1564-1565 (DC Cir. 1991)
(finding no clear and convincing evidence of an unalterably closed mind
where immediately prior to appointment to position where he adopted a
drift gillnet ban, agency decision maker had served as chairman of the
Florida Marine Fisheries Commission, was an outspoken advocate of
banning drift gillnets, and publicly stated that ``this kind of gear
[i.e., drift gillnets] should be eliminated.''). Thus, while the prior
union positions held by Members Hoglander and Puchala may evince an
underlying philosophy, it is hardly clear and convincing evidence of an
unalterably closed mind.
ATA and Right to work have presented no evidence, let alone clear
and convincing evidence, that establishes that either Member Hog lander
or Member Puchala are unwilling to appropriately consider comments on
the proposed rule or possess an unalterably closed mind on the issues
in the NPRM. Accordingly, neither recusal nor disqualification is
necessary.
B. Process Leading to the NPRM
In the oral and written statements received at the December 7, 2009
meeting and in written comments submitted pursuant to the NPRM,
commenters including Delta Airlines, Inc. (Delta), the Air Transport
Association (ATA),\6\ the Regional Airline Association (RAA), the
Airline Industrial Relations Conference (Air-Con), the National Railway
Labor Conference (NRLC), the labor and employment law firm of Littler
Mendelson, P.C. (Littler), the National Air Transportation
Association's Airline Services Council (ASC), Claude Sullivan, an RLA
practitioner, the National Right to Work Legal Defense Foundation,
Inc., (Right to Work)), Regional Air Cargo Carriers Association
(RACCA), Bombardier Aerospace/Flexjet (Flexjet) and some Members of
Congress suggest that, by proceeding with the NPRM, the Board has
compromised its neutrality and surrendered the integrity necessary to
carry out its representation duties under the Act. These commenters
rely on statements in an August 2009 interview given by AFA president
Patricia Friend, the withdrawal of pending applications involving
employees at Delta by the IAM and AFA around the time of the
publication of the NPRM, and two letters from Chairman Dougherty to
United States Senators Johnny Isakson, Bob Corker, Jim Bunning, Robert
Bennett, Saxby Chambliss, George Voinovich and Orrin Hatch as support
for their belief that the Board's actions leading up to the NPRM were
inadequate and improper. The commenters suggest that the Chairman's
correspondence indicates that the Board majority acted with undue haste
and followed an inadequate internal process in deciding to proceed with
the NPRM. Other commenters, including a number of Republican Members of
the United States House of Representatives,\7\ simply characterized the
NPRM as ``a politically motivated decision that tilts airline and rail
representation elections in the favor of organized labor. This decision
is too important to be decided by two appointed and unelected Democrats
who have chosen to ignore legal and policy precedents that have
governed representation rules for airline and rail employees for more
than 75 years.''
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\6\ ATA is the principal trade and service organization of the
Unites States' scheduled airline industry. The following members of
the ATA did not join in the written statement submitted at the
December 7 open meeting: Continental Airlines, Inc., and American
Airlines, Inc. In addition, ATA member Southwest Airlines, which is
neutral on the NPRM, filed a separate comment. Southwest's position
is discussed in detail later in this document.
\7\ A comment opposed to the proposed change was submitted by
Representatives Nathan Deal, Roy Blunt, Paul C. Broun, Gregg Harper,
John A. Boehner, John K. Kline, Lynn A. Westmorland, Jack Kingston,
Bob Goodlatte, Gary Miller, Pete Sessions, John Campbell, John
Linder, Doug Lamborn, Jean Schmidt, Vern Buchanan, Joe Wilson, Sue
Myrick, Mike Rogers, Rob Bishop, Bob Inglis, Dean Heller, Harold
Rogers, Phil Gingrey, Devin Nunes, Wally Herger, Eric Cantor, Kevin
McCarthy, and Jason Chaffetz.
