                  United States Court of Appeals

               FOR THE DISTRICT OF COLUMBIA CIRCUIT

       Argued February 14, 2000     Decided June 27, 2000 

                           No. 99-1078

              Pacific Micronesia Corporation, d/b/a 
                  Dai-Ichi Hotel Saipan Beach, 
                            Petitioner

                                v.

                 National Labor Relations Board, 
                            Respondent

            Hotel Employees and Restaurant Employees 
                 Local Union No. 5, AFL-CIO, and 
                 Commonwealth Labor Federation, 
                            Intervenor

On Petition for Review and Cross-Application for 
Enforcement of an Order of the National 
Labor Relations Board

     Ronald B. Natalie argued the cause for petitioner.  With 
him on the briefs was Douglas W. Hall.

     David A. Fleischer, Senior Attorney, National Labor Rela-
tions Board, argued the cause for respondent.  With him on 
the brief were Linda R. Sher, Associate General Counsel, and 
Aileen A. Armstrong, Deputy Associate General Counsel. 
Margaret A. Gaines, Supervisory Attorney, entered an ap-
pearance.

     Intervenor Hotel Employees and Restaurant Employees 
Local Union No. 5, AFL-CIO, joined in the brief filed by the 
National Labor Relations Board.  David A. Rosenfeld and 
Victor J. Van Bourg entered appearances.

     Before:  Silberman, Williams and Ginsburg, Circuit 
Judges.

     Opinion for the Court filed by Circuit Judge Ginsburg.

     Ginsburg, Circuit Judge:  The National Labor Relations 
Board held that Pacific Micronesia Corporation, d/b/a Dai-
Ichi Hotel Saipan Beach, violated ss 8(a)(1) & (5) of the 
National Labor Relations Act, 29 U.S.C. s 151 et seq., by 
refusing to bargain with or provide information to the Com-
monwealth Labor Federation and the Hotel Employees & 
Restaurant Employees, Local 5, AFL-CIO (collectively, the 
Union).  Dai-Ichi claims it need not deal with the Union 
because the Board improperly defined the bargaining unit for 
which it was certified and because the election of the Union 
as the employees' bargaining representative was invalid.  We 
agree with Dai-Ichi that the representation election was 
invalid.  Without resolving the unit determination issue, 
therefore we grant the Company's petition for review and 
deny the Board's cross-application for enforcement.

                          I. Background

     Dai-Ichi operates a resort hotel located on the island of 
Saipan in the Commonwealth of the Northern Mariana Is-
lands (CNMI).  The Covenant to Establish a Commonwealth 
of the Northern Mariana Islands in Political Union with the 
United States of America, 48 U.S.C. s 1681 at 539 (West 
1987), governs the relationship between the CNMI and the 

United States.  Section 502(a)(2) of the Covenant makes 
certain federal laws, including the NLRA, effective in the 
CNMI, see Micronesian Telecommunications Corp. v. 
NLRB, 820 F.2d 1097, 1101 (9th Cir. 1987), while s 503(a) of 
the Covenant provides that the "immigration and naturaliza-
tion laws of the United States" generally do not apply in the 
CNMI.  48 U.S.C. s 1681. Acting under its reserved authori-
ty to regulate immigration, the CNMI enacted the Nonresi-
dent Workers Act (NWA) which "provide[s] strict[ ] enforce-
ment, control and regulation of nonresident workers," NWA 
s 4411(b), by severely restricting the immigration of nonresi-
dents and by limiting the "employment of nonresident work-
ers ... to the duration of the specific job or employment for 
which the alien was recruited."  NWA s 4411(a).  Among the 
many restrictions the NWA places upon the employment of 
nonresidents, the following are most noteworthy.

     An employer in the CNMI may hire a nonresident worker 
only if the Chief of Labor certifies that no resident is 
available to fill the position.  See NWA s 4433.  Upon such 
certification, the employer and the Chief must enter into a 
"nonresident employment agreement," which memorializes a 
description of the position, the time at which the employer 
must again seek to fill the position with a resident, the 
employment contract to be offered to the nonresident, and 
the employer's commitment to secure a bond or surety for the 
employee.  See id.  The actual employment contract in turn 
must specify the term and location of employment, work 
schedule, wage scale for regular and overtime hours, and any 
pay deductions required by law.  See NWA s 4433(g).

