Medline Industries, Inc. v. National Labor Relations Board

593 F.2d 788, 100 L.R.R.M. (BNA) 3202, 1979 U.S. App. LEXIS 16641
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 26, 1979
Docket77-2185
StatusPublished
Cited by28 cases

This text of 593 F.2d 788 (Medline Industries, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medline Industries, Inc. v. National Labor Relations Board, 593 F.2d 788, 100 L.R.R.M. (BNA) 3202, 1979 U.S. App. LEXIS 16641 (7th Cir. 1979).

Opinion

PELL, Circuit Judge.

This is a petition for review of an order of the National Labor Relations Board (Board) which adopted the recommended order of an Administrative Law Judge (ALJ). The ALJ concluded 1 that Medline Industries, Inc. (the Company) 2 violated §§ 8(a)(1), (3), and (5) 3 of the National Labor Relations Act (Act). He set aside the results of a representation election held on June 23, 1975, in which the employees rejected union representation by a vote of 16 to 5, with 7 challenged ballots. He also ordered the Company to bargain upon request with Teamsters Local No. 743 (the Union) pursuant to the dictates of N.L.R.B. v. Gissel Packing Co., 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547 (1969).

The Company argues that neither the findings of unfair labor practices nor the Gissel bargaining order is supported by substantial evidence from the record considered as a whole as required for enforcement by this court. Universal Camera Corp. v. N.L.R.B., 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1951). We will first review the Company’s contentions regarding the propriety of the bargaining order and then look at the validity of the unfair labor practices findings.

I. THE GISSEL BARGAINING ORDER

In Gissel, 395 U.S. at 594, 614, 89 S.Ct. at 1930, the Supreme Court upheld the Board’s remedial authority to order an employer to bargain with a union when the union has obtained authorization cards from a majority of the employees in an appropriate unit and when the employer has committed unfair labor practices which “interfere with the [Board’s] election processes and tend to preclude the holding of a fair election.” The Court indicated that this extraordinary remedy would be appropriate if the “Board finds that the possibility of erasing the effects of past practices and ¡of ensuring a fair election (or a fair rerun) by the use of traditional remedies, though present, is *791 slight and that employee sentiment once expressed through cards would, on balance, be better protected by a bargaining order . . . Id. at 614-15, 89 S.Ct. at 1940.

In the present case, the Company contests the appropriateness of the bargaining order on the ground that the Union did not haye the requisite authorization cards from a majority of the employees in the appropriate unit. The ALJ found that the Union had properly secured authorization cards from 16 employees by May 15, 1975, the date the Union wrote the Company demanding recognition. On that date, the ALJ found, the unit consisted of 28 employees. The Company received the demand letter on May 19, 1975 at which time, the ALJ found, the unit consisted of 29 employees. The parties stipulated that the appropriate unit was defined as

all full-time and regular part-time warehouse employees at the employer’s warehouse now located at 1825 Shermer Road, Northbrook, Illinois, including summer employees and kit makers; but excluding clerical employees, janitors, sales trainees, guards and supervisors as defined in the Act. .

The Company argues that the Board improperly excluded from the unit employees Lowman and Thurman and that the Board improperly counted the authorization cards of employees Youngs and Witt who the Company alleges signed their cards only after union misrepresentations and coercion. If the Company is correct regarding at least three of these four employees, the Union did not have a majority of authorization cards and the bargaining order cannot be enforced. We will analyze the Company’s arguments and the evidence supporting the Board’s findings as to these employees. We do so, of course, fully recognizing that we must enforce the Board’s findings if there is substantial evidence in the record considered as a whole to support them.

A. The Board’s Exclusion of Roosevelt Thurman

The AU found that Thurman was not a member of the unit on May 15 or 19, the critical dates on which majority status was determined. He found that Thurman was “no longer a regular employee . and there is no reasonable likelihood or expectation of his return as such in the foreseeable future.” The AU, however, did not focus on the critical dates and ignored well-established Board law, enforced by the courts, that employees on sick leave are presumed to remain in that status for unit eligibility purposes until recovery, and a party seeking to overcome that presumption must affirmatively show that the employee has resigned or been discharged. N.L.R.B. Outline of Law & Procedure in Representation Cases at 284 (1974); see N.L.R.B. v. Staiman Brothers, 466 F.2d 564, 566 (3d Cir. 1972); Lake City Foundry Company v. N.L.R.B., 432 F.2d 1162, 1170 (7th Cir. 1970); Food Employees, Local 347 v. N.L.R.B., 137 U.S.App.D.C. 248, 252, 422 F.2d 685, 689 (1969); Trailmobile Division, Pullman, Inc. v. N.L.R.B., 379 F.2d 419, 423 (5th Cir. 1967); Miami Rivet Company, 147 N.L.R.B. 470, 483 (1964); L. D. McFarland Co., 121 N.L.R.B. 577, 578 (1958); Sylvania Electric Products, Inc., 119 N.L.R.B. 824, 832 (1957); Foley Manufacturing Co., 115 N.L.R.B. 1205, 1206 (1956); Wright Manufacturing, 106 N.L.R.B. 1234, 1236-37 (1953).

Thurman had worked continuously for the Company since January 1972. In January 1975 he was placed on medical leave as a result of a kidney ailment. He was not terminated until May 30, 1975, well after the critical dates for determining the card majority. He gave the Company no reason to believe that he would not return to work until he failed to respond to the Company’s May 22, 1975, letter inquiring of his expected return date. That he was on sick leave on May 15 and 19, and thus a member of the unit, is supported by uncontradicted and compelling evidence. For example, the Company provided Thurman, during this sick leave from January 1975 through May 1975, its complete package of fringe benefits, including hospitalization, and salary continuation and life insurance.

The Board’s only evidence that Thurman should have been excluded because he was *792 not an employee on the critical dates is that the Company’s “New Employee Guide” provides that Company policy does not permit a leave of any sort for more than 21 days for an employee with less than three years seniority. (Thurman had slightly less than three years seniority when he went on sick leave.) The Board argues that under this policy Thurman was terminated 21 days after he began his sick leave in January 1975.

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Bluebook (online)
593 F.2d 788, 100 L.R.R.M. (BNA) 3202, 1979 U.S. App. LEXIS 16641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medline-industries-inc-v-national-labor-relations-board-ca7-1979.