Majority
After Tri-Fanucchi did not retreat from its position, the UFW filed unfair labor practice charges with the Board in early 2013, alleging that Tri-Fanucchi violated the ALRA by refusing to bargain and to provide requested information. The Board's general counsel thereafter filed an administrative complaint against Tri-Fanucchi alleging that the company's actions violated section 1153, subdivisions (a) and (e), and seeking make-whole relief for the benefit of Tri-Fanucchi's employees. ( Tri-Fanucchi Farms (2014) 40 ALRB No. 4, p. 3 (hereafter ALRB 2014 Decision).) In its answer, Tri-Fanucchi admitted to the factual allegations but claimed as a defense, among other things, that the UFW had abandoned its status as bargaining representative. ( Id. at p. 4.) Tri-Fanucchi also claimed that its refusal to bargain was in good faith for the purpose of obtaining judicial
II
Tri-Fanucchi petitioned for review of the Court of Appeal's rejection of its abandonment defense, and the Board sought review of the Court of Appeal's reversal of the make-whole relief. We granted both petitions for review.
The Court of Appeal concluded that the UFW's allegedly "lengthy period of inactivity did not defeat [Tri-]Fanucchi's duty to engage in bargaining with that union upon request." We affirm this conclusion in light of our holding in Gerawan that "an employer may not defend against a union's [mandatory mediation and conciliation] request by challenging the union's
The ALRA authorizes the Board to grant certain remedies, including make-whole relief, when it determines that a party has engaged in unfair labor practices. ( § 1160.3.) "Make-whole relief is a compensatory remedy that reimburses employees for the losses they incur as a result of delays in the collective bargaining process. [Citation.] The remedy is designed to give agricultural employees the type of economic benefits they would have received if the parties had reached a timely agreement." (
The parties agree that Tri-Fanucchi's refusal to bargain was not technical, and neither party disputes that the F & P Growers standard applies here. We have implicitly endorsed the F & P Growers standard before (see Arakelian , supra , 49 Cal.3d at pp. 1294-1295, 265 Cal.Rptr. 162 , 783 P.2d 749 ) and now hold that the F & P Growers standard applies to nontechnical refusals to bargain like Tri-Fanucchi's refusal in this case.
The Court of Appeal recognized that the Board "explicitly followed" the F & P Growers standard in its decision. Nevertheless, in setting aside the Board's remedial order, the Court of Appeal criticized the Board for basing its decision "solely on its legal evaluation or value judgment that [Tri-] Fanucchi's litigation of the abandonment issue ... did not further the policies and purposes of the ALRA." This "legal conclusion" was "clearly wrong," the court said, because "the question of how an appellate court would actually rule when confronted with the novel situation of such long-term union absence or egregious inactivity (i.e., 24 years) as alleged here was far from certain." The court continued: "[T]he question has remained to a significant degree unsettled and controversial. Against this larger backdrop, it is clear to us that judicial review of the issue was reasonably necessary and helpful to all parties concerned, including both unions and agricultural employers, for the beneficial purpose of clarifying and/or confirming the law. Therefore, [Tri-] Fanucchi's advancement of this litigation plainly furthered the broader purposes of the ALRA to promote greater stability in labor relations by obtaining an appellate decision on this important issue."
We conclude that the Court of Appeal, in determining that Tri-Fanucchi's litigation "plainly further the broader purposes of the ALRA," improperly assumed the Board's remedial authority. Despite recognizing that the Board should be given "due deference," the Court of Appeal did not give the Board's make-whole relief order any deference. Rather, the court determined that the Board's "legal conclusion" was "clearly wrong" and then independently determined that make-whole relief was inappropriate in this case.
But the ALRA expressly authorizes the Board to impose make-whole relief "when the board deems such relief appropriate." ( § 1160.3, italics added.) In
Of course, the Board must determine on a case-by-case basis whether make-whole relief is appropriate; it may not award such relief without exercising its discretion. (
The F & P Growers standard does not focus solely on whether an appellate decision would bring greater clarity to the law.
CONCLUSION
For the reasons above, we reverse the Court of Appeal's judgment reversing the Board's award of make-whole relief. In all other respects, we affirm
On October 21, 1977, after a secret ballot election, the Board certified the UFW as the exclusive bargaining representative of Tri-Fanucchi's employees. Several days later, the UFW initiated collective bargaining negotiations. Tri-Fanucchi responded by refusing to bargain, purportedly to seek judicial review of the union's election. The following year, the UFW filed an unfair labor practice charge alleging that Tri-Fanucchi's refusal to bargain violated the ALRA. The charge was dismissed after Tri-Fanucchi reversed its position and agreed to begin negotiations. (See Tri-Fanucchi Farms (1986) 12 ALRB No. 8, p. 2 (hereafter ALRB 1986 Decision).)
