Sept 30 (Reuters) - Amazon.com ( AMZN ) must pursue a challenge
to the National Labor Relations Board's structure in a
Washington, D.C., court rather than in Texas, a federal judge in
San Antonio has ruled.
U.S. District Judge Xavier Rodriguez in a decision issued
Sunday rejected Amazon's ( AMZN ) claims that its lawsuit stemming from a
union election at a New York City warehouse had sufficient ties
to Texas, where three other judges have recently ruled that the
NLRB's structure likely violates the U.S. Constitution.
Rodriguez also refused to block the NLRB from deciding in an
underlying administrative case whether Amazon ( AMZN ) must bargain with
the union at the Staten Island warehouse known as JFK8. The
judge said the company had failed to show that it would face
irreparable harm if the board issued a ruling.
The NLRB had sought to move Amazon's ( AMZN ) lawsuit filed earlier
in September to a New York federal court in whose district the
warehouse is located. Rodriguez, an appointee of Republican
former President George W. Bush, said the case belongs in
Washington, D.C, because the board will decide Amazon's ( AMZN ) case
from its headquarters there.
Amazon ( AMZN ) did not immediately respond to a request for comment
on Monday. An NLRB spokeswoman declined to comment.
The ruling is a setback in Amazon's ( AMZN ) bid to stop the NLRB
from ordering the company to bargain with the first union in its
history. The labor board in August upheld the results of the
election at JFK8, rejecting Amazon's ( AMZN ) claims that it was tainted
by demonstrations held by workers and union organizers and that
board officials who oversaw the voting were biased toward the
union.
Amazon ( AMZN ) is likely to appeal the ruling to the New
Orleans-based 5th U.S. Circuit Court of Appeals, which is widely
considered the most conservative federal appeals court. The
three Texas judges who recently ruled against the NLRB all cited
a 2022 5th Circuit decision involving the U.S. Securities and
Exchange Commission, which has a similar structure to the labor
board.
Amazon ( AMZN ) on Friday had already asked the 5th Circuit to step
in, arguing that Rodriguez's delay in deciding its motion to
block an NLRB ruling amounted to a "constructive denial."
The company said the case should remain in Texas because at
least four former employees at JFK8 now live in the state, and
because part of the underlying board case was processed by an
NLRB office in Arizona that covers parts of Texas.
Rodriguez stayed his decision until any appeal by Amazon ( AMZN ) is
resolved.
Amazon's ( AMZN ) lawsuit is one of about 20 filed against the NLRB
since last year arguing that the agency's in-house enforcement
proceedings violate the U.S. Constitution. Judges in Chicago,
Washington, D.C., Detroit and Connecticut have rejected bids by
other employers to block NLRB cases against them.
Amazon ( AMZN ) and the other businesses suing the board have argued
that the agency's administrative judges, who hear cases alleging
illegal labor practices, and five board members who review the
judges' rulings are improperly shielded from being removed at
will by the U.S. president.
The companies have also argued that board proceedings
violate their right to a jury trial and the separation of powers
under the U.S. Constitution.
The case is Amazon.com Services v. NLRB, U.S. District Court
for the Western District of Texas, No. 5:24-cv-1000.
For Amazon ( AMZN ): Kurt Larkin and Amber Rogers of Hunton Andrews
Kurth
For the NLRB: Tyler Wiese, Christine Flack and Michael Dale
Read more:
Amazon ( AMZN ) takes challenge to NLRB's structure to US appeals
court
Amazon ( AMZN ) challenges US labor board's structure in lawsuit over
union election
Amazon ( AMZN ) gets labor board complaint on failure to bargain with
New York union
Amazon ( AMZN ) loses challenge to union's election win at NYC
warehouse
SpaceX wins block on US labor board case over severance
agreements
US judge blocks NLRB case against energy firm challenging
agency's structure
US judge rejects medical center's bid to 'neuter' NLRB
(Reporting by Daniel Wiessner in Albany, New York)