Leach Corp. v. National Labor Relations Board

54 F.3d 802, 311 U.S. App. D.C. 398, 149 L.R.R.M. (BNA) 2285, 1995 U.S. App. LEXIS 10495
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 12, 1995
DocketNo. 93-1707
StatusPublished
Cited by10 cases

This text of 54 F.3d 802 (Leach Corp. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leach Corp. v. National Labor Relations Board, 54 F.3d 802, 311 U.S. App. D.C. 398, 149 L.R.R.M. (BNA) 2285, 1995 U.S. App. LEXIS 10495 (D.C. Cir. 1995).

Opinions

Opinion for the court filed by Circuit Judge ROGERS.

Dissenting opinion filed by Circuit Judge STEPHEN F. WILLIAMS.

ROGERS, Circuit Judge:

Petitioner Leach Corporation seeks review of an order of the National Labor Relations Board finding Leach liable for unfair labor practices under §§ 8(a)(5) & (1) of the National Labor Relations Act, 29 U.S.C. §§ 158(a)(5) & (1), in connection with its relocation of a manufacturing operation.1 Leach contends that the Board erred in ruling that the collective bargaining contract applied to workers at the new facility notwithstanding the company’s adoption of a different manufacturing process, and in rejecting its affirmative defense that the [804]*804charge filed by the Union2 was untimely under § 10(b) of the Act, 29 U.S.C. § 160(b). We deny the petition for review and grant the Board’s cross-application for enforcement of its order.

I.

Leach manufactures relay devices, a type of electronic switch used primarily in the aerospace industry. It had a longstanding collective bargaining relationship with the Union covering production and maintenance employees at a manufacturing facility known as the Los Angeles Relay Division (“Los Angeles”). The outstanding collective bargaining contract extended through October 22, 1991.

Relay production at Los Angeles, laid out over 14 buildings, operated according to a relatively inefficient manufacturing method known as “batch” production. In 1990, Leach decided to change its relay manufacturing process from the batch method to the more flexible and efficient “just-in-time” system. Due to physical limitations at the Los Angeles site, however, the company elected to close the plant and relocate the relay division to a pre-existing Leach facility in Buena Park, 19 miles away. Leach notified the Union in February 1991 of the plans to transfer the relay division, advising that the closure and relocation would commence in July and be completed in September. During the period leading up to the move, representatives of Leach and the Union met several times to discuss the new operation. At a March 20 meeting, Leach informed the Union that it would not extend the collective bargaining contract to Los Angeles employees who relocated to Buena Park due to the different nature of relay production there, and Leach denied the Union’s request to view the Buena Park premises. At each of these meetings, the Union also requested that Leach recognize it as the representative of relocating employees, and Leach refused. On June 26, Leach denied the Union’s request for the names, departments and positions of the employees to be relocated.

The relocation process commenced on July 3, when the first 35 Los Angeles workers began work at Buena Parlq and continued until completion on September 17. In all, approximately 280 of the 340 Los Angeles unit employees had been transferred. Except for the 35 employees who relocated on July 3, the record does not reveal the number of employees transferred on any particular date. When the relocation was complete, the new relay production line at Buena Park consisted entirely of former Los Angeles relay workers, and the old facility was closed.

On January 21, 1992, the Union filed a charge with the Board alleging that Leach had unlawfully repudiated the contract and withdrawn recognition of the Union in violation of §§ 8(a)(5) & (1). An Administrative Law Judge (“ALJ”) found that the Buena Park relay operation was substantially the same as production at Los Angeles, notwithstanding the different manufacturing methodology at Buena Park and the concomitant need for worker retraining. 312 N.L.R.B. at 995-96. Because Los Angeles transferees made up significantly more than 40 percent of the relevant relay unit at Buena Park, the ALJ ruled that the relocation did not reheve Leach of its collective bargaining obligation with respect to the transferred Los Angeles employees. Id. at 995-96 & n. 3. The ALJ also found that Leach’s refusal to provide information to the Union about the relocation process constituted an unfair labor practice in violation of §§ 8(a)(5) & (1). Id. at 996.3 However, the ALJ ruled that because the unfair practice occurred on July 3, when the first group of Los Angeles employees actually relocated to Buena Park, the Union had filed its charge more than six months later [805]*805and it was therefore untimely under § 10(b).4 Id. at 996-98. Accordingly, while ordering Leach to cease and desist from refusing to provide requested information to the Union, the ALJ declined to enter an order regarding the withdrawal of recognition and contract repudiation charges. Id. at 998.

The Board reversed the ALJ’s decision on the § 10(b) time-bar, ruling that the limitations period began at the earliest on September 17 — “the date the transfer process was substantially completed.” Id. at 991. Rejecting Leach’s argument that § 10(b) was triggered prior to the relocation, the Board noted that “a statement of intent or threat to commit an unfair labor practice does not start the statutory six months running. The running of the limitations period can begin only when the unfair labor practice occurs.” Id. at 991 & n. 7 (internal quotations and citations omitted). The Board emphasized that the § 10(b) period begins to run “only when a party has clear and unequivocal notice of a violation of the Act,” and that the party asserting the § 10(b) defense bears the burden of demonstrating such notice. Id. at 991.

Applying this principle to Leach’s relocation, the Board determined that Leach had failed to show that the Union “had knowledge of the facts necessary to support a ripe unfair labor practice charge on July 3,” when the relocation began. Id. In reaching this conclusion, the Board looked to the point at which Leach could be found to have committed an unfair labor practice. When an employer relocates a business, the Board has held that an existing contract remains in effect if (1) transferees from the old plant comprise a “substantial percentage” of employees in the relevant bargaining unit at the new plant, and (2) operations at the new facility are “substantially the same” as those at the old plant. Rock Bottom, Stores, Inc., 312 N.L.R.B. 400, 402, 1993 WL 382095 (1993), enf'd, NLRB v. Rock Bottom Stores, 51 F.3d 366 (2d Cir.1995); Harte & Co., 278 N.L.R.B. 947, 948, 1986 WL 68757 (1986). For a gradual plant relocation involving new hires or other non-transferred workers, the Board has adopted a rule that the appropriate time for measuring whether the “substantial percentage” is met is when the relocation has been “substantially completed,” rather than when the new plant becomes operational. Harte, 278 N.L.R.B. at 949. In the Board’s view, this rule represents a workable balance between “the newly hired employees’ interest in choosing whether or not to have union representation” and “the transferees’ interest in retaining the fruits of their collective activity.” Id. at 950.

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54 F.3d 802, 311 U.S. App. D.C. 398, 149 L.R.R.M. (BNA) 2285, 1995 U.S. App. LEXIS 10495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leach-corp-v-national-labor-relations-board-cadc-1995.