Chicago Local No. 458-3M, Graphic Communications International Union v. National Labor Relations Board

206 F.3d 22, 340 U.S. App. D.C. 349, 163 L.R.R.M. (BNA) 2833, 2000 U.S. App. LEXIS 4686
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 24, 2000
Docket99-1118
StatusPublished
Cited by12 cases

This text of 206 F.3d 22 (Chicago Local No. 458-3M, Graphic Communications International Union 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
Chicago Local No. 458-3M, Graphic Communications International Union v. National Labor Relations Board, 206 F.3d 22, 340 U.S. App. D.C. 349, 163 L.R.R.M. (BNA) 2833, 2000 U.S. App. LEXIS 4686 (D.C. Cir. 2000).

Opinion

Opinion for the Court filed by Circuit Judge ROGERS.

ROGERS, Circuit Judge:

The Chicago Local No. 458-3M, Graphic Communications International Union, AFL-CIO (“union”), appeals the National Labor Relations Board’s (“Board”) decision that White Cap, Inc. * (“company”), did not violate § 8(a)(1), (3), and (5) of the National Labor Relations Act (“Act”). See 29 U.S.C. § 158(a)(1), (3), (5) (1994). As a threshold contention, the union maintains that there is no discernible rationale underlying the Board decision because the three separate opinions of the Board members are in conflict. Indeed, there are some expressions of uncertainty in the opinions regarding Board precedent governing the practice of “regressive bargaining.” We conclude, however, that there is more agreement than is first apparent and that there is a majority-supported rationale for the decision that we can review. As to the union’s other challenges to the Board’s decision, we hold that the Board reasonably concluded that the company bargained in good faith when it, with good cause, replaced a proposal with a less favorable proposal; that the company’s unilateral implementation of its final offer was justified because a bargaining impasse had been reached; and that the company’s lockout of its employees was lawful because it was in support of a legitimate bargaining position. 1

Accordingly, we deny the petition.

*25 i.

White Cap, Inc., manufactures metal and plastic caps for beverage and food containers in several cities in the United States, including Hazelton, Pennsylvania, Hayward, California, Chicago, Illinois, and Champaign, Illinois. Since about 1970, the union has been the exclusive collective-bargaining representative of thirty-one lithographic production employees in the company’s manufacturing facility in Chicago.

In December 1993, the company informed the union that it wanted to implement a new work schedule in the Chicago facility by January 31, 1994, and presented a written proposal setting out the terms. By then, the company had already implemented the new schedule in its Hazelton, Hayward, and Champaign facilities, and it explained to the union that the new work schedule was necessary in order to increase productivity and efficiency. Under the proposed schedule, the employees would work twelve hours per day, three consecutive days per week, whereas under the collective-bargaining agreement then in effect, 2 the employees worked five days per week, on day or night shifts lasting seven-and-a-half hours. 3 This proposal led to a series of negotiating meetings as the parties attempted to reach a new agreement. A major stumbling block to any agreement, however, was the union’s insistence on a wage increase and the company’s refusal to offer one. Although the company agreed to some of the other demands by the union, the parties never came to an agreement that they could both approve, and the union membership voted down the company’s proposal by a wide margin in February 1994. 4 For the next few months, the parties continued to meet and negotiate, focusing on whether a wage increase in some form would be acceptable to both parties. 5 For purposes of this appeal, we focus on the company’s proposals of June 13th and September 14th and 22nd.

On June 13, 1994, the company presented a proposal providing for the new work schedule to take effect on July 11, 1994. The proposal included a two percent wage increase effective August 1, 1994, no increase the following year, and a one percent wage increase in the third year. The proposal also provided for a signing bonus in the event the new schedule was implemented on July 11th, but no signing bonus if the schedule was phased in to be imple *26 mented by September 12, 1994. These provisions were in addition to the company’s proposal that the union membership had rejected in February. See supra note 4. Although the union expressed the view that the June 13th proposal was “very excellent,” the membership rejected it. 6 By letter of June 23rd, the company urged the union to resubmit the June 13th proposal to the membership with “the strongest possible” message that the company “absolutely will not make any further improvements to its proposal” and “will not back off its plans to convert to 12-hour scheduling.” The company also alerted the union that if the June 13th offer was not ratified by the membership by July 1, 1994, the company would withdraw the proposed wage increases, increased overtime, increased vacation pay and holiday pay, as well as increased employer contributions to employee health and welfare benefits. The union sought an extension of the deadline until July 10th, but the company agreed to extend it only until July 5th, citing the costs of the delay in implementing the new schedule. The July 5th deadline passed without a new vote by the membership.

On July 11th, the company implemented the new work schedule for all non-lithograph production employees at its Chicago facility. The company begged off the union’s request to resume negotiations on the basis of its busy schedule. Consequently, the parties did not meet again until the fall.

On September 14th, the company, noting its prior warning of June 23rd, proposed six changes to its June 13th proposal: withdrawal of two wage increases; calculation of overtime pay (to begin after forty hours instead of thirty-six); withdrawal of increased holiday and increased vacation pay; and a phased increase in the company’s health and welfare contributions, rather than an immediate fifty dollars per month increase. In addition, the company made four changes in the parties’ agreement that had not been mentioned in the June 23rd letter: termination of the cost of living adjustment provision; time-and-a-half, not double, pay for hours in excess of twelve per day; reduction in the night shift differential; and deletion of the voluntary overtime provision. The union offered a counterproposal on September 22nd that called for maintaining the five-day work week in effect under the prior contract. The company rejected the coun-terproposal and then rejected the union’s revised counterproposal to postpone implementation of the new work schedule for one year. The company also stated that same day, September 22nd, that all but four of the items in its September 14th proposal were final; it remained open to negotiations only on wages, vacation and holiday pay, and night shift differential.

A few days later, the company notified the union of its intention to terminate the contract extension agreement, see supra note 5, effective October 7, 1994, and the parties met for further negotiations on October 4th. At that time the company asked if the union had a new counterpro-posal; the union had none, inquiring only whether the company would be willing to meet with a federal mediator. The company rejected that idea and stated that its September 22nd offer was its final offer in light of the union’s failure to offer a new counterproposal.

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206 F.3d 22, 340 U.S. App. D.C. 349, 163 L.R.R.M. (BNA) 2833, 2000 U.S. App. LEXIS 4686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-local-no-458-3m-graphic-communications-international-union-v-cadc-2000.