Some initial bargaining sessions occurred after the UFW was certified. But between May 1979 and July 1981, "no communications between the parties took place and no negotiations were scheduled." (ALRB 1986 Decision, supra , 12 ALRB No. 8 at p. 2.) In July 1981, after the UFW requested to resume bargaining, Tri-Fanucchi conducted an employee "poll" to ascertain whether they desired to be represented by the UFW. As a result of this poll, Tri-Fanucchi concluded that the UFW had lost the support of a majority of its employees, and so the company again refused to bargain with the union. ( Id. at p. 3.) The UFW filed several unfair labor practice charges against Tri-Fanucchi, which the Board ultimately sustained. Finding that Tri-Fanucchi's refusal to bargain "was without justification or arguable legal support," the Board awarded make-whole relief under section 1160.3. (ALRB 1986 Decision, at p. 9.) In an unpublished opinion, the Court of Appeal affirmed both the Board's findings that Tri-Fanucchi committed unfair labor practices and its make-whole relief award.
According to Tri-Fanucchi, the company informed the UFW that it was willing to bargain in 1988. The UFW initially represented that it would schedule negotiations after the union's lead negotiator returned from vacation, but the UFW never responded and no dates were ever set. Tri-Fanucchi
The case was set for an administrative law judge (ALJ) hearing on October 21, 2013. Before the hearing, the Board's general counsel filed a motion to exclude any evidence relating to Tri-Fanucchi's abandonment defense, contending that the ALRA did not permit such a defense. The ALJ granted the motion, holding that even if the facts Tri-Fanucchi sought to prove were true, they did not establish a defense to bargaining under the ALRA. In light of Tri-Fanucchi's admissions, the ALJ found that Tri-Fanucchi's refusal to bargain violated the ALRA. The ALJ further ordered that Tri-Fanucchi pay make-whole relief to its employees for the period from October 19, 2012, when Tri-Fanucchi made clear its refusal to bargain with the UFW, until the date that it commenced good faith bargaining with the union. (ALRB 2014 Decision, supra , 40 ALRB No. 4 at pp. 4-7.)
Tri-Fanucchi's arguments in favor of an abandonment defense restate those we rejected in Gerawan . The only new contention raised by Tri-Fanucchi is that the Board has "repeatedly recognized" the abandonment theory in earlier decisions. But Tri-Fanucchi misstates the Board's analysis in these decisions. As the Board explains, these decisions used the terms "abandonment" and "totally 'absent from the scene' " to describe situations in which the union was "unwilling or unable" to represent the employees-i.e., union disclaimer or defunctness. (See Bruce Church, Inc. (1991) 17 ALRB No. 1, pp. 9-10; Dole Fresh Fruit Company (1996) 22 ALRB No. 4, pp. 9-13.) Nothing in these decisions referred to the type of inactivity-based defense that Tri-Fanucchi attempts to raise here. Indeed, in Dole Fresh Fruit Company , the Board expressly refrained from recognizing the broader "concept of 'abandonment.' " ( Dole Fresh Fruit Company , at p. 15.)
In sum, the Court of Appeal correctly upheld the Board's order rejecting Tri-Fanucchi's abandonment defense.
III.
