Cadbury Beverages, Inc. v. National Labor Relations Board

160 F.3d 24, 333 U.S. App. D.C. 94, 159 L.R.R.M. (BNA) 2775, 1998 U.S. App. LEXIS 28626
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 17, 1998
Docket98-1054
StatusPublished
Cited by34 cases

This text of 160 F.3d 24 (Cadbury Beverages, 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.

Bluebook
Cadbury Beverages, Inc. v. National Labor Relations Board, 160 F.3d 24, 333 U.S. App. D.C. 94, 159 L.R.R.M. (BNA) 2775, 1998 U.S. App. LEXIS 28626 (D.C. Cir. 1998).

Opinion

Opinion for the Court filed by Circuit Judge SILBERMAN.

*26 SILBERMAN, Circuit Judge:

Petitioner Cadbury Beverages, Inc. seeks review of the NLRB’s decision and accompanying order that Cadbury violated sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act when it suspended and terminated Eugene Matzan. The Board filed a cross-application for enforcement of its order. Since — although it is close — we find substantial evidence supporting the Board’s determination, we deny the petition for review and grant the crossapplication for enforcement.

I.

Eugene Matzan is an electrician in Cad-bury’s food processing plant in Williamson, New York. In the early months of 1995, Matzan, who had become discontented with the performance of the incumbent union (Retail, Wholesale and Department Store Union, Local 220, AFL-CIO) and its fiscal management, made several requests to union officials to review the union’s financial records and its by-laws. After distributing copies of one such document to fellow employees, union officials called a meeting (which James Fisehette, Matzan’s supervisor, ordered Mat-zan to attend) at which union officials put pressure on Matzan to cease his anti-incumbent activities. After Matzan circulated a petition calling for a meeting to consider changes to the union’s by-laws and to review an audit, Fisehette informed Matzan that union business was not permitted on company time (despite Matzan’s insistence that his union activity occurred during breaks).

Matzan’s suspension arose out of a conversation in mid-March 1995 between Matzan and his co-worker Lisa Dennis, who had recently returned from maternity leave. According to Matzan, Dennis told Matzan that she had not received an expected bonus and was planning to ask Larry Graffius, the union’s then-vice president, for assistance. Matzan then advised Dennis against informing Graffius because two months earlier Matzan had overheard Graffius tell Jane De-Groote, Cadbury’s human resources coordinator, that the company should have fired Dennis (whom Graffius identified with an unflattering expletive) when it had the chance to do so. At a meeting later in March, union president Blackmon told Mea-dor, Cadbury’s human resources manager, that Matzan had been spreading a false rumor that Blackmon, Graffius, and Meador wanted to fire Dennis because she had taken maternity leave. Meador decided to investigate the matter immediately and called Dennis, Matzan, and DeGroote into the meeting for questioning. Recollections differ as to who said what at the meeting about the story that Matzan told Dennis. The crux of the dispute is whether Graffius said anything at all to DeGroote about firing Dennis, and whether Matzan’s story implicated Meador or DeGroote, along with Graffius, in making the negative comments about Dennis. Mea-dor ultimately concluded, based primarily on DeGroote’s shocked reaction when confronted with Matzan’s story, that Matzan’s story was most likely false and that the potential damage to DeGroote, Meador, and the human resources department was sufficiently serious to warrant suspension without prior warning. After Matzan walked out of a meeting on April 10 to discuss the situation before the company imposed discipline, Mat-zan was suspended for three days. 1

Matzan’s termination arose out of his attempt to attend an arbitration hearing of a co-worker, Bill Gowan, on Monday, September 11,1995. Although Matzan had conducted an unofficial investigation of Gowan’s case at the request of a union steward, Matzan had no official role to play at Gowan’s arbitration hearing and planned to attend solely because he had given Gowan his word that he would try to do so (Gowan, according to Matzan, did not trust the union representative.). On September 6 or 7, Matzan asked Fisehette if he could work an earlier shift on Monday, September 11, explaining that he needed the schedule change for “personal” reasons. Fisehette told Matzan that the schedule change would probably not be a problem and that he would see what he could *27 do. On Friday, after Fischette learned that Monday was the beginning of the “fall pack season,” the busiest day of the year for the whole plant, Fischette told Matzan that he could not work the earlier shift. When Mat-zan insisted that he needed the time for personal business, Fischette told Matzan to see if he could reschedule his business and that if he could not, to tell Fischette how much time he needed.

On Saturday, Fischette again told Matzan that he could not switch his schedule. But when Matzan informed Fischette that his still unidentified “personal business” would only take a couple of hours and that he could probably take care of it on his lunch hour, Fischette again indicated some flexibility, telling Matzan that they would have to wait until Monday to decide. Later that Saturday, however, Fischette learned from Tony Peluso, another electrician, that Matzan wanted the time to attend Gowan’s arbitration. On Monday morning, after Matzan reiterated that he needed the time for “personal business,” Fischette asked Matzan directly whether he was planning to attend Gowan’s arbitration. Matzan indicated that he could go where he liked on his lunch hour, and Fischette then instructed Matzan not to attend the arbitration and that he would be subject to discipline if he did. Later that morning, each tried to page the other to no avail: Fischette needed Matzan to fix a malfunctioning conveyor, and Matzan wanted to tell Fischette that he was taking an early lunch and that Peluso would cover for him (even though company policy permitted such lunch substitutions without supervisory approval). A security guard, pursuant tó Fis-chette’s instruction, informed Matzan on his way out that he was needed on the floor, but Matzan told the guard that he was going to lunch and proceeded to the conference room for the arbitration. After Cadbury’s attorney insisted that Matzan leave Gowan’s arbitration, Matzan returned to work, whereupon Fischette, following Meador’s instructions, immediately suspended Matzan. Meador and Fischette deliberated further and Cad-bury terminated Matzan by letter on September 15.

The general counsel filed charges alleging that the company violated section 8(a)(1) of the NLRA when it suspended Matzan, and that it violated sections 8(a)(1) and 8(a)(3) when it terminated him. On the suspension charge, the ALJ found that Matzan’s discussion with Dennis was protected activity, that the company knew it was protected, that Matzan was suspended for misconduct in the course of that protected activity (defaming Cadbury’s human resource department), and that Matzan was not in fact guilty of the misconduct (since Matzan only implicated union member Graffius in the story he told Dennis). The ALJ also considered the company’s motive in suspending Matzan and concluded that the real reason for the suspension was Matzan’s protected activity. Turning to the unlawful termination charge, the ALJ concluded that the general counsel satisfied its burden of proving that anti-union sentiment was a substantial factor in Matzan’s termination, and that the company did not carry its burden to prove that Mat-zan’s alleged insubordination would have resulted in his termination even in the absence of his protected activity. The ALJ ordered Cadbury, among other things, to rescind Matzan’s suspensions and to reinstate him to his former position with back pay.

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Bluebook (online)
160 F.3d 24, 333 U.S. App. D.C. 94, 159 L.R.R.M. (BNA) 2775, 1998 U.S. App. LEXIS 28626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cadbury-beverages-inc-v-national-labor-relations-board-cadc-1998.