Cooper Tire & Rubber Co. v. National Labor Relations Board

156 F. App'x 760
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 24, 2005
Docket04-1425, 04-1590
StatusUnpublished

This text of 156 F. App'x 760 (Cooper Tire & Rubber Co. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooper Tire & Rubber Co. v. National Labor Relations Board, 156 F. App'x 760 (6th Cir. 2005).

Opinions

OBERDORFER, District Judge.

Petitioner, Cooper Tire & Rubber Co. (“Cooper”), seeks review of the March 25, 2004 Decision and Order of the National Labor Relations Board (the “Board”) finding that Cooper violated Section 8(a)(5) of the National Labor Relations Act, as amended 29 U.S.C. § 158(a)(5), by unlawfully refusing to bargain with the International Brotherhood of Electrical Workers Local 1634 (the “Union”). See Cooper Tire & Rubber Co., 341 N.L.R.B. No. 64, 2004 WL 670822 [hereinafter 2004 Order]. The Board cross-petitions for enforcement of the 2004 Order.

Cooper refuses to recognize the Union as the representative of the employees at its Cedar Rapids, Iowa, facility, alleging that the Board’s certification of the Union as the exclusive bargaining representative was based on the results of an improperly-ordered December 3, 2003 election. Instead, according to Cooper, the Board should have certified the results of a January 31, 2003 election, in which the Union failed to attain majority support. Following the January 31, 2003 election, the Union filed an objection, alleging that Cooper engaged in misconduct by threatening employees with the loss of a significant bonus if they voted to unionize. A hearing officer, after a hearing on the objection, agreed with the Union, finding that Cooper’s preelection conduct violated Section 8(a)(1) of the Act. The Board adopted the hearing officer’s findings in toto, invalidated the election and directed a second election. See Cooper Tire & Rubber Co., 340 N.L.R.B. No. 108, 2003 WL 22465848 [hereinafter 2003 Order], The Union received majority support in the second election, which the Board certified over Cooper’s objections.

Because we find that substantial evidence supported the Board’s finding that Cooper’s conduct before the January 31, 2003 election violated Section 8(a)(1) of the Act, and its finding that Cooper failed to bargain in good faith after the Board certified the results of the properly ordered second election, we deny Cooper’s petition for review and grant the Board’s cross-petition for enforcement.

I.

Cooper is a Delaware corporation with its principal place of business in Findlay, Ohio. Cooper manufactures and distributes to customers, tires and other rubber equipment for passenger and commercial vehicles. Cooper operates four warehouses, including one in Cedar Rapids, Iowa, where it employees a General Manager, Todd Lemke, three other supervisors, and twelve warehouse employees.

A. The ROAM Bonus Program

Among other employee benefits, Cooper maintains an annual employee bonus program known as the “ROAM” bonus (an acronym for Return on Assets Managed). At the beginning of each year, Cooper sets a projected ROAM target;1 the ROAM bonus is based on how well Cooper performs in comparison to this goal and is awarded as a percentage of an eligible employee’s salary. All of Cooper’s salaried employees, including all of the ware[762]*762house employees at its Cedar Rapids facility, who are on the payroll on December 31 of the year in which the bonus is earned are eligible to participate in the ROAM bonus program. None of Cooper’s unionized employees participate in the program. The bonus is distributed to all eligible employees in mid- to late February of the subsequent year, following a vote of Cooper’s Board of Directors approving the amount of the bonus. The amount of the ROAM bonus varies each year. For example, for the years 1997 — 2001, the bonus ranged between 1.38% and 3.65% of eligible employees’ base salaries. The 2002 bonus was significantly higher at 6.2%.

B. Pre-election Activity

On December 22, 2002, the Union filed a petition to represent the full-time regular and part-time warehouse employees at Cooper’s Cedar Rapids facility. Pursuant to a stipulated election agreement, the Board-conducted election was scheduled for January 31, 2003. During the preelection period, employees questioned Cooper’s management about the effect union representation would have on their wages and benefits, including the ROAM bonus. For example, in mid-January, 2003, one employee asked the general manager, Todd Lemke, if employees would receive the 2002 ROAM bonus if the Union gained majority support. Lemke privately assured the employee that all those eligible would receive the 2002 bonus regardless of the outcome of the election. Subsequently, in response to this and other questions, Cooper prepared two question-and-answer memoranda for distribution to all eligible voters. One memo was distributed on January 17, 2003; the other on January 27, 2003. According to Cooper, the memoranda addressed the major concerns expressed by its employees about the impending election.

The January 17 memorandum included questions and answers pertaining to the voting and bargaining processes, and the potential effect of unionization on job security, work schedules and the number of sick days allowed. One of the questions asked whether employees could lose benefits if the Union won the election. In response, Cooper stated that although wages and benefits could not be cut “simply because you voted in a union,” employees could “end up with lower wages or elimination of benefits or privileges because of collective bargaining.”

The January 27 memorandum contained twelve additional questions and answers dealing with such topics as who would negotiate for the unionized employees, what a steward’s role would be, and how long collective bargaining for the first contract might take. The final question (“Question 22”) addressed eligibility for the ROAM bonus. Specifically, the question and answer read as follows:

Question 22: If the IBEW gets in here, will we still be eligible for the ROAM bonus?
Answer: I don’t know. Cooper has some unionized workers at other facilities and none of them participate in the ROAM bonus program. Cooper expects to announce the amount of the ROAM bonus for this year early next month. Early indications show that the ROAM bonus looks very promising this year.

When Cooper distributed the January 27 memorandum, although Cooper’s employees had earned the 2002 ROAM bonus, the employees had not received the bonus, nor had Cooper’s Board of Directors given its final approval to the amount of that bonus.

Shortly either before or after the issuance of the January 27 memorandum, but before the January 31, 2003 election,2 [763]*763Lemke held a meeting of Cedar Rapids warehouse employees during which he informed the voting employees that the 2002 ROAM bonus was expected to be around 6.2%, subject to the Board of Directors’ approval. Specifically, Lemke stated “you can count on 6-ish payable ... mid- to late February.” Lemke made no statements with respect to the affect of the Union vote on receipt of the 2002 bonus.

On January 31, 2003, the Board conducted the election. Six Cedar Rapids employees voted for unionization and six against, with no challenged ballots. Because the Union failed to attain majority support, the Board did not certify it as the collective bargaining representative.

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Related

National Labor Relations Board v. Milton J. Garon
738 F.2d 140 (Sixth Circuit, 1984)
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819 F.2d 1173 (D.C. Circuit, 1987)

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