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National Labor Relations Board v. Henry Vogt MacHine Company
718 F.2d 802
6th Cir.
1983
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*2 JONES, Before MERRITT and Circuit WEICK, Judges, and Judge. Senior Circuit WEICK, Judge. Circuit Senior parties proceeding to this have ar- gued their case twice before this court. time was in April first before a panel, one of whose members died before panel reached decision. The second argument was on June 1983. outset, At the we note that Adminis- (ALJ) trative Law Judge conducted an ex- tensive evidentiary hearing and found the facts, (which the Board later admitted were largely uncontroverted) law, as well as the against Board and dismissed the com- plaint. The Board reversed ALJ’s deci- sion with one of the Board’s three member panel dissenting.

The National Labor Relations Board (Board) respondent Henry held that Vogt (Company) Machine violated 17 “die sinkers” who are represented by the (1) 8(a)(5), Section of the National International Die Sinkers Conference. The (Act) (29 Labor Act Relations U.S.C. office and clerical workers are 158),1 by lunchroom revoking privileges addition, represented by Union. In held 12 laboratory employees, which the plant the Louisville has 12 shift labora- said not entitled to tory employees who are the focus of the *3 possess they join after the 900 present dispute. production member and maintenance unit In representation Board held a of the Union. The collective provide election to for these opportunity agreement applicable thereto did pro- not non-union vide for such benefits and the Company was Union, if desired to do so. Shortly them, required provide nor did it election, before the employees were ad- have sufficient cafeteria space for all 900 by dressed Vogel, Company Werner vice- bargaining unit members. The Board or- president, why they as to should vote not to dered the Company to cease and desist from join. part He advised them in as follows: withdrawing the of said Also for the non-union employees on the workers; from refusing to col- shift, day company has the lunchroom lectively with the charging party union on in which you eligible all of are and have benefits; the cafeteria and from otherwise been invited to utilize for the nominal with, interfering restraining, or coercing amount of per (5) week for five $1.00 employees in the exercise of lunches. This is far less than you would guaranteed by them the Act. The Board pay for one lunch outside and probably ordered the cafeteria privilege reinstated less your than cost for lunch bringing and ordered that affected employees be from home. I do not know how many of made whole any for losses caused by you but, take of this advantage benefit it Company’s action. It now seeks enforce- is available you space, and because of ment of its order. is not available to our union shop employ- For the reasons stated below deny we ees. I believe you agree will have to Board’s application for enforcement of its this is a decided if plus you are order, as it is not supported by substantial taking advantage of it. evidence and is contrary law. employees voted to continue their non-union status.

I. In another representation election Respondent, Henry Vogt Machine Com- was held and again Vogel Vice-President pany, is a Kentucky corporation engaged in addressed the laboratory employees as fol- the manufacture power boilers, and sale of lows: heat exchangers, machines, ice valves, fit-

tings and other metal products. At Also for the non-union on the plant, Louisville it has about production shift, company has lunch and maintenance employees who have for room in you which all of eat may for the 29 years represented been Local over. nominal cost per of week for five $1.00 Union 1693 of the United Steelworkers of lunches. This is far you less than would (Union), America which Union has pay entered for one lunch outside and is undoubt- into a series of collective bargaining agree- edly your less than bringing cost for ments with the Company. There are also lunch from I home. do not know how (a) 1. practice It shall be an (3) By unfair regard labor for an discrimination in to hire or employer— employment any tenure of or term or condi- employment encourage tion of or discour- (1) with, restrain, to interfere or coerce age membership organization. labor rights guar- in the exercise of the title; anteed in section 157 of this bargain collectively to refuse to with representatives employees, of his ... supper, lunch or or may bring your this bene- You advantage take many you plant. food at purchase but, you may if want it. you fit it is there machines for hot and cold Vending agree will have to you believe that drinks, in various and snacks are located for those of is a substantial benefit The trucks of a cater- plant. of it. areas of taking advantage you who Area of De- Storage er are in the Steel that if the labora- The election notice stated vicinity and in the of De- partment 28 Union, then voted for the tory employees Shop, during Machine partment part pro- would of the Union’s become supper periods. lunch and unit. duction and maintenance later bargaining agreement The collective employees were When the provided many entered into benefits eligi- payroll”, they carried on “office including salary. agreement, increased lunches at the subsidized ble to have their however, provision contained no for lunches cafeteria,2 at a cost of one dollar for the 12 This issue was not even workers. However, for five lunches a week. when *4 raised the by Union committee (and the they join shortly voted to in any lengthy bargaining of the sessions. thereafter came under the terms and condi- representation election held on Au- was contract), negotiated tions of a the newly gust laboratory at which time the pay- transferred them from office company ployees thereby the Union and unit and bargaining (plant) payroll, roll to part larger bargaining become a of the unit to use the cafeteria ceased. eligibility their of more than 900 members. The Board employees the laboratory At the time August certified the result on 1978. production the representation, chose Union Union, joining Prior to their the the labo- bargain- maintenance members of the and office, were, ratory employees along with covered an exist- ing already by unit were engineering, supervisory employ- sales and That bargaining agreement. collective ees, carried on records as “of- respondent’s expire scheduled to in the agreement was such, payroll.” fice As were entitled Thus, bargaining near rather than future. privileges to certain benefits and which employees with concerning laboratory were in titled spelled out a white booklet of time respect period preceding to Vogt “Information for You and other Of- contract, expiration existing of the fice, Engineering, Supervisory Sales and delay Company agreed and the Union Employees”. In this booklet is a section on for a new col- bargaining negotiations úntil provides: Food Service which bargaining agreement, lective which would unit, may bring your bargaining You lunch or or of the supper, cover all members you ne- may purchase plant. began early September food at 1978. These Vending machines for 7. gotiations September hot and cold commenced on drinks, and snacks are in various and re- They lengthy located involved 19 sessions plant. covering areas of the shift sulted in a Day proposed many contract payroll eligible subjects, on office to have that was ratified on October 22 lunch in the Company lunchroom on the and took effect on October office, floor, third front (emphasis 195-213). add-

