Montague v. National Labor Relations Board

698 F.3d 307, 2012 WL 3608594, 194 L.R.R.M. (BNA) 2106, 2012 U.S. App. LEXIS 18017
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 23, 2012
Docket11-1256
StatusUnpublished
Cited by8 cases

This text of 698 F.3d 307 (Montague v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montague v. National Labor Relations Board, 698 F.3d 307, 2012 WL 3608594, 194 L.R.R.M. (BNA) 2106, 2012 U.S. App. LEXIS 18017 (6th Cir. 2012).

Opinion

OPINION

ROGERS, Circuit Judge.

This case raises the question of whether — before employees officially recognize a *309 union — a union and an employer may enter into a letter of agreement setting forth general terms, including provisions related to health care benefits and future collective-bargaining agreements, that are subject to further negotiation but may become binding if arbitration is necessary. Because the National Labor Relations Board, which sets labor policy, reasonably determined that the agreement did not impermissibly restrict employee choice, we uphold the Board’s dismissal of the petitioners’ complaint.

Dana Companies, the employer in this case, is an automotive parts manufacturer with about 90 facilities throughout the United States, Canada, and 30 other countries. Dana entered into discussions with the International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, AFL-CIO (UAW) about potentially representing approximately 305 employees at Dana’s St. Johns, Michigan facility. Dana and the UAW had had a long-standing bargaining relationship before discussions about the St. Johns facility began, and the UAW already represented 2,200 to 2,300 Dana employees at various locations. Dana Corporation, 356 NLRB No. 49, at *1 (2010).

On August 6, 2003, Dana and the UAW entered into the Letter of Agreement (LOA) that is at the heart of this appeal, which included various provisions intended to manage the relationship between the parties should the majority of St. Johns employees select the UAW as their exclusive collective-bargaining representative.

The LOA included a statement of purpose recognizing that the challenges of the automotive industry would “be more effectively met through a partnership [with the union] that is more positive, non-adversarial and with constructive attitudes.” The statement of purpose also reiterated that an “Employee’s freedom to choose is a paramount concern of Dana as well as the UAW,” and both parties agreed to “not allow anyone to be intimidated or coerced into a decision [when selecting their exclusive bargaining representative].” The LOA further stated that:

The parties understand that the Company may not recognize the Union as the exclusive representative of employees in the absence of showing that a majority of the employees in an appropriate bargaining unit have expressed their desire to be represented by the Union.

LOA, Article 3.1.

In the LOA Dana undertook to be neutral in the event of an organizing campaign, and to: (1) allow the employees to meet on company property, Article 2.1.3.5; (2) refrain from discussing any “potential negative effects or results of representation by the Union on the Company,” Article 2.1.2.7; (3) provide the Union “with access to employees during the workday in non-workday areas,” Article 2.1.3.5; and (4) provide the UAW with personal information about the employees targeted for unionization, Article 2.1.3.1. The LOA also provided for a card check process by a neutral third party as the procedure for recognizing when the union received the support of the majority of the employees, Article 3. In addition, the parties consented to a no strike/no lockout commitment, Article 6, at least until the first formal collective-bargaining agreement was finalized.

Most centrally to the issues in this case, the LOA also described certain principles that were to be included in future bargaining agreements between the parties. With regard to healthcare, Article 4 contained a commitment by the union that bargaining would not erode “current solutions and concepts already in place or scheduled to be implemented January 1, 2004,” including “premium sharing, deductibles, and out *310 of pocket máximums.” The LOA also contained the parties’ agreement “that in labor agreements bargained pursuant to this Letter, the following conditions must be included for the facility to have a reasonable opportunity to succeed and grow”:

• Healthcare costs that reflect the competitive reality of the supplier industry and product(s) involved
• Minimum classifications
• Team-based approaches
• The importance of attendance to productivity and quality
• Dana’s idea program (two ideas per person per month and 80% implementation)
• Continuous improvement
• Flexible Compensation
• Mandatory overtime when necessary (after qualified volunteers) to support the customer
Article 4.2.4. Dana and the union agreed that if they did not reach an agreement on any of the terms for the first formal contract, including those discussed in Article 4.2.4, within six months, they would submit the unresolved issues to arbitration with a neutral arbitrator according to Article 4.2.5-4.2.6. For any potential violations of the LOA itself, Article 5 established a dispute resolution procedure where a neutral arbitrator was empowered to issue “final and binding” decisions.
On August 13, 2003, Dana issued a press release that it had reached a “partnership agreement” with the UAW. According to the Board’s decision, there is nothing in the record regarding to what extent the press release and the LOA were made available to Dana’s employees. Dana Corporation, 356 NLRB No. 49, at *2.
In December 2003, the UAW requested a list of employees working at the St. Johns facility, pursuant to Article 2.1.3.1. This prompted petitioners, Joseph Montague and Kenneth Gray, to file unfair labor charges. On September 30, 2004, the General Counsel of the NLRB issued a complaint alleging that by entering into the LOA Dana had rendered unlawful assistance to the UAW in violation of § 8(a)(2) and (1) of the National Labor Relations Act (NLRA), and that the UAW had restrained and coerced employees regarding their choice of exclusive bargaining representative in violation of § 8(b)(1)(A). At no time prior to or during the litigation of this case did the employees select the UAW as their exclusive bargaining representative.

The Administrative Law Judge (ALJ) who heard the case dismissed the complaint, first on procedural grounds not at issue on this appeal, and in the alternative on the merits. The ALJ determined that Dana had not granted recognition to a minority union, which would have been an unfair labor practice under the holding of International Ladies’ Garment Workers Union v. NLRB, 366 U.S. 731, 81 S.Ct. 1603, 6 L.Ed.2d 762 (1961) (“Bernhard-Altmann ”). Nor did the LOA violate the corollary principle of Majestic Weaving Co., 147 NLRB 859 (1964), enf. denied, 355 F.2d 854

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Cite This Page — Counsel Stack

Bluebook (online)
698 F.3d 307, 2012 WL 3608594, 194 L.R.R.M. (BNA) 2106, 2012 U.S. App. LEXIS 18017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montague-v-national-labor-relations-board-ca6-2012.