Autozone, Inc. v. National Labor Relations Board

83 F.3d 422, 1996 U.S. App. LEXIS 23705
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 24, 1996
Docket94-6280
StatusUnpublished
Cited by1 cases

This text of 83 F.3d 422 (Autozone, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Autozone, Inc. v. National Labor Relations Board, 83 F.3d 422, 1996 U.S. App. LEXIS 23705 (6th Cir. 1996).

Opinion

83 F.3d 422

152 L.R.R.M. (BNA) 2384

NOTICE: Sixth Circuit Rule 24(c) states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Sixth Circuit.
AUTOZONE, INC., Petitioner Cross-Respondent,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent Cross-Petitioner.

Nos. 94-6280, 94-6408.

United States Court of Appeals, Sixth Circuit.

April 24, 1996.

Before: NELSON and SILER, Circuit Judges; and WISEMAN, District Judge.*

PER CURIAM.

This case comes before this Court on petition of AutoZone, Inc. ("AutoZone") for review of a decision and an order rendered on September 30, 1994 by the National Labor Relations Board (the "Board"). On cross-application, the Board seeks enforcement of the order. We DENY AutoZone's petition to set aside the decision of the Board. Furthermore, we GRANT in full the Board's cross-application for enforcement of its order.

I. Facts and Procedural History

A. General Background

AutoZone is engaged in the distribution and sale of automotive parts throughout the continental United States. Among its nationwide distribution centers is a facility located in Greenville, South Carolina. The events of this case arose during an effort by the General Drivers, Warehousemen and Helpers, Local No. 28, International Brotherhood of Teamsters, AFL-CIO (the "Union") to seek representation of employees at this facility in Greenville.

In October or November of 1992, the Union began an organizing campaign among the employees at the Greenville distribution center. By January 6, 1993, the campaign culminated to the point of recognition demand, and on the following day, January 7, the Union filed a representation petition with the Board. By a letter dated January 8, Greenville Distribution Center Manager Rick Ferguson declined the Union's demand for recognition. On January 11, Ferguson posted a notice to all personnel, advising them of the Union's petition and of AutoZone's opposition. On January 27, the Board's Regional Director approved a stipulation by both AutoZone and the Union that a representation election be held on March 5, 1993 among employees in an agreed-upon bargaining unit.

The Union lost the election. Of approximately 203 eligible voters, 57 voted in favor of union representation and 135 voted against, with two challenged ballots. Thereafter, the Union filed objections to AutoZone's conduct, allegedly affecting the election results. Certain of these objections were subsequently consolidated for hearing with a complaint issued by the Board's Regional Director alleging unfair labor practices against AutoZone.

B. AutoZone's Removal of Union Flyers

AutoZone's unlawful conduct first surfaced on January 20, when Supervisor Timothy Schlichting, in the presence of Supervisor Eddie Massey and Personnel Manager Jim Wartinger, removed three or four letter-sized union flyers from a bulletin board, used by employees for sales notices and other personal notes, in the Company canteen. Schlichting, however, did not remove the antiunion materials also posted on the board. Having observed Schlichting's removal of the flyers, employee Reuben Rice complained to Vice President Dennis Roberts about the removal shortly after Schlichting's actions; the flyers were reposted later that day.

C. AutoZone's Pay Adjustment Process and Surrounding Conduct.

AutoZone uses a pay increase procedure that includes an annual pay "adjustment" for the employees at its various distribution centers, each having its own wage scale. The annual increase is determined separately for each distribution center by its local management and is not guaranteed. In fact, the increase is granted only if a wage survey shows a given distribution center's payscale is not competitive within its geographic area. Once the information is collected, Vice President Roberts reviews it and then makes a recommendation to AutoZone's president. In 1991, AutoZone began conducting its wage surveys and analysis in December, with wage adjustments being made in January 1993.

On a routine visit in November 1992 to the Greenville Distribution Center, Roberts was approached by several employees, asking about a wage increase and if so how much. Roberts replied to the best of his knowledge that he expected a wage increase between 4 to 5 percent, but this figure was not yet confirmed. About two weeks later, Roberts returned to Greenville, where both he and management met with small groups of employees to convey the same information about the wage increase. In addition, they added that AutoZone was awaiting the results of a labor market analysis being done in its Phoenix, Arizona distribution center by the Hay Group. If the Phoenix survey showed AutoZone's wages not to be competitive there, AutoZone would then assume its other distribution centers were also not competitive and initiate wage surveys in those areas.

In mid-December 1992, Vice President Roberts received a copy of the Hay Group survey, which indicated that AutoZone's pay was no longer competitive in the Phoenix area. In response, Roberts issued instructions to begin wage surveys for all distribution center areas, including Greenville. Having received all the data for AutoZone's distribution centers, Roberts reviewed the material and passed on his wage increase recommendations for all the distribution centers, except for Greenville. Roberts placed the Greenville wage data aside; he did not perform his analysis or finalize a recommendation regarding a pay adjustment for the Greenville Distribution Center. On January 11, 1992, AutoZone's president approved Roberts' recommendations with some modification.

According to the data from the wage surveys at the other distribution centers, the wage adjustment at Greenville, had it been made, would have been greater than 5 percent. Furthermore, if the adjustment had been implemented at Greenville, it would have been effective for the pay period beginning January 3, 1993.

On January 22, 1993, Vice President Dennis Roberts and Manager Rick Ferguson made a joint speech to the Greenville employees. After a few introductory comments, Ferguson emphasized that "We do not want the teamsters or any other union in our operation!!". He added, "We are completely and entirely against this union getting in here and we will take every legal step available to keep it out!!". Roberts, delivering the second half of the speech, stated:

The other issue I want to discuss has to do with the status of pay increases at this [distribution center]. A number of you have asked when or if the 4 to 5 percent increase we had mentioned back in December would be going through. You need to understand that the numbers we mentioned in December were a tentative forecast only. After that time, we decided to re-evaluate the pay situation in this market. Before we were able to gather all the data we needed and reach a final decision, however, the Teamsters' petition came in.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
83 F.3d 422, 1996 U.S. App. LEXIS 23705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/autozone-inc-v-national-labor-relations-board-ca6-1996.