Diamond Walnut Growers, Inc. v. National Labor Relations Board

80 F.3d 485, 317 U.S. App. D.C. 9, 151 L.R.R.M. (BNA) 2877, 1996 U.S. App. LEXIS 5810
Court of Appeals for the D.C. Circuit·Decided March 29, 1996·No. No. 95-1075·Published·Cited by 2 cases

Opinions

Opinion for the court filed by Circuit Judge HENDERSON.

Opinion dissenting in part and concurring in part filed by Circuit Judge WALD.

KAREN LECRAFT HENDERSON, Circuit Judge:

Amidst a bitter economic strike and at the union’s direction, a small group of striking union activists crossed the picket line and temporarily returned to work, within days of a rerun representation election, for the announced purposes of campaigning for the union among replacement workers and monitoring the employer’s pre-election conduct. In deciding which jobs to give the crossovers, the employer took into account the risk that they could be drawn into potentially violent confrontations with replacement workers as well as the risk that they could engage in production tampering or sabotage or otherwise disrupt the employer’s business operation. The National Labor Relations Board [487] (Board) found that the employer had committed an unfair labor practice by discriminato-rily assigning the returning strikers to positions that paid less than available ones for which they were qualified, the employer having failed to establish a legitimate and substantial business justification for the job assignments it made. Accordingly, the Board ordered the employer to make the strikers whole. It also ordered that the scheduled rerun election be run yet again. We disagree and grant the employer’s petition for review.

I. Background

A.

Diamond Walnut Growers, Incorporated (Diamond) processes and packages walnuts at its plant in Stockton, California and then ships them to national and international markets. The work force consists of permanent year-round employees supplemented by seasonal hires during the harvesting season in September and October. For decades Diamond voluntarily recognized Cannery Workers, Processors, Warehousemen & Helpers Local 601 of the International Brotherhood of Teamsters (Union) as the employees’ representative and had a collective bargaining agreement with the Union, the most recent one expiring in June 1991. In September 1991, the start of the peak season, nearly 500 permanent and seasonal employees struck without notice. In response to the economic strike Diamond hired replacement workers, most of whom remain Diamond employees today. The well-publicized strike was marked by violence as well as Union-led campaigns to boycott Diamond both in the United States and abroad.

About a year into the strike a representation election was held to determine whether to certify the Union as the employees’ exclusive representative. The Union lost the election decisively and then filed objections, prompting the Board to order that a rerun election be held on October 7-8, 1993. The case centers on Diamond’s conduct immediately preceding the rerun election.

B.

On the morning of September 20, 1993, seventeen days before the scheduled rerun election, a group of Union supporters arrived at the plant’s main gate without notice. The group consisted of several striking Union activists led by William Freitas, a Union official. The group was escorted to a meeting with Vince Brown and Wendy Heinze, two members of Diamond’s management. Freitas began the meeting by handing to Brown and' Heinze a letter from the Union lawyer which stated in relevant part:

Several of the strikers share the Union’s conviction that because of Diamond management’s blind determination to break the Union ... a fair election is simply impossible at this point.
Nevertheless, because a rerun election is to be held, these employees feel that it is important that the replacement workers ... have an opportunity to hear from Union sympathizers, an opportunity denied them last year because few worked with them or attended the mandatory employee meetings in which management personnel campaigned.
Accordingly, the [four] strikers listed below have decided to cease then* strike-related activities and have authorized me to inform you that effective upon delivery of this letter, they are available and willing to return to immediate active employment. ...

Joint Appendix (JA) 704-05. Brown explained that only seasonal positions were available and that the returning strikers, like earlier crossovers, must sign a release form. Freitas said he had to consult with the Union lawyer to see if the form was acceptable. Freitas also instructed Brown and Heinze that all communication between Diamond and the four returning strikers was to be conducted through the Union. Later that afternoon Diamond received by courier executed release forms from three of the four strikers, including Willa Miller. The following day the Union notified Diamond by letter that, pursuant to the above-quoted letter from the Union lawyer, strikers Alfonsina Munoz and Mohammed Kussair also were willing to return to work.

[488] The Union’s pre-election strategy placed Diamond in a difficult position. Operating at its peak season, Diamond faced the prospect of Union-sponsored activists temporarily returning to work shortly before a representation election, not to earn a paycheck, but to campaign and monitor. Diamond was concerned for the safety of both the Union activists and the replacement workers: During the strike replacement workers had been the targets of violence, vandalism and threats and the replacements had openly expressed their resentment and hostility toward the Union and its striking members. In addition, Diamond was concerned that the Union activists might try to sabotage the plant, tamper with its product or otherwise disrupt its operation: The Union had engaged in an international boycott campaign to damage Diamond economically, a campaign which involved not only criticism of Diamond but disparagement of its product as contaminated and unfit to eat (e.g., Union activists had distributed a leaflet stating that Diamond was “looking the other way” while “scabs” packaged walnuts with mold, dirt, oil, worms and debris).

Diamond agreed to let the Union activists return to work even though the strikers had no right to reinstatement under the National Labor Relations Act (Act) in that neither their former positions nor substantially equivalent ones were available.1 See Rose Printing Co., 304 N.L.R.B. 1076, 1991 WL 197152 (1991). But in light of its concerns Diamond decided to place the returning strikers — none of whom requested a specific job assignment — in non-sensitive positions, ie., positions that were well supervised, not isolated and did not allow them to move around the plant during work hours. Accordingly, the company decided to assign Miller to a seasonal packing position (filling cases with packages of walnuts weighing less than one pound each) and Munoz and Kus-sair to seasonal positions in the growers’ inspection department (cracking and inspecting nuts at the front end of the production process). Their jobs were supervised and required them to remain in their work areas. Only Kussair complained about his placement. He asked to be reassigned as a loader but then quit before Diamond could transfer him.

When the strikers returned to the plant they carried on their campaigning and monitoring and reported their activities and observations to Union officials and to the Union lawyer — after each shift, according to Miller.

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Diamond Walnut Growers, Inc. v. National Labor Relations Board, 80 F.3d 485, 317 U.S. App. D.C. 9, 151 L.R.R.M. (BNA) 2877, 1996 U.S. App. LEXIS 5810 (D.C. Cir. 1996).

80 F.3d 485 (Diamond Walnut Growers, Inc. v. National Labor Relations Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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