Lineback Ex Rel. National Labor Relations Board v. Printpack, Inc.

979 F. Supp. 831, 156 L.R.R.M. (BNA) 2396, 1997 U.S. Dist. LEXIS 14596, 1997 WL 594970
CourtDistrict Court, S.D. Indiana
DecidedSeptember 19, 1997
DocketIP 97-1102-C H/G
StatusPublished
Cited by11 cases

This text of 979 F. Supp. 831 (Lineback Ex Rel. National Labor Relations Board v. Printpack, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lineback Ex Rel. National Labor Relations Board v. Printpack, Inc., 979 F. Supp. 831, 156 L.R.R.M. (BNA) 2396, 1997 U.S. Dist. LEXIS 14596, 1997 WL 594970 (S.D. Ind. 1997).

Opinion

MEMORANDUM OPINION

HAMILTON, District Judge.

Section 10(j) of the National Labor Relations Act (“NLRA”) authorizes the National Labor Relations Board (“the Board”) to petition a district court for injunctive relief pending final resolution of an unfair labor practice charge. 29 U.S.C. § 160(j). In this case the Board’s Regional Director seeks such relief on several unfair labor practice charges pending against defendant Printpack, Inc. The charges arose from Printpack’s disputes with the union representing the employees of its flexible packaging factory in Greensburg, Indiana. An administrative law judge (“ALJ”) has conducted a hearing for the Board on the underlying unfair labor practices charges, but final resolution of those charges appears it could easily be months or perhaps several years away.

Among many issues here, one appears to be one of first impression: whether a § 10(j) order may require a respondent to seek a stay in another federal lawsuit that the respondent has filed under § 303 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 187. The ease also raises important issues about the ability of unions and their members to criticize employers when seeking support from third parties in labor disputes. At the heart of this case is a letter that- the president of the local union sent to a number of Printpack’s customers. The letter began by saying: “I want to alert you to a potentially alarming situation at our plant that could have an impact on the quality of the packaging materials we manufacture for [your Company].” The letter then complained about Printpack’s approach to collective bargaining with its employees and said, in the most hotly disputed sentence: “We hope that if the plant’s new management provokes a strike, that you will consider withdrawing your patronage, both because we could no longer guarantee the quality of our product and because it would be the right thing to do.” Printpack responded to the letter by firing the local president, suing the union and the president, and essentially barring the union president from the factory premises. The Board and the union contend that the local president’s letter was a classic exercise of a union’s federally protected right to publicize a labor dispute and to seek support for the union’s position. They contend that Printpack’s response violated § 8(a)(1) of the NLRA. 29 U.S.C. § 158(a)(1). Print-pack argues that the letter to its customers was an unlawful and unprotected effort to disparage its products and to coerce those customers into supporting the union in the labor dispute, and thus violated § 8(b)(4)(ii)(B) of the NLRA 29 U.S.C. § 158(b)(4)(ii)(B). Printpack therefore concludes that its response, including firing the author of the letter and suing the author and the union, was a proper exercise of an employer’s rights under federal labor law.

The court has before it the record of the hearing before the Board’s ALJ, additional evidence relevant to the parties’ requests for injunctive relief, and extensive briefing. This opinion sets forth the court’s findings of fact and conclusions of law pursuant to Fed. R.Civ.P. 65. As explained in detail below, the court concludes that the Director has shown a sufficient likelihood that the union’s letter to customers was protected activity and that Printpack’s response violated federal labor law. The Director has also shown that relief under § 10(j) is, in the terms of the statute, “just and proper.” That relief will include reinstatement of the local president and the right to enter the factory premises to represent other employees. In addition, that relief can and will include an injunction ordering Printpack to stay prosecution of its § 303 lawsuit against the union and the president pending final resolution of the unfair labor practice charge directed against that lawsuit. Finally. Printpack has raised in its counterclaims an important question as to whether the Board’s internal procedures for deciding whether to seek relief under § 10(j) comply with constitutional due process protections and protections against ex parte communications in administrative proceedings under the federal Ad *836 ministrative Procedure Act. However, controlling ease law shows that this court lacks subject matter jurisdiction over all of Print-pack’s counterclaims.

Findings of Fact

On August 22, 1996, Printpack acquired nine flexible packaging facilities, including the facility in Greensburg, Indiana, from the James River Corporation as part of an asset purchase agreement. After Printpack acquired the Greensburg facility, the business of the facility continued virtually unchanged. James River had a long-standing collective bargaining relationship with Local 761-S of the Graphic Communications Union. The last collective bargaining agreement was effective from October 1, 1995, through October 1, 1996. After closing the asset purchase, Printpack recognized Local 761-S as the exclusive bargaining representative for the Greensburg facility and continued to operate under the James River labor agreement. Local 761-S and Printpack began negotiations for a new contract on October 10, 1996. There were three bargaining sessions before December 20, 1996. At that time, Printpack gave the union written notice that the existing contract would terminate at midnight on January 27, 1997. There were six more bargaining sessions through January 28, 1997. However, Printpack and Local 761-S did not reach agreement on a new contract.

At all relevant times, Chris Hancock has been the president of Local 761-S. On January 28,1997, Hancock sent identical letters to approximately 40 Printpack customers informing them of the inability to reach agreement on a new contract and requesting their support in the event of a strike. That letter is the central document in this case. It stated in full:

Dear Sir:
On behalf of the 450 employees of Print-pack, Inc. in Greensburg, Indiana, who are members of Local 761-S, I want to alert you to a potentially alarming situation at our plant that could have an impact on the quality of the packaging materials we manufacture for [your Company],
As you probably know, Printpack, Inc. purchased the operation last August from James River Corporation. We have always prided ourselves on working in a manner that was both productive for our customer and profitable for our management. Now, the new owners are threatening to reduce our ability to do that. We have been offered a contract that would diminish benefits and hamper working conditions for many if not all employees. When we attempted to address these issues in good faith collective bargaining, Printpack refused to budge and eventually issued an ultimatum: Either we agree to accept less than we have proven our work is worth or the Company will institute even more draconian measures next Monday. February 3.
We could understand this attitude if the plant was in financial trouble.

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979 F. Supp. 831, 156 L.R.R.M. (BNA) 2396, 1997 U.S. Dist. LEXIS 14596, 1997 WL 594970, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lineback-ex-rel-national-labor-relations-board-v-printpack-inc-insd-1997.