Hedstrom Company, a Subsidiary of Brown Group, Inc. v. National Labor Relations Board

558 F.2d 1137, 95 L.R.R.M. (BNA) 3069, 1977 U.S. App. LEXIS 12571
CourtCourt of Appeals for the Third Circuit
DecidedJuly 5, 1977
Docket76-1700
StatusPublished
Cited by57 cases

This text of 558 F.2d 1137 (Hedstrom Company, a Subsidiary of Brown Group, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hedstrom Company, a Subsidiary of Brown Group, Inc. v. National Labor Relations Board, 558 F.2d 1137, 95 L.R.R.M. (BNA) 3069, 1977 U.S. App. LEXIS 12571 (3d Cir. 1977).

Opinion

OPINION OF THE COURT

COOLAHAN, Senior District Judge.

Hedstrom Company, a subsidiary of Brown Group, Inc. (hereinafter Hedstrom or the Company), petitions this Court, pursuant to 29 U.S.C. § 160(f), to review, modify, or set aside the National Labor Relations Board’s finding of violations of §§ 8(a)(1) and (5), National Labor Relations Act, 29 U.S.C. §§ 158(a)(1) and (5) (1970), and for an order vacating the National Labor Relations Board’s May 12,1976, order to bargain. 1 The National Labor Relations Board (hereinafter the Board) cross-petitions for an order of enforcement.

*1140 The Board found that Hedstrom violated § 8(a)(1) 2 of the National Labor Relations Act (hereinafter the Act) by coercively interrogating and threatening employees, unlawfully soliciting employee grievances, creating the impression of surveillance, promising and granting benefits to employees, and threatening employees with plant closure in the event they elected the union, in an attempt unlawfully to interfere with employee organizational rights protected by § 7 of the Act. 3 The Board also sustained the union’s objections to the March 28,1974, election. In addition, the Board found that the Company violated § 8(a)(5) of the Act 4 by refusing to recognize and bargain with a majority status union. The Board found that the Company’s unfair labor practices were so pervasive as to preclude the possibility of a fair election to determine whether the employees desired the International Association of Machinists and Aerospace Workers, District 98, AFL-CIO, as their collective bargaining agent. Consequently, the Board issued an NLRB v. Gissel Packing Co., 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547 (1969), bargaining order. For the reasons stated below we enforce in part and deny enforcement in part; we vacate that portion of the Board’s order which requires the Company to bargain, and remand this case for proceedings consistent with this opinion.

Hedstrom Company, a Delaware corporation with four plants located throughout the country, engages in the manufacture and non-retail sale of juvenile toys and furniture. The plant in which the alleged unfair labor practices occurred is located in Bedford, Pennsylvania. This company branch had been located in Fitchburg, Massachusetts, until 1966 when the Company decided to relocate its plant and corporate headquarters in Bedford. While in Fitch-burg, company employees were represented by the United Furniture Workers of America, AFL-CIO. That union engaged in a 13-week strike at Hedstrom’s Fitchburg plant, which contributed to the Company’s decision to relocate. Hedstrom’s Bedford plant has been nonunion since it opened in 1966. Several unionizing attempts were unsuccessful due to a lack of employee support as evidenced by insubstantial pro-union election votes. 5 However, the most recent unionizing campaign, which gave rise to the instant proceeding, proved more successful. It was started in late January, 1974, by some company employees who expressed an interest in representation by the International Association of Machinists and Aerospace Workers, District No. 98, AFL-CIO (hereinafter the Union).

*1141 On February 5, 1974, union representative Jesse Young conducted an organizational meeting at the Holiday Inn in Bed-ford, which was attended by 35 company employees. All but one employee present signed union authorization cards at that meeting. A few days later additional union authorization cards were signed and turned over to Young. On February 12 the Union by letter requested that the Company recognize it as the collective bargaining representative for Hedstrom’s Bedford production and maintenance employees. 6 Two days later company president E. Lee (Jack) Ketcham, Jr., in response to the Union demand, suggested that the Union file a representation petition with the Board.

On February 21 the Union filed its petition with the Board. 7 Pursuant to a stipulation for certification upon consent election, 8 an election was held on March 28. The vote was 113 for the Union and 125 against it, with three void ballots. On April 2 the Union filed with the Board objections to conduct on the part of company management personnel which allegedly destroyed laboratory conditions necessary for an election.

The Union in its objections to the election charged that (1) company management, along with the Bedford Gazette, a local daily newspaper, and the Industrial Development Commission, 9 threatened, intimidated, and coerced Hedstrom employees, thereby interfering with laboratory conditions; (2) company president Ketcham in an election-eve “captive audience” speech conveyed the impression that if the Union won the election, the Company would move from Bedford; (3) the Bedford Gazette conveyed this same threat, and implied that plant expansion hinged on the outcome of the election. Appendix 28a. Only the second objection was alleged as an unfair labor practice in violation of § 8(a)(1). On July 8, 1974, the Regional Director of the Board issued an order directing a hearing on the Union’s objections. Subsequently, on July 12, 1974, the Union filed unfair labor practice charges against the Company, alleging that management personnel waged an anti-union campaign by coercively interrogating and threatening employees, unlawfully soliciting grievances, creating the impression of surveillance, and by promising and granting benefits to employees. After hearings on the Union charges and objections, the Administrative Law Judge (A.L.J.) rendered his decision on November 19, 1975, finding certain § 8(a)(1) violations. He sustained three union objections to the election and recommended that the election be set aside and another held. He also issued a cease-and-desist order. He did not find that the Union had a card majority. The A.L.J. concluded that a bargaining order was unnecessary. By a vote of 2 to 1, Chairman Murphy dissenting, the Board reversed the A.L.J.’s finding of no § 8(a)(1) violation with respect to an alleged threatening conversation between company president Ketcham and an employee named Norman Anderson, but sustained all other § 8(a)(1) findings. The Board found, consistent with the finding of the A.L.J., that president Ketcham’s election-eve speech was coercive. The Board also found, contrary to the A.L.J., that the Union had obtained a card majority which was dissi *1142 pated by employer unfair labor practices and, consequently, issued an order to bargain. Hedstrom petitions for an order denying enforcement of the Board’s order and respondent cross-petitions for enforcement.

§ 8(a)(1): UNFAIR LABOR PRACTICE CHARGES

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Bluebook (online)
558 F.2d 1137, 95 L.R.R.M. (BNA) 3069, 1977 U.S. App. LEXIS 12571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hedstrom-company-a-subsidiary-of-brown-group-inc-v-national-labor-ca3-1977.