Dupont Dow Elastomers, L.L.C v. National Labor Relations Board

296 F.3d 495
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 15, 2002
DocketNos. 00-2379, 01-1009
StatusPublished
Cited by1 cases

This text of 296 F.3d 495 (Dupont Dow Elastomers, L.L.C 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
Dupont Dow Elastomers, L.L.C v. National Labor Relations Board, 296 F.3d 495 (6th Cir. 2002).

Opinion

OPINION

SUHRHEINRICH, Circuit Judge.

Petitioner/Cross-Respondent Dupont Dow Elastomers, L.L.C. (“DDE” or “Company”) appeals from the order of the National Labor Relations Board (“NLRB”) in Case Nos. 9-CA-34028 and 9-CA-33536 finding that DDE violated Section 8(a)(5) and (1) of the National Labor Relations Act. (“NLRA” or the “Act”), 29 U.S.C. § 158(a)(5) and (1), by refusing to bargain in good faith with the complainant labor unions, the Neoprene Craftsmen Union Local 788 (“NCU”) and the Chemical Workers Association (“CWA”) (collectively “Unions”). The NLRB, Respondent/Cross-Petitioner, also petitions for enforcement of its order finding that DDE violated the Act.

On appeal, DDE disputes the Board’s finding that it is a “perfectly clear successor” and was therefore required to bargain with the Unions prior to establishing the initial terms and conditions of employment for its workforce. See NLRB v. Burns Int’l Sec. Serv. Inc., 406 U.S. 272, 92 S.Ct. 1571, 32 L.Ed.2d 61 (1972). For the following reasons, we affirm the NLRB’s determination that DDE is a perfectly clear successor and that DDE violated the Act by not bargaining with the Unions prior to fixing the initial terms and conditions of employment.

I. BACKGROUND

DDE is a joint venture between Dow Chemical Company (“Dow”) and E.I. DuPont de Nemours Company (“DuPont”) that produces synthetic rubber products. Considering itself a mere “successor” to DuPont, DDE offered employment to DuPont’s workers and set the initial terms of employment without bargaining with the Unions.

The Unions have been the exclusive bargaining representatives for employees in DuPont’s elastomer division for over 45 years. NCU represented 414 elastomer production and maintenance employees at [498]*498DuPont’s Louisville plant. NCU and DuPont’s last contract was effective May 25, 1994 until March 21, 1996, and then from year-to-year until terminated by either party. CWA represented approximately 1,700 elastomer (synthetic rubber) production and maintenance employees and 150 clerical employees at DuPont’s Chambers Works plant in New Jersey. CWA and DuPont’s last contract was effective from July 18, 1991, until terminated by either party.

On January 31, 1995, while both labor contracts were effective, DuPont informed the Unions that it ha,d signed a letter of intent to form a joint venture with Dow called DDE to produce and sell elastomer products. DuPont agreed to contribute its elastomer product line and its assets and equipment to DDE, and Dow agreed to contribute its patented “Insite” product technology to the joint venture.

It is essentially undisputed that DDE’s management intended to hire DuPont’s experienced elastomer employees. The joint venture’s formation agreement states in pertinent part:

Section 13.01. Human Resources Philosophy. Dow and DuPont recognize that the success of the Venture will depend largely on the quality of the employees that they will transfer to the Venture and the careful selection of persons to fill key positions. Dow and DuPont will endeavor to balance the selection of persons for key positions equally between Dow and DuPont employees, recognizing that these persons must have the capability to establish a new entrepreneurial culture for the Venture. The DD Elastomers management team shall be responsible for filling other management positions in DD Elastom-ers and the Venture.
Dow and DuPont anticipate that most of the personnel presently involved in the Dow Elastomer Business or the DuPont Elastomer Business will become employees of the Venture.

(Emphasis added.) The formation agreement further provided that DuPont and Dow would “use their best efforts to cause such Elastomer Employees to accept such employment,” and would offer them “compensation and benefits substantially equivalent” to their current compensation plans. At a meeting in January 1995, Don Johnson, the Louisville Plant Manager, told NCU officials that DDE wanted to hire all the Louisville elastomer employees and that DDE did not anticipate that any elastomer employees would lose their jobs.

On September 22, 1995, NCU officials wrote a letter requesting that DDE recognize NCU- and honor the terms of the contract between DuPont and NCU. In the letter, NCU stated its understanding that DDE would conduct the same business operations, use the same assets under the same working conditions, and hire a majority of the same Louisville employees. On October 18, 1995, Louisville Human Resources Manager Haven Harrington sent an e-mail to the elastomer employees at Louisville confirming that DDE would offer employment to all of them.

CWA also understood that DDE would hire DuPont employees. At a meeting on November 16, 1995, DDE informed CWA that it would hire all the DuPont employees working in the Viton and FMDL departments. That same day, CWA sent a letter asserting that DDE was the alter ego of DuPont and that DDE therefore had a continuing obligation to its employees. CWA further alleged that DDE was obliged to bargain with CWA for any changes to terms and conditions of employment before dealing with employees in the bargaining unit.

On November 21, 1995, DDE’s designated President and CEO Donald Duncan [499]*499issued a memorandum to elastomer' employees at DuPont and Dow worldwide stating that DDE would announce its “general policy on compensation and benefits” by November 30, with details to follow in December, “leading up to the January 1, 1996 delivery of individual job offers which will include full details for each person.”

On November 30, 1995, DDE issued a memorandum to all elastomer employees discussing compensation and benefits information. The memo indicated that DDE would adopt the current DuPont benefit plans, that local pay policies would continue to be applied, and that prior service at DuPont would be recognized for benefit purposes. The memo also stated that all employees at Chambers Works and all existing Elastomer Employees at Dow would receive offers, and indicating that “[i]t is the intent of DuPont and DuPont Dow Elastomers to minimize turnover and associated training.” Disability benefits, the savings and investment plan, and vacation plan were to remain the same. Other benefits, such as the lifelong learning tuition refund, holidays, and home purchase assistance loans, were also to continue unchanged.

The memo further provided that:

DuPont Dow Elastomers most likely will be a “successor” of the two parent companies because its plans to offer jobs to current DuPont employees to establish its workforce.
If the venture hiring process results in more than 50% of the needed workforce coming from among employees represented by the Chambers Works union, the venture will meet its obligation and recognize the union.
As a likely “successor company’-’ the venture will set the initial terms and conditions of employment. When appropriate, the venture will honor any duty to bargain.

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296 F.3d 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dupont-dow-elastomers-llc-v-national-labor-relations-board-ca6-2002.