Aluminum Ore Co. v. National Labor Relations Board

131 F.2d 485, 147 A.L.R. 1, 11 L.R.R.M. (BNA) 693, 1942 U.S. App. LEXIS 2860
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 30, 1942
Docket7995
StatusPublished
Cited by31 cases

This text of 131 F.2d 485 (Aluminum Ore Co. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aluminum Ore Co. v. National Labor Relations Board, 131 F.2d 485, 147 A.L.R. 1, 11 L.R.R.M. (BNA) 693, 1942 U.S. App. LEXIS 2860 (7th Cir. 1942).

Opinion

LINDLEY, District Judge.

This review involves the validity of an order of the National Labor Relations Board which petitioner seeks to have vacated and the Board, to have enforced. The complaint charged that, in a labor controversy between a union of its employees- and petitioner, the latter “engaged in unfair labor practices” in that it refused to bargain collectively because it (1) “refused to make counterproposals”; (2) “by unilateral action took certain action as to wage increases although the union had requested collective bargaining concerning said matter” and (3) “withheld from said union, information as to pay rates which was necessary and basic to collective bargaining.” The issue raised by the complaint and answer was as to the truth of these specific averments and the evidence submitted bore only upon that issue. Consequently we are confronted with the narrow question of whether petitioner, in its negotiations with the union, acted unilaterally and refused to furnish information it was bound, under the intent and purport of the act, to supply, thereby avoiding collective bargaining.

The relationship between petitioner and the union had been at all times serene and friendly. The employer had readily recognized the union as the authorized representative of its employees. It co-operated freely in various conferences in attempts to reach a satisfactory understanding. It bargained from time to time both before and after the complaint was filed. To nothing that occurred in these transactions is objection made, except that, in their course, a situation ultimately arose wherein petitioner claimed that any increase in wages should be determined by consideration of the individual members of the several separate groups included in the union, group by group. Quite reasonably, and with every indication of honest belief in justification of its position, it argued that, in view of its past record of increases, a flat horizontal increase to all members of the union in the same proportions or same amounts would work inequities, as the wages of some of the men had been raised comparatively recently and those of others had not. At first the union had insisted that its members be treated as a whole and that only a flat increase affecting any and all members in the same amount would furnish the proper standard. Thus, while the parties continued their negotiations, they reached an apparent impasse as to the proper approach to a solution of the issue between them. However, as the issue raised its head, near the end of the conferences, the union receded from its earlier position and announced that it would be willing to bargain upon the basis of consideration of the respective groups. 1

At this stage, it would have seemed and indeed it did seem to some of the interested *487 parties that petitioner and its employees had met on a sound agreed basis for final bargaining. Unfortunately, however, the course of events thereafter changed. Petitioner, having this far bargained and conferred, declared that it would determine for itself what the wages and rates of pay should be, as it had for many years; that it was then making certain increases, (of which it advised the union) ; that these would stand until and unless there should be objection by any individual member and that, in such case, petitioner would permit any aggrieved person to present his complaint either personally or through the union. Thus, upon the apparent verge of complete successful bargaining, the company insisted upon following the plan it had pursued in the past of not bargaining but of fixing increases ex parte, leaving to hearings of future grievances, determination of whether any adjustment was justified. This attitude, manifestly, petitioner believed conformed with its statutory duty.

But, to our minds, this was not the collective bargaining required by the act. It was not the giving and taking in open discussion and negotiation contemplated by Congress. Rather it was reversion to the procedure of the past upon the part of the employer effectuating removal of bargaining concerning the exact subject matter at issue. By the employer’s act, the union' was thereafter excluded from bargaining in determining what the increases should be. Thereafter, it was to have no voice in such decision, for determination of all increases was reserved to the exclusive jurisdiction of petitioner subject only to a provision for the hearing of future individual grievances. Though the past relationship may have been satisfactory; though the system had been in force for some 40 years with resultant peaceful and friendly relationship between employer and employees, petitioner was confronted with requirements of the National Labor Relations Act, 29 U.S.C.A. § 151 et seq., to desist from such method of procedure and to inaugurate, in lieu of it, round table bargaining upon the subject of wage increases. This contemplates exchange of information, ideas and theories in open discussion and an honest attempt to arrive at an agreement. The method adopted by petitioner ignored this standard of conduct and amounted in its essetice to a statement that “we shall determine the increases and they will stand as what we are willing to do, subject only to the right of individuals to present grievances.” We think the evidence justifies the finding of the Board that the employment of unilateral procedure, under the circumstances presented, was not within the spirit or contemplation-of the act.

It appears further that when the union expressed willingness to bargain upon the basis suggested by petitioner, namely, that of related groups, and when petitioner announced certain increases, the union requested that it be supplied with the information contained in petitioner’s records of employment, in order that it might have a complete picture of the wage history of the various group-members to whom increases were granted. This, petitioner said, was confidential.

Again we do not believe that it was the intent of Congress in this legislation that, in the collective bargaining prescribed, the union, as representative of the employees, should be deprived of the pertinent facts constituting the wage history of its members. We can conceive of no justification for a claim that such information is confidential. Rather it seems to go to the very root of the facts upon which the merits were to be resolved. In determining what employees should receive increases and in what amounts, it could have been only helpful to have before the bargainers the wage history of the various employees, including full information as to the work done by the respective employees and as to their respective wages in the past, their respective increases from time to time and all other facts bearing upon what constituted fair wages and fair increases. And if there be any reasonable basis for the contention that this may have been confidential data of the employer before the passage of the Act, it seems to us it cannot be so held in the face of the expressed social and economic purposes of the statute. Petitioner announced the increases it would be willing to make but it refused to supply the wage history. From this refusal, we think the Board was justified in concluding that petitioner had failed to co-operate wholeheartedly in collective bargaining.

We are not satisfied, however, with the order.

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131 F.2d 485, 147 A.L.R. 1, 11 L.R.R.M. (BNA) 693, 1942 U.S. App. LEXIS 2860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aluminum-ore-co-v-national-labor-relations-board-ca7-1942.