Liberty Mutual Insurance Company v. National Labor Relations Board

592 F.2d 595, 100 L.R.R.M. (BNA) 2660, 1979 U.S. App. LEXIS 16963
CourtCourt of Appeals for the First Circuit
DecidedFebruary 13, 1979
Docket78-1215
StatusPublished
Cited by36 cases

This text of 592 F.2d 595 (Liberty Mutual Insurance Company v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Mutual Insurance Company v. National Labor Relations Board, 592 F.2d 595, 100 L.R.R.M. (BNA) 2660, 1979 U.S. App. LEXIS 16963 (1st Cir. 1979).

Opinions

BOWNES, Circuit Judge.

Liberty Mutual Insurance Company (Company) brings this petition to set aside an order of the National Labor Relations Board (Board or NLRB) issued on May 3, 1978.1 The Board has filed a cross-application for enforcement of its order: that the Company cease and desist from the unfair labor practices found; that the Company offer reinstatement and reparation to discharged employee Martin J. Agacinski, Jr.; and that the Company reimburse Agacinski for all legal expenses incurred in defending the state court suit brought by the Company subsequent to his discharge. In that action, Liberty Mutual successfully sought to enjoin Agacinski from selling insurance in competition with it.2 The Board adopted the findings of the administrative law judge (ALJ), concluding that the Company violated section 8(a)(3) and (1) of the Labor Relations Act, 29 U.S.C. § 8(a)(3) and (1), when it discharged account representative Agacinski and it violated section 8(a)(1) of the Act, 29 U.S.C. § 8(a)(1), when Liberty Mutual threatened Agacinski with discharge because of his union activities.

The Company alleges that the Board’s findings of 8(a)(3) and 8(a)(1) violations are not supported in the record considered as a whole and that the award of attorney’s fees in the state court proceeding was contrary to law.

This case does not fit into the traditional mold of subpar employee work performance being tolerated by the Company until it coincides with union organizational activity. There was no established labor union involved here directly or indirectly. The discharged employee was attempting to resolve personal grievances at the same time that he was engaged in an organizing effort of insurance salesmen. For this reason, it is necessary to develop the facts in detail.

The Company has its headquarters in Boston, Massachusetts, and is engaged in the sale of casualty, property, and life insurance. Agacinski, the discharged employee around whom this controversy centers, worked for the Company continuously from 1962 until his termination in March of 1976. During his years with Liberty Mutual, he [598]*598advanced from personal sales representative in Morristown, New Jersey, to business sales representative in 1971, when he was transferred to East Orange, New Jersey. He was lauded for his “outstanding sales efforts” in 1973 in a letter from the Boston office. In 1975, Agacinski was the Company’s highest earner for the State of New Jersey, and was cited as an example by his manager to fledgling salesmen. January of 1976 brought a promotion to account representative.

Even though he appeared to be on the road to success in the insurance world, Agacinski was not happy with the way the Company treated him and its treatment of insurance salesmen in general. He set forth his grievances in a memorandum, dated March 11,1976, addressed to his superior, District Manager Joseph Anthony. The memorandum was composed during the first two weeks of March while Agacinski was on vacation. Agacinski distributed the four page memorandum on March 15 to all salesmen and managers in the East Orange office and to insurance salesmen throughout the Middle-Atlantic Division on his return from his vacation. He detailed his complaints and proposed the formation of an association of salesmen.

Our representatives, including myself, are distrustful and disheartened. I propose a Liberty Mutual sponsored Association of Middle-Atlantic Representatives; an association in which representatives are appointed by ballot of their peers to voice grievances to management.

His grievances were both general and personal. The general complaints included dissatisfaction with the assignment of sales territories, reassignment of accounts, low renewal percentages, conflicts between salesmen and sales managers, and distortions in sales reports. Agacinski’s personal complaints were prefaced with his statement, “I, like others, have personal grievances that, for fear of reprisal, cannot be aired without support of an Association.” Agacinski was irked by what he viewed as an inequitable salary maintenance formula, secrecy concerning the tabulation of career credits, inner strife in his office, and a reduction in reimbursed expenses, such as mileage. With the distribution of this memorandum. Agacinski’s career as a Liberty Mutual salesman began hurtling toward its end. Our factual focus is primarily on the brief time span from March 15 to March 26, when Agacinski’s status as a shooting star in Liberty Mutual’s galaxy ended abruptly with his discharge. Agacinski realized before he distributed the memorandum that his employment would be in jeopardy and during his vacation at the beginning of March made inquiries and determined that, if he lost his position with Liberty, he would have an opportunity to represent other competing insurance companies as an agent.

Late in the morning on Monday, March 15, Agacinski met with Anthony at the latter’s bidding to discuss the memorandum. After requesting the names of individuals to whom the memorandum had been sent, Anthony commented to Agacinski, “you know, Marty, associations don’t help superi- or salesmen. What they tend to do is force a company to keep lesser qualified people as opposed to letting them go. They have to allocate those funds for those lesser people and you end up more or less receiving less money.” They discussed Agacinski’s grievances, but came to no resolution, with accusations of each party’s irrationality bandied back and forth.

Anthony phoned James L. Walker, the division sales manager for the Middle-Atlantic Division after his lengthy session with Agacinski to discuss the memorandum. Anthony also spoke with Kenneth Spaulding, the assistant vice-president and manager of employee relations, corporate level, in Boston about the memorandum.

On Tuesday afternoon, March 16, Agacinski met with three account representatives in the East Orange office to discuss his memorandum, suggesting a second followup memorandum. He wanted “to further the Association” so he proposed to the trio “the idea of a no-show Thursday.” Agacinski then wrote a second memorandum, which he addressed and sent to all divisional [599]*599salesmen on Wednesday, March 17. Agacinski summarized the mixed reactions he received from the first memorandum: the senior salesmen “at best were sympathetic”; the newer salesmen “are enthusiastically behind organization and change”; the “newest salesmen are bewildered.” Agacinski noted:

Managements [sic] attitude has been similarly predictable. As in past attempts at organization, Home Office has dictated a low profile; a let them make a mistake attitude. Our Executive Vice-Presidents are as close to our attempted Association as they would be to the most critical of their responsibilities.

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Bluebook (online)
592 F.2d 595, 100 L.R.R.M. (BNA) 2660, 1979 U.S. App. LEXIS 16963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-mutual-insurance-company-v-national-labor-relations-board-ca1-1979.