ed) during negotiations, Both and before time, gave At the same had a where it its Company meetings Union held Compa- members, employ- blue booklet which all including covered ees, suggestions This blue to make ny’s bargaining employees. opportunity unit that would be help proposals booklet is titled “Information for You and and formulate Company’s negotiating Other Employees Vogt”, At and its Food submitted to the record that the provides: section team. It is clear from the Service people, large, payroll 2. The it clear- cafeteria consisted of a clean room accommodate the office employ- seating people ly capacity to seat the 900 120 to 150 and offered hot or lacked the Although large enough bargaining cold lunches. it was ees in the unit. resulted in a waiver of were which followed proposals Union’s Having bargain over that issue. enjoyed to be on the basis of benefits made did not violate all unit The Un- determined members. Act, the (1) special 8(a)(5), did not bene- attempt ion obtain Section in its complaint dismissed or concessions for the 12 ALJ ordered fits specifically only proposals entirety. employees. laboratory employees toward the

directed to a decision appealed The ALJ’s was job to a determination of classifica- related In a panel of the Board. three member wages, previously which had not tions decision, ALJ, the Board reversed the split unit established for new been although the facts were concluding members. Company’s dispute, termination without record further reveals that before the cafeteria was made Un- process var- to or consultation with the throughout negotiation prior notice ion; Union did not waive its ious advised Un- privi- over negotiating committee the Com- termination of the ion’s pany going to revoke their cafeteria unilateral lege; and below, the privileges. As is shown Union withdrawal benefits was negotiate attempted discriminatory. neither nor intended special laboratory employ- benefits for the ees; rather the told III. would receive the same benefits as other question Before us for review is the *5 workers in the unit and no more. sup- whether the Board’s conclusions are 28, 1978, October the newly On the ported substantial evidence in the record by negotiated bargaining agreement collective as a considered whole. Universal Camera effect,

took the Company transferred the NLRB, 474, 456, 340 71 Corp. U.S. laboratory employees payroll from office to (1951). 95 L.Ed. 456 We believe plant payroll and revoked their cafeteria not. privilege. Several laboratory employees complained to causing the Union the Union A. to mention problem the offi- Company to The contends the Company Board unilat- cials. When no accommodation was erally revoked the cafeteria with- reached, the Union charge filed a with the out affording first Union an appropri- alleging 8(a)(5), Board violations of Section meaningful ate and opportunity to (3) and of the Act. It says over the issue. that where bargain- Union not waived statutory has II. such action ing rights, violates Section charges were heard AU. by an 8(a)(5) (1) of the and Act. argued General Counsel of the NLRB revocation of the laboratory employees’ em generally It true that an lunchroom privilege resulted from those ployer violates Section 8 of the Act if it employees choosing to represented by changes be a a term unilaterally or condition union and that such duty revocation was inher- over which it to employment has a ently discriminatory. Following a review bargain. Corp., N.L.R.B. v. Allied Products facts, of all the 644, (6th ALJ concluded the 652 ac Cir.1977). 548 F.2d Such however, action was Act, neither tion violate if does not discriminatory nor discriminatorily motivat- right bargain. the Union has waived its to ed. ALJ further concluded the Union be if Waiver will found the evidence shows negotiating Company committee knew the that the Union received sufficient notice to intended terminate privi- change, pro the lunchroom the proposed yet and failed to lege, and that its failure to raise the issue bargaining test or demand on the issue. during any of negotiations the extensive International Ladies Garment Un- Workers

