Hitterman v. List Industries, Inc.

CourtDistrict Court, N.D. Indiana
DecidedJuly 11, 2022
Docket2:21-cv-00395
StatusUnknown

This text of Hitterman v. List Industries, Inc. (Hitterman v. List Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hitterman v. List Industries, Inc., (N.D. Ind. 2022).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA HAMMOND DIVISION PAUL HITTERMAN, Acting Regional ) Director of Region 13 of the National Labor ) Relations Board, for and on behalf of the ) NATIONAL LABOR RELATIONS BOARD, ) ) Plaintiff, ) ) vs. ) Cause No. 2:21-CV-395-PPS-JEM ) LIST INDUSTRIES, INC., ) ) Defendant. ) OPINION AND ORDER List Industries is in the business of manufacturing and distributing lockers. In June 2021, employees at List’s facility in Munster tried to unionize. In quick order, most of the eligible employees signed cards designating Teamsters Local 142 as their bargaining representative in labor negotiations. The National Labor Relations Board claims that, after catching wind of pro-union activity, List’s management engaged in some dirty pool by pursuing an unlawful ‘nip in the bud’ campaign — a phrase used by the NLRB to describe an effort to snuff out the union before it even gets started. According to the Board, List’s on-site operations manager allegedly created the impression that she was surveilling employees’ unionization activities and raised the specter of termination in connection with such activities. Then, in the critical weeks leading up to a representation election that would certify the Union, List’s company President arrived on the scene. In a series of captive audience meetings, he allegedly told the employees that voting for a union was futile because List had no intention of negotiating with a union, the employees could lose their jobs and health benefits if the Union was certified, List would be re-instituting pay raises, and the employees were

entitled to return of any union cards they had signed. At the same time, List’s managers allegedly monitored employees more closely and modified enforcement of work policies to target union adherents. Finally, a few weeks before the election, List suspended and ultimately fired two of the Union’s chief adherents on questionable grounds — sending the message that if you rock the boat with union talk, you risk

getting sacked. In the subsequent election, the Union lost. Based on this behavior, the Union filed several charges against List before the NLRB, claiming that List’s actions constitute unfair labor practices in violation of the National Labor Relations Act (the “NLRA”). The NLRB investigated the charges and found that List’s conduct likely violated federal labor law and filed a consolidated administrative complaint to curtail it. Through the administrative action, the NLRB’s

general counsel sought an order requiring List to recognize and bargain with the Union pursuant to NLRB v. Gissel Packing Co., 395 U.S. 575 (1969). In October 2021, a four-day administrative hearing was conducted before Administrative Law Judge Sharon Levinson Steckler. ALJ Steckler subsequently issued a favorable decision for the Board on the merits, finding that List had committed unfair labor practices and entering a

recommended order requiring List to bargain with the Union. The ALJ’s decision is subject to appeal before the Board itself, followed by a potential enforcement order 2 proceeding in the U.S. Circuit Court of Appeals. In the meantime, while the NLRB was awaiting the ALJ’s decision, it sought interim relief from this Court via Section 10(j) of the NLRA, which authorizes district

courts to grant temporary injunctions to maintain the status quo while the dispute works its way through the administrative process. The procedure is an odd one. At bottom, it’s available because of bureaucratic sluggishness. Because the Board’s procedures can take years to conclude, the very point of its administrative action—protecting workers’ rights to self-organize and collectively bargain—could be effectively lost without some

interim relief. The NLRB seeks such interim relief here; it asks that I preserve the status quo that existed between List and its employees before List’s alleged unfair labor practices took place. [DE 1; DE 1-2; DE 7.] I have now reviewed the extensive record from the four-day administrative hearing held in the underlying Board case [DE 7-1, DE 7-2, DE 7-3, DE 7-4, DE 7-5, DE 7- 6], the ALJ’s decision on the merits [DE 33-1], and arguments raised by the parties in

briefs [DE 7, DE 26, DE 28, DE 40, DE 42] and at the hearing held on May 26, 2022 [DE 39]. Based on the foregoing, I conclude that the Director has established that temporary injunctive relief is just and proper under Section 10(j), and an injunction will therefore be issued. Procedural Background and Preliminary Matters

Paul Hitterman is the Acting Regional Director of the Thirteenth Region of the

3 National Labor Relations Board, an agency of the United States, and filed his Petition for and on behalf of the Board.1 [DE 1 at 2, ¶ 1; DE 7-2 at 153.] Defendant List Industries, Inc. is a privately-held corporation with an office and place of business in Munster,

Indiana. [DE 7-1 (“Tr.”) at 726; DE 7-2 at 2, ¶¶ 1, 4.] The parties have stipulated that List is an employer engaged in commerce within the meaning of 29 U.S.C. § 152(2), (6) and (7), and in conducting its operations annually, List has sold and shipped from its Munster facility goods valued in excess of $50,000 directly to points outside the State of Indiana. [DE 7-2 at 2, ¶¶ 2–3.] They further stipulate that the Union is a labor

organization within the meaning of 29 U.S.C. § 152(5). Id. at 2, ¶ 5. Between June 8 and August 23, the Union filed with the Board six charges (or amended those charges), alleging List committed various unfair labor practices. [DE 7-4 at 67–152.] On June 8, the Union also filed a petition for a representation election. [DE 7- 3 at 34–35.] The Board referred the charges to the Director. Each filing involved a separate investigation in which List was given the opportunity to respond to the

allegations, with the “C-case” unfair labor practices charges and “R-case” election petition investigations proceeding on parallel tracks. [DE 28 at 2.] Amid the investigations, on July 15, the R-case election was held. [DE 7-2 at 147–53; DE 7-3 at 25.] Pursuant to a stipulation entered between the parties, eligible

1 For ease of reference, here are the citation conventions I have adopted in the opinion. Citations to the transcripts of the administrative hearing docketed by the Director are identified by “Tr.,” followed by the page number labeled on the top right hand corner each transcript page (i.e., the original transcript pagination). However, for all other administrative record submissions, I cite to the page numbers marked in the exhibit on the docket. For example: DE 7-5 at 94, rather than “GC Exh. 2.” 4 employees could vote if they were employed during the payroll period ending June 19. [DE 7-2 at 147–53.] Of the 15 votes cast by 26 eligible voters, five voted for the Union, eight voted against the Union, and two (Jose Avelar and Juan Perez) voted subject to

challenge, as they were no longer employed at List. [DE 7-3 at 25.] The challenged ballots were not determinative, and a majority of valid ballots voted against the Union. Id. On July 22, the Union filed objections to List conduct that it contends affected the result of the election. [DE 7-3 at 22–23; see also id. at 19–21.] The two cases—the “R-case” and the “C-case”—were later consolidated before

the Board.2 Thereafter, NLRB filed its First Amended Consolidated Complaint. [DE 7-3 at 38–44.] That is now the operative administrative complaint. In that amended complaint, the Director requested a bargaining remedy pursuant to NLRB v.

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