General Teamsters Local Union No. 174 v. National Labor Relations Board

723 F.2d 966, 232 U.S. App. D.C. 440
Court of Appeals for the D.C. Circuit·Decided December 20, 1983·No. No. 82-2401·Published·Cited by 1 cases

Opinion

Opinion for the Court filed by Circuit Judge MIKVA.

MIKVA, Circuit Judge:

Petitioner is one of three Teamsters bargaining units that, for several years, has negotiated contracts with Allied Employers, Inc. (Allied), a multi-employer bargaining association in the State of Washington. Prior to 1977, the bargaining units (the unions) negotiated individually with Allied for three-year contracts in the wholesale grocery industry. In 1977, the unions decided to sit together and conduct one set of negotiations with Allied. Those negotiations proved successful, producing three [442]*442separate contracts for each of the three unions. In 1980 the unions and Allied again decided to engage in coordinated bargaining. This time, however, petitioner’s members voted overwhelmingly to reject the proposed contract. The only issue before the court is whether petitioner manifested an unequivocal intention to be bound by any agreement ratified by a majority of the unions. If so, its failure to execute the proposed contract in 1980 constituted a refusal to bargain with Allied in violation of section 8(b)(3) of the National Labor Relations Act. 29 U.S.C. § 158(b)(3) (1976). The National Labor Relations Board (the Board) concluded that the coordinated bargaining format contemplated a binding contract upon ratification by a majority of the unions. 265 NLRB No. 59, 111 LRRM 1636 (1982). Because the Board’s determination is not supported by substantial evidence, we grant Local 174’s petition for review and deny enforcement of the Board’s order.

I. Background

Intervenor Allied, the charging party in the proceedings below, is a multi-employer association which represents approximately 300 employers in collective bargaining negotiations in the greater Seattle area. For several years, Allied has represented wholesale grocers and soft drink bottlers in contract negotiations with the three Teamsters unions involved in this case. The negotiations have produced successive three year contracts in both industries.

Petitioner, General Teamsters Local Union No. 174 (Local 174), one of the largest Teamsters locals in the State of Washington, has represented drivers and loaders employed by wholesale grocers and soft drink bottlers in negotiations with Allied since at least 1968. Robert Cooper, a key witness in the proceedings below, has been secretary-treasurer and chief executive officer of Local 174 since January 1, 1977. He represented Local 174 at the bargaining table during the 1977 and 1980 negotiations with Allied.

Two other Teamsters bargaining units also represent employees of wholesale grocers and soft drink bottlers in contract negotiations with Allied. The smaller of the two is Local 313, which represents approximately 80 drivers. The other bargaining unit consists of five Teamsters locals (the Warehouse Locals) which represent warehouse employees in greater Seattle and Tacoma. Since 1968, the Warehouse Locals have adopted a single contract based on pooled voting. Under a pooled voting arrangement, a majority vote of the total number of affected employees binds all employees, regardless of the votes within each individual local. The largest Warehouse Local, Local 117, is run by Arnold Weinmeister, who is also president of Teamsters Joint Council No. 28 (covering most of the State of Washington and parts of Idaho), and a vice-president of the Teamsters International Union. Weinmeister and his executive assistant, William Grami, participated in the 1977 and 1980 grocery negotiations.

For many years, Allied’s negotiations with the unions over the grocery contracts followed an established pattern. Local 174, whose contract expired first, would negotiate an agreement with Allied. The other two bargaining units would then negotiate separately with Allied, but would adopt the same general agreement achieved by Local 174. Although the terms of the three contracts varied in some respects, the overall economic settlements incorporated into the contracts were identical.

In 1974, the traditional pattern of negotiations unraveled. The Warehouse Locals rejected the economic settlement ratified by Local 174 and achieved a better settlement following further negotiations with Allied. Allied subsequently agreed to reopen Local 174’s contract to incorporate the better terms. Local 313 — the last bargaining unit to consider the 1974 contract — was offered and accepted the settlement negotiated by the Warehouse Locals.

A. The 1977 Negotiations

Before the 1977 round of grocery negotiations was scheduled to commence, Arnold Weinmeister, a leader of the Warehouse Locals, convened a meeting of Teamsters [443]*443representatives to discuss a new “team” approach to negotiations. Weinmeister wanted representatives of all the major locals to sit in on the negotiations between Allied and Local 174 to avoid the problems that had occurred in 1974. William Roberts, an attorney in private practice, advised the unions that presentation of a team of representatives would be legal, but suggested an alternative approach. Instead of having a team of representatives negotiate with respect to Local 174’s contract, Roberts recommended that the locals consider “coordinated bargaining” whereby they could negotiate the three contracts simultaneously rather than conduct three separate sessions. The union representatives agreed to present this proposal to Allied.

The day negotiations over Local 174’s contract were scheduled to open, a team of union representatives arrived at Allied’s offices. The team included Weinmeister, Roberts, Cooper, and representatives of Local 313 and one of the major Warehouse Locals, Local 599. The spokesman for Allied’s bargaining team, Richard King, expressed surprise at seeing the other locals represented at the opening of negotiations on Local 174’s contract. At that point, Weinmeister proposed that they engage in “coordinated bargaining” to avoid the problems that had occurred in 1974. Roberts cited a case, General Electric Co. v. NLRB, 412 F.2d 512 (2nd Cir.1969), as authority for conducting coordinated bargaining. King indicated that he wanted to read the case and caucus with the other members of Allied’s bargaining team. Afterwards, at a private meeting with Weinmeister and Roberts in his office, King stated that he had “learned something about coordinated bargaining” and indicated that Allied was “agreeable to coordinated bargaining.”

When the full group of union and employer representatives reconvened, the parties discussed the groundrules for the coordinated bargaining structure. The unions would have one spokesman with representatives of the other major locals present at the bargaining table. Although each bargaining unit would still have a separate contract, they agreed to submit the proposed contracts to their memberships for ratification on the same day. Someone on the union side may have said that there would be “one big strike or one big settlement.”

At the outset of the 1977 grocery negotiations, Weinmeister was the primary union spokesman. He later was replaced by William Grami. Other union representatives, however, were present at the bargaining table and participated in discussions throughout the negotiations. The parties negotiated an agreement which all three unions voted to ratify.

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General Teamsters Local Union No. 174 v. National Labor Relations Board, 723 F.2d 966, 232 U.S. App. D.C. 440 (D.C. Cir. 1983).

723 F.2d 966 (General Teamsters Local Union No. 174 v. National Labor Relations Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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