Montgomery Ward & Co., Incorporated v. National Labor Relations Board

339 F.2d 889, 58 L.R.R.M. (BNA) 2115, 1965 U.S. App. LEXIS 6945
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 8, 1965
Docket15738
StatusPublished
Cited by24 cases

This text of 339 F.2d 889 (Montgomery Ward & Co., Incorporated 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
Montgomery Ward & Co., Incorporated v. National Labor Relations Board, 339 F.2d 889, 58 L.R.R.M. (BNA) 2115, 1965 U.S. App. LEXIS 6945 (6th Cir. 1965).

Opinion

EDWARDS, Circuit Judge.

Petitioner, Montgomery Ward & Co., seeks review of an order of the NLRB finding certain unfair labor practices and ordering petitioner to desist therefrom. The Board in turn seeks enforcement of its order by cross-petition.

Although the site of this dispute is a department store operated by petitioner in Big Springs, Texas, jurisdiction is *890 established in this court by Section 10(e) and (f) of the National Labor Relations Act (29 U.S.C. §§ 151-160) since the petitioner “transacts business” in the states comprising the Sixth Circuit.

The background of this case is an attempt made by a union 1 2 to organize the Montgomery Ward employees in its Big Springs, Texas, store. When a number of the fifty employees in this store joined the union, Montgomery Ward reacted with considerable vigor.

Its supervisors called three meetings of all the employees (on paid time before or after work) in order to have them hear company speeches against the union. Supervisory personnel interrogated various employees about claimed violations of company rules prohibiting solicitation of employees for union membership during working time or on company property. The assistant manager twice drove around union meetings at the union hall checking parked cars to gain information on attendance.

As indicated above, the store had a broad “no-solicitation rule” which prevented solicitation of union membership on “company time” or in selling areas of the store or in areas of the store where it would interfere with the operation of the store.

At one of the meetings the store manager made an anti-union speech and then read the company “no-solicitation” rule to the grouped employees. Then he added that the rule also meant “no solicitation” during lunch time or during “coffee breaks” at the cafe across from the store. He added that employees violating the rule would be fired.

After this meeting the union business agent asked permission to address the employees on company time to respond to the statements made by the store manager. This request was denied.

After these events (and the discharge of the most vocal union adherent 3 among the employees), on April 23 a representation election was held. The union lost by a two to one margin. Thereafter unfair labor practice charges were filed which resulted in the instant proceeding.

After a full hearing, the Trial Examiner found:

“By promulgating an unlawful no-solicitation rule and by engaging in surveillance of union activity Respondent interfered with, restrained and coerced its employees in the exercise of the rights guaranteed by Section 7, thereby violating Section 8(a) (1).”

He recommended a cease and desist order and the posting of notices to advise the employees of the intention of petitioner not to repeat these violations.

The General Counsel filed 51 exceptions to the Trial Examiner’s report. The Board, however, gave serious weight to only one of these; namely, his contention that petitioner violated Section 8(a) (1) by refusing, under the circumstances related above, to allow the union an opportunity to address the employees on company premises.

After adopting the Trial Examiner's findings and recommended order as to all other issues, the Board detailed its views on the basic issue now before this court :*

“The Respondent’s utilization of company time and premises to propagandize against the Union must be viewed against the background of its unlawful circumscription of its employees’ union activity. Respondent’s representatives made antiunion speeches to assembled employees on company time and premises on January 16, January 24 and May 9. The Union, on January 23, requested permission to address Respondent’s employees during working hours, *891 but was refused, ted.) (Footnote omit-
* # # -X- * *
“The facts in the instant case are much stronger for finding a violation than in the May case [The May Department Stores Company v. N.L. R.B., 316 F.2d 797 (C.A. 6, 1963)]. For here Respondent did more than merely promulgate a broad, privileged, and hence lawful, no-solicitation rule. It went further and announced a rule which not only prohibited union discussion in selling areas of the store, but which also imlawfully forbade such activities in nonselling areas within the store regardless of whether the employees were on free time or not, and even went so far as to proscribe legitimate union activities off the store’s premises during the store’s business hours. In short, Respondent seriously impaired lawful solicitation activities at the natural site where employees are accessible for organizational efforts. Quite clearly, here more than in May, Respondent’s broad and unlawful no-solicitation rule, coupled with its own use of Company time and property to impress its antiunion propaganda on employees, ‘created a glaring imbalance in organizational communication’ that justified the Union’s request to address employees under the same circumstances as had Respondent. (Emphasis in original.)
“For the foregoing reasons, we find that Respondent, by denying the Union’s request, violated Section 8 (a) (1) of the Act. It follows, and we also find, that such conduct of Respondent also interfered with the election of May 10, and we shall therefore set that election aside and direct a new election.
“The Remedy
“Our finding of a violation of Section 8(a) (1) from Respondent’s refusal to allow the Union to address the employees has been predicated on the Respondent’s maintenance of an unlawful no-solicitation rule. However, in view of the nature of Respondent’s business and the fact that Respondent may adopt a broad, yet privileged, rule, we shall direct Respondent, while enforcing either such a privileged rule or an unlawful one, not to make antiunion speeches to employees during company time on its premises without honoring a union’s request similarly to address the employees.” 145 N.L.R.B. No. 88, at 4-6 (1964).

In the issue thus described, the property rights and the constitutional and statutory free speech rights of employers come into conflict with the national purpose of making secure employees’ rights to organize. Accommodating both sets of rights has puzzled Congress. Its current formulations as set forth in the N.L.R.A. are as follows:

“RIGHTS OF EMPLOYEES
“Sec. 7.

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Bluebook (online)
339 F.2d 889, 58 L.R.R.M. (BNA) 2115, 1965 U.S. App. LEXIS 6945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-ward-co-incorporated-v-national-labor-relations-board-ca6-1965.