We now consider whether the Court of Appeal improperly reversed the Board's determination that Tri-Fanucchi should pay its employees make-whole relief because
In light of the Legislature's clear intent to confer broad remedial powers on
The Court of Appeal opined that only a published appellate decision in the context of a "long-term union absence" was sufficient to "settle" the question whether the ALRA permits employers to raise an abandonment defense. To be sure, "the courts are the ultimate arbiters of the construction of a statute." ( California Assn. of Psychology Providers v. Rank (1990) 51 Cal.3d 1 , 11, 270 Cal.Rptr. 796 , 793 P.2d 2 .) And there may be cases in which an employer's challenge to the Board's settled construction of the ALRA in order to obtain judicial review sufficiently advances the Act's policies and purposes. But we have repeatedly held that courts should "accord significant weight and respect to the long-standing construction of a law by the agency charged with its
For the reasons set forth in Gerawan Farming, Inc. v. Agricultural Labor Relations Board (Nov. 27, 2017, S227243) --- Cal.5th ----, 225 Cal.Rptr.3d 517 , 405 P.3d 1087 , 2017 WL 5662395
On September 28, 2012, the UFW sent Tri-Fanucchi a formal request to restart bargaining. Tri-Fanucchi responded with a letter stating that "the UFW has ... abandoned the bargaining unit and is no longer the valid collective bargaining representative of its employees." Further,
The Court of Appeal upheld the Board's rejection of Tri-Fanucchi's abandonment defense as a "reasonable interpretation and application of the ALRA." Under the ALRA, the court concluded, Tri-Fanucchi "was not entitled to refuse to bargain with UFW based on UFW's past failings or inactivity, and such conduct did not create a defense to bargaining, whether labeled
The Legislature "inten[ded] that the ALRB serve as 'one of those agencies presumably equipped or informed by experience to deal with a specialized field of knowledge, whose findings within that field carry the authority of an expertness which courts do not possess and therefore must respect.' " ( Tex-Cal Land Management, Inc. v. Agricultural Labor Relations Bd. (1979) 24 Cal.3d 335 , 346, 156 Cal.Rptr. 1 , 595 P.2d 579 , quoting Universal Camera Corp. v. Labor Bd. (1951) 340 U.S. 474 , 488, 71 S.Ct. 456 , 95 L.Ed. 456 .) Where the Board relies on its "specialized knowledge" and "expertise," its decision "is vested with a presumption of validity." ( Arakelian , supra , 49 Cal.3d at p. 1292, 265 Cal.Rptr. 162 , 783 P.2d 749 .) That presumption has even more force when courts review the Board's exercise of its remedial powers, which "are necessarily broad." ( Carian v. Agricultural Labor Relations Bd. (1984) 36 Cal.3d 654 , 673, 205 Cal.Rptr. 657 , 685 P.2d 701 ( Carian ).) " 'Because the relation of remedy to policy is peculiarly a matter for administrative competence, courts must not enter the allowable area of the Board's discretion and must guard against the dangers of sliding unconsciously
We first considered the ALRA's make-whole remedy in J. R. Norton Co. v. Agricultural Labor Relations Bd. (1979) 26 Cal.3d 1 , 160 Cal.Rptr. 710 , 603 P.2d 1306 ( J. R. Norton ). Because the ALRA does not allow for immediate judicial review of a Board order certifying a union, employers may refuse to bargain, and thereby commit an unfair labor practice, simply in order to obtain such review. This kind of refusal has been called a " 'technical' refusal to bargain." ( Id. at p. 27, 160 Cal.Rptr. 710 , 603 P.2d 1306 .) Soon after the ALRA's enactment in 1975, the Board imposed a "blanket rule" applying the make-whole remedy in all such "technical refusal to bargain" cases. ( Id. at pp. 27-28, 160 Cal.Rptr. 710 , 603 P.2d 1306 .) In J. R. Norton , we held that that the Board cannot award make-whole relief as a per se remedy for technical refusals to bargain. ( Id. at p. 39, 160 Cal.Rptr. 710 , 603 P.2d 1306 .) Doing so "eviscerates important ALRA policy and fundamentally misconstrues the nature of and legislative purpose behind such relief." ( Id. at p. 29, 160 Cal.Rptr. 710 , 603 P.2d 1306 .) Although "make-whole relief is appropriate when an employer refuses to bargain for the purpose of delaying the collective bargaining process," we said the Board's blanket rule "place[d] burdensome restraints on those who legitimately seek judicial resolution of close cases in which a potentially meritorious claim" regarding a union election could be made. ( Id. at pp. 31-32, 160 Cal.Rptr. 710 , 603 P.2d 1306 .) We instead adopted the following standard: "the Board must determine from the totality of the employer's conduct whether it went through the motions of contesting the election results as an elaborate pretense to avoid bargaining or whether it litigated in a reasonable good faith belief that the union would not have been freely selected by the employees as their bargaining representative had the election been properly conducted." ( Id. at p. 39, 160 Cal.Rptr. 710 , 603 P.2d 1306 .)
