Amalgamated Meat Cutters & Butcher Workmen v. Cost of Living Council as Successor to the Pay Board

497 F.2d 1360, 1974 U.S. App. LEXIS 8632, 21 Wage & Hour Cas. (BNA) 793
CourtTemporary Emergency Court of Appeals
DecidedMay 15, 1974
DocketNo. DC-19
StatusPublished
Cited by2 cases

This text of 497 F.2d 1360 (Amalgamated Meat Cutters & Butcher Workmen v. Cost of Living Council as Successor to the Pay Board) is published on Counsel Stack Legal Research, covering Temporary Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amalgamated Meat Cutters & Butcher Workmen v. Cost of Living Council as Successor to the Pay Board, 497 F.2d 1360, 1974 U.S. App. LEXIS 8632, 21 Wage & Hour Cas. (BNA) 793 (tecoa 1974).

Opinion

ANDERSON, Judge:

On March 1, 1971, a collective bargaining agreement was entered into by the Amalgamated Meat Cutters and Butcher Workmen of North America, AFL-CIO, and its Joint Council of Philadelphia and vicinity Local Unions Nos. 56,-197, 198 and 199 (the Unions), and Acme Markets Inc., the Great Atlantic and Pacific Tea Co. Inc., and Food Fair Stores, Inc. (the Employers). Among other provisions, the agreement contained a deferred wage increase of approximately 11%, effective March 4 and 5, 1972, for certain meat-cutting employees. It also granted to the Employers the right to buy and sell “block ready meats,” that is, certain cuts prepared outside the Employers’ premises and theretofore prohibited by the Unions because the “prefabricated” cuts required less man-hours of union labor at the Employers’ stores. On March 27, 1972, the Pay Board (the Board), predecessor to the Cost of Living Council (CLC), pursuant to its authority under § 203(c)(1) 1 of the Economic Stabiliza[1362]*1362tion Act (the Act), challenged the legality of the deferred wage increase.

In the ensuing proceedings before the Board, the Unions asserted that the wage increase was primarily justified by the increase in productivity brought about by the change in the work rules relating to the Employers’ use of the “block ready meats.”

Upon learning of the challenge to the agreement, the Unions sought from the Employers certain data relative to employment and to the output of meat department employees, but they received no answer. On May 24, 1972, the Board held a hearing at which the Unions and the Employers were present and were heard. The Unions claimed they were entitled to the full 11% wage increase because the gain in productivity from the use of “block ready meat” justified it. The Unions requested the Board to compel the Employers to disclose the relevant employment and production data. The Employers, however, claimed that much of this data was confidential within the terms of § 205 of the Act. The Board offered to hear a formal application for disclosure under the Freedom of Information Act but this offer was declined by the Unions.

Both the Unions and the Employers submitted evidentiary materials to the Board. The Board received information about the dates and amounts of recent wage increases from official forms filled out and returned to it by the three employers. The Board also learned from the Employers on April 26, 1972 that the wage increases for the groups involved here totaled in excess of 60% for the six year period from February, 1966 to March, 1972 and stated that the units in question presently enjoyed wage rates “among the highest ... in the supermarket industry.” On May 23, 1972, the Employers also submitted the portions of the relevant collective bargaining agreements dealing with the new work rule and job guarantee provisions. On May 26, the Employers filed the confidential submission referred to above.

Significant evidentiary material was presented to the Board by the Unions on May 23 and May 26, 1972, in which they admitted that “[ajverage hourly earnings in Philadelphia meat departments are not low,” but, on the contrary, compared “well” with those nationally, although they maintained that the wages were low contrasted with those in other jobs calling for similar skill. The material also indicated that the “prefabricated meat” issue had been “central to all Union-Management negotiations in the retail meat industry for the past 15 years,” and “hard fought” all the way. This implied, too, that the operation of the new rule would result in substantial productivity benefits for management. The Unions, in the form of a letter dated May 26, 1972, submitted to the Board additional material containing confirming data which showed wage increases exceeding 60% over the six year period ending in 1972, and figures showing that in the period 1968 through 1972, the February to March increase in the Philadelphia Consumer Price Index component for meat, poultry and fish exceeded the national increase in four of the five years. As to productivity, the evidentiary material disclosed a generally “high estimate” of meat cost savings from the use of “prefabricated meats,” but the Unions conceded such savings were not being fully realized by the Philadelphia employers. On the basis of these estimates, the Unions claimed that “the substantial wage increases” involved here “would . . . appear to be not inconsistent with actual unit cost reductions.”

On June 13, 1972 the Board issued an order prospectively disapproving the wage increase to the extent that it exceeded 7%. With regard to the employment and production data sought by the Unions from the Employers but claimed by them to be confidential under § 205 of the Act, the Board withheld it from the record on the ground that it was irrelevant, in the sense of being immaterial to the issues in the case. The district [1363]*1363court was of the opinion that it should have been disclosed to the Unions. Although this matter was argued by the appellants-Unions on appeal, the data was apparently never made a part of the record and is not before us.

The Board in its opinion went on to give the bases of its decision as follows:

“5. That, on the basis of the other evidence submitted by the parties including facts relating to the relatively high current level of wages in the employee units involved, the frequency and amount of wage and salary increases in the employee units involved during the previous four years, and the job guarantee provisions contained in the contract, the increase in wages and salaries for the second control year in each of the employee units involved is in excess of the general wage and salary standard of 5.5% and in excess of the maximum permissible annual aggregate increase (7%) permitted for exception pursuant to Sections 201.11(a) and (b) and should be disapproved as unreasonably inconsistent with the criteria established by the Pay Board.
6. That, upon the other evidence submitted by the parties including the' fact that employees in the employee units involved have been receiving the full amount of the negotiated increases for approximately three months, the circumstances are such that the following adjustment in wages and salaries in each of the employee units involved would not be unreasonably / inconsistent with the criteria established by the Board: A 7% increase in wages and salaries, computed in accordance with Pay Board policy and regulations.”

The decision then noted that the situation of the employees was such that they should be permitted to retain the excess wages, i.e. the amounts over the approved 7% increase, which they had been receiving for the past three months, without the necessity of making restitution for this excess amount; and that they would thereafter receive wages, fixed to conform to the permissible increase of 7%, at the next pay period following the date of the decision.

In September, 1972 the Unions filed with the Board a motion to reopen and reconsider the decision; and, on October 13, 1972, the Board denied the motion on the ground that the Unions had presented “no new evidence for Board consideration.” The Board, in a portion of its opinion, explained its treatment of the productivity factor as follows:

“3.

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497 F.2d 1360, 1974 U.S. App. LEXIS 8632, 21 Wage & Hour Cas. (BNA) 793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amalgamated-meat-cutters-butcher-workmen-v-cost-of-living-council-as-tecoa-1974.