807 he not N.L.R.B., (D.C.Cir. Although F.2d Hatfield testified could ion 918 V. being by laboratory employees told recall of clear 1972). requires proof The Board that the to the contract’s ratification prior unequivocal notice such that the Un- their intended to revoke Company bargain- failure to demand subsequent ion’s 75), testify he did privilege (App. relinquishment” constitutes a “conscious ing negotiate specific Union did not intend Industries, bargain. of the NL for benefits aff’d, Inc., (1975), NL 220 NLRB unit as enjoyed by bargaining were not Industries, N.L.R.B., 536 F.2d 786 Inc. v. 60). (App. a whole (8th Cir.1976). agree we with the Although bargain- of the Union’s Another member Board, by standard enunciated substan- negotiations the 1978 during committee the Board’s support tial evidence does Tharp, was Kenneth the treasurer there was insuffi- finding in this case that Tharp meetings In one of several Union. point relinquish- cient notice to to conscious Wagner during September had with Rather, ment of the bargain. negotiations, Wagner told October com- record reveals the Union’s that the want- Tharp laboratory mittee was well aware the intend- pay negotiated ed a retroactive raise for privilege, ed to terminate the cafeteria but (This them the Union. was because deliberately consciously already granted pay had a raise chose not to raise that issue at time re- payroll personnel). Tharp’s to its office during negotiations for the collective was, “You are included in sponse Wagner bargaining agreement. unit will you get our For David example, Wagner, at the same time.” get, same as we was re- employee whose cafeteria benefit 177). negotia- Tharp during testified voked, testified that in he September no demand for retro- tions Union made “Basically [negotiating] told the whole com- be- pay active mittee” that the Company going cause, people “I am the other 900 sure terminate the cafeteria privilege (App. would unit] [members 22, just prior On October to the ratification like something have hit the roof if we tried *6 vote, Wagner informed a committee mem- (App. 177). that.” ber that as of that weekend the Thereafter, following tes- Tharp gave longer would no allow laboratory timony: 117). to use the (App. In other Q proposals “At the time the were stated he testimony, Wagner that since was August drafted and at the time of now a he bargaining member unit negotiating] was the meeting, [Union expected get exactly the same benefits em- laboratory committee aware bargaining that other unit employees got ployees general had benefits which (App. 95-96), by and to be covered unit did not have?” spelled terms and conditions out in the blue “Yes, we their bene- A knew about “Information for given You” booklet to bar- fits.” gaining (App. 99-101). unit members Q negotiating “Did the committee any preserve

Another make effort to those bene- laboratory employee, Roger to the McCombs, laboratory employees?” fits testified that during contract ne- gotiations “No, he talked several times with figured A we that it would be eating Local them their cake it president (also having a member of like and too, plus their benefits our having them committee) the Union negotiating to find all have thought benefits so we we should out if “... we wouldn’t be able to continue the same benefits.” eating there.” The president responded Q to the lab- know, explained he “Was this ever that did not but that he would oratory employees?” look into it “and talk to Hatfield Un- [the negotiator] “Yet, ion’s chief about it” was.” A it “Yes, Q you judge “Would tell when A we have been when he aware explained time, this was em- [Vogel] read the letters the first ployees?” came back and told us what was they letters, that I in the in ’77.” meetings just

A “The referred read back (sic) had with Dave Wagoner that we Q people petitioned “The who them, explained and the rest of that how union?” all they going the benefits that A talk “Right. They would come and get coming under our by bargaining unit and tell the plant superintend- us about they and seemed to understand. reading ent letters and tell us what was thought did.” in them.” Q never “They any made effort Q any question “Was there in the get —” during negotiations committee’s mind A never “They complaint made a at longer that no be privilege would all.” enjoyed by laboratory employees?” Q directing “I am attention to your A knew it “We wouldn’t be.” 18, 1978, of on date or about October Q was that?” “Why you and did have a conference with Mr. A “Because we have 900 other union Wagoner (sic) and any other members of men who don’t eat there and there was the laboratory?” we let 12 way say people no could “Yes, A it was the we had a never, time, at the paid penny have meeting with the company, that after- dues, in union eat there when we had 900 noon, and Dave and two or three others some of whom had been people, paying from the lab came up and talked to us at tell long years union dues for as as 30 lunchtime, about their classifications them that couldn’t eat there. We at the time we were negotiating their didn’t think it was fair.” classifications pay.” and rates of Q “Was it ever the intention or did Q “During meeting ref- the union committee ever erence made by Wagoner (sic) Mr. or any propose benefits for the of the laboratory employees to the lunch- ployees which would not be all enjoyed room benefit?” other unit members?” A “There was three or four from the A “No.” lab and us five negotiat- [members Q it “Was ever the intention the course of the committee] would occur?” said, ‘Well, conversation Dave Brown told “No, A certainly it wasn’t.” today us that this would be our last week Q “Following meeting the lunchroom’.” this October 18 Wagner, with Mr. there was a you say Q “David Wagoner (sic) said that?” *7 negotiating meeting that afternoon?” A “Yes.” A company, yes.” “With the Q “And you say negotiat- the entire Q “Was that after- any proposal made ing committee present was at that time?” noon on laboratory employ- behalf the “Yes, A I am sure they were.” ees to continue this lunchroom benefit?” Q “What was response the of the ne- “No, the say A we didn’t a word to gotiating committee, if any?” company about it.” A “As far as a response, direct I don’t Q “Were there meetings following think we gave response. a direct Every- meeting?” this October 18 body just shrugged their shoulders and grinned, A Wednesday like we knew it “The 18th was on a and coming.” was we had and meetings Thursday, Friday

