United St Testing v. NLRB ( 1998 )


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  •                         United States Court of Appeals
    FOR THE DISTRICT OF COLUMBIA CIRCUIT
    Argued September 10, 1998   Decided November 13, 1998
    No. 97-1687
    United States Testing Company, Inc.,
    Petitioner
    v.
    National Labor Relations Board,
    Respondent
    On Petition for Review and Cross-Application
    for Enforcement of an Order of the
    National Labor Relations Board
    Joseph P. Paranac, Jr. argued the cause for petitioner.
    With him on the briefs was David F. Jasinski.
    Richard A. Cohen, Senior Attorney, National Labor Rela-
    tions Board, argued the cause for respondent.  With him on
    the brief were Linda Sher, Associate General Counsel, and
    John D. Burgoyne, Acting Deputy Associate General Counsel.
    David S. Habenstreit, Supervisory Attorney, entered an ap-
    pearance.
    Robert D. Kurnick was on the brief for amicus curiae
    International Brotherhood of Electrical Workers Local Union
    1936.
    Before:  Ginsburg, Sentelle and Rogers, Circuit Judges.
    Opinion for the Court filed by Circuit Judge Rogers.
    Dissenting opinion filed by Circuit Judge Sentelle.
    Rogers, Circuit Judge:  The United States Testing Compa-
    ny petitions for review of a decision by the National Labor
    Relations Board finding violations of the National Labor
    Relations Act, 29 U.S.C. s 151 et seq., arising out of the
    Company's failure to provide information requested by the
    International Brotherhood of Electrical Workers Local Union
    1936 ("the Union") during contract negotiations.1  The Union
    requested information about the individual claims experience
    of union and nonunion employees in order to respond to the
    Company's proposal that union employees contribute to the
    medical health benefits plan.  The Company provided some
    aggregate health cost information to the Union, but not
    individual claims experience.
    The Board found that the Company rejected the Union's
    request and ordered that the information be turned over
    without identifying the names of the individual claimants.  On
    appeal, the Company contends that the Board's findings of
    unfair labor practices were unwarranted because the Board
    failed to support its finding that the Union met its burden to
    __________
    1 The Board concluded that the Company violated s 8(a)(5) and
    (1) of the National Labor Relations Act ("Act"), 29 U.S.C. s 158
    (a)(5), (1), by refusing to furnish the Union with certain medical
    health plan information;  s 8(a)(5), and (1), id. s 158(a)(5), (1), by
    implementing its final offer when a bargaining impasse did not
    exist;  and s 8(a)(3) and (1), id. s 158(a)(3), (1), by permanently
    replacing striking employees in an unfair labor practice strike and
    refusing to reinstate them immediately when they ended the strike
    and unconditionally offered to return to work.  See United States
    Testing Co., 
    324 N.L.R.B. 136
     (1997).
    show the relevance of the claims information, and because the
    Board failed to find that the individual claims experience was
    confidential and protected from disclosure under Detroit Edi-
    son Co. v. NLRB, 
    440 U.S. 301
     (1979).  Because we conclude
    that the Company's contentions fail, we deny the petition and
    grant the Board's cross-application for enforcement of its
    order.
    I.
    The International Brotherhood of Electrical Workers Local
    Union 1936 has represented a small unit of technical employ-
    ees at the United States Testing Company for over thirty
    years.  When the Company, a consumer products testing
    provider with approximately 85 to 100 employees, experi-
    enced an economic downturn, it sought a number of changes
    during contract negotiations beginning in August 1995 for a
    contract set to expire in October.  One change was for the
    eleven or so unionized employees to begin making contribu-
    tions to their health care costs, in the same amount (thirty
    percent) as nonunion employees.
    Noting that it previously had rejected similar proposals, the
    Union again refused to agree to make contributions and
    stated that before it could make counterproposals to meet the
    Company's request to reduce health care costs by thirty
    percent, it needed certain information:  Specifically, the Union
    asked the Company to provide the names of the union and
    nonunion employees (and their dependents) who participated
    in the health plan, the individual claims submitted by each
    plan member, and the benefits paid for each claim for the
    past eight months. The Company took the position that the
    Union did not need, and was not entitled to, the information
    concerning nonunion employees.
    During the course of negotiations, the Company ultimately
    turned over to the Union (1) the premium rate and premium
    paid for union employees, (2) a "benefit and service analysis"
    consisting of the coverage rates, charges, and adjustments for
    medical and dental benefits for all employees, (3) a benefits
    cost analysis that the Company had prepared for single and
    family coverage, showing the monthly premium and the per-
    centage of premiums paid by an employee contributing thirty
    percent;  (4) the insurance carrier's summary of its experi-
    ence monitoring the period of March 1994 through August
    1995, including the total claims and premiums paid and the
    ratio of the two numbers;  (5) a list of the names, premiums,
    and claims paid for each union employee;  and (6) the total
    amounts of premiums and claims paid for union employees,
    nonunion employees, and for all employees. What the Compa-
    ny did not provide were the individual claims by each member
    of the plan (employees and their dependents), showing the
    nature of the claims submitted and benefits paid.
    The Administrative Law Judge ("ALJ") found that the
    information the Company provided to the Union was insuffi-