     The Chief of Labor may authorize a nonresident employee 
to work for no more than one year at a time, but the 
employer may annually apply to extend his employment for 
an additional year.  See Alien Labor Rules and Regs. s II.D.  
A nonresident may not work for anyone other than the 
employer specified in the employment contract and neither 
the employer nor the nonresident may alter the terms of their 
employment contract without approval from the Chief.  See 
NWA s 4437(d).  Upon the completion of the term of employ-
ment or the end of the employment relationship, a nonresi-

dent must immediately depart from the CNMI unless he has 
filed a breach of contract claim against the employer, in which 
case he may remain in the CNMI for a short time.  See NWA 
s 4434(g).

     Approximately 77% of Dai-Ichi's employees are nonresi-
dents, and Dai-Ichi's Personnel Manager testified before the 
Board that the company routinely seeks to extend the em-
ployment of any nonresident worker who has performed well.  
Indeed, a significant portion of Dai-Ichi's nonresident work-
force has been in Dai-Ichi's employ for five or more years.

     In November 1995 the Union petitioned for an election in a 
bargaining unit consisting of all Dai-Ichi's workers.  Dai-Ichi 
objected to the election on various jurisdictional grounds;  
alternatively it contended that the nonresident employees 
"lack a community of interest with the resident employees," 
and therefore should be in a separate bargaining unit.  The 
Regional Director overruled Dai-Ichi's jurisdictional objec-
tions, established a single bargaining unit comprised of both 
residents and nonresidents, and set the election for March 21, 
1996.  The Board rejected Dai-Ichi's request for review.

     A little more than one week prior to the election the press 
in the CNMI began describing various legislative proposals 
relating to nonresident workers.  (Although the record con-
tains only newspaper articles, the Board found that similar 
reports aired on television at about the same time.)  On 
March 13, the Marianas Variety News & Views (Variety) 
published a story entitled "Reyes to union:  Leave us alone," 
which contains a statement by Rep. Pete Reyes, the majority 
leader in the CNMI House of Representatives, announcing 
his intention to introduce a bill limiting to two years the time 
a nonresident worker could lawfully remain in the CNMI.  
Reyes said he intended the bill to curtail "problems with 
overstaying alien workers," and to "send[ ] a message to 
union organizers that they cannot promise workers [an] indef-
inite stay in the [CNMI]."  Three days later, the Pacific Daily 
News ran an article entitled "Torres opposes union," report-
ing that Rep. Stanley Torres had announced his intention to 
"introduce legislation ... to limit aliens to two renewals of 

their employment contracts if they join labor unions."  The 
article also mentions that the announcement came approxi-
mately one week prior to the election at the Dai-Ichi hotel.

     In the ensuing days prior to the election, the news media 
circulated several more reports related to the legislative 
proposals of Reps. Reyes and Torres.  Variety published a 
story on March 18 entitled "Reyes:  Send home displaced 
workers," which reported that Rep. Reyes' proposal would 
prevent a nonresident worker who had been discharged from 
remaining in the CNMI pending the outcome of his grievance.  
Rep. Reyes is reported to have stated that he made the 
proposal partially in response to a "recent demonstration 
participated in by alien workers bearing placards calling 
Saipan 'the island of the abusers.' "  That same day articles in 
Variety and in the Saipan Tribune quoted Rep. Torres as 
saying his proposal would "limit all nonresident workers who 
have joined a labor union to only two contract renewals."  
Variety quoted Rep. Torres as saying that the bill "is not 
about punishing those who will join the union [but rather] 
about putting union organizers on notice that they could not 
promise anything for these workers";  the paper also quoted 
Elwood Mott Jr., a union organizer, as saying that the bill 
would be inconsistent with "sections 7 and 8 of the National 
Labor Relations Act."  The Tribune article, entitled "Joining 
a union:  Hazardous to your health," mentioned that the 
Union was attempting to organize Dai-Ichi's workforce, noted 
that some U.S. government officials had accused the Union of 
having connections to organized crime, and ended by pointing 
out that Rep. Torres' bill "would allow non-union members to 
continue to renew their employment contracts indefinitely."  
Dai-Ichi attached this article to a flyer and circulated it to the 
employees.

