Ex-Cell-O Corp. v. National Labor Relations Board

449 F.2d 1058
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 9, 1971
DocketNos. 24715, 24577; No. 24715
StatusPublished
Cited by2 cases

This text of 449 F.2d 1058 (Ex-Cell-O Corp. 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
Ex-Cell-O Corp. v. National Labor Relations Board, 449 F.2d 1058 (D.C. Cir. 1971).

Opinions

LEVENTHAL, Circuit Judge:

These two cases, consolidated on appeal, involve an order by the National Labor Relations Board requiring Ex-Cell-0 Corporation (Company) to bargain with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW (Union). After determining that the Company’s plant in Elwood, Indiana was an appropriate unit for collective bargaining purposes, the Board conducted an election in 1964; the Union won the election; in 1965, after administrative processes including a full hearing, the Board certified the Union as the exclusive collective bargaining representative for most of the plant’s employees.1 The Company declined to bargain with the Union in order to obtain a judicial test of the validity of the Board’s certification,2 which the Company still con[1060]*1060tended was erroneous because the Union had engaged in activity that rendered the holding of a fair election impossible. In 1970, the Board found that the Company’s refusal to bargain violated §§ 8 (a) (1) & (5) of the National Labor Relations Act;3 the Board ordered the Company to bargain with the Union on request.4

In No. 24,577, the Union petitioned for review of that part of the Board’s order which denied special compensation for employees’ losses for the period during which the Company refused to bargain with the Union after it had been certified. On March 19, 1971, we entered an order granting the Union’s motion for summary reversal of the Board’s denial of special relief to the extent of ordering a remand.5 We will revert to that order subsequently. In No. 24,715, the Company petitioned for review of the order to bargain, and the Board cross-applied for enforcement of its order.6

I. No. 2b,715 — The Order To Bargain

The disposition of this case turns on the validity of the Board’s certification of the Union as collective bargaining representative for the Company’s Elwood plant, and on the propriety of enforcing the employer’s obligation to bargain despite the long delay between the initial refusal to bargain and the Board’s decision. We uphold the certification and the Board’s decision that the Company violated the Act, and we enforce the Board’s order directing the Company to bargain with the Union on request.

A.

The Company’s primary claim is that a newsletter mailed to the employees by the Union’s International Representative on October 19, 1964, three days before the election, contained substantial misrepresentations which undermined the fairness of the election, and hence the propriety of the Board’s certification of the Union on the basis of the election. In balancing “the right of the employees to an untrammeled choice, and the right of the parties to wage a free and vigorous campaign,” the Board sets aside an election only if a misrepresentation “involves a substantial departure from the truth, at a time which prevents the other party or parties from making an effective reply, so that the misrepresentation, whether deliberate or not, may reasonably be expected to have a substantial impact on the election;” in addition, the Board will consider whether “the party making the statement possesses intimate knowledge of the subject matter,” and whether the employees themselves “possessed independent knowledge with which to evaluate the statements.” 7 The Hearing Officer, whose decision was affirmed by the Board, concluded that there was no such substantial misrepresentation about material facts and that insofar as there were questionable statements, they [1061]*1061were within the rule of Hollywood Ceramics, supra note 7, that the permissible latitude of election campaigning does not require absolute precision in statements, and that ambiguous or inarticulate messages which may be subject to different interpretation, “like extravagant promises, derogatory statements about the other party, and minor distortions of some facts” such as “frequently occur in communication between persons,” do not constitute the kind of misrepresentation that leads the Board to set aside an election.8 We conclude that insofar as this determination rests on a factual predicate there is support in substantial evidence, and insofar as it represents a determination as to the order that is appropriate in the light of this factual predicate there is no showing of abuse of the Board’s discretion in determining whether to certify the representative chosen in the election.9

1. Our ultimate conclusion is that we affirm the Board’s determination that the statements in the newsletter to which the Company takes exception are not the kind of substantial, material misrepresentation which invalidates an election. The newsletter is slanted rather than spurious or fraudulent, and for the most part there is some basis in fact for the statements made.

2. The newsletter said the Company discontinued cost of living wage increases and manipulated the annual improvement factor (AIF) for wage increases. The Company concededly did discontinue a separate review of cost of living allowance, and while it says to the court that these were not terminated but were rather integrated as part of a larger perspective for annual wage review, there is at least a legitimate question whether this change may not have smothered the quality and extent of the cost of living adjustment. The ultimate point is that the Union is stressing that there are shortcomings in the Company’s handling of these matters, and that it can do better for the workers. This is the very stuff of electioneering, and hyperbole is tolerated unless wholly spurious.

3. As to the newsletter’s claim that as a result of Ex-Cell-O’s unilateral changes its workers suffered a loss of 14 cents per hour, the arithmetic does show — as Company counsel conceded— that the average annual amount of increase was 6-8 cents per hour during 1956-1959, whereas the data for later years show in years of: 1960: nil; 1961: 4 cents; 1962: 4-6 cents; 1963: 5-7 cents; 1964: 5 cents. Again there is a basis in fact for an assertion of a cumulative 14 cent discrepancy. And this 'cannot be condemned as the kind of fraudulent misrepresentation that vitiates an election, even though the Company has some explanations and qualifications that might well be more impressive to someone conducting an auditing function.

[1062]*10624. The newsletter asks the question whether it is the Company’s plan to replace women with men in the performance of certain tasks. The same question was posed two months earlier in a newsletter that pointed out that men on layoff had been recalled, while over 40 female employees on the seniority list had not been recalled.

So far as assertions are concerned, the newsletter says that some of the jobs filled by new male hires were formerly performed by women. The Board found a basis in fact, sufficient to avoid a misrepresentation so substantial as to undercut the election, in the fact that all hires for September 1963-Oetober 22, 1964, were males, that one of these men was hired as a floor inspector, and that in the past at least some duties of a floor inspector had been performed by a woman.10 We are satisfied that the evidence in support of the factual predicate (see note 10) is sufficient to avoid any conclusion that the Board’s order is invalid in law.

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449 F.2d 1058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-cell-o-corp-v-national-labor-relations-board-cadc-1971.