    cient because it did not adequately identify the costs of the
    benefits.  To the extent that the Company was proposing that
    union employees contribute towards the payment of the high
    costs of claims by nonunion employees (and their depen-
    dents), the ALJ found that the information sought by the
    Union was relevant.  The Union explained that it sought to
    determine what types of claims generated the highest costs;
    for that, it needed individual claims information.2  According
    to the ALJ, the Union's position was that if most of the large
    claims were for surgeries as opposed to physicians' visits and
    x-rays, the Union would examine the plan to determine
    whether the existing coverage for surgery could be changed
    to reduce costs.  As an alternative to a thirty-percent contri-
    bution, the Union might propose managed care, pre-
    admission testing, outpatient surgery, a higher deductible, or
    a required co-payment.  The ALJ noted that the Company's
    explanation in its pretrial affidavit for not providing the
    information was simply that the Union had failed to explain
    why the individual claims were relevant;  the affidavit made
    no mention of a concern about privacy.  Nevertheless, the
    __________
    2 At the hearing before the ALJ, the Union explained that its
    request did not include information about the individual medical
    diagnosis of any plan member (as distinct from the treatment or
    service provided), only the amount of the bill for the medical
    services and the amount actually paid by the carrier.
    ALJ concluded that the Company's bargaining notes reflected
    that it had raised a legitimate concern about privacy early in
    the negotiations regarding the names of the claimants, which,
    if connected with the claim itself, might reveal private medical
    information.  Therefore, in ordering the Company to turn
    over the individual claims information, the ALJ directed that
    the names of the claimants not be disclosed.
    The Board adopted the ALJ's findings and conclusions.
    Based on the information the Company supplied showing that
    the claims experience of union and nonunion employees was
    quite divergent, the Union was entitled to examine the issue
    and thereby justify its position that union employees need not
    contribute.  Noting that health care costs are clearly a sub-
    ject of mandatory bargaining and have become an increasing-
    ly important issue as the costs have risen, the Board observed
    that the Company
    should not have been surprised that the Union was
    seeking more than to juggle premium formulas, the role
    to which the [Company] wished to confine it, but rather
    sought to participate meaningfully in structuring the
    benefits for which the [Company] wanted the bargaining
    unit to pay.  In seeking to play a role in the solution,
    rather than simply making a substantial concession on
    the [Company's] say-so, the Union was fulfilling its role
    as the employees' statutory bargaining representative.
    However, as the ALJ found, the names of the individual
    claimants were irrelevant and the Board adopted the ALJ's
    recommended order denying the Union access to that infor-
    mation, clarifying that the Union was entitled to the rest of
    the individual claims information without having to renew its
    request.  In addition to concluding that the Company violated
    s 8(a)(5) and (1) by rejecting the Union's request for relevant
    information, the Board also concluded that the Company
    unlawfully declared an impasse and violated s 8(a)(3) and (1)
    by refusing to rehire the striking workers.  The Company
    challenges all of the Board's findings of unfair labor practices.
    II.
    The Company contends that the Board erred in two re-
    spects in ruling that the Company should have complied with
    the Union's request for the medical claims histories of the
    nonunion employees and their dependents:  first, because its
    finding that the Union met its burden to show the relevance
    of the claims information is unsupported by the record and,
    second, in any event, the information was confidential and
    thus protected from disclosure under Detroit Edison.  The
    Company further contends that the findings that no lawful
    impasse existed between the parties, especially given the time
    devoted to bargaining and the Union's bad faith, and that the
    strike by union employees was an unfair labor practice strike
    are unsupported by substantial evidence.  Consequently, the
    Company contends, it was entitled to implement its final offer
    and did not commit unfair labor practices by hiring perma-
    nent replacements and refusing to rehire the union employees
    engaging in an economic strike.
    The court applies the familiar substantial evidence test to
    the Board's findings of fact and application of law to the facts,
    see NLRB v. United Ins. Co., 
    390 U.S. 254
    , 260 (1968);
    Universal Camera Corp. v. NLRB, 
    340 U.S. 474
    , 488 (1951),
    and accords due deference to the reasonable inferences that
    the Board draws from the evidence, see Peoples Gas Sys.,
    Inc. v. NLRB, 
    629 F.2d 35
    , 42 (D.C. Cir. 1980), regardless of
    whether the court might have reached a different conclusion
    de novo. Universal Camera, 
    340 U.S. at 488
    .
    The duty to bargain collectively "includes a duty to provide
    relevant information needed by a labor union for the proper
    performance of its duties as the employees' bargaining repre-
    sentative."  Detroit Edison, 
    440 U.S. at 303
    .  In evaluating
    an employer's obligation to satisfy a union's request for
    information, this Court has long adhered to the view that the
    Board is to apply a liberal discovery-type standard, under
    which the requested information need only be relevant to the
    union in its negotiations.  Oil, Chemical & Atomic Workers
    Local Union No. 6-418 v. NLRB, 
    711 F.2d 348
    , 359-60 (D.C.
    Cir. 1983) (citations omitted);  see General Elec. Co. v. NLRB,
    
