Bannum Place of Saginaw, LLC v. National Labor Relations Board, No. 21-2664 (6th Cir. 2022)
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Bannum, a private company, runs a residential reentry center for recently-released federal inmates. Bannum’s contract with the Bureau of Prisons (BOP) regulates many day-to-day operations at the facility. Bannum employees met with the Union, which filed an election petition with the National Labor Relations Board. Bannum challenged the Board’s jurisdiction to conduct the election, arguing that Bannum was a joint employer with the BOP because their contract gave substantial control over the company’s daily operations to the agency. The Regional Director rejected this argument. Bannum did not seek review.
The Union won the election. The Board certified it as the employees’ exclusive representative. Before and after the Union’s certification, Bannum interrogated employees about their views on unions, threatened reprisals if they voted for the Union, and discharged known Union supporters. The Union and an employee filed unfair labor practice charges. The Board then filed a complaint alleging unfair labor practices under 29 U.S.C. 158.
An ALJ found that Bannum had raised the joint-employer argument before the Regional Director, which precluded the company from raising the issue again. The Board affirmed and ordered that Bannum’s violations be remedied. The Sixth Circuit affirmed and ordered enforcement of the award. Even if Bannum’s contract gives the BOP substantial control over Bannum’s daily operations, that does not transform it into a governmental entity or a wholly-owned government corporation beyond the Board’s reach.
The court issued a subsequent related opinion or order on July 28, 2023.
The court issued a subsequent related opinion or order on August 11, 2023.
The court issued a subsequent related opinion or order on February 23, 2024.
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