Horsehead Resource Development Co., Inc., Petitioner/cross-Respondent v. National Labor Relations Board, Respondent/cross-Petitioner

154 F.3d 328, 159 L.R.R.M. (BNA) 2065, 1998 U.S. App. LEXIS 21075
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 28, 1998
Docket96-6268, 96-6466
StatusPublished
Cited by6 cases

This text of 154 F.3d 328 (Horsehead Resource Development Co., Inc., Petitioner/cross-Respondent v. National Labor Relations Board, Respondent/cross-Petitioner) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horsehead Resource Development Co., Inc., Petitioner/cross-Respondent v. National Labor Relations Board, Respondent/cross-Petitioner, 154 F.3d 328, 159 L.R.R.M. (BNA) 2065, 1998 U.S. App. LEXIS 21075 (6th Cir. 1998).

Opinions

DAVID A. NELSON, J., delivered the opinion of the court, in which KENNEDY, J., joined. BOYCE F. MARTIN, JR, Chief Judge (pp. 341-44), delivered a separate dissenting opinion.

OPINION

DAVID A. NELSON, Circuit Judge.

Adopting recommendations made by an administrative law judge, the National Labor Relations Board concluded that the petitioner, Horsehead Resource Development Co, Inc, violated the National Labor Relations Act by (1) engaging in dilatory collective bargaining tactics that constituted a refusal to bargain in good faith, (2) locking out bargaining unit employees in furtherance of the alleged refusal to bargain, and (3) indiscriminately videotaping employees who protested the allegedly unlawful lockout. Horsehead has petitioned this court for review of the Board’s order, and the Board has cross-petitioned for enforcement.

Except as to the videotaping issue, we conclude, the Board’s unfair labor practice findings are not supported by substantial evidence in the record as a whole. When viewed in its entirety, as the caselaw teaches it must be, the record comes nowhere close to demonstrating a refusal to bargain in good faith. And in this case, as in Pease Co. v. NLRB, 666 F.2d 1044 (6th Cir.1981), “[o]ur examination of the specific indicia relied on [331]*331by the ALJ and the Board leads us to conclude that neither the proposals nor the tactics of the Company, nor the sum of its conduct, amounts to substantial evidence of bad faith.” Id. at 1049. We shall therefore grant Horsehead’s petition and deny the Board’s cross-petition, for the most part, granting enforcement of the Board’s order only insofar as it relates to the company’s indiscriminate electronic surveillance of picketers.

I

Horsehead is in the business of recycling hazardous wastes, primarily electric are furnace dust produced as a by-product in the making of steel. Horsehead’s headquarters are in New York City, and the company operates plants (all of which are unionized) in Illinois, Pennsylvania, and Tennessee.

Through processing in kilns at Horse-head’s various plants, electric are furnace dust is turned into a slag-like material and crude zinc oxide. The zinc oxide is ultimately converted into relatively small quantities of lead and relatively large quantities of zinc caleite. The latter commodity is sold for use as a furnace feed at prices based on the London Metals Exchange spot price for zinc.

The profitability of Horsehead’s business is affected both by the market price of zinc and by the extent of available landfill capacity. (Although Horsehead normally disposes of between 60 and 80 percent of all electric arc furnace dust generated in the United States, such dust can also be disposed of in landfills.) About half of Horsehead’s revenues traditionally come from the sale of recovered products — mainly zinc — and the other half come from fees that producers of furnace dust pay for disposal of the substance.

During 1993 — the last full year of a labor agreement that covered bargaining unit employees at Horsehead’s Rockwood plant in rural Tennessee — zinc prices plunged to their lowest levels in 20 years. At the same time, according to the testimony of Horsehead’s president, a glut of landfill capacity led to increased competition from landfills. Calendar 1993 proved to be the first unprofitable year in Horsehead’s history, and the price of the company’s stock fell more than 70 percent.

In response to these financial pressures Horsehead cut its work force by 10 percent, slashed its research and development budget, and froze salaries for all non-bargaining unit employees. The company also began reexamining its health care costs.

Containment of health care costs became the responsibility of Martha Koletar, whom Horsehead hired in the fall of 1993 as vice president for human resources. She was charged with completely redesigning the company’s health care program, which had theretofore been operated without any contributions from participants. Effective February 1, 1994, all non-union employees were required to start paying 15 percent of the program’s cost. Zinc prices, by that time, had fallen to about 50 percent of their previous levels.

Ms. Koletar was also put in charge of negotiating a new labor contract at the Rock-wood plant. The existing contract (which had been negotiated over a 12-day period in 1991) was terminable on March 1,1994. Ms. Koletar’s instructions were to come up with a replacement contract that (a) would provide for worker contributions toward health care costs, and (b) would not increase total labor costs at Rockwood by more than five percent. Within those parameters, the record establishes, Ms. Koletar and her negotiating team had full authority to conclude an agreement.

The bargaining representative of the workers at the Rockwood plant was the Oil, Chemical and Atomic Workers International Union, AFL-CIO. An agent of that union, John Williams, notified the company by letter dated December 8, 1993, that the union would terminate the existing agreement as of March 1,1994. The letter concluded with an offer to meet at a mutually agreeable date to negotiate a new agreement.

At some point after she received the letter, it appears, Ms. Koletar telephoned Mr. Williams and asked him to meet with her at the plant. He did so late in December, and they talked about a number of subjects, including the upcoming contract negotiations. Ms. Koletar indicated that the company was [332]*332going to have “a major contract proposal,” according to Mr. Williams’ subsequent testimony before the administrative law judge. Ms. Koletar also told Mr. Williams that “health insurance was a problem.” Before the formal negotiations began, the ALJ determined, Ms. Koletar told Mr. Williams explicitly that the company would be seeking employee contributions toward employee health care costs. Williams replied that the union might go out on strike over this issue.

Although no specific date was set for the commencement of formal negotiations, Mr. Williams testified that the parties agreed “tentatively to start negotiations in mid-January. Sometime after the first or second week in January, however, Ms. Koletar told Mr. Williams that Monday, February 7, was the earliest the company could meet. Williams’ reaction, he testified, was that “this is kind of disturbing, because we had tentatively agreed to start and exchange proposals early.” Williams went on to tell Ms. Koletar that February 7 would be “kind of crowding it” if the company was going to have an extensive proposal. Ms. Koletar insisted, however, that February 7 was the best the company could do. (She explained at the evidentiary hearing that her time in January was consumed with health insurance paperwork and familiarizing herself with her new employer’s operations. She also testified that Thomas Knepper, the director of operations at the Illinois and Tennessee plants and a member of the company’s negotiating team, was tied up at another location during the last week in January.)

Negotiating teams for the two sides did in fact start a series of bargaining sessions on Monday, February 7, 1994, using the facilities of a Holiday Inn recommended by Mr. Williams near the Rockwood plant. Both sides presented opening proposals at the February 7 session, and the union’s proposal — unlike the company’s — called for an increase in wages.1

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154 F.3d 328, 159 L.R.R.M. (BNA) 2065, 1998 U.S. App. LEXIS 21075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horsehead-resource-development-co-inc-petitionercross-respondent-v-ca6-1998.