Q “At time any prior to this starting 19th, the 20th and the 21st.” Saturday, negotiations was the union committee aware that this privilege being Q was taken “At any meetings any of those away?” proposal made on behalf of the Board’s con supports stantial evidence the this lunchroom employees to continue Company’s the action was so tention benefit?” important employ destructive of A “No.” of anti-union moti proof ee that no 179-182). See, NLRB v. Great vation is needed. facts we do foregoing On the basis of the Trailers, 1792, 18 Dane U.S. that substantial evidence in the not believe (1967). L.Ed.2d the supports record considered as whole negoti- negotiat- Board’s conclusion that the Union’s noted the Union previously, As the committee did not have notice ating Company was well aware the ing committee to terminate the labora- Company intended privi- the cafeteria intended to terminate or that tory employees’ privilege cafeteria addition, Compa- we note that the lege. In without the revoked the benefit the benefit at the time did not terminate ny affording appropriate first the Union the the over meaningful opportunity bargain and Union; to con- permitted rather Rather, negotiat- it the appears the issue. throughout the cafeteria using tinue was about ing committee knew benefit Thus Union had negotiation period. opportu- to be revoked and it had numerous over the opportunity bargain Com- ample negotiating the 19 sessions to during nities Compare, Feder- pany’s proposed change. knowingly Yet it address the issue. (1974) (Fol- NLRB 343 al-Mogul Corp., 209 chose not to raise the issue for intentionally certification, lowing NLRB among it did not wish to create dissension applied existing contract to immediately members, its other 900 unit employees without af- newly “Globed-in” many paying of whom had been dues fording opportunity nego- their Union an years enjoy and did not the luncheon bene- tiate the contractual terms that regarding chose to consciously fits. committee them). would apply of benefits for negotiate package same felt the Had the committee members, including all its unit sufficiently cafeteria constituted a laboratory employees. bargain, issue over which to it important We believe the facts indicate the Union throughout have so at time could done voluntarily bargain waived its over knew the negotiation process. privi- It Company’s planned termination of the terminated. Yet de- lege was about to be laboratory employees’ privilege. knowledge having ample and its spite this issue, the to address the opportunity B. fact nothing. do Given the chose to The Board further concluded: was not unilat- withdrawal of benefits abrupt, change ... unilateral eral, of the Union’s waiv- but was result after working conditions issue, over the er of the represented by chose to be action cannot be characterized Charging Party contained a clear and “inherently discriminatory.” as message dramatic for the who remaining chose the Union and for the substantial Neither do we believe unrepresented employees, thereby the Board’s conclusion supports evidence discouraged membership unions company’s action was discriminato *8 in employees coerced the exercise of distributed motivated. The rily rights guaranteed them in 7 of Section the white payroll personnel to its office the Act. booklet, and to its “Information for You” “Informa the blue plant payroll personnel attack, Again, to withstand the booklet, The white tion for You” booklet. Board’s conclusion supported by must be laboratory employ to the given which was substantial evidence on the record con pay carried on office they ees when were sidered as a whole. Universal Camera sec- roll, in the Service Corp., supra. clearly that sub- stated Food We do believe Bar- lengthy on office the fact the Collective “Day employees tion that Shift was entered into eligible gaining Agreement, to have their lunch in which payroll are (emphasis lengthy lunchroom ...” after the election and after bar- the added). simply large was not members of gaining The between plus the 900 mem- enough pro- to accommodate contained no Company, the Union unit, bargaining and therefore privileg- bers of with to the luncheon respect vision limited the cafeteria company policy strictly the 12 of the 900 member es of members shift on office privilege every- it for most Although provides unit. sup- does not evidence payroll. else, Substantial provision it no such thing contains the conclusion that port bring the Union did not want to it because or discriminat- being punished ployees for discussion in of the up they join chose to against ed because did not want to treat sessions. Rather, they joined when the Un- Union. differently. the unit the members of Un- ion, bargain- became members of the they doubtedly, it must have believed that it longer eligible long unit and no under chance in would have better for success to use the Company policy established cafe- making charge later before the Board we regard teria. And note the Com- respect and in this it was correct. not revoke the until the pany did effect, giving new contract took thus IV. opportunity incorporate Union an reasons, For the we find that sub- above new bargaining agreement, collective lan- stantial evidence on the record as a whole which

guage preserve would the cafeteria support does not the Board’s conclusion privilege for the laboratory employees. notice, waiver, respect adequacy with company’s position consistent and whether the action was dis- apparent with both its and the Union’s therefore criminatory. deny We understanding part as larger application Board’s for enforcement of its unit, the laboratory employees order. would be bargain- treated the same as other JONES, Judge, NATHANIEL R. Circuit ing unit members and would be accorded dissenting. whatever and benefits were en- titled to under the collective bargainirig overhauls the National La- majority agreement. It is not contested that finding respon- bor Relations Board’s contract had no language preserving the (the dent Henry Vogt Company Company) laboratory employees’ cafeteria privilege. 8(a)(5), (3) violated Sections Furthermore, Article 21 of the contract pro- National Labor Relations Act unilateral- vides: ly revoking employees’ ENTIRE AGREEMENT privileges lunchroom after those