    916 F.2d 1163
    , 1168 (7th Cir. 1990).  Relevance is broadly
    construed, and in the absence of a countervailing interest, any
    requested information that has a bearing on the bargaining
    process must be disclosed.  Oil, Chemical, 
    711 F.2d at
    359-
    60.  For information about employees in the bargaining unit,
    it is presumed that the requested information is relevant to
    the union's negotiations, and the employer must provide the
    information unless it can show the information is irrelevant.
    
    Id. at 359
    ;  General Elec., 
    916 F.2d at 1171
    .  By contrast, the
    burden is on the union to demonstrate the relevance of
    information about nonunion employees.  Oil, Chemical, 
    711 F.2d at 359
    .
    The Company maintains that the only indication the Union
    gave during their bargaining sessions for wanting the individ-
    ual claims information was to be able to "intelligently and
    fairly respond" to the Company's proposal that union employ-
    ees contribute thirty percent of the health plan costs.  This
    bare assertion without further explanation, the Company
    maintains, fails to satisfy the Union's burden to show rele-
    vance.  To the extent the Union envisioned proposals for
    increasing employees' co-payments, out-of-pocket expenses,
    or raising deductibles, the Company maintains that the Union
    could not meet its burden by relying on explanations first
    articulated in the hearing before the ALJ;  that these expla-
    nations were insufficient;  that expert evidence showed that
    the envisioned counterproposals did not require the Union to
    have the requested individual claims information;  and that
    the Union never expressed any concern about the difference
    in the claims experience of union and nonunion employees.
    Yet context is everything.  The Union's generic statement
    requesting the information was made in response to the
    Company's proposal for a thirty-percent contribution by Un-
    ion employees to the company-wide health insurance plan.
    By invoking rising health care costs, the Company necessarily
    put on the table the experience under the current plan.  It
    follows that the Union met its minimal burden of establishing
    the relevance of the requested claims and benefits informa-
    tion about nonunion employees (and their dependents), who
    constituted the overwhelming majority of those covered by
    the health plan.  Before deciding on a particular response to
    the Company's proposed thirty-percent contribution, the Un-
    ion needed to know where the heavy claims usage was in
    order to formulate intelligent counterproposals;  a union offi-
    cial testified that this is what he told the Company during
    negotiations.  The information that the Union received from
    the Company showed a significant difference between the
    costs to the carrier for nonunion and union employees.  By
    comparison with 1994, in which the ratio of benefits claimed
    to premiums paid for nonunion employees was 6 percent
    greater than that for union employees, in 1995, the same ratio
    was 79 percent higher for nonunion employees than for union
    employees.  Further, in 1995 the claims paid to non-union
    employees exceeded the premiums they paid, in contrast to
    the situation of the union members.  In short, the claims
    experience for non-union employees was unprofitable for the
    Company while the experience for union employees was prof-
    itable.  With this information, the Union understandably
    would want to examine the individual claims and usage expe-
    rience of the majority, nonunion, employees.
    Thus, the Company's contention that it had insufficient
    notice of the potential relevance of the requested information
    stems either from its own misunderstanding or from a pre-
    conceived notion that the Union's counterproposals could not
    include changes to the set of benefits provided under the
    current plan.  In National Union of Hospital & Health Care
    Employees, 
    248 N.L.R.B. 631
     (1980), enforcement granted,
    
    673 F.2d 1314
     (4th Cir. 1981), when the Union sought to
    increase the employer's contribution to the Union Benefit