     In the final few days before the election, the news media 
reported that the bills as introduced would in fact apply to all 
nonresidents, not just union members, but the stories contin-
ued to portray Reps. Reyes and Torres as very much opposed 
to unionization.  The March 19 Tribune, in an article entitled 
"Torres:  Union lying about dues," reported that Rep. Torres 
had accused the Union of collecting excessive dues from 

workers in Saipan and it quoted him as saying that "becoming 
a union member will be a lifetime employment record and 
may haunt you everywhere you go when looking for a new 
job."  That same day Variety reported that the Saipan Cham-
ber of Commerce strongly opposed Rep. Torres' bill and 
quoted the president of the Chamber as stating that the bill 
would "probably be unconstitutional" if applied only to non-
residents who join unions.  On March 20, the Tribune report-
ed that Rep. Torres had introduced a bill "propos[ing] that 
any 'nonresident' worker who has lived and worked in the 
CNMI for two or more consecutive years be required to leave 
the CNMI for at least 30 days before the worker may be 
allowed to ... continue working."  The remainder of the 
report contrasts Rep. Torres' bill with an earlier law that had 
limited nonresidents to four years in the CNMI;  employers 
had succeeded in having the four year limit repealed.  Vari-
ety also published on March 20 a two-page advertisement 
paid for by Rep. Torres that contained clippings from news-
paper articles and letters regarding the Union;  several of the 
articles featured in the advertisement were among the ones 
described above.

     On the day of the election Variety ran an article reporting 
the parties' predictions of victory, a statement by Dai-Ichi's 
counsel accusing the Union of charging excessive dues, re-
sponses by Union supporters claiming the Union would re-
duce dues if it won, and a statement by Rep. Torres that the 
Union has a history of striking and that strikes "would cause 
civil unrest in the CNMI."  Variety also published an article 
entitled "2-year, 4-year limits for workers opposed" in which 
Diego Benavente, Speaker of the CNMI House of Represen-
tatives, stated that he intended to "lobby his colleagues in the 
House against any legislation seeking to impose a limit on the 
legal stay of non-resident workers in the CNMI."  Speaker 
Benavente is quoted as stating that Rep. Torres' bill "is not 
only for union members but for all non-resident workers" and 
that federal law prevents the CNMI from "treat[ing] union 
members differently."  Finally, the Tribune printed an article 
in which Dai-Ichi's counsel is quoted as saying the Union lied 
to employees when it told them it would charge reduced dues 

and that Dai-Ichi planned to file unfair labor practice charges 
against the Union for deceptive advertising.

     The election of March 21 resulted in a decisive defeat (157 
to 91) for the Union.  The Union filed objections to the 
election, including three objections claiming, as the Regional 
Director characterized them, that "third parties interfered 
with employee free choice ... by threatening the reinstate-
ment of the four year limit on non-resident worker's [sic] 
contract renewals and/or threatening to limit non-resident 
worker's [sic] contracts to two years."  Finding that the 
"remarks published in the barrage of newspaper articles" 
described above "constitute third party conduct so aggravated 
that they created a general atmosphere of fear, reprisal, and 
confusion rendering a free election impossible," the Regional 
Director recommended overturning the election results.  The 
Board adopted the Regional Director's findings, rejected Dai-
Ichi's objections, and directed that a second election be held.

     The second election was held on February 5, 1998.  This 
time the Union prevailed (131 to 121) and Dai-Ichi filed 
objections to the election, including its claim that the Board 
erred by overturning the results of the first election.  The 
Regional Director rejected Dai-Ichi's objections and certified 
the Union as the representative of the bargaining unit;  the 
Board rejected Dai-Ichi's request for review.

