National Labor Relations Board, and Local 1199, Drug, Hospital and Health Care Employees Union, Intervenor v. Rock Bottom Stores, Inc.

51 F.3d 366, 148 L.R.R.M. (BNA) 2967, 1995 U.S. App. LEXIS 7641
CourtCourt of Appeals for the Second Circuit
DecidedApril 5, 1995
Docket888, Docket 94-4110
StatusPublished
Cited by13 cases

This text of 51 F.3d 366 (National Labor Relations Board, and Local 1199, Drug, Hospital and Health Care Employees Union, Intervenor v. Rock Bottom Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board, and Local 1199, Drug, Hospital and Health Care Employees Union, Intervenor v. Rock Bottom Stores, Inc., 51 F.3d 366, 148 L.R.R.M. (BNA) 2967, 1995 U.S. App. LEXIS 7641 (2d Cir. 1995).

Opinion

FEINBERG, Circuit Judge:

The National Labor Relations Board (the Board) petitions to enforce its order finding that respondent Rock Bottom Stores, Inc. (Rock Bottom) violated § 8(a)(1) and (5) of the National Labor Relations Act, 29 U.S.C. § 158(a)(1) & (5). The central issue is the status of 12 employees who worked as trainees at Rock Bottom’s store in Commack, New York, before the store was closed and relocated. The Board found that these employees qualified as “transferees” to Rock Bottom’s new store. As a result, the Board concluded that a “substantial percentage” (approximately 40% or more) of the work force at the new store consisted of transferees. The “contract bar” rule therefore prohibited Rock Bottom from withdrawing recognition from or refusing to bargain with intervenor Local 1199, Drug, Hospital and Health Care Employees Union (the Union), 1 which represented employees at the Com-mack store. For reasons set forth below, we enforce the Board’s order.

I. Background

According to the Board’s findings, Rock Bottom operates approximately 28 retail discount stores in the New York City metropolitan area. The stores sell health and beauty aids and variety items. Rock Bottom and the Union have a long-standing collective bargaining relationship. When the instant dispute began, the Union was the bargaining representative of employees at 20 of Rock Bottom’s stores and its warehouse. A three-year multi-employer collective bargaining agreement, embodied in a Memorandum of Agreement signed by Rock Bottom and the Union in November 1988, set terms and conditