Geiger Ready-Mix Company of Kansas City, Inc. v. National Labor Relations Board

87 F.3d 1363, 318 U.S. App. D.C. 354, 152 L.R.R.M. (BNA) 2721, 1996 U.S. App. LEXIS 16137
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 5, 1996
Docket95-1081
StatusPublished
Cited by6 cases

This text of 87 F.3d 1363 (Geiger Ready-Mix Company of Kansas City, Inc. 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
Geiger Ready-Mix Company of Kansas City, Inc. v. National Labor Relations Board, 87 F.3d 1363, 318 U.S. App. D.C. 354, 152 L.R.R.M. (BNA) 2721, 1996 U.S. App. LEXIS 16137 (D.C. Cir. 1996).

Opinion

Opinion for the court filed PER CURIAM.

PER CURIAM:

In early 1992 the petitioner closed its only unionized cement mixing facility, laid off the employees who worked there, increased production at its nonunion plants and, after several weeks, reopened the former unionized facility with nonunion workers — all without notifying the employees’ union. The National Labor Relations Board (NLRB or Board) concluded that the company failed to bargain with the union over “terms and conditions of employment,” thereby violating the National Labor Relations Act (Act), see 29 U.S.C. § 158, and ordered the company to offer employment and back pay to all of the laid off employees. Deferred Appendix (DA) 60 n.19. The company petitions us to vacate the Board’s order and the Board cross-petitions for enforcement of its order.

We uphold the Board’s finding that the company violated its statutory duty to negotiate “terms and conditions” of employment with the union and agree that the company must compensate the laid off employees for their losses caused by its proscribed conduct. We differ with the NLRB, however, over whether restoring the status quo requires the company to provide back pay and employment to all union employees. Accordingly, we enforce the remedial order only in part and remand for the Board’s further consideration.

I. Background

Geiger Ready-Mix Co. of Kansas City, Inc. (Geiger or company) owns four “ready-mix” concrete facilities in the Kansas City metropolitan area. Geiger buys ready-mix cement, mixes the cement with “various types of sand, rock, and water” and sells the resulting product — concrete—to contractors. See DA 38 n.8. Its central facility, near two highways and closest to the downtown area, is the Speaker Road facility (Speaker Road) in Kansas City, Kansas. The facility in Liberty, Missouri is to the northeast of Kansas City, the facility in Leavenworth, Kansas is twenty-five miles to the northwest and the facility in Lenexa, Kansas is to the southwest. Although each of Geiger’s four plants is owned by a separate company, the Geiger family owns and operates the four companies and the parties have stipulated that the four comprise a single employer. See Radio & T.V. Local 1264 v. Broadcast Serv., 380 U.S. 255, 256, 85 S.Ct. 876, 877, 13 L.Ed.2d 789 (1965).

Geiger owns both union and nonunion cement mixing facilities, making it a “double breasted operation.” Speaker Road is the only facility with union employees; the Lenexa plant has always been nonunion and the Leavenworth and Liberty facilities have been nonunion since 1989. In 1992 Speaker Road’s twenty-five drivers, mechanics and batchmen were represented by Building Ma *1366 terial, Excavating, Heavy Haulers, Drivers, Warehousemen and Helpers, Local Union No. 541, affiliated with the International Brotherhood of Teamsters, AFL-CIO (Local 541 or union). Under a collective bargaining agreement between Local 541 and the Concrete Producers Association of Metropolitan Kansas City, a multiemployer bargaining association of which Geiger is a member, the Speaker Road drivers, mechanics and batch-men were paid approximately $5 to $6 more an hour than the nonunion drivers, mechanics and batchmen at Geiger’s other three facilities.

The dispatcher for all four plants is located at Speaker Road. In early 1992 he used the following criteria to decide which facility mixed and batched the concrete and which truck delivered the concrete to the customer. Because concrete made with ready-mix cement must be used soon after it is prepared, the facility nearest to the customer usually delivered concrete to that customer. Some customers, such as contractors for large construction projects, ordinarily insisted that only union employees mix and deliver their concrete. Regardless of proximity, only Speaker Road supplied concrete to the union-insistent customers. Moreover, only Speaker Road drivers delivered Speaker Road concrete. The dispatcher also considered which plant had a truck available so that in general there was “an interchange of deliveries among the four plants with regard both to particular jobs and particular customers.” DA 39.

II. “Closing” Speaker Road

On January 10, 1992 Geiger announced by memorandum to the Speaker Road employees that it was that day closing the facility for an “indefinite” period of time. The company stated that it was laying off all twenty-eight Speaker Road employees, including the twenty-five drivers, mechanics and batchmen represented by Local 541. After the announcement, Geiger notified Local 541 of the closing. Approximately two months later Geiger reopened Speaker Road with nonunion employees.

On July 8, 1992 Local 541 filed an unfair labor practice charge against Geiger. 1 After a hearing, the Administrative Law Judge (ALJ) issued a report with findings and recommendations. On review, the NLRB adopted the ALJ’s conclusions, deciding that Geiger had violated section 8(a)(5) and 8(a)(1) of the Act by “unilaterally halting operations at the unionized Speaker Road plant, laying off unit employees, and transferring unit work to nonunit employees without first giving the Union notice and an opportunity to bargain.” DA 57-58. The NLRB also found that Geiger had violated section 8(a)(5) and 8(a)(1) by failing to give copies of its customer lists to Local 541, which lists the ALJ termed “crucial to the Union in representing the interests of laid-off members who may have been enlisted to perform the work in question,” DA 50, and by failing to “bargain with the Union over the effects of its decision.” DA 58 n.8. The NLRB ordered Geiger to return to Speaker Road “all bargaining unit work transferred out of that unit to nonunit employees.” DA 60. The NLRB also ordered Geiger to “offer to all employees of the Speaker Road, Kansas City, Kansas plant who were laid off on January 10, 1992, full and immediate reinstatement to their former or substantially equivalent positions, and make them whole for any loss of pay or benefits.” DA 61.

III. NLRA Violations

Arguing that the holding in First Nat’l Maintenance Corp. v. NLRB, 452 U.S. 666, 101 S.Ct. 2573, 69 L.Ed.2d 318 (1981), provides the relevant legal framework, Geiger asserts that it was not required to bargain with the union. We disagree and conclude instead that the NLRB correctly applied the reasoning set forth in Road Sprinkler Fitters Local Union v. NLRB, 676 F.2d 826 (D.C.Cir.1982) (Sprinkler Fitters /), and that substantial evidence supports its finding that Geiger unlawfully transferred unit work. We begin by reviewing several cases that *1367 interpret the “terms and conditions” language of the Act.

A. Cases interpreting “terms and conditions of employment”

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87 F.3d 1363, 318 U.S. App. D.C. 354, 152 L.R.R.M. (BNA) 2721, 1996 U.S. App. LEXIS 16137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geiger-ready-mix-company-of-kansas-city-inc-v-national-labor-relations-cadc-1996.