The National Labor Relations Board’s General Counsel has directed the Board’s regional offices to institute  cost-cutting measures in light of a significant budget deficit facing the agency for the balance of fiscal year 2016 (ending September 30).

In Memorandum OM-16-09, NLRB Associate General Counsel Anne Purcell instructed regional directors, officers-in-charge, and residents officers to institute cost-saving actions across the full range of Board activities, including representation elections, unfair labor practice investigations and trials, and office administration.

Among the actions being taken are the following:

  • Board agents are to redouble efforts to avoid hearings and trials by reaching stipulated election agreements (although, under the Board’s new “quickie” election rules, there are fewer issues to litigate at a hearing) and to settle “meritorious” unfair labor practice charges as early in the investigation as possible. (The Board’s pursuit of these goals could help employers in settlement negotiations.)
  • The hallmark of a Board unfair labor practice investigation had been the face-to-face affidavit. The Memorandum instructs that, in unfair labor practice investigations, the full use of “alternative investigatory techniques,” such as “questionnaires, telephone affidavits, videoconference interviews…position statements and other techniques that reduce or eliminate…travel costs,” is encouraged. The Memorandum also advises investigators to exceed the Board’s time targets (for deciding whether unfair labor practice charges have merit) if doing so can reduce costs; particularly if there are multiple cases involving the same parties or are open in the same locale.
  • Where cases are going to hearing or trial, in order to reduce travel expenses, the Memo urges that preparation be conducted in the regional office, making use of telephone and videoconferencing to prepare witnesses and for other pre-litigation matters. (Despite this advice, as is the case now, Board attorneys are expected to meet with witnesses twice, but with one meeting occurring on the eve of trial.) Preferably, trials should be conducted at the regional offices to reduce facility rental costs and to permit “inexperienced counsel the opportunity to ‘second chair’ senior counsel as a training exercise.” The General Counsel also will be more receptive to witness testimony by video.
  • Lastly, confirming that desperate times call for desperate measures, Board staff are instructed to save on paper costs in a number of ways: by foregoing filing post-trial briefs and, instead, encouraging judges to issue bench decisions, utilizing “double-sided photocopying . . . whenever possible,” and using “single space…for documents that are not filed with the Board or courts.”

While the directed actions are focused on the present budget, they also look to be “best practices” that the Board may continue in future years.

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Photo of Patrick L. Egan Patrick L. Egan

Patrick L. Egan is a principal in the Boston, Massachusetts, office of Jackson Lewis P.C. Patrick works in traditional labor law.

He has assisted employers in all industries in all phases of union organizing campaigns. Patrick has represented employers in card-signing efforts and…

Patrick L. Egan is a principal in the Boston, Massachusetts, office of Jackson Lewis P.C. Patrick works in traditional labor law.

He has assisted employers in all industries in all phases of union organizing campaigns. Patrick has represented employers in card-signing efforts and representation and decertification campaigns. He has conducted union awareness and positive employee relations training for hundreds of companies and employer groups. He has also assisted dozens of employers to preempt, prepare for and defend against union corporate campaigning.

Patrick has appeared for employers in representation, objections and challenged ballot hearings at the National Labor Relations Board. He has also represented employers in unfair labor practice charge investigations and trials. Patrick has also represented employers before the Massachusetts Commission Against Discrimination, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration and other state and federal agencies. Patrick has served as chief spokesman at hundreds of collective bargaining negotiations, including negotiations seeking a first contract and those aimed at reaching a successor contract. He speaks frequently before various employer and human resources groups on a variety of labor relations topics.

Patrick was a four-year starter and a senior captain of the varsity soccer team at Holy Cross.

After practicing management-side labor law at smaller firms in Springfield and Boston, Massachusetts, Patrick joined Jackson Lewis in 1990. He was elected a partner effective January 1, 1995.

Photo of Philip B. Rosen Philip B. Rosen

Philip B. Rosen is a Principal in the New York City office of Jackson Lewis P.C. and a member of the Firm’s Management Committee. Mr. Rosen also leads the firm’s Labor Practice Group. He joined the Firm in 1979 and served as Managing…

Philip B. Rosen is a Principal in the New York City office of Jackson Lewis P.C. and a member of the Firm’s Management Committee. Mr. Rosen also leads the firm’s Labor Practice Group. He joined the Firm in 1979 and served as Managing Partner of the New York City office from 1989 to 2009.

Mr. Rosen lectures extensively, conducts management training, and advises clients with respect to legislative and regulatory initiatives, corporate strategies, business ethics, social media, reorganizations and reductions-in-force, purchase/sale transactions, sexual harassment and other workplace conduct rules, compliance with the Americans With Disabilities Act, wrongful discharge and other workplace litigation, corporate campaigns and union organizing matters, collective bargaining, arbitration and National Labor Relations Board proceedings. He has been quoted by the press on many labor matters, including the National Labor Relations Board’s recent initiatives on protected concerted activity and the proposed Notice Posting requirements.