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The Board disagrees with those comments that assert that it has
abandoned its neutrality at any point during this rulemaking. The Board
majority followed the mandates of the APA in considering, drafting,
adopting, and promulgating the NPRM. The APA requires that a NPRM must
include the following: ``(1) A statement of the time, place, and nature
of public rulemaking proceedings; (2) reference to the legal authority
under which the rule is proposed; and (3) either the terms or substance
of the proposed rule or a description of the subjects and issues
involved.'' 5 U.S.C. 553(b). The November 3, 2009 NPRM met these
requirements. To the extent that the dissent and other commenters
question the Board majority's deliberative process, the Board notes
that this process is an internal agency matter and outside the scope of
the rulemaking proceedings. In the NPRM, the Board majority expressed a
view that a change should be proposed and Chairman Dougherty disagreed.
Both views, however, were expressed in the NPRM and have served as a
basis for comment.
Some Members of Congress suggest that the proposed change to the
election procedure is too important to be entrusted to the appointed
members of the NMB. For the following reasons, the Board disagrees.
First, in the NPRM, the Board is proposing a change to its own
interpretation of the RLA. Thus, the ``legal and policy precedents'' at
issue are the Board's own determinations. It is without doubt that an
agency is free to change its interpretations and its policies so long
as the new policy or interpretation is permissible under the statute,
there are good reasons for it, and the agency believes it to be better.
Fed. Commc'n Comm'n v. Fox Television Stations, 129 S. Ct. 1880, 1811
(2009). Second, there are safeguards applicable to the Board's actions.
While it is true that the Board Members are not elected officials
subject to recall, they are subject to confirmation by the Senate and
have limited terms. Third, acting pursuant to the notice-and-comment
procedures of informal rulemaking under the APA, the Board followed an
open administrative process and interested persons were given an
adequate comment period as well as access to all meeting testimony and
comments received. 5 U.S.C. 553(c).\8\ Fourth, under the APA, any final
rule promulgated by the Board is subject to judicial review.
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\8\ Under the APA, a trial-like hearing where parties can submit
evidence and cross examine witnesses, advocated by some commenters,
is only required when an agency engages in formal rulemaking. Formal
rulemaking, however, has long been disfavored where not required by
statute. The RLA does not require formal rulemaking. As the Supreme
Court noted in Vermont Yankee, 435 U.S.at 547, a standard of review
that would cause agencies to engage in formal rulemaking in all
instances would lead to a loss of ``all of the inherent advantages
of informal rulemaking.''
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C. NPRM's Effect on Processing of Representation Cases
Many of the commenters who suggested that the Board followed
improper procedures in formulating the NPRM also suggest, as noted
above, that the NPRM has adversely affected the neutrality and
integrity of the Board's representation case processing. Delta, in
particular, states that it and its employees have been ``singled out
for discriminatory treatment'' as a result of the NPRM since
``[r]epresentation cases at other carriers filed in the summer of 2009
have proceeded to resolution under the existing rules; only those at
Delta have been delayed, and then withdrawn, to await the new rules.''
Contrary to these comments, the Board has continued to carry out all
its
[[Page 26067]]
obligations in representation matters including investigating
representation disputes, holding elections and certifying the results
of those elections during the rulemaking process. The Board has also
followed its standard procedures with respect to the matters involving
IAM, AFA, and Delta.
The decision to initiate a representation proceeding is not within
the Board's control. As the United States Court of Appeals for the
District of Columbia Circuit stated ``Congress left no ambiguity in
Section 2, Ninth: the Board may investigate a representation dispute
only upon request of the employees involved in the dispute.'' Ry. Labor
Executives' Ass'n, 29 F.3d at 664 (emphasis in original). On July 29,
2009, AFA filed an application with the Board alleging that Delta and
Northwest Air Lines (Northwest) constituted a single carrier for
representation purposes with respect to employees in the Flight
Attendants craft or class. On August 13, 2009, IAM filed three separate
applications alleging that Delta and Northwest constituted a single
carrier for representations purposes with respect to employees in the
crafts or classes of Plant Guards, Simulator Technicians, and Fleet
Service. Consistent with the Board's standard practice, each of these
applications was assigned a ``CR'' file number and was not docketed as
an ``R'' case.\9\
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\9\ Applications invoking the Board's services in representation
disputes are docketed as ``R'' cases. ``CR'' numbers are assigned to
applications requiring pre-docketing investigation, such as craft or
class, system, jurisdiction, or other appropriate issues.
