Acme Die Casting, a Division of Lovejoy Industries, Inc. v. National Labor Relations Board

93 F.3d 854, 137 A.L.R. Fed. 733, 320 U.S. App. D.C. 191, 153 L.R.R.M. (BNA) 2105, 1996 U.S. App. LEXIS 21972, 1996 WL 480426
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 27, 1996
Docket95-1418
StatusPublished
Cited by8 cases

This text of 93 F.3d 854 (Acme Die Casting, a Division of Lovejoy Industries, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Acme Die Casting, a Division of Lovejoy Industries, Inc. v. National Labor Relations Board, 93 F.3d 854, 137 A.L.R. Fed. 733, 320 U.S. App. D.C. 191, 153 L.R.R.M. (BNA) 2105, 1996 U.S. App. LEXIS 21972, 1996 WL 480426 (D.C. Cir. 1996).

Opinions

Opinion for the court filed by Circuit Judge BUCKLEY.

Dissenting opinion filed by Circuit Judge WALD.

BUCKLEY, Circuit Judge:

The National Labor Relations Board (“NLRB” or “Board”) found that Acme Die Casting, a division of Lovejoy Industries, Inc. (“Company”), committed various unfair labor practices in violation of sections 8(a)(1), (3), and (5) of the National Labor Relations Act (“Act”). When the case first came before us, we affirmed the Board’s decision and order in all respects but one; namely, its conclusion that the Company’s failure to grant its employees wage increases in 1988 constituted a unilateral change in the terms and conditions of employment in violation of section 8(a)(5). We remanded that question with the request that the Board formulate a rule indicating when a pattern of wage increases is sufficiently regular in timing and amount to constitute a settled employment practice. On remand, the Board merely reiterated its earlier conclusion and made no attempt to comply with our instructions. Because a resolution of this particular question will have no material effect on the remedies the Board has petitioned us to enforce, we will not remand a second time. Rather, we throw up our judicial hands and will enforce the Board’s remedial order only with respect to [856]*856those findings of unfair labor practices that we have already affirmed.

I. BACKGROUND

The facts relevant to this appeal are set forth in our previous opinion, Acme Die Casting, A Division of Lovejoy Industries, Inc. v. NLRB, 26 F.3d 162, 163-65 (D.C.Cir.1994) (“Acme I”). Briefly, during the period from January 1980 through February 1987, the Company granted its employees across-the-board wage increases as follows:

January 4,1980 20 cents
June 2,1980 20 cents
January 5,1981 23 cents
June 1,1981 25 cents
November 9,1981 22 cents
January 4,1982 30 cents
September 13, 1982 25 cents
March 21,1983 25 cents
October 17,1983 25 cents
April 30,1984 25 cents
November 5,1984 25 cents
May 12,1985 20 cents
December 2,1985 25 cents
June 30,1986 20 cents
February 16,1987 15 cents

On September 28, 1987, it granted raises ranging between 10 cents and 40 cents an hour, which were intended to equalize salaries among the employees.

In October 1987, the Company’s production and maintenance workers elected the United Electrical, Radio, and Machine Workers of America (“Union”) to be their bargaining agent. Despite numerous complaints from its employees, the Company did not give any wage increases in 1988. On January 2,1989, the Company awarded an across-the-board increase of 30 cents.

In 1992, the Board found that the Company had committed a number of unfair labor practices, Acme Die Casting, a Division of Lovejoy Industries, Inc., 309 N.L.R.B. 1085, 1992 WL 394655 (1992) (“Initial Decision”), two of which were related to the Company’s failure to grant wage increases in 1988. The Board concluded that this failure represented a unilateral change in the terms and conditions of employment without affording the Union an opportunity to negotiate, in violation of section 8(a)(5), and that it was motivated by anti-union animus, in violation of section 8(a)(3). Id. at 1086,1159-60.

In Acme, we affirmed the Board’s findings as to all but one of the violations that it identified. We withheld judgment on whether the Company’s failure to grant wage increases in 1988 represented a departure from a settled practice without bargaining, in violation of section 8(a)(5), noting that the Board’s past cases had failed to clarify when the timing and amount of the increases is sufficiently consistent to constitute a “settled practice.” 26 F.3d at 166. Accordingly, we remanded with instructions that the Board “formulate a clearer standard for determining when granting or withholding a wage increase violates ... § 8(a)(5),” and observed that “[t]he Board needs to set comprehensible rules as to when the frequency and quantity of wage increases constitute a settled practice that the employer must continue.” Id. at 168.

In a two-page supplemental decision and order on remand, the Board reiterated the facts we have just related and repeated its conclusion that the Company’s wage increases from 1980 through 1987 were sufficiently regular in timing and amount to constitute a settled practice. Acme Die Casting, Division of Lovejoy Industries, Inc., 317 N.L.R.B. 1353, 1995 WL 451933 (1995) (“Supplemental Decision”). Accordingly, the Board reaffirmed its “previous finding that [Acme] violated Section 8(a)(5) by failing to give wage increases in 1988 without providing the Union prior notice and an opportunity to bargain.” Id. at 1354.

II. Discussion

A. Settled Practice

Section 8(a)(5) of the Act provides that “[i]t shall be an unfair labor practice for an employer ... to refuse to bargain collectively with the representatives of his employees,” 29 U.S.C. § 158(a)(5); and section 8(d) identifies the subject matters of such bargaining as including “wages, hours, and other terms and conditions of employment.” Id. § 8(d). An employer violates the Act when it unilaterally alters wages or other terms or conditions of employment without first negotiating with the union representing the employees. NLRB v. Katz, 369 U.S. 736, 743, [857]*85782 S.Ct. 1107, 1111, 8 L.Ed.2d 230 (1962). Here, it is undisputed that the Company did not bargain with the Union when it refused to grant wage increases in 1988. Thus, the critical inquiry is whether these increases were granted pursuant to Acme’s “terms and conditions of employment.”

The 1980-1987 wage increases fall within the ambit of section 8(a)(5) “ ‘if they are of such a fixed nature and have been paid over a sufficient length of time to have become a reasonable expectation of the employees and, therefore, part of their anticipated remuneration.’ ” Phelps Dodge Mining Co., Tyrone Branch v. NLRB, 22 F.3d 1493, 1496 (10th Cir.1994) (quoting NLRB v. Nello Pistoresi & Son, Inc., 500 F.2d 399, 400 (9th Cir.1974)). On the other hand, if an employer “retain[s] total discretion to grant [wage] increases based on any factors it cho[oses], we doubt that discontinuing the policy [will result] in a violation of section 8(a)(5).” Daily News of Los Angeles v. NLRB, 73 F.3d 406, 412 n. 3 (D.C.Cir.1996). Indeed, wage increases that “are fixed as to timing but discretionary in amount do not become part of the employees’ reasonable expectations and thus are not considered ‘terms and conditions’ of employment.”

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93 F.3d 854, 137 A.L.R. Fed. 733, 320 U.S. App. D.C. 191, 153 L.R.R.M. (BNA) 2105, 1996 U.S. App. LEXIS 21972, 1996 WL 480426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acme-die-casting-a-division-of-lovejoy-industries-inc-v-national-labor-cadc-1996.