This contract expresses agree- the entire Because I union. believe parties ment between the doing majority hereto. There in so misconstrues are no understandings review, between the par- misapplies the standard of the sub- ties subject as matter of this con- legal misperceives stantive standard and case, tract other than as herein set forth. the factual circumstances of this However, by agreement respectfully mutual dissent. par- ties may agreement. amend this Although they impervious are not It just not understandable how the review that this Court must standard of Board could reverse the decision apply considering findings of the Ad- when ministrative Judge, findings NLRB, ignore Law who made majority seems on largely adopt- uncontroverted facts and standard in decision. This Court must law, ed correct sup- conclusions of as if pointed findings out affirm the Board’s by dissenting Board member Penello with evidence on the record ported by substantial whom we agree. 160(e); Also the ignored Board as a whole. 29 U.S.C. Universal

811 NLRB, 474, 493, duty bargain The of that to con- 340 breach Corp. v. U.S. Camera 8(a)(5) Ac- a violation of unless 456, 467, (1951). L.Ed. 456 stitutes § 71 95 S.Ct. right bargain. of waived its Digital Paging System v. union has cord NLRB 725, (6th Cir.1981). 726 cites International Ladies’ Gar- Toledo, majority 659 F.2d NLRB, v. 463 F.2d 907 Court has declared ment Workers Union Supreme upheld (D.C.Cir.1972) of the Board are to be that waiv- proposition conclusions have rendered a even if this Court would found if the “Union received er will be the matter been be- change, different decision had proposed sufficient notice of the Camera, 340 fore it de novo. Universal or demand bar- yet protest and failed The question at 71 at 467. U.S. S.Ct. (majority opinion, slip on the issue” gaining therefore, appeal, however, before this Court on case, opinion p. 806). In that a of not whether we can architect structure explicitly rejected Company’s the court opposed facts that will stand Board’s bargain its “escape obligations” effort to slightest With the bit of creativi- findings. with The court collectively employees. could construct such a struc- ty, this Court “clearly Company’s found fallacious” the every appellate proc- ture in ease. But the circumstances” ex- argument “special imagi- ess in this area is not an exercise in unilateral action to relocate. La- cused its nation. Rather we sit to and re- analyze Workers, at 918. dies’ Garment 463 F.2d great findings view with deference the of picked various facts “[B]y piecing together Co., Duke 401 Griggs the NLRB. Power up,” “reasonably the Union in that case ” 424, 433-34, 849, 854-55, 91 28 U.S. S.Ct. unilat- suspected Company would (1971). The findings L.Ed.2d 158 Board’s have erally relocate. The union did some bargain” “refused to warning unilateral action. 8(a)(5) with the union in violation of and §§ suspicion But the Court held that “mere or (1) and that the Company discriminated conjecture place cannot take the of notice.” against union of activity violation Workers, 463 F.2d 907 Ladies’ Garment 8(a)(3) of the are both supported NLRA (D.C.Cir.1972). NLRB v. Plat- Citing Royal by substantial evidence. Co., (3rd 350. F.2d 191 Polishing & Cir. 1965); Inc., Rapid Bindery, NLRB v. 293 I. (2nd Cir.1961). although F.2d 170 Hence cites Ladies’ Workers majority Garment 8(a)(5) 8(a)(1) Sections standard, they for the “waiver” do not take As even majority recognizes, it is well of that cognizance thrust decision. settled law that an employer may not bargain refuse to with the employees’ desig majority seemingly appreci- Nor does the representative nated concerning mandatory applied ate the waiver standard in the in- Order, subjects bargaining. of collective NLRB v. by stant case the NLRB. In its Katz, 736, 743, 1107, 1111, 369 82 unequivocal’ U.S. S.Ct. NLRB found “no ‘clear and (1962); 8 L.Ed.2d 230 NLRB v. Allied Prod pointing relinquish- evidence to ‘conscious (6th Cir.1977). ucts 548 F.2d Corp., ment’ of by union The Supreme Court has held that in-plant privileges, about the cafeteria and that the food employ services made available union’s the issue was not failure to raise er are mandatory bargaining subjects be tantamount to a waiver.” 251 NLRB No. cause the majority, “terms and conditions under which August 1980. standard, which food is job plain available on the claims to “agree with” ” ly germane Board,” to the ‘working environment.’ “The reality misquotes the Board. NLRB, 488, 498, writes, Ford Motor Co. v. clear majority “requires proof U.S. 1842, 1849, (1979). 60 L.Ed.2d 420 that the union’s unequivocal notice such The laboratory employees’ privi subsequent failure to demand therefore, lege, bargain relinquishment’ was a constitutes a ‘conscious mandatory ing subject over which the had a the Board bargain.” Plainly duty bargain. “clear no- require unequivocal did not *10 812