Although J. R. Norton 's standard applies to cases involving technical refusals to bargain, its reasoning that the Board should not impose make-whole relief on a per se basis and should instead "examine the particular facts or circumstances of each case to determine [its] 'appropriateness' " is more broadly applicable. ( F & P Growers , supra , 168 Cal.App.3d at p. 680, 214 Cal.Rptr. 355 ; see id. at p. 681, 214 Cal.Rptr. 355 .) The Board has relied on this reasoning to develop a standard, known as the F & P Growers
Nor can the court's conclusion be squared with its own observation that the Board's rejection of Tri-Fanucchi's abandonment defense was "consistent with how California appellate courts have construed the ALRA." The Court of Appeal cited several published appellate decisions, including Montebello Rose Co. v. ALRB (1981) 119 Cal.App.3d 1 , 173 Cal.Rptr. 856 , and F & P Growers , supra , 168 Cal.App.3d 667 , 214 Cal.Rptr. 355 , for the principle that an employer's duty to bargain under the ALRA continues until the union is replaced or decertified, and then explained how the Board's position on abandonment is simply a further application of those principles. But in reversing the Board's make-whole relief award, the Court of Appeal claimed that the abandonment question "has remained to a significant degree unsettled and controversial." The Court of Appeal's straightforward application of relevant precedent to reject Tri-Fanucchi's abandonment defense seems in tension with its conclusion that the issue was unsettled and in need of clarification.
To hold that make-whole relief is inappropriate unless there is a published appellate decision on the exact issue raised by the employer would risk undermining the ALRA's purpose of bringing stability to agricultural labor relations by encouraging employers to refuse to bargain and instead to litigate disputed issues. If parties were allowed to regularly circumvent Board decisions by obtaining relief in court, "the Board would be replaced by ad hoc determinations by already overcrowded courts. The legislative effort to bring order and stability to the collective bargaining process would be thwarted. The work of the Board would be effectively impaired, its decisions similar in impression to that of a tinkling triangle practically unnoticed in the triumphant blare of trumpets." ( United Farm Workers v. Superior Court (1977) 72 Cal.App.3d 268 , 272, 140 Cal.Rptr. 87 .) Tri-Fanucchi's briefing in this court makes clear this danger: It contends that "until such time as [Tri-] Fanucchi raised the question of law before the Court of Appeal as to whether long term and total abandonment by the bargaining representative was a defense to an employer's duty to bargain, the Board's statutory construction and legal analysis of the abandonment defense under the ALRA was not binding or final."
Accepting the Court of Appeal's rationale would thwart the Legislature's design to give the Board , not the courts, "exclusive primary jurisdiction over all phases of the administration of the Act as regards unfair labor practices." ( UnitedFarm Workers v. Superior Court , supra , 72 Cal.App.3d at p. 271, 140 Cal.Rptr. 87 .) Because the Board's order was not " 'a patent attempt to achieve ends other than those which can be fairly said to effectuate the policies of the Act' " (
We Concur:
Cantil-Sakauye, C. J.
Chin, J.
Corrigan, J.
Cuéllar, J.
Kruger, J.
Kline, J.[1]
* Presiding Justice of the Court of Appeal, First Appellate District, Division Two, assigned by the Chief Justice pursuant to article VI, section of the California Constitution.
Cases cited
- Gerawan Farming, Inc. v. Agric. Labor Relations Bd. 405 P.3d 1087 p. 548, p. 1163, p. 1167
- Highland Ranch v. Agricultural Labor Relations Board 29 Cal.3d 848 p. 1116
- California Ass'n of Psychology Providers v. Rank 51 Cal.3d 1 p. 1118
- George Arakelian Farms, Inc. v. Agricultural Labor Relations Board 49 Cal.3d 1279 at 1286 p. 1168
- F & P Growers Ass'n v. Agricultural Labor Relations Board 168 Cal.App.3d 667 p. 1168, p. 1172
- Tex-Cal Land Management, Inc. v. Agricultural Labor Relations Board 24 Cal.3d 335 p. 1168
- Universal Camera Corp. v. National Labor Relations Board 340 U.S. 474 p. 1168
- Carian v. Agricultural Labor Relations Board 36 Cal.3d 654 p. 1168
- Virginia Electric & Power Co. v. National Labor Relations Board 319 U.S. 533 p. 1169
- Farms v. Agricultural Labor Relations Board 35 Cal.3d 726 p. 1169
- J. R. Norton Co. v. Agricultural Labor Relations Board 26 Cal.3d 1 p. 1169
- Bixby v. Pierno 4 Cal.3d 130 p. 1171
- In re Dannenberg 34 Cal.4th 1061 p. 1172
- Montebello Rose Co. v. Agricultural Labor Relations Board 119 Cal.App.3d 1 p. 1172
- United Farm Workers of America v. Superior Court 72 Cal.App.3d 268 p. 1173