Memorandum: NMB Policy for the Assignment/Conversion of ``CR'' files
and ``R'' Case Dockets, 7 NMB 131 (1979). Once the pre-docketing
investigation is complete, the case will be docketed as an ``R''
case for resolution pursuant to an election.
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Chairman Dougherty's October 28, 2009, letter, relied on by Delta
and others, expresses her view of the relationship between the Board's
policy on the use of hyperlinks and AFA's then-pending application
regarding the Flight Attendants craft or class at Delta. In particular,
this letter reflects the Chairman's disagreement with her colleagues
over their conclusion that the Board's hyperlink policy was an issue
intertwined with the pre-docketing investigation of AFA's application.
In a notice dated February 28, 2008, the Board stated that it had
decided to remove the hyperlink to the voting Web site from the
Agency's Web site as a precautionary measure ``to prevent any outside
party from possibly tracking the IP address of persons who visit the
voting Web site.'' Removal of Internet Voting Hyperlink on Board's Web
site, 35 NMB 92 (2008). Noting that the Board may view use of
hyperlinks as possible evidence of election interference, the Board
requested that participants in representation elections not post a
hyperlink to the Board's voting Web site. Id. Subsequently, the use of
hyperlinks to the Board's voting Web site in campaign materials became
an issue in a 2008 representation election among Delta's flight
attendants. Delta raised concerns about potential interference after a
hyperlink to the Board's voting Web site was included in e-mails from
an AFA organizer to flight attendant employees. In a determination, the
Board noted its policy regarding hyperlinks and while acknowledging
that the ``hyperlink in this instance was included in an email rather
than on a Web site,'' it reiterated its statement that ``the Board may
consider hyperlinks to the voting Web site as possible evidence of
election interference.'' Notice Re: Carrier and Union Conduct, 35 NMB
158 (2008). On July 22, 2009, several days before it filed its
application, AFA requested the Board to reconsider its hyperlink policy
``because of anticipated representation elections at Delta Airlines.''
In the view of the Board majority, the issue of the use of hyperlinks
in representation elections had to be resolved before the Board could
move forward with the investigation of AFA's application.
Shortly before the publication of the NPRM, IAM sought withdrawal
of its Fleet Service application. Shortly after the publication of the
NPRM, AFA sought withdrawal of its Flight Attendant application.
Similar to the decision to initiate representation proceedings, the
decision whether to withdraw an application rests solely with the
organization that filed the application. Upon receipt of those
requests, again pursuant to its standard procedure, the Board granted
the respective withdrawals. While the NMB's bar rules at 29 CFR
1206.4(b)(3) provide for a one-year bar where a ``docketed
application'' has been dismissed based on a withdrawal of the
application, no bar applies where the application was assigned a CR
file number and not ``docketed'' in the well-established sense of the
term by conversion to an ``R'' case. US Airways, Inc., 27 NMB 565
(2000); Trans World Airlines/Ozark Airlines, 14 NMB 343 (1987). The IAM
application with respect to Plant Guards remains under investigation.
The Board issued its single carrier determination with respect to the
Simulator Technician craft or class on December 23, 2009, converted the
application to an ``R'' case, and authorized a representation election
in the Simulator Technician craft or class at Delta on January 11, 2010
with a tally held on February 25, 2010.