     In order to obtain judicial review, Dai-Ichi refused to 
provide information to or to bargain with the Union.  Upon 
the Union's filing an unfair labor practice charge, the General 
Counsel issued a complaint claiming Dai-Ichi had violated 
ss 8(a)(1) & (5) of the NLRA.  Finding no issues of disputed 
fact, the Board granted summary judgment in favor of the 
General Counsel and directed Dai-Ichi to bargain with the 
Union.  Dai-Ichi petitioned this court for review of the 
Board's order, the Board cross-applied for enforcement, and 
the Union intervened in support of the Board.

                           II. Analysis

     Dai-Ichi argues that the Board erred by overturning the 
first election and by including within a single bargaining unit 

both resident and nonresident employees.  We must uphold 
the Board's decisions unless "upon reviewing the record as a 
whole, we conclude that the Board's findings are not sup-
ported by substantial evidence or that the Board acted arbi-
trarily or otherwise erred in applying established law to the 
facts of the case."  Micro Pacific Development Inc. v. NLRB, 
178 F.3d 1325, 1328-29 (D.C. Cir. 1999).  To meet the re-
quirement of "[s]ubstantial evidence," the Board must pro-
duce "more than a mere scintilla" of evidence;  it must 
present on the record "such relevant evidence as a reasonable 
mind might accept as adequate to support a conclusion," 
Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229 (1938), 
taking into consideration the "record in its entirety ... 
including the body of evidence opposed to the Board's view."  
Universal Camera Corp. v. NLRB, 340 U.S. 474, 488 (1951).  
Our review for substantial evidence also must ensure that the 
Board has "draw[n] all those inferences that the evidence 
fairly demands."  Allentown Mack Sales & Serv., Inc. v. 
NLRB, 522 U.S. 359, 378-79 (1998).

     We think there is serious reason to doubt the propriety of 
the bargaining unit in this case because of the inherent 
conflict of interest between resident and nonresident employ-
ees, but the matter is far from clear.  See Saipan Hotel Corp. 
v. NLRB, 114 F.3d 994, 998 (9th Cir. 1997).  We need not 
decide that issue, however, because we agree with Dai-Ichi 
that the Board erred by overturning the results of the first 
election.

     The Board's precedents establish that it rarely overturns 
the results of a representation election because of misconduct 
not attributable to a party to the election, and then only if 
that "misconduct was so aggravated as to create a general 
atmosphere of fear and reprisal rendering a free election 
impossible."  Westwood Horizons Hotel, 270 NLRB 802, 803 
(1984).  In this case the Board found the statements made by 
various members of the CNMI House of Representatives, as 
reported by the news media, constituted "third party threats" 
that made it impossible for the employees freely to decide 
whether to vote for the Union.  We question seriously the 
idea that statements made by lawmakers concerning legisla-

tive proposals designed to address political issues could ever 
be grounds for overturning a representation election.  Cf. 
NLRB v. Gissel Packing Co., 395 U.S. 575, 617-18 (1969) 
(stating employer's comments about representation election 
must be more limited than those regarding "the enactment of 
legislation ... where the independent voter may be freer to 
listen more objectively and employers as a class freer to 
talk").  Nevertheless, we need not and do not decide that 
question here because the Board's determination that the 
reports "created an atmosphere of confusion, and fear of 
reprisals so as to render impossible the rational, uncoerced 
selection of a bargaining representative" is not supported by 
substantial evidence.  Indeed, there are two major deficien-
cies with the evidence the Board relies upon to support its 
determination:  Most of the news reports could not have 
affected in any way the employees' ability to decide freely 
whether to select the Union as their bargaining representa-
tive, and to the extent any of the reports conceivably could 
have affected the employees' ability to choose freely, the 
reports are too insignificant to have caused such fear and 
confusion that free choice was impossible.

     The Board overturned the results of the first election 
because it determined that the reports in the media made it 
impossible for the employees to vote freely.  In order to 
support this determination, therefore, the Board needed at a 
minimum to present evidence of events from which "it reason-
ably appears that the freedom of choice of the employees 
could have been interfered with."  James Lees & Sons Co., 
130 NLRB 290, 291 n.1 (1961).  Although the type of evidence 
required in this case seems self-evident, see, e.g., Westwood 
Horizons Hotel, 270 NLRB at 803 (threats of physical vio-
lence if employees voted against Union);  James Lees & Sons 
Co., 130 NLRB at 291 ("[N]umerous statements and conduct 
by various responsible groups and individuals in the commu-
nity ... reasonably conveyed the view to the employees that 
in the event of unionization the Employer would shut down its 
plant and other employers would not locate in the communi-
ty"), the Board repeatedly attempts to justify its decision to 
overturn the first election by relying upon evidence that 
simply is not relevant to the employees' free choice.