tice”; rather it required clear unequiv- with the bargaining representative of his ocal evidence of a conscious relinquishment employees.” (emphasis added). Citing to bargain. Katz, 736, 742-3, Board’s stan- NLRB v. 369 U.S. 82 S.Ct. itself, 1107, 1111, dard focuses upon the waiver 8 L.Ed.2d (1962); while 230 American majority’s Smelting NLRB, Refining standard focuses & Co. v. upon 406 F.2d (9th notice. Cir.1969), denied, 935, What is crucial 552 cert. outcome of 395 U.S. 1998, this case is 23 (1969). whether the union L.Ed.2d 450 its Con waived right to sistent with bargain, opinions, not whether these the Ninth the union had Cir cuit in Clear Mouldings, NLRB, some notice of the Pine Inc. v. Company’s action. For a (9th Cir.1980), 632 F.2d 721 union with held that an notice clearly has not waived its employer’s unilateral change employees’ until it consciously relinquishes them. health care benefits constituted a unilateral The lack of precludes notice waiver. Yet bargain. refusal Despite the fact that presence of notice does not automatical- issue, “the parties talked about” this ly constitute waiver. Notice is a necessary Court found that such conversation was not but not a sufficient element of waiver. The “notice” within the purposes of the Nation majority’s reading of the record reveals al Labor Relations Act. The case law in union’s committee was area clearly indicates conjecture, “well aware” of the Company’s intentions. suspicion, rumor and even conversation are awareness, That majority concludes, insufficient notice. The NLRA requires amounts to a waiver. formal notice and collective consultation agree cannot either with the majority’s over a change in a mandatory bargaining waiver standard or with their application of subject. that standard to the facts of this case. The certainly Board justified in find- Board’s finding that the union did not have ing that the Company neither sent notice to sufficient notice of the Company’s revoca- the union of the change in cafeteria bene- tion of cafeteria benefits is supported by that, fits nor consulted with the union about substantial evidence on the record as a change. The majority points to the testi- whole. But even if the union had some mony David Wagner, a notice of the Company’s intended revoca- ployee, that, to the effect “basically tion, the union did not waive whole [Negotiating] Committee” was aware bargain. the cafeteria privileges would be re- A. Notice portion record, voked. That how- Substantial evidence supports the Board’s ever, also reveals that Wagner ap- David finding that the union did not receive suffi proached the Negotiating Committee on cient notice. Notice of a contemplated uni that day inquire about the status of his change lateral in the terms or conditions of privilege. He asked “if we would still be employment must be formally given. able to eat in the cafeteria because NLRB v. Co., Sweet Lumber 515 F.2d told us (Record that we wouldn’t.” p. (10th Cir.1975). In NLRB Rapid Committee, Wagner testified, “never Inc., Bindery 293 F.2d at the Second said anything definite about what was go- Circuit held “conjecture or rumor is go (Rec. on” p. 115). That Commit- not an adequate substitute for an employ tee in fact was so indefinite about the cafe- er’s formal notice to a union of a vital privileges teria it was unable to “do change in working conditions.” Further anything ... until they away take it from more in NLRB v. Son, Nello Pistoresi & (Rec. us” p. 115). incident, This on which Inc., 500 F.2d (9th Cir.1974), the the majority great rests a deal its argu- Court held that “An employer violates Sec ment, is exactly the kind of occurrence that 8(a)(5) tions 8(a)(1) of the Act when he contemplated Courts when held unilaterally ‘wages, hours, alters and other rumor, conjecture suspicion terms and conditions of employment,’ ... not sufficient notice. Wagner David clear- without first consulting and negotiating ly relied on Vogel’s pre-election speeches or ers, (D.C.Cir.1972). In privileges heard a rumor that his cafeteria 463 F.2d 907 Ladies’ *11 if he voted to Workers, would be revoked Garment the Second Circuit stat- spread Nego- union. He that rumor to the genuine bargaining ed that “no ... can be The tiating Committee. Committee’s re- where the decision has already conducted clearly to him was no less an exam- sponse implemented.” Citing been made and conjecture suspicion. fil- ple of Such NLRB, Country Mfg. Town & Co. is tering gossip hardly down of industrial (5th Cir.1963). F.2d 846 “Notice of a fait type of formal notice and consultation declared, “is accompli,” simply the court not that the framers of the NLRA envisioned. notice which the timely upon the sort of The majority opinion itself fur- provides predicated.” waiver Id. defense ther evidence of the lack of sufficient no- Negoti- The notice which the union only tice. to According majority, Roger ating actually received was of a Committee McCombs, employee, another majority fait refers at accompli. testified that he talked about the possibility length meeting a between the Negotiat- of revocation several times with the local Committee and several union a president, who is also member of which the in- ployees during employees Negotiating presi- Committee. “The formed the Committee that the lunchroom know, responded dent that he did not but privilege had been terminated. The Com- that he would look into it and talk to Hat- give mittee members did not “direct re- negotiator] field union’s chief about it.” [the sponse,” “just shrugged but their shoul- 126, (App. 807). The Maj.Opinion, p. 181, majority opinion p. 808). ders.” president local union thus did not know At that meeting, Committee members Company whether intended to re- received notice that plainly Moreover, privileges. voke the cafeteria had decided revoke the lunchroom privi- Hatfield, negotiator the union’s chief leges. majority ignores But the the fact the man to whom the turned for president 18, meeting that was held on October information, “testified that he could not just one business before con- being by laboratory recall told tract was ratified. When the Committee prior contract’s ratification that the received definite notice of the finally Com- Company intended to revoke their cafeteria intentions, pany’s already the “decision had privilege” (App. Majority opinion, p. been made.” As Ladies’ Garment Workers 807). Hatfield in fact testified that he clear, the union given the makes the notice nothing “heard about it until after contract was in concluded October” Committee was not “the sort (App. Negotiating 44). The chief union negotiator of the NLRA. only timely required by notice” learned of the revocation of cafeteria bene- reconstruction of majority’s Under fits when the came to him after case, therefore, it is the facts of this evident the privilege Hence, had been terminated. adequate the Union did receive even the facts which the majority relies notice intention to elimi- upon in its de novo reconstruction of the nate the laboratory employee’s case clearly indicate that the union repre- benefits. The evidence of the lack of no- sentatives did not receive sufficient notice however, tice, need not even be formid- of the planned termination. support able. The evidence need only Moreover, those members of the Commit- explicit findings of the NLRB. There is no tee who did receive some notice of the question my mind that substantial evi- termination received it tardily. Notice finding dence the Board’s supports must given sufficiently be in advance of the adequate receive notice of did not implementation actual change of a to allow the change. a reasonable opportunity B. Waiver over the Company’s decision. NLRB v.

