Central Soya Company, Inc. v. National Labor Relations Board, American Federation of Grain Millers, Intervenor

867 F.2d 1245
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 15, 1989
Docket86-2665
StatusPublished
Cited by7 cases

This text of 867 F.2d 1245 (Central Soya Company, Inc. v. National Labor Relations Board, American Federation of Grain Millers, Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Soya Company, Inc. v. National Labor Relations Board, American Federation of Grain Millers, Intervenor, 867 F.2d 1245 (10th Cir. 1989).

Opinion

*1246 PER CURIAM.

The petitioner, Central Soya Company, Inc., appeals from an order of the National Labor Relations Board which affirmed the judgment of an administrative law judge that Central Soya had committed certain unfair labor practices under the National Labor Relations Act. In particular, the Board ruled that Central Soya had committed an unfair labor practice by withdrawing recognition of an existing bargaining unit represented by the American Federation of Grain Millers (the Union), when employees represented by the unit were consolidated with certain nonunionized employees at a newly-acquired facility. In rejecting Central Soya’s claim that the Union had lost its majority status, the Board found that the new employees were an accretion to the existing bargaining unit. It also concluded that Central Soya violated the Act by failing to bargain with the unit over the effects of the consolidation of the two employee groups. We conclude that the Board’s decision that the petitioner committed unfair labor practices is supported by substantial evidence, and we affirm.

Central Soya is a national firm engaged in the production of animal feeds and other processed grain products. Since 1968, Central Soya had operated a feed processing mill located on First Street in Abilene, Kansas. The fifteen employees working at the mill and two located at a related grain elevator have historically been represented by the Union. The Union had negotiated a series of employment agreements, the most recent covering the period of Central Soya’s alleged violations of the Act.

On July 18,1980, Central Soya purchased the O.A. Cooper Company. Cooper had operated a grain processing facility located on Washington Street in Abilene, Kansas. The Washington Street facility was a significantly more modern, better-equipped facility than Central Soya’s facility on First Street. At the time of the acquisition, it was staffed by seven nonunion employees. Before November 1, 1980, six more employees were hired to staff the Washington Street facility.

After its acquisition of Cooper, Central Soya began merging the operations of the two facilities. While these merger operations were pending, Mr. Howard Roe, a Union representative, contacted the personnel manager at Central Soya to request that the company meet with its First Street employees to discuss rumors of an impending close of the older First Street mill and the effect of the closing on these employees. The company indicated that a meeting would be premature, as it had not yet made a final decision on the matter. On October 1,1980, however, Central Soya decided that it would close the antiquated First Street mill. It met with employees on October 9, 1980, and, without informing the Union, announced its decision that it would be transferring all of the First Street employees to Washington Street, that all would have jobs without a reduction in pay or benefits, and that they would be given the opportunity to adequately train for their new jobs.

The following day, the company received a letter from Mr. Roe requesting that it meet with the Union to discuss the effects of the transfer of unit employees and outlining the Union’s position that the company would be bound by its collective bargaining agreement after the transfer. The company scheduled this meeting for October 22, 1980. One day before this meeting was to be held, Central Soya met with the First Street employees and announced, for the first time, that the Washington Street facility would be operated as a nonunion facility and that the company would not honor its collective bargaining agreement after the relocation. The next day, in their scheduled meeting with Mr. Roe, the company reaffirmed its position not to recognize the Union once the transfer to Washington Street was complete.

As a result of these events, the Union filed a complaint with the Board, alleging that Central Soya had breached §§ 8(a)(1) and 8(a)(5) of the National Labor Relations Act by unlawfully withdrawing recognition of the Union and failing to bargain with the Union over the effects of the transfer of union employees to the Washington Street mill. The case went to hearing before an *1247 administrative law judge, who concluded that Central Soya had committed the alleged violations. In particular, the judge found that Central Soya’s merger of the First Street mill into the Washington Street mill was a relocation of the older facility, and that Central Soya was still bound by its collective bargaining agreement with the Union. He also found that the Union had not lost its majority status once unit employees were merged with the former Cooper employees, because the Cooper employees were presumed to support the Union in the same proportion as the employees covered by the collective bargaining agreement. Finally, he concluded that the record did not support Central Soya’s argument that it gave the Union the opportunity to bargain, but the Union did not respond.

On appeal, the Board affirmed, although on a slightly different basis. The Board held that Central Soya’s transfer of the union employees was both a relocation and a consolidation of its former operation, upholding the judge’s finding that there was no significant change in operations at the new mill following the transfer of the union employees. Furthermore, the Board affirmed the administrative law judge’s finding that the Union had maintained its majority status, concluding that the former Cooper employees were an accretion to the bargaining unit. Lastly, the Board ruled that Central Soya’s unilateral announcement regarding the effects of the move to Washington Street was a breach of its obligation to bargain with the Union.

In reviewing an order of the Board, we look at the record as a whole. NLRB v. R.L. Sweet Lumber Co., 515 F.2d 785, 798 (10th Cir.), cert. denied, 423 U.S. 986, 96 S.Ct. 393, 46 L.Ed.2d 302 (1975). If a review of the entire record indicates that the Board’s decision is supported by substantial evidence, we will affirm, even though we might have made a different choice were the matter before us de novo. Id. Likewise, if the Board’s application of a rational rule is supported by substantial evidence, we will enforce its order. Fall River Dyeing & Finishing Corp. v. NLRB, 482 U.S. 27, 107 S.Ct. 2225, 2235, 96 L.Ed.2d 22 (1987).

In this case, there is substantial evidence to support each of the Board’s conclusions. There is little question that Central Soya’s closing of the First Street Mill and transfer of its employees to Washington Street was a consolidation and relocation of its Abilene animal feed operations. Clearly, this consolidation represented a modernization of Central Soya’s business in this area; however, it is equally clear that the transfer had a relatively minor effect on the actual conduct of Central Soya’s business. Central Soya’s Abilene operations still centered on the production of similar .lines of animal feeds, its employees were essentially doing the same jobs under very similar working conditions under the same supervisors, and the production process was little changed, although production capacity had been improved. See id. 107 S.Ct.

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

Related

Leach Corp. v. National Labor Relations Board
54 F.3d 802 (D.C. Circuit, 1995)
No. 93-1707
54 F.3d 802 (D.C. Circuit, 1995)
Borden, Inc. v. National Labor Relations Board
19 F.3d 502 (Tenth Circuit, 1994)
Pete Le'mon v. National Labor Relations Board
902 F.2d 810 (Tenth Circuit, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
867 F.2d 1245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-soya-company-inc-v-national-labor-relations-board-american-ca10-1989.