     For example, the Regional Director observed that passage 
of the bills limiting the amount of time nonresidents could 
remain in the CNMI would have meant immediate job loss 
and deportation for a significant number of Dai-Ichi's long-
term employees.  Noting that threats of deportation and job 
loss are quite serious, he then opined that many of Dai-Ichi's 
workers might have "reasonably conclud[ed] that it was bet-
ter to stay and work without union representation, than to be 
sent back to their homeland[s]."  The gap in this reasoning is 
obvious:  Passage of the proposed legislation was not in any 
way contingent upon the outcome of the election.  Therefore, 
the pendency of the legislative issue (and the reports thereon) 
had no bearing upon the employees' ability to choose freely in 
the election.  Although it is quite possible that news of the 
legislative proposals caused fear and confusion among Dai-
Ichi's employees--perhaps causing some of them to worry 
that they would not be able to remain in the CNMI--they 
simply had no reason to fear the consequences of voting for 
the Union.  Yet the Board overturned the first election on the 
ground that the employees' fear and confusion "render[ed] 
impossible" a "free expression of choice."  Westwood Hori-
zons Hotel, 270 NLRB at 803.  From the evidence in the 
record, that is a non sequitur.

     In this court the Board highlights four aspects of the 
record in support of its conclusion.  First, the Board points 
out that some early reports had erroneously described the 
bills as limiting the number of times nonresidents who joined 
a union could renew their employment contracts while leaving 
unaffected the renewals of nonresidents who did not join a 
union.  Second, the Board notes that several articles about 
the proposed legislation refer to the impending election at 
Dai-Ichi.  Third, the Board points out that some of the 
reports contain statements indicating that the proposals were 
intended to deter the Union.  Finally, the Board relies upon 
one of the articles that quotes Rep. Torres as stating that 
joining a union "may haunt you everywhere you go when 
looking for a new job."  We consider these four points both 
seriatim and cumulatively, but are nonetheless constrained to 

conclude they do not, even in the aggregate, constitute sub-
stantial evidence supporting the Board's determination that 
the employees were unable to vote freely in the first election.

     First, although some of the early reports did refer to 
(nonexistent) legislative proposals that would have adversely 
affected only nonresidents who were union members, later 
reports repeatedly corrected those early mis-descriptions.  
The last article to err in that regard appeared on March 18;  
all subsequent articles either expressed opposition to such a 
proposal or stated that the actual proposals would apply to all 
nonresident workers, union and non-union alike.  A report on 
March 19 stated that the Chamber of Commerce believed a 
bill targeting union members would be unconstitutional and 
that it would strongly oppose a bill limiting the number of 
times any nonresident's contract could be renewed.  Then, on 
March 20, the Tribune reported that the bills actually intro-
duced applied to all nonresidents regardless whether they 
were members of a union, and Variety published an article on 
March 21 reiterating that the bills applied to all nonresidents.  
The later reports clearly dispelled any notion that the pro-
posed legislation affected only those nonresidents who joined 
a union.  The Board's emphasis solely upon the earlier arti-
cles, therefore, is misplaced.

     Second, mention of the election at Dai-Ichi in some articles 
lends no support to the Board's determination.  To begin, 
only three of the articles even mention the then-impending 
first election in relation to the proposed legislation.  The rest 
of the articles either do not mention the election at all or 
mention it in a way that does not relate to the proposed 
legislation.  For example, an article appearing in the Tribune 
on March 19 begins by mentioning that "[w]ith an election set 
this week at the Dai-Ichi Hotel ... Rep. Stanley T. Torres 
has renewed his criticism" of the Union, but that article does 
not mention any of the legislative proposals.  Even assuming, 
however, that some of the articles did lead employees to 
believe that the legislation was introduced because of the 
Union's efforts to organize Dai-Ichi's workforce, those arti-
cles cannot reasonably be seen as constraining the employees' 
ability to vote freely in the election.  Not one of the articles 