    Fund and the employer discovered that its contribution ex-
    ceeded the costs of benefits to its employees, the employer
    sought financial information from the Union about the other
    individual employers who were contributing to the Fund.
    Although the employer never explicitly explained why all of
    the requested information was needed, the Board found that
    the Union was sufficiently informed why it was relevant to
    the employer's collective-bargaining duty.  Id. at 632;  see
    also NLRB v. Brazos Elec. Power Coop., 
    615 F.2d 1100
    , 1101
    (5th Cir. 1980);  AT&T, 
    309 N.L.R.B. 925
    , 928-29 (1992).  So
    too here the Union adequately informed the Company why it
    needed the information;  the Company had sufficient notice at
    the time of bargaining that the information requested was
    needed for, and thus relevant to, the Union's negotiations.
    The expert testimony offered by the Company does not
    change our conclusion.  An insurance underwriter testified to
    the effect that the Union's request for individual claims
    information was unnecessary to formulate alternative propos-
    als.  Yet, as the ALJ noted, the underwriter focused on the
    Company's current health plan costs and adjustments that
    could be made by various cost-shifting arrangements without
    additional information.  The expert's opinion did not address
    whether the individual claims information would be relevant
    to formulating a change in the Company's health plan itself,
    such as cutting certain benefits or conditioning certain kinds
    of coverage.  Specifically, the underwriter focused on aggre-
    gate costs and benefits information bereft of any data show-
    ing individual claims experience that revealed what types of
    health care services were used most often and their costs.
    Although the ALJ credited the underwriter's testimony that
    the claims information sought by the Union was irrelevant to
    the impact on the costs of the Company's medical health
    insurance plan, the ALJ properly concluded that it was
    relevant to the Union's formulation of counterproposals to
    reduce health care costs by restructuring parts of the plan.
    Insofar as the Company contends that the Board erred in
    failing to find that the individual claims information for
    nonunion employees was confidential and, therefore, unavail-
    able to the Union, the Company attempted neither to redact
    the requested information nor to explain why that was not
    possible.  Yet it has long been established that the employer
    has the burden of seeking to accommodate the union's re-
    quest for relevant information consistent with other interests
    rightfully to be protected.  See, e.g., Oil, Chemical, 
    711 F.2d at 362
    ;  Tritac Corp., 
    286 N.L.R.B. 522
    , 522 (1987).  An
    employer is not relieved of its obligation to turn over relevant
    information simply by invoking concerns about confidentiality,
    but must offer to accommodate both its concern and its
    bargaining obligations, as is often done by making an offer to
    release information conditionally or by placing restrictions on
    the use of that information.  See, e.g., East Tennessee Baptist
    Hosp. v. NLRB, 
    6 F.3d 1139
    , 1144 (6th Cir. 1993);3  E.W.
    Buschman Co. v. NLRB, 
    820 F.2d 206
    , 208-09 (6th Cir. 1987);
    Safeway Stores, Inc. v. NLRB, 
    691 F.2d 953
    , 958 (10th Cir.
    1982).
    Having made a reasonable accommodation the employer
    avoids a Board finding that it violated s 8(a)(5).  See, e.g.,
    Detroit Edison, 
    440 U.S. at 319-20
    ;  Buschman, 
    820 F.2d at 209
    ;  Soule Glass & Glazing Co. v. NLRB, 
    652 F.2d 1055
    ,
    1098 (1st Cir. 1981), abrogated on other grounds, NLRB v.
    Curtin Matheson Scientific, Inc., 
    494 U.S. 775
    , 786 n.7, 796
    (1990).  The rationale for this placement of the burden de-
    rives from the interest in allowing the parties to work out
    through an informal process how their corresponding duties
    and responsibilities can be met.  See H.K. Porter Co. v.
    NLRB, 
    397 U.S. 99
    , 103 (1970);  NLRB v. Acme Indus. Co.,
    
