Kinney Drugs, Inc., Petitioner-Cross-Respondent v. National Labor Relations Board, Respondent-Cross-Petitioner

74 F.3d 1419, 151 L.R.R.M. (BNA) 2379, 1996 U.S. App. LEXIS 913
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 24, 1996
Docket1647, 1932, and 1933, Dockets 94-4133, 94-4157, and 94-4189
StatusPublished
Cited by43 cases

This text of 74 F.3d 1419 (Kinney Drugs, 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 Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinney Drugs, Inc., Petitioner-Cross-Respondent v. National Labor Relations Board, Respondent-Cross-Petitioner, 74 F.3d 1419, 151 L.R.R.M. (BNA) 2379, 1996 U.S. App. LEXIS 913 (2d Cir. 1996).

Opinions

JACOBS, Circuit Judge:

Respondent-cross-petitioner the National Labor Relations Board (“Board” or “NLRB”) has issued an order (1) finding that during a 1991 union organizing election petitioner-cross-respondent Kinney Drugs, Inc. (“Kinney”) engaged in unfair labor practices sufficiently egregious as to justify a bargaining order, and (2) overruling challenges to certain ballots. When the challenged ballots were opened, the NLRB declared the union the winner of the election. The NLRB later issued a second bargaining order upon a finding that Kinney had again engaged in [1423]*1423unfair labor practices by refusing to bargain with the union after the election results were certified.1

In this appeal the NLRB seeks enforcement of its bargaining orders, and Kinney asks us to reject the NLRB’s findings that (1) Kinney engaged in unfair labor practices justifying the issuance of the initial bargaining order, and (2) the challenged ballots were cast by permanent employees, as opposed to temporary workers (as Kinney claimed), and that the election therefore was won by the union. Were we to agree with the NLRB on either of these issues, we would enforce the orders requiring Kinney to bargain with the newly formed collective bargaining unit. However, we reject the NLRB’s conclusion that Kinney’s conduct during the course of the 1991 election justified issuance of a bargaining order, and we conclude that the NLRB erred in failing to uphold Kinney’s challenges to some — though not all — of the secret ballots cast in the election. We are unable to ascertain the ultimate election result because the record does not disclose how each of the challenged ballots was voted. We therefore remand to the NLRB for further proceedings consistent with this opinion.

BACKGROUND

Kinney sells pharmaceutical and other products at stores in Vermont and northern New York. This appeal arises out of a November 22, 1991 election in a stipulated unit at a Kinney warehouse and distribution center in Gouvemeur, New York. The election was held to determine whether the Kinney warehouse employees wished to be represented by Local 687, affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (the “union”). A total of 41 employees east votes in the election. Kinney challenged six of these ballots and the union challenged one. Only Kinney’s challenges are pursued on appeal. When the unchallenged 34 ballots were opened immediately following the election, they split 17 for the union and 17 against it. Since this tie vote defeats union certification, the challenged ballots have become potentially determinative.

Administrative Law Judge Joel A. Har-matz conducted hearings in June 1992 and issued his decision in June 1993, (1) finding that Kinney had committed numerous unfair labor practices that warranted the issuance of a bargaining order and (2) rejecting the challenges lodged against all seven contested ballots. The NLRB adopted virtually all of the ALJ’s report in an order dated July 12, 1994.2 The seven contested ballots were then opened. Five were cast for the union and two were east against it. The final vote was therefore 22-19 in favor of the union. The election was by secret ballot, and there is no indication in the record on appeal as to how any individual voted. The July 12 NLRB ruling also found that during the course of the election, Kinney had engaged in various unfair labor practices. Based on Kinney’s unfair labor practices, the NLRB issued a bargaining order compelling Kinney to negotiate with the union without regard to the vote (the “July 12, 1994 bargaining order”).

On August 3, 1994, the Board’s General Counsel certified the union as the employee’s collective bargaining representative. On August 23, 1994, the NLRB’s General Counsel filed a complaint alleging that Kinney was continuing its unfair refusal to bargain. The Board granted summary judgment in favor of the General Counsel on September 30, 1994 and for the second time, ordered Kinney to recognize the union (the “September 30,1994 bargaining order”).

[1424]*1424The Election. The union formally demanded recognition on September 25, 1991 and filed its election petition on October 3. Two unsuccessful organizing efforts had been made at the same Kinney warehouse, one in 1973 and another in 1977.

Richard Cognetti, who had recently been promoted from senior vice president of Kinney to president and chief executive officer, summoned the warehouse employees to a meeting on the afternoon of October 9, 1991. About 30 attended. According to the testimony of several of the employees in attendance, Cognetti displayed the election petition and announced that it upset him. He told the employees that, by law, the filing of the petition barred him from making any changes in response to employee grievances until after the election. With that caveat, Cognetti said he still would be willing to discuss any issues of importance to them. The concerns expressed covered a range of topics, including employee-management communications and the employees’ coffee privileges. The NLRB found that this meeting constituted an impermissible solicitation of grievances:

While the record is devoid of any specific, concrete promise, there remained a clear implication that [Cognetti] would attempt to change things around.

Appendix (“A.”) at 96. Sometime thereafter, several changes were instituted at the Kinney warehouse, including increased availability of coffee and the promotion of several part-time workers to full-time status.

Cognetti gave a second speech to the warehouse employees on October 25, 1991. This speech, which was not deemed by the NLRB to have constituted an unfair labor practice, covered two topics: the disruption caused by ongoing warehouse renovations and the downside of union representation. As part of these remarks, Cognetti stated:

Unionization is a long-term proposition; once you get into it, it is very difficult to get out. The union is going to want dues, assessments and initiation fees, and whatever other charges they have regardless of what they are able to accomplish. And, a union can’t practically do a number of things relating to our situation. Unions can’t stop technological change, they can’t stop layoffs (but fortunately we don’t have those around here); they can’t stop customers complaints; and they can’t stop the pressures that sometimes come because of the needs of business.

A. at 653. This speech was followed by a letter to the workers dated November 5 in which Cognetti repeated his views on unionization. A. at 649-50.

Between November 11 and 14, Kinney management scheduled a series of meetings with the warehouse employees. Attendance at these group sessions, held during work hours, was mandatory. The meetings were run by Cognetti together with either Kinney’s director of human resources Ronald Field or Wayne Frenyea, Kinney’s vice president of finance. According to Kinney, employees at each meeting were told that management was barred from taking any corrective actions during the campaign. In some of the meetings, reference was made to the health of Kinney’s pension fund and the underfunding of the union plan. During at least one of the meetings, Cognetti became annoyed at the sounding of a buzzer that had been installed years earlier to announce the start of shifts.

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Bluebook (online)
74 F.3d 1419, 151 L.R.R.M. (BNA) 2379, 1996 U.S. App. LEXIS 913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinney-drugs-inc-petitioner-cross-respondent-v-national-labor-relations-ca2-1996.