D. The Board's Statutory Authority for the Proposed Change
Almost all of the comments received in opposition to the NPRM
question whether the NMB possesses the statutory authority to make the
proposed change to its election rules. For example, Delta cites ``plain
language'' of Section 2, Fourth and Section 2, Ninth for the
proposition that the choice of representative must be made by a
``majority'' of employees in the craft or class, and states that the
Supreme Court has approved the Board's long-standing interpretation
that ``majority'' is a majority of eligible voters rather than a
majority of ballots cast. Several commenters opposed to the NPRM state
that language of Section 2, Fourth which provides that ``[t]he majority
of the craft or class of employees shall have the right to determine
who shall be the representative of the craft or class of employees for
the purposes of this chapter,'' is a clear statutory mandate that the
Board must certify a representative on the basis of the majority of
eligible voters.
In contrast, those comments supporting the NPRM asserted that the
Board has clear statutory authority and discretion to adopt the
proposed change to its election process. For example, the TTD states
that ``[t]he language of the RLA itself dictates no particular
procedure to determine the majority will, much less the election
procedure currently followed by the Board.'' The TTD, IAM, AFA, and
others note that during the Board's history it has used a variety of
methods to resolve representation disputes, exercising its discretion
as circumstances warranted.
The commenters who question the Board's statutory authority
essentially contend that the language of Section 2, Fourth is
unambiguous and compels the NMB to certify representatives as it does
under its existing procedures: when a majority of eligible voters in
the craft or class cast vote in favor of representation. Thus, these
commenters contend that ``majority of any craft or class of employees''
must only be interpreted to mean the majority of all eligible voters.
Having reviewed these comments, the NMB, however, is not persuaded and
continues to believe that the language of the statute is ambiguous and
that the proposed change--to certify a representative on the basis of a
majority of valid ballots cast--is within the Board's statutory
authority and discretion under the RLA. As noted in the NPRM, the Board
believes that
[[Page 26068]]
under its broad statutory authority it may reasonably interpret Section
2, Fourth to certify a representative based on a majority of ballots
cast.
As noted by many comments both opposing and supporting the NMB's
proposed change, the language of Section 2, Fourth was taken from a
rule announced by the NMB's precursor, United States Railroad Labor
Board (Railroad Board), under the Transportation Act of 1920. Virginian
Ry., 300 U.S. at 561. These Railroad Board decisions submitted as part
of the IAM's comment on the NPRM lend support to the NMB's proposed
change. In Decision No. 119, International Ass'n of Machinists et al.
v. Atchison, Topeka & Santa Fe Ry. et al., 2 Dec. U.S. Railroad Board,
87, 96, par. 15, the Railroad Board held that ``[t]he majority of any
craft or class of employees shall have the right to determine what
organization shall represent members of such craft or class.'' This
rule was interpreted by the Railroad Board in Decision No. 1971,
Brotherhood of Railway & Steamship Clerks v. Southern Pacific Lines, 4
Dec. U.S. Railroad Labor Board 625, 629:
The Board had previously in principle 15 of Decision No. 119
ruled that ``the majority of any craft or class of employees shall
have the right to determine what organization shall represent
members of such craft or class'' in negotiating agreements.
The purpose of the Railroad Labor Board was to give all the
employees to be affected the privilege of expressing their choice.
The board could not force any employee nor all of the employees to
vote. It could only give all a fair opportunity. It was obviously
the meaning and the purpose of the board that a majority of the
votes properly cast and counted in an election properly held should
determine the will and choice of the class * * *.
Decision--The Railroad Labor Board decides that a majority of
the legal votes cast in this election will determine who shall be
the representatives of the employees.
The legislative history of Section 2, Fourth also supports the
NMB's position that such an interpretation is not contrary to either
the language of the RLA. The report of the Senate Committee on
Interstate and Foreign Commerce on the 1934 amendments, states ``[t]he
bill specifically provides that the choice of representatives of any
craft of craft shall be determined by a majority of the employees
voting on the question.'' S. Rep. No. 73-1065, at 2 (1934).