ever intimates that the results of the election could affect the 
legislative outlook in any way.  Although it may have been 
reasonable for an employee to speculate that the Union's 
efforts to organize Dai-Ichi's workforce at least partially 
precipitated the proposals, it would not have been reasonable 
for an employee to conclude that the results of the election 
could do anything to defeat or otherwise derail the proposals, 
which dealt with larger issues of immigration and employ-
ment policy.

     Nor does the Board's third point, that some news reports 
indicated the legislative proposals were designed to deter the 
Union's organizers, suggest that the employees were unable 
to vote freely in the first election.  Only by quoting fragments 
of the articles out of context can the Board argue otherwise.  
For example, the Board argues that several of the articles 
"quoted the legislators as saying they wanted to 'send a 
message to union organizers,' " implying that the proposals 
were designed to deter unionization.  Read in context, howev-
er, the reports are much less ominous.  In fact, the articles 
containing the phrase "send a message" state in substance 
that Reps. Torres and Reyes "wanted to send a political 
message to union organizers 'that they could not promise 
alien workers permanent residency in the island.' "

     Some of the articles cited by the Board do indicate that 
some legislators were adverse to unionization in general and 
to the Union in particular but those articles simply do not 
support the Board's conclusion that the employees were 
unable to vote freely.  The Supreme Court has held that in an 
election contest even the employer, who has some direct 
control over his employees' economic well-being, "is free to 
communicate to his employees any of his general views about 
unionism or any of his specific views about a particular union, 
so long as the communications do not contain a 'threat of 
reprisal or force or promise of benefit' " for voting respective-
ly against or for unionization.  Gissel Packing Co., 395 U.S. 
at 618.  Overturning an election based upon statements made 
by legislators requires more reason to believe that employees' 
freedom of choice was compromised:  The Board will overturn 
an election if conduct attributable to the parties "created such 

an environment of tension and coercion as to have had a 
probable effect upon the employees' actions at the polls," but 
will overturn an election based upon third party conduct only 
if the misconduct is "so aggravated as to create a general 
atmosphere of fear and reprisal rendering a free election 
impossible."  Overnite Transp. Co. v. NLRB, 140 F.3d 259, 
264-65 (D.C. Cir. 1998).  Applying this standard, the state-
ments made in the present case by various legislators op-
posed to unionization in general and accusing the Union in 
particular of corruption cannot possibly be a ground for 
overturning the first election.  If the rule were otherwise, the 
electoral process would be subject to endless manipulation by 
politicians and their allies in labor or management.

     With respect to the Board's last point, the statement 
attributed to Rep. Torres appeared in an article in which he 
accused the Union of charging excessive dues and of engaging 
in "sneaky" and potentially illegal campaigning.  The article 
ends with the following passage:  "In closing his statement, 
Torres said that although workers have a right to choose 
whether or not to join a union, 'becoming a union member will 
be a lifetime employment record and may haunt you every-
where you go when looking for a new job.' "  This statement, 
like the statements just discussed, is nothing more than Rep. 
Torres' expression of general dislike of unions and cannot be 
a ground for overturning an election.  Therefore, this portion 
of the record also fails to provide meaningful evidence for the 
Board's finding that the employees were unable to vote freely 
in the first election.

     Considering the Board's evidence as a whole, we think it 
falls well short of being substantial.  None of the individual 
points is probative, and taken as a whole they do not add up 
to any more than the sum of the parts.  We are therefore 
constrained to conclude that the Board has failed to support 
with substantial evidence its decision to overturn the first 
election.

                         III. Conclusion

     The Board's finding that news reports "created an atmo-
sphere of confusion, and fear of reprisals so as to render 

impossible the rational, uncoerced selection of a bargaining 
representative" in the first election is not supported by 
substantial evidence.  Consequently, we grant Dai-Ichi's peti-
tion for review and deny the Board's cross-application for 
enforcement.

                                                It is so ordered.

                           