    385 U.S. 432
    , 437-38 (1967);  NLRB v. Truitt Mfg. Co., 
    351 U.S. 149
    , 152 (1956);  Oil, Chemical, 
    711 F.2d at 358
    ;  Florida
    Steel Corp. v. NLRB, 
    601 F.2d 125
    , 129 (4th Cir. 1979).  In
    other words, the onus is on the employer because it is in the
    __________
    3 In East Tennessee, the union requested wage and attendance
    records on non-union employees in order to verify that union and
    non-union employees were treated equally, as called for in the
    parties' collective bargaining agreement.  The Hospital raised confi-
    dentiality concerns and suggested first, that a mutually agreed upon
    certified public accountant be hired to review the wage records and
    report if there were any violations of the collective bargaining
    agreement, and second, to provide only the records of non-union
    employees whom the union could identify as suspected of having
    received better treatment with regard to absenteeism.  
    6 F.3d at 1141, 1142
    .  The Sixth Circuit reversed the Board, concluding that
    the Hospital had "offered reasonable alternative solutions which
    would have allowed the union to ascertain whether the contracts
    were evenly applied while protecting the confidential records of non
    uni[on] employees."  
    Id. at 1144-45
    .  Under those circumstances,
    the court concluded, "it was incumbent upon the Union to demon-
    strate that its need ... outweighed the Hospital's interest in
    maintaining the confidentiality of its records:  
    Id. at 1144
    .
    better position to propose how best it can respond to a union
    request for information.  The union need not propose the
    precise alternative to providing the information unedited.  Oil
    Chemical, 
    711 F.2d at 362-63
    ;  Tritac Corp., 286 N.L.R.B. at
    522.
    The Company's contention that the Union was not entitled
    to the individual claims information of nonunion employees
    draws heavily on the protection given to employee privacy
    rights by the Supreme Court in Detroit Edison, 
    440 U.S. 301
    .
    In that case, the union filed a grievance that senior employees
    were being bypassed for promotion on the basis of their
    scores on a new aptitude test that purportedly measured their
    ability to acquire the necessary job skills.  
    Id. at 305
    .  The
    union sought the actual test that was administered and the
    individual applicants' test papers and scores in order to
    evaluate the accuracy and relevancy of the testing system.
    
