Chester Ex Rel. NLRB v. Eichorn Motors, Inc.

504 F. Supp. 2d 621, 182 L.R.R.M. (BNA) 2652, 2007 U.S. Dist. LEXIS 59334, 2007 WL 2361436
District Court, D. Minnesota·Decided August 14, 2007·No. 07-CV-2384(JMR/FLN)·Published·Cited by 4 cases

Opinion

ORDER

JAMES M. ROSENBAUM, Chief Judge.

This matter is before the Court on petitioner’s motion for a temporary injunction under Section 10(j) of the National Labor Relations Act, 29 U.S.C. § 160(j) (“Section 10(j)”). Petitioner seeks an injunction barring respondent from violating employees’ rights under the National Labor Relations Act, 29 U.S.C. § 151 et seq. (“the NLRA”). Petitioner’s motion is granted in part and denied in part.

I. Background

Respondent, Eichorn Motors, Inc. (“Eichorn”), is a General Motors (“GM”) dealership located in Grand Rapids, Minnesota, which succeeded to the ownership of Swanson Motors on May 1, 2006. Swanson Motors had been a union shop operating under a collective bargaining agreement with the United Auto Workers International Union (the “Union”). Petitioner, Robert Chester, on behalf of the National Labor Relations Board (“the Board”), accuses Eichorn of engaging in a series of unfair labor practices since taking over the business.

*624 The Board first brought charges against Eichorn in a November 14, 2006, hearing conducted before Administrative Law Judge (“ALJ”) Paul Bogas. Judge Bogas found Eichorn engaged in multiple activities which unlawfully undermined the Union’s role as its collective bargaining representative. (GC Ex. 4 at 18-19.) Subsequent to this hearing, the Board brought a second complaint against Eic-horn. The Board’s second complaint underlies the petition before this Court.

A. Unilateral Policy Changes

The Board’s petition charges Eic-horn with making several unilateral changes to its employees’ wages and working conditions without notifying the Union. As a successor dealership to Swanson Motors, 1 the Board agrees Eichorn could have unilaterally set its own employment terms and conditions when it commenced operations on May 1, 2006. 2 But subsequent to commencing operations, Eichorn was required to bargain with the Union before changing any terms of the collective bargaining agreement. 3 Thus, the Board claims unilateral changes made after May 1, 2006, violate NLRA Section 8(a)(5).

The Board cites four specific unilateral acts:

1.On August 1, 2006, Eichorn changed its wage policy, and began paying technicians a single hourly wage rate instead of applying the former three-tier wage rate system.
2. On November 28, 2006, Eichorn changed its holiday pay policy. Eichorn required employees to work the day before and the day after a holiday to receive holiday pay, with no exceptions for excused absences, as had been allowed previously.
3. Eichorn implemented a Customer Satisfaction Index (“CSI”) Policy 4 on November 29, 2006. Under this policy, employees who did not reach zone average CSI scores were subject to discharge.
4. On November 30, 2006, Eichorn changed its training pay policy, eliminating the prior practice of paying technicians double-time for hours spent training.

Eichorn denies these are policy changes, claiming these policies were in place when it commenced operations. And in each cited instance, Eichorn states it simply clarified or notified the employees of differences between its policies and those of Swanson Motors.

It further claims, even considering these to be changes, the dealership’s employees were not harmed by the new policies. For example, its practice of paying all mechan *625 ics at the higher incentive rate had little impact, because mechanics had historically qualified for-and had been paid-that rate. Thus, Eichorn claims “no harm, no foul.”

B. Direct Dealing and Restraining Union Involvement

The Board’s second group of charges accuse Eichorn of dealing directly with employees, thus bypassing the Union. The Board claims this interfered with or restrained employees’ involvement with the Union, violating NLRA Section 8(a)(1).

The Board states this first occurred when Eichorn’s General Manager, Michael Coombe (“Coombe”), and its Parts and Services Director, David Brown (“Brown”), asked mechanic-employees James Ossef-oort, David Cogger, and Robert Anderson how they wanted to get paid for the Thanksgiving holiday in November, 2006. Coombe told them they would get holiday pay the “Eichorn way.” Eichorn responds by saying this discussion was the dealership’s attempt to avoid additional unfair labor practices by clarifying how payment would be made. Eichorn further claims the Union actually participated in the conversation because Cogger, the shop steward, was present.

The Board’s second alleged instance of direct dealing occurred on December 9, 2006, when Eichorn’s Vice President, Mitch Eichorn, offered mechanic Anderson a four-year contract he claimed would be better than the Union contract, including better benefits and wages. Anderson states Mitch Eichorn backed his offer with the following threats: (1) that he wanted to have Anderson work for him but not the Union, and he wanted Anderson to choose between the Eichorn way and the Union way; (2) that if Anderson decided to go the Union way, he would not be working for Eichorn Motors; (3) that he would be offering Anderson a four year contract with more wages than the Union contract; and (4) that Anderson’s bannering 5 showed Anderson was for the Union way. (Tr. 399-400).

Eichorn responds by claiming Mitch Eichorn was not its agent on this occasion, since he did not have a role in the dealership’s day-to-day operations. According to Eichorn, Mitch Eichorn explicitly advised Anderson he was not acting on behalf of Eichorn Motors during the conversation.

The Board’s third allegation of direct-dealing occurred during conversations between Parts and Services Director Brown and mechanic Ossefoort on January 3 and 4, 2007. On January 3, Brown told Ossef-oort, “you may win the battle but you are not going to win the war.” (Tr. 169-71.) Ossefoort claims this statement implied his union support was futile. Ossefoort’s employment was terminated that day. The next day, when he returned to Eichorn to pick up his tools, he said to Brown, “I guess you got what you wanted, you got rid of me.” Brown responded, “It’s not what I wanted. It’s what we want. Team players.” (Tr. 177.)

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

Chester Ex Rel. NLRB v. Eichorn Motors, Inc., 504 F. Supp. 2d 621, 182 L.R.R.M. (BNA) 2652, 2007 U.S. Dist. LEXIS 59334, 2007 WL 2361436 (mnd 2007).

504 F. Supp. 2d 621 (Chester Ex Rel. NLRB v. Eichorn Motors, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Osthus v. Trustone Financial Federal Credit Union
182 F. Supp. 3d 901 (D. Minnesota, 2016)
M. Kathleen McKinney v. Southern Bakeries, LLC
786 F.3d 1119 (Eighth Circuit, 2015)
Hubbel v. Patrish LLC
903 F. Supp. 2d 813 (E.D. Missouri, 2012)