In his comment opposing the NPRM, Rep. Darrell Issa also reminds
the Board that under the tenets of statutory construction, ``it is
assumed that Congress expresses its intent through the ordinary meaning
of its language. * * * [and] where the meaning of the relevant
statutory language is clear, then no further inquiry is required.'' In
the instant case, as discussed above, the Board believes that the
language of Section 2, Fourth is open to interpretation, and would also
note as, Attorney General Tom C. Clark observed that
when the Congress desires that an election shall be determined by a
majority of those eligible to vote rather than by a majority of
those voting, the Congress knows well how to phrase such a
requirement. For example, in Section 8(a)(3)(ii) of the National
Labor Relations Act, as amended by the Labor Management Relations
Act, * * * the Congress has required that before any union shop
agreement may be entered into, the National Labor Relations Board
must certify `that at least a majority of the employees eligible to
vote in such election have voted to authorize such labor
organization to make such an agreement.'
40 Op. Att'y Gen. at 544 (emphasis in original).\10\
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\10\ In 1947, United States Attorney General Tom C. Clark,
responding to a question from the NMB on its authority under Section
2, Fourth, stated his opinion that the Board has the power to
certify a representative which receives a majority of the votes cast
at an election despite the fact that less than a majority of those
eligible to vote participated in the election.
Delta also contends that the Supreme Court has ``examined the
statutory language at issue and [has] approved of the Board's long-
standing interpretation of the command of Section 2, Fourth as
requiring majority participation in an election. '' While the Board
agrees that the Supreme Court has upheld the Board's current
interpretation of Section 2, Fourth, the Board believes the Court's
decisions support the Board's view that the current interpretation is
not compelled by the statute. \11\ In Virginian Railway , the Court, in
rejecting a challenge to a certification based on a majority of ballots
cast, stated that
---------------------------------------------------------------------------
\11\ Delta also cites Switchmen's Union of North America v. NMB,
320 U.S. 297, 300 (1943) and Brotherhood of Railway and Steamship
Clerks v. Ass'n for the Benefit of Non-Contract Employees, 380 U.S.
650, 659 (1965) (ABNE), for the proposition that the right protected
by Section 2, Ninth is the ``right of the majority of employees in
the craft or class to determine who shall be their representative.''
Once again, the Board agrees with Delta that the RLA gives the Board
the power to resolve representation disputes and to certify a
representative selected by a majority of any craft or class of
employees. In neither decision, however, did the Court state that
the language of Section 2, Fourth, referring to a ``majority of any
craft or class of employees,'' can only be read as a ``majority of
eligible voters'' or that the Board's current procedures are
compelled by the statute. In Switchmen's Union, the Court addressed
the standard of review of the NMB's representation determinations
and held that it was for the Board and not the courts to resolve
claims involving the appropriate craft or class. In ABNE, the Court
held that the Board's current ballot form did not exceed its
statutory authority, but the Court also noted that ``not only does
the statute fail to spell out the form of any ballot that might be
used but it does not even require selection by ballot. It leaves the
details to the broad discretion of the Board with only the caveat
that it `insure' freedom from carrier interference.'' 380 U.S. at
668-669.
Section 2, Fourth of the Railway Labor Act provides: ``The
majority of any craft or class of employees shall have the right to
determine who shall be the representative of the craft or class for
the purposes of this Act (chapter).'' Petitioner construes this
section as requiring that a representative be selected by the votes
of a majority of eligible voters. It is to be noted that the words
of the section confer the right of determination upon a majority of
those eligible to vote, but it is silent as to the manner in which
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that right shall be exercised.
300 U.S. at 560. Citing its decisions in political election cases, the
Court continues: ``Election laws providing for approval of a proposal
by a specified majority of an electorate have been generally construed
as requiring a [sic] only the consent of the specified majority of
those participating in the election * * * . Those who do not
participate `are presumed to assent to the expressed will of the
majority of those voting.' '' Id. (internal citations omitted).