    Id. at 308
    .  In reversing the Board's order to release the
    individual test scores to the union in the absence of the
    employees' consent, the Supreme Court emphasized the im-
    portance of protecting the privacy of individual employees
    who undoubtedly would be sensitive "to disclosure of informa-
    tion that may be taken to bear on his or her basic compe-
    tence."  
    Id. at 318
    .  In light of the employer's legitimate
    interest in preserving confidentiality, the Court concluded
    that although the union's request for information was argu-
    ably relevant, the employer sufficiently accommodated that
    request, and fulfilled its statutory duty to bargain, by offering
    to disclose the information upon the employees' written con-
    sent.  
    Id. at 318-20
    .
    The Company was undoubtedly correct to raise concerns
    about the privacy rights of the non-union employees.  See
    United States v. Westinghouse Elec. Corp., 
    638 F.2d 570
    , 577
    (3rd Cir. 1980);  cf. Fed. R. Civ. P. 35.  The Company,
    however, never attempted to redact the requested informa-
    tion, and never even claimed that it would be unduly burden-
    some or costly to do so.  Even now the Company makes no
    claim that consent or notice or some other means of protect-
    ing employees' privacy rights could not have been achieved.
    Indeed, the Company had ready access to the information
    that the Union sought, specifically in the form of the insur-
    ance carrier's "explanation of benefits" statement listing the
    services, the provider of the services, the date rendered, the
    total costs, and the amount payable by the carrier in benefits.
    Information about health care costs for employees and their
    dependents was not, so far as the record reveals, otherwise
    available to the Union.
    In any event, since the Company made no effort to accom-
    modate the Union's request for individual claims information,
    by redaction or otherwise, the Board was not required to
    decide whether a particular form of accommodation was
    sufficient and did not unduly restrict the information that the
    Union requested.  As ordered by the Board, the confidentiali-
    ty of their identities as to specific medical claims is protected.
    See Johns-Mansville Sales Corp., 
    252 N.L.R.B. 368
    , 368
    (1980).
    To the extent that the Union sought individual claims
    history, the Board likewise could properly find that the
    Company rejected the Union's request.  The Company's sug-
    gestion that the summaries and cost benefit analyses that it
    provided somehow reflects the type of accommodation con-
    templated by Detroit Edison is unpersuasive.  The informa-
    tion that the Company provided did not enable the Union to
    develop alternative proposals other than those in the nature
    of the Company's proposal for a percentage-cost contribution.
    Nothing required the Union to confine its thinking on cutting
    the Company's health care costs to the current plan, and to
    the extent the Company attempted to do so, it was interfering
    with the Union's ability to fulfill its responsibility to represent
    its members' interests in bargaining.  See Nat'l Union of
    Hospital & Health Care Employees, 248 N.L.R.B. at 633.
    In light of the foregoing, this court can quickly dispose of
    the Company's other contentions.  Its unlawful refusal to
    supply the requested medical claims information precluded
    the Company from declaring an impasse.  See, e.g., NLRB v.
    Palomar Corp. 
    465 F.2d 731
    , 734-35 (5th Cir. 1972);  Cone
    Mills Corp. v. NLRB, 
    413 F.2d 445
    , 449-50 (4th Cir. 1969).
    Because no genuine impasse was reached, the Company could
    not lawfully implement the terms of its final offer.  See, e.g.,
    NLRB v. Katz, 
    369 U.S. 736
    , 741-42 (1962);  Palomar, 
    465 F.2d at 734-35
    ;  Cone Mills, 
    413 F.2d at 449-50
    .  Therefore,
    the union employees' refusal to return to work under the
    terms of the Company's final offer constituted an unfair labor
    practice strike rather than an economic strike.  See, e.g.,
    NLRB v. Int'l Van Lines, 
    409 U.S. 48
    , 50-51 (1972);  General
    Indus. Employees Union, Local 42 v. NLRB, 
    951 F.2d 1308
    ,
    1311 (D.C. Cir. 1991).
    Accordingly, we deny the petition and grant the Board's
    cross-application for enforcement of its order of October 29,
    1997.
    Sentelle, Circuit Judge, dissenting:  I do not quarrel with
    the majority's basic statement of the facts.  I restate a few
    for emphasis.
    In the course of contract negotiations, the International
    Brotherhood of Electrical Workers Local Union 1936 ("the
    Union") sought disclosure of claims information concerning
    the health benefit plan of petitioner United States Testing
    Company.  As the majority recognizes:
    [T]he Company ultimately turned over to the Union (1)
    the premium rate and premium paid for union employ-
    ees, (2) a "benefit and service analysis" consisting of the
    coverage rates, charges, and adjustments for medical and
    dental benefits for all employees, (3) a benefits cost
    analysis that the Company had prepared for single and
    family coverage, showing the monthly premium and the
    percentage of premiums paid by an employee contribut-
    ing thirty per cent;  (4) the insurance carrier's summary
