Associated Unions of America, Insurance Employees Local 65 v. National Labor Relations Board

200 F.2d 52, 31 L.R.R.M. (BNA) 2118, 1952 U.S. App. LEXIS 3628
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 28, 1952
Docket10635_1
StatusPublished

This text of 200 F.2d 52 (Associated Unions of America, Insurance Employees Local 65 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
Associated Unions of America, Insurance Employees Local 65 v. National Labor Relations Board, 200 F.2d 52, 31 L.R.R.M. (BNA) 2118, 1952 U.S. App. LEXIS 3628 (7th Cir. 1952).

Opinion

KERNER, Circuit Judge.

Petitioner, herein called the Union, has petitioned to review and set aside an order of the National Labor Relations Board, dismissing an unfair labor practices complaint issued against Old Line Life Insurance Company of America, hereinafter called the Company. The Company is engaged in commerce within the meaning of the Act, and no jurisdictional question is here presented. The proceedings before the Board were initiated by the Union, charging that the Company had negotiated with the Union without any sincere purpose to reach an agreement, in violation of § 8(a) (5) and (1) of the Act; that this unlawful conduct had caused and prolonged a strike among tlhe Company’s employees; and that, therefore, the Company’s rejection of certain strikers’ unconditional application for reinstatement on the ground that their positions had been filled violated § 8(a) (3) and (1) of the Act. 1

*54 The Trial .Examiner held that the Company refused to bargain in good faith with the Union respecting a job evaluation plan, the revision of an existing pension plan,- the modification of expiring contractual provisions concerning promotions, job vacancies, and seniority, and the furnishing of certain wage information, and that the -Company’s unfair practices had caused the strike. He recommended that the striking employees be reinstated, and that the Company be ordered to bargain collectively with the Union and embody any understanding reached, in' a signed contract.

The Board adopted the Examiner’s credibility determinations and his findings with respect to the controlling facts, but upon review of the entire record, it found that the strike was economic in character and that the strikers -whose positions had been filled were not entitled to reinstatement, and concluded that the preponderance of the evidence failed to establish that the Company’s negotiations with the Union had not been conducted in good faith as required by the Act; that the' Company’s .position on the subject of promotions and related matters did not constitute a violation of § 8(a)(5) as a matter of law, and that although the -Company’s counterproposal reserved unilateral control in the Company, “it was not so much the [Company’s] count-erproposal as the Union’s uncompromising insistencé on the adoption of a promotional policy that prevented agreement.” 96 N.L. R.B. No 66.

The Company is engaged in the soliciting and issuing of life, accident, health and hospital insurance policies, and in the investment of funds in real estate and other securities in Wisconsin and several other States. In December, 1946, the Union was certified by the Wisconsin Labor Relations Board as the bargaining representative of the Company’s non-supervisory 'home office employees. Pursuant thereto, the Company and the Union entered into a series of collective bargaining agreements, the first of which took effect in May, 1947, and the last, on May 1, 1949.

On February 28, 1950, the Union notified the -Company of • its desire to amend the 1949 contract, and in its letter set forth specific proposals. It asked that the job evaluation plan then being developed by the Company be submitted to the Union for study; that it wished to discuss the provisions of a revised pension plan, and asked) for a general salary increase, an increase in the paid vacation, a union shop, lunch room facilities, and for certain changes regarding promotions, transfers, terminations, and reemployment.

With respect to promotions, the contract provided that “length of service shall be determinative only when ability, qualifications, and experience are relatively equal. The Company shall be the judge of ability,, qualifications and experience of all employees.” The Union asked that these-provisions “be amended to provide [for} * * * the application of adequate-seniority provisions to promotions, transfers, terminations, and reemployment,” and demanded a revision of the clause in the-contract providing that each employee was. entitled “to information as to the Company's evaluation of his performance” at an interview with his supervisor on the: anniversary date of his employment.

The first bargaining meeting was held) on March 22, 1950, and the last, on August-2, 1950. At the first meeting the Union-proposed that the grievance procedure in£ the existing contract be extended to include grievances regarding promotions, and that a job-posting procedure be adopted providing for the settlement of promotional disputes through an arbitration procedure.. The Company pointed out that 98 percent-of all promotions were made from within the Company on the seniority basis, and! took the position that determining the skilh and qualifications of the employees, where seniority was not followed, was a management problem. Tlhe Company did not insist upon unilateral control over promotions. It offered, as a counterproposal, to-, continue the existing contractual provisions, and suggested a provision requiring-it to negotiate promotions before effecting-them. The Union, however, insisted up on. its own proposal.

On this issue, the Union cites Aluminum Ore.-Co. v. National Labor Relations. *55 Board, 7 Cir., 131 F.2d 485, 147 A.L.R. 1, and National Labor Relations Board v. J. H. Allison & Co., 6 Cir., 165 F.2d 766, 3 A. L.R.2d 990, and makes the point that the Company’s insistence on retaining final authority over promotions was indicative of bad faith. On this question the Board held that the Act “only requires an employer in good faith to negotiate contemplated promotions * * *.” We agree with the Board that the Act did not require the Company to accept any promotional plan it did not, in fact, find agreeable, and support is found for that proposition in what was said in National Labor Relations Board v. American National Insurance Co., 343 U.S. 395, 72 S.Ct. 824. In that case the Supreme Court, 343 U.S. at page 404, 72 S.Ct. at page 829 said: “That Section [§ 8 (d) ] contains the express provision that the obligation to bargain collectively does not compel either party to agree to a proposal or require the making of a concession.” Hence, in the circumstances here appearing, we think the Board was not compelled to find that the Company was negotiating in bad faith.

The job evaluation plan. There is no evidence that the Company at any time refused to bargain with the Union concerning a job evaluation plan, nor that the Union proposed one of its own. Nevertheless, the Union contends that because •the 'Company had not formulated such a plan as provided for in the 1949 contract, •the “only conclusion that can be logically inferred is that the Company had no desire .to institute a job evaluation program” and •was “engaged in delaying tactics which manifest a lack of good faith.”

At the first meeting, and at the meeting ■ of April 5, the Union inquired about the •progress of the job evaluation study. The Company explained the procedure it was using in working on the study and informed the Union it was considering several types of plans, and asked the Union to wait until the study was completed.

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200 F.2d 52, 31 L.R.R.M. (BNA) 2118, 1952 U.S. App. LEXIS 3628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-unions-of-america-insurance-employees-local-65-v-national-ca7-1952.