Dive Brief:
- Republic Services is slated to begin negotiating later this summer with the International Brotherhood of Teamsters Local 350, representing about 200 workers at the Newby Island Recyclery in Milpitas, California, according to union officials. This would be a step forward in a labor case dating back to 2013 that sparked a national debate.
- In April, the National Labor Relations Board denied a motion for reconsideration filed by Republic subsidiary Browning-Ferris Industries of California in the joint employer case. The decision meant the company would need to engage in contract negotiations with the union alongside staffing firm Leadpoint Business Services.
- The NLRB did not rule on which specific aspects of the contract Republic would be responsible for as a joint employer. Teamsters officials told Waste Dive they plan to bring the affected employees’ contract more closely in line with other Republic Services workers already represented by Local 350.
Dive Insight:
Republic has the most unionized workforce among major publicly traded waste companies in the United States. It ran into controversy last year when roughly 2,000 Teamsters across the country went on strike over multiple contract disputes in Massachusetts, Georgia, Illinois and California.
The long-running labor dispute in Milpitas dates back to 2013, when the Teamsters sought to represent workers at the site’s MRF and negotiate with BFI. While those workers were hired through Leadpoint, the union argued Republic also held power over the workers’ employment and should be a part of contract negotiations.
The union was certified by the NLRB in 2015 with Leadpoint named as a joint employer, but Republic refused to bargain. As the dispute escalated, the NLRB restated its standard for determining what constituted a joint employer to include a wider range of factors like indirect control of employment decisions. That standard affirmed BFI as a joint employer, and the D.C. Circuit court upheld that determination.
The broader standard sparked questions across industries about employers’ liability in labor disputes, as well as a federal bill to change the definition of “joint employer” that ultimately failed in the Senate. It’s especially relevant for large waste companies, which often use hiring agencies or subcontractors to staff their facilities.
The NLRB has attempted to reverse course in the case multiple times under the first and second Trump administrations, but courts have maintained that BFI should be considered a joint employer. The NLRB signaled in February that it would follow the court's determination, leading to the April decision not to allow BFI's motion for reconsideration.
After NLRB’s determination, the union sent Republic a demand to begin negotiations, said Robert Sandoval, secretary-treasurer for Local 350. He was surprised when the company agreed to move forward.
"I fully expected this to continue into litigation as it's been for the past over a decade," Sandoval said. "I guess they finally recognize once and for all that this is how it should be."
Republic declined to comment.
Adam Keating, an employer-side lawyer at firm Duane Morris who is not involved with the case, said the company's options to avoid responsibility in the negotiations are limited, absent seeking an appeal of the final NLRB decision in a federal appeals court.
"Practically speaking, Republic likely needs to comply with the bargaining obligation unless and until it obtains relief from a court," Keating said in an emailed response to questions. "That means bargaining in good faith with Teamsters Local 350 while preserving any legal objections it may still have for further review."
Local 350 already represents some Republic Services workers, including those working in collections and at the Ox Mountain Landfill. Recruiting the workers at Newby Island would swell the union's ranks by about 200 people.
Sandoval said the strike last year "sent a message" to Republic about the strength of the union. Now, Republic's attorneys will take the lead in negotiating with Teamsters over the MRF workers' contract, according to Sandoval.
The union says workers at the Newby Island MRF have continued to struggle with needs like access to personal protective equipment as the labor case has dragged on. Sandoval also said the MRF workers earn a third to a half of what other Teamsters-represented workers in the area earn, which the union would work to change. The union will also negotiate over grievance procedures and worker protection language, according to Sandoval.
"These folks have been patiently waiting, and it's a long time coming. We're definitely looking forward to improving their working conditions," he said.
Sandoval said the union is meeting with workers soon to clarify their requests for the new contract. He expects the first negotiation with Republic to be in late June or early July.