Delta suggests that the Court in Virginian Railway held that
majority participation is required by Section 2, Fourth when it noted
that ``[i]f in addition to participation by a majority of a craft, a
vote of the majority of those eligible is necessary for a choice, an
indifferent minority could prevent the resolution of a contest, and
thwart the purpose of the act, which is dependent for its operation
upon the selection of representative.'' Id. In support of this
argument, Delta also cites the Virginian Railway Court's statement that
``[i]t is significant of the congressional intent that the language of
section 2, Fourth, was taken from a rule announced by the United States
Railroad Labor Board, acting under the provisions of the Transportation
Act of 1920 * * * where it appeared that a majority of the craft
participated in the election. The Board ruled * * * that a majority of
the votes cast was sufficient to designate a representative.'' Id. at
561. Thus, Delta argues that ``majority participation in the election
was a precondition to certification'' and any other reading of Section
2, Fourth ``undermines Congress' evident intent to place the authority
to elect representation (or choose among representatives) to the
majority of the craft or class, and not to a mere handful of
individuals.''
The Board agrees that Virginian Railway involved an election in
which a majority of eligible employees actually
[[Page 26069]]
participated in the election. The Board, however, is not persuaded that
the language cited by Delta precludes certification by a majority of
ballots cast since the Court upheld the use of a presumption that non-
voters concur in the wishes of the majority of voters. Nor have the
courts interpreted Virginian Railway as Delta does. In National Labor
Relations Board v. Standard Lime & Stone Co., 149 F.2d 435 (1945),
cert. denied, 326 U.S. 723 (1945), the NLRB certified a union on the
basis of a majority of ballots cast in an election in which the
majority of employees in the bargaining unit did not vote. The employer
refused to bargain with the union because while the union received a
majority of the ballots cast, a majority of the bargaining unit
employees had not voted in the election. The United States Court of
Appeals for the Fourth Circuit stated,
On the first and principal question, that presented by lack of
majority participation in either of the elections, we think that the
conclusive answer is found in the decision of the Supreme Court in
[Virginian Railway] * * * . In that case both this court and the
Supreme Court held that, in employees' elections under the Railway
Labor Act * * * for the selection of bargaining representatives, the
political principle of majority rule should be applied, viz., that
those not participating in the election must be presumed to assent
to the expressed will of the majority of those voting, so that such
majority determines a choice.
Id. at 436 (citations omitted). The Fourth Circuit noted that in
Virginian Railway, ``a majority of the employees participated in the
election, but the ground of the decision, the political principle of
majority rule with the presumption that those not voting assent to the
expressed will of the majority voting, supports the choice made in an
election, whether the majority of employees has participated or not.''
\12\ Id. at 436 n. 1. Finally, noting that the purpose of allowing
employees to choose a bargaining representative is to further the
public interest of preserving industrial peace and prevent interference
with interstate commerce, the court stated that
\12\ The Fourth Circuit is not alone in this view of Virginian
Railway. See also Int'l Bhd. of Teamsters v. Bhd. of Ry., Airline &
S.S. Clerks, 402 F.2d 196, 204 n. 16 (DC Cir. 1968), cert. denied,
393 U.S. 848 (1968) (noting that the Virginian Railway Court's
reliance on analogy to political elections served to support the
NLRB's power to certify a union even where a majority of the
bargaining unit did not participate and choice of whether or not to
follow Virginian Railway presumption was the NMB's to make); ABNE,
380 U.S. at 670 (1965) (characterizing the ``presumption of
Virginian Railway'' as ``[i]f in a labor election an employee does
not vote, he can safely be presumed to have acquiesced in the will
of the majority of voters'' and acknowledging that the NMB has broad
discretion to decide whether or not to follow this presumption);
Continental Airlines v. NMB, 793 F.Supp. 330, 333-34 n. 5 (D. DC
1991) (finding that no statutory language prescribes how the NMB
should assess the views of voters in union elections and citing
Virginian Railway and ABNE for conclusion that in election cases the
NMB has the discretion to treat a nonvoter as either acquiescing in
the will of the majority or voting for no representation).
