International Brotherhood of Boilermakers v. NLRB, No. 21-1209 (D.C. Cir. 2023)
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Hawaiian Dredging Construction Company and a Hawaiian chapter of the Boilermakers union failed to renew a collective bargaining agreement. Hawaiian Dredging then discharged Boilermakers welders who were covered by the now-expired agreement. The Boilermakers thought those discharges were an “unfair labor practice” under the National Labor Relations Act and asked the National Labor Relations Board to weigh in. Originally, the Board sided with the Boilermakers. But Hawaiian Dredging asked the DC Circuit to review that decision, and the court remanded it to the Board to reconsider. The Board then changed its view and concluded that no unfair practice occurred. Then the Union petitioned for review.
The DC Circuit denied the petition finding that the Board’s new decision was supported by substantial evidence and correctly applied established law. The court agreed with the Board that Hawaiian Dredging demonstrated “a legitimate and substantial business justification for” discharging the welders. The court explained when a prehire agreement expires, a construction employer has no continuing obligation to maintain a bargaining relationship with a union. So, absent other evidence, there is nothing discriminatory about a policy that suspends work and discharges all employees when an agreement expires. If anything, Hawaiian Dredging’s policy promotes collective bargaining by ensuring that all of its welding work is done pursuant to a pre-hire agreement. The court also concluded that substantial evidence supports the Board’s factual finding that Hawaiian Dredging discharged the welders because of its policy and not for some discriminatory reason.
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