    of its experience monitoring the period of March 1994
    through August 1995, including the total claims and
    premiums paid and the ratio of the two numbers;  (5) a list of
    the names, premiums, and claims paid for each union
    employee;  and (6) the total amounts of premiums and
    claims paid for union employees, nonunion employees,
    and for all employees.
    Maj. Op. at 3-4.
    The only thing that the Union wanted that the petitioner
    did not turn over was the individual claims made by nonunion
    individual employees and their dependents, showing the na-
    ture of the claims submitted and the benefits paid.  The only
    showing of relevance that the Union made for the demand for
    this personal information was the insistence that it needed it
    to be able to "intelligently and fairly" respond to the proposal
    by petitioner that Union employees contribute thirty percent
    of the health plan costs.   Nevertheless,
    the majority maintains that the company was required to
    divine the relevance of the requested information from the
    "context" of the negotiations.  Id. at 7.  Such a requirement
    is inconsistent even with the liberal "discovery-type standard"
    used in determining relevance since the Union had the bur-
    den of demonstrating the relevance of information relating to
    nonunion employees.  See Oil, Chemical & Atomic Workers
    Local Union No. 6-418 v. NLRB, 
    711 F.2d 348
    , 359 (D.C. Cir.
    1983).
    I emphasize again that it claimed to need this information
    in addition to the six categories of information the company
    had already provided.  For this failing, the company, not the
    Union, was cited for and found guilty of an unfair labor
    practice by the National Labor Relations Board.  The court
    upholds that Board decision.
    As the majority recognizes, the Supreme Court has afford-
    ed to management the right to protect the privacy interests of
    its employees in complying with Union demands even for
    relevant information.  Detroit Edison Co. v. NLRB, 
    440 U.S. 301
     (1979).  Assuming that the Union's minimum showing of
    relevance in the present case is sufficient, I fail to see how
    the privacy interest could be much higher than we have
    before us in the case today.  The Union, armed with its
    generic desire to "intelligently" represent its members, de-
    mands the individualized detail on the medical history of the
    nonunion workers whom it neither does nor can represent.
    The majority faults the petitioner for not furnishing the
    information in a redacted form, but neither the majority nor
    the Board explains why the six categories of information
    furnished are not at least the functional equivalent of redact-
    ed claims so far as relevance to negotiation is concerned nor
    explains how redaction would be adequate protection for the
    privacy of employees in a workforce no greater than 200 in
    number in which identity might well be surmised by even
    redacted medical data. As in the case of relevance, I would
    place the burden of proof concerning the adequacy of the
    company's accommodation on the Union.  Where a company
    has "raised its concern over the confidentiality of the records
    involved," it becomes "incumbent upon the Union to demon-
    strate that its need for the materials outweighed the [compa-
    ny's] interest in maintaining the confidentiality of the rec-
    ords."  East Tennessee Baptist Hosp. v. NLRB, 
    6 F.3d 1139
    ,
    1144 (6th Cir. 1996).  Here, the Union has not come close to
    meeting its burden of proof.
    Indeed, even if the burden of proof were on the company, I
    would still hold that the company adequately accommodated
    the Union's request.  In order to address confidentiality
    concerns, the company merely refused to provide the Union
    with the information in the form and manner it demanded.
    Instead of providing individual claims data for the nonunion
    employees, the company provided a wealth of claims informa-
    tion, including the aggregate "total claims and premiums
    paid" for nonunion employees.  Yet, a "refusal to disclose the
    requested records in the form and manner demanded by the
    Union" does not constitute a failure to bargain.  
    Id.
     at 1143-
    44.  Moreover, the Union itself was unyielding in its demands
    and proposed no accommodations that might be agreeable to
    both parties.  The Union did not even propose the accommo-
    dation ultimately implemented by the NLRB order--redac-
    tion of the names on individual claims.  Therefore, under the
    circumstances, the company's attempts to accommodate the
    Union, far from being nonexistent as the majority suggests,
    were more than adequate.
    In sum, the majority fails to grasp the significance of the
    privacy interests at stake in this case and to appreciate the
    lengths to which the company went to provide the Union with
    the information it requested while protecting the privacy of
    nonunion employees.  As in Detroit Edison, in the instant
    case there is a "total absence of evidence that the [company]
    fabricated concern for employee confidentiality only to frus-
    trate the Union in the discharge of its responsibilities."  
    440 U.S. at 319-20
    .  Therefore, I would grant the petition for
    review.
    

