Hallmark-Phoenix 3, LLC v. NLRB, No. 15-60011 (5th Cir. 2016)
Annotate this CaseHallmark, a government contractor providing vehicle maintenance services at two United States Air Force bases, petitioned for review of the Board's order requiring the company to make severance and accrued vacation payments to its former union employees. The court concluded that the Board did not err in asserting jurisdiction over the unions' claims under the National Labor Relations Act (NLRA), 29 U.S.C. 158(a)(1),(a)(5), because Hallmark’s statements regarding its willingness to allow an arbitrator to address the merits of the unions’ charges have been inconsistent, if not wholly unclear; the Board did not err in finding that Hallmark lacked a sound arguable basis for denying union employees’ severance pay, that denying payment amounted to a unilateral modification of the collective bargaining agreements (CBAs), and thus constituted an unfair labor practice under the NLRA; and the Board similarly did not err in finding that Hallmark violated the NLRA when it refused to include the lead-pay premium in TWU employees’ accrued vacation pay. On the other hand, the court held that the Board erred in finding that Hallmark lacked a sound arguable basis under the CBAs for not including the lead-pay premium in TWU employees’ severance pay; and the Board further erred in finding that Hallmark lacked a sound arguable basis for withholding carry-over vacation pay for TWU employees. Accordingly, the court granted the petition in part, and denied it in part. The court granted the Board's cross-application for enforcement in part and denied it in part.
The court issued a subsequent related opinion or order on April 18, 2016.
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