Crystal Com- Springs Corp., Negotiating Shirt 637 F.2d But even if the union’s (5th Cir.1981); change Ladies’ Garment Work- had received notice of the mittee relin- a conscious silence cannot constitute benefits, sup substantial evidence

cafetería I am bargain. right of its quishment that the Commit finding Board’s ports the evidence on substantial over right bargain fully satisfied tee did not “waive” Board’s supports whole opines that waiver the record as a majority the issue. relinquishment” of the did not waive its finding “conscious the union requires a to bargain. (Majority opinion, p. over the termination prevailing case law in this cafeterial benefits. “only area mandates that clear and un therefore, convinced, am language mistakable will warrant a con in violation of Sections unilaterally acted *12 was intended.” clusion that waiver General 8(a)(5) of the NLRA. 918, NLRB, (4th 414 F.2d 923

Electric Co. v. II. v. Cir.1969); Opti also NLRB Marine See cal, Inc., 11, (1st Cir.1981); 671 F.2d 16 8(a)(3) Section NLRB, 184, American Co. v. 602 F.2d Oil that substantial I convinced am no less (8th Cir.1979). cases es clearly 188 These finding the Board’s that supports evidence that a lucid communication of the tablish of the laborato- termination Company’s from right bargain desire to waive the to benefits after ry employees’ required the union to the is be discouraged the union union waiver will fore be effective. Waiver employees in viola- membership and coerced Timken must not be inferred from silence. majori- 8(a)(3) the NLRA. The tion of of § NLRB, 746, Bearing Roller 325 F.2d Co. a finding, creating theory ty overhauls this denied, (6th Cir.), 751 cert. 376 84 U.S. the company’s in of the notion that support 1135, 12 (1964). L.Ed.2d 85 was not of cafeterial benefits termination reconstruction, In its im- majority Because the un- inherently discriminatory. infers from properly the union’s to failure to over the right bargain ion waived the proposal make a the lunchroom concerning issue, Company’s majority opines, privileges a waiver of the right bargain. to as discrimi- action cannot be characterized cites the majority testimony Tharp, of natory. suggested who the Negotiating Com- I, course, agree the union of do preservation mittee did not demand the of But even if right bargain. waived its the cafeterial benefits. But the Commit- bargain, right the union had waived its tee’s silence is not clear and unmistakable 8(a)(3). still violates Company’s action § Furthermore, language of a waiver. designed is provision That of the NLRA Negotiator, Hatfield, union’s Chief testified discouraging from em- prevent employers that “it always was the intention of the joining provi- a union. The ployees from negotiate” union to for the efforts to coerce em- employer sion thwarts ployees (App. 47). negotia- In “all [his] or to against participation union ployees tions,” Hatfield a preserve “intended to joined who have against employees retaliate privilege” lunchroom for those employees. Trailers, a union. NLRB v. Dane Great 57). (App. 18 L.Ed.2d 1027 U.S. 87 S.Ct. When asked why Negotiating Com- (1967). or retaliation can oc- Such coercion issue, mittee remained silent on this Hat- Nego- whether the regardless cur of responded: field to bar- tiating Committee waives There was no need as far as I was con- majority issue. The gain over the relevant cerned to try attempt change that. it concludes that mere- therefore errs when had until They privileges] lunchroom [the Negotiating Commit- ly because the Union the contract between the over the tee waived its Company and the union was concluded. benefits, cafeterial termination of of those suggests Hatfield threatened and actual termination Com- destructive fight quo. inherently mittee felt no need to the status benefits could not be circumstances, This Court employee organization. Under these the Committee’s of upon exercising should have considered the effect economic of price fundamental rights of employees’ exercise their of thus does “com- rights § not constitute a § threatened and actual termination of slight” employee harm to inter- paratively lunchroom benefits. ests. The NLRB that effect and considered the Company Furthermore has not dem- determined that relocation onstrated that this “harm” to employee or- employees’ destructive rights justified is a “substantial ganizational activity. find ev- substantial legitimate majority business interest.” The idence on the as a for the record whole space claims that in the lunch- limitation Dane, Board’s In Great findings. Su- room is such interest. But even the Court that an preme held affirmative dem- cursory most reveals reading record onstration of a only anti-union animus specious. Space this “interest” is necessary 8(a)(3) element a violation only problem lunchroom becomes a if where the employees’ harm to is com- the employees enjoy privi- who did not paratively slight and substantial and le- lege eating there before the election gitimate business interest is served. 388 were after granted the elec- *13 at 87 at 1798. U.S. As the Board tion. is suggesting hap- No one that this case, properly found in the instant the harm pened. requires What the Board only is employee is not rights “comparatively that quo the status be maintained. slight.” In pre-election his the speeches, Company admitted that there sub- was no Vice-President, Company’s Vogel, stressed change stantial the number of laboratory the laboratory that employees’ lunchroom employees between the election and the dis- privilege was a plus.” Vogel “decided re- of continuation the cafeteria privilege. minded these employees immediately before Therefore, ho problem real space exists. that, the union consequence election as a of Rather fact the of is “spatial limitations” status, their non-union they were able to only post justification a hoc offered the purchase lunch “far for less” than were Company. justification, That as the Board who those to the belonged union. More found, properly is without merit. Because precisely, before the laboratory employees the significant employee harm to interests join union,