[t]his being true, it would be as absurd to hold that collective
bargaining is defeated because a majority of employees fail to
participate in an election of representatives as it would be to hold
that the people of a municipality are without officers to represent
them because a majority of the qualified voters do not participate
in an election held to choose such officers. In the one case, as in
the other, the representative is being chosen to represent a
constituency because it is in the public interest that the
constituency be represented; and all that should be necessary is
that the election be properly advertised and fairly held and that
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the settled principle of majority rule be applied to the result.
149 F.2d at 438-39.
In its comments, Delta suggests that the Board errs in citing
precedent involving the National Labor Relations Act (NLRA) and
discussing the similarity of the language of both statutes.\13\ Delta
takes pains to remind the NMB that the NLRA ``cannot be imported
wholesale into the railway labor arena. Even rough analogies must be
drawn circumspectly with due regard for the many differences between
the statutory schemes.'' Trans World Airlines v. Indep. Fed'n of Flight
Attendants, 489 U.S. 426, 439 (1989) (quoting Bhd. of R. R. Trainmen v.
Jacksonville Terminal Co., 394 U.S. 369, 383 (1969)). The Board
disagrees with Delta. While there are differences in history and
purpose between the NLRA and the RLA, the Standard Lime case arose
under Sec. 9(a) of the NLRA and the language of that section was
modeled on Section 2, Fourth of the RLA. As previously discussed in the
NPRM and in the 1947 Opinion of Attorney General Tom C. Clark, 40 Op.
Att'y Gen. 541 (1947), Section 9(a) of the NLRA provides that
``[r]epresentatives designated or selected for the purposes of
collective bargaining by the majority of the employees in a unit
appropriate for such purposes, shall be the exclusive representatives
of all the employees in such unit for the purposes of collective
bargaining * * * .'' 29 U.S.C. 159(a). The legislative history of
Section 9(a) of the NLRA states that ``the bill is merely an
amplification and further clarification of the principles enacted into
law by the Railway Labor Act and by section 7(a) of the National
Industrial Recovery Act, with the addition of enforcement machinery of
familiar pattern.'' H. Rep. No. 74-1147, at 3 (1935).\14\
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\13\ Delta also argues that the Board cannot rely on precedent
involving the NLRA because an employer can easily seek court review
of an NLRB certification while an NMB certification is essentially
unreviewable. To be sure, judicial review of the Board's decisions
has often been observed to be ``one of the narrowest known to the
law.'' Int'l Ass'n of Machinists & Aerospace Workers v. Trans World
Airlines, 839 F.2d 809, 811, amended 848 F.2d 232 (DC Cir. 1988),
cert. denied 488 U.S. 820 (1988). This is true, however, because
Congress intended the Board to have the final word in representation
disputes. In Switchmen's Union, the Court concluded that this
limited role for the courts was part of the statutory scheme, noting
that the Congressional intent ``seems plain--the dispute was to
reach its last terminal point when the administrative finding was
made. There was to be no dragging out of the controversy into other
tribunals of law.'' 320 U.S. at 305; See also ABNE, 380 U.S. 650,
658-660 (1965). Further, unlike the NLRB, which has broad
adjudicatory and remedial powers, the NMB's mission is to help the
parties to a dispute reach resolution through determination of
representation disputes and mediation of collective-bargaining
controversies. Finally, limited review does not mean that judicial
review is nonexistent. The Board's actions are reviewable where the
NMB has committed a ``gross violation'' of the RLA; where it has
failed to satisfy its obligations under Section 2, Ninth to
investigate a dispute; where its actions are outside its delegated
authority under the Act; or where it has violated a party's
constitutional rights. Further, judicial review is also available
for the Board's actions where, as here, it has engaged in rulemaking
under the APA.
\14\ See also New York Handkerchief Mfg. Co. v. NLRB, 114 F. 2d
144, 149 (7th Cir. 1940) (``From a comparison of the language of the
two Acts, it becomes ev