Cadbury Beverages v. NLRB

CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 17, 1998
Docket98-1054
StatusPublished

This text of Cadbury Beverages v. NLRB (Cadbury Beverages v. NLRB) 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 v. NLRB, (D.C. Cir. 1998).

Opinion

United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued October 20, 1998 Decided November 17, 1998

No. 98-1054

Cadbury Beverages, Inc.,

Petitioner

v.

National Labor Relations Board,

Respondents

On Petition for Review and Cross-Application for Enforcement of an Order of the National Labor Relations Board

Richard N. Chapman argued the cause and filed the briefs for petitioner.

David Habenstreit, Supervisory Attorney, National Labor Relations Board, argued the cause for respondent. With him on the brief were Linda Sher, Associate General Counsel, John D. Burgoyne, Acting Deputy Associate General Counsel, and Deborah E. Shrager, Attorney.

Before: Silberman, Williams, and Ginsburg, Circuit Judges.

Opinion for the Court filed by Circuit Judge Silberman.

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 termi- nated 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 determina- tion, we deny the petition for review and grant the cross- application for enforcement.

I.

Eugene Matzan is an electrician in Cadbury's food process- ing plant in Williamson, New York. In the early months of 1995, Matzan, who had become discontented with the perfor- mance of the incumbent union (Retail, Wholesale and Depart- ment Store Union, Local 220, AFL-CIO) and its fiscal man- agement, made several requests to union officials to review the union's financial records and its by-laws. After distribut- ing copies of one such document to fellow employees, union officials called a meeting (which James Fischette, Matzan's supervisor, ordered Matzan 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, Fischette 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 ad- vised Dennis against informing Graffius because two months earlier Matzan had overheard Graffius tell Jane DeGroote,

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 mater- nity leave. Meador decided to investigate the matter immedi- ately 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. Meador ulti- mately 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 warn- ing. After Matzan walked out of a meeting on April 10 to discuss the situation before the company imposed discipline, Matzan 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 Fischette if he could work an earlier shift on Monday, September 11, explaining that he needed the schedule change for "personal" reasons.

__________ 1 Matzan was suspended again later in April in an unrelated incident that did not form part of the general counsel's charges against the company. At that time Matzan was given a warning that further disciplinary problems could lead to his termination.

Fischette told Matzan that the schedule change would proba- bly not be a problem and that he would see what he could 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 Matzan 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 to 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 Mat- zan leave Gowan's arbitration, Matzan returned to work, whereupon Fischette, following Meador's instructions, imme- diately suspended Matzan. Meador and Fischette deliberat- ed further and Cadbury terminated Matzan by letter on September 15.

The general counsel filed charges alleging that the compa- ny 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.

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