voted to they were able to is justified by legiti- a substantial and buy per lunch for week. After they $1.00 interest, mate appellant business need join union, voted to employees those not show anti-union animus to demonstrate had to pay per week. Over the $12.50 a 8(a)(3) violation. § course of one year, laboratory employ- ees were supports forced to Substantial evidence the Board’s pay approximately more consequence as a of voting finding $500.00 that union has met the limited join the union. That amount a signifi- is burden showing of that ac- Company’s cant percentage of a laboratory employee’s tion inherently was destructive of employee salary. terms, In strictly economic Co., $500.00 interests. In NLRB v. McCann Steel a is not “comparatively slight” harm to (6th Cir.1971), 279 F.2d this Circuit employees those who join chose to the un- held employer conduct is inherent- ion. ly destructive of employees’ rights § is carried out in retaliation But more importantly, the “harm” to the 8(a)(3). exercise of those violates § employees’ interests goes case Accord NLRB v. Electric Steam Radiator core their rights. rights guar- These § Corp., (6th Cir.1963). 321 F.2d 733 In antee to employees ability participate Steel, McCann in, employer reduced develop and solidify organizational activ- yearly Christmas after ity. employees bonus join to elect a union union, while in join therefore a Electric right granted fundamental Radiator, employees by employer the NLRA. Steam a Any infringe- revoked on ment fundamental cannot similar fringe following be benefit a successful “slight.” characterized as The substantial representation union election. In both cases, employer’s held that this Court inherently destruc- action was retaliatory COMPANY, EDWARD E. GILLEN in violation of interests employee

tive of Plaintiff-Appellee, Cross-Appellant, 8(a)(3). well, employer’s In the case as instant POWER COOPERA- EAST KENTUCKY destruc- retaliatory action TIVE, Defendant-Appellant, activity. employee organizational tive of Cross-Appellee. twice to the Vogel spoke Vice-President each Interestingly laboratory employees. just before a union election.

speech occurred Stanley Consultants, Incorporated, Vogel reminded the speech, In the first Defendant-Appellee. had the 82-5446, Nos. 82-5447. privilege. Many of those did not employee, Rog- the privilege. know of One Appeals, United States Court that, McCombs, Mr. Vo- er testified “when Circuit. Sixth right, that we had the we all start- gel said going up group” (App. ed there as 31, 1983. Argued Aug. Vogel encouraged to use the 12, 1983. Decided Oct. lunchroom, them that if they then told de- longer cided to the union could no

use the lunchroom. The NLRB could de-

rive from these events substantial evidence Vice-President used *14 discourage as a lever

lunchroom benefit membership.

union laboratory employees finally

When the union, join

voted to exer-

cised that lever in retaliation. David Har-

bin, the Company’s Manager, Personnel tes- only

tified that the reason that the labora-

tory employees’ lunchroom

discontinued was because (App. 165). union

effect admits that the revocation of a sig-

nificant benefit was solely retaliation for

union activity. am convinced this clear

evidence that action was employee destructive of inter-

ests.

But I need not be so All convinced.

this Court must do is review the evidence

which Plainly convinced the Board. there

is substantial evidence on the record as a

whole from which the NLRB could have

found 8(a)(3). that the Company violated

Such substantial supports evidence also

Board’s finding that the Company violated 8(a)(5)

Sections 8(a)(1) of the NLRA.

For above, the reasons expressed I cannot

concur in the de novo reconstruc- majority’s

tion of this case and respectfully dissent.

Case Details

Case Name: National Labor Relations Board v. Henry Vogt MacHine Company
Court Name: Court of Appeals for the Sixth Circuit
Date Published: Oct 10, 1983
Citation: 718 F.2d 802
Docket Number: 81-1055
Court Abbreviation: 6th Cir.
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