Document Info

Docket Number: 97-1687

Filed Date: 11/17/1998

Precedential Status: Precedential

Modified Date: 12/21/2014

Authorities (19)

National Labor Relations Board v. Katz , 82 S. Ct. 1107 ( 1962 )

National Labor Relations Board v. International Van Lines , 93 S. Ct. 74 ( 1972 )

oil-chemical-atomic-workers-local-union-no-6-418-afl-cio-oil-chemical , 711 F.2d 348 ( 1983 )

Safeway Stores, Inc. v. National Labor Relations Board, And , 691 F.2d 953 ( 1982 )

National Labor Relations Board v. United Insurance Co. of ... , 88 S. Ct. 988 ( 1968 )

general-industrial-employees-union-local-42-distillery-rectifying-wine , 951 F.2d 1308 ( 1991 )

Soule Glass and Glazing Co. v. National Labor Relations ... , 652 F.2d 1055 ( 1981 )

National Labor Relations Board v. Curtin Matheson ... , 110 S. Ct. 1542 ( 1990 )

H. K. Porter Co. v. National Labor Relations Board , 90 S. Ct. 821 ( 1970 )

General Electric Company v. National Labor Relations Board, ... , 916 F.2d 1163 ( 1990 )

The E.W. Buschman Company, Cross v. The National Labor ... , 820 F.2d 206 ( 1987 )

National Labor Relations Board v. Palomar Corporation and ... , 465 F.2d 731 ( 1972 )

Cone Mills Corporation v. National Labor Relations Board , 413 F.2d 445 ( 1969 )

National Labor Relations Board v. Acme Industrial Co. , 87 S. Ct. 565 ( 1967 )

Florida Steel Corporation v. National Labor Relations Board,... , 601 F.2d 125 ( 1979 )

peoples-gas-system-inc-v-national-labor-relations-board-teamsters-local , 629 F.2d 35 ( 1980 )

Universal Camera Corp. v. National Labor Relations Board , 71 S. Ct. 456 ( 1951 )

UNITED STATES of America v. WESTINGHOUSE ELECTRIC ... , 638 F.2d 570 ( 1980 )

National Labor Relations Board v. Truitt Manufacturing Co. , 76 S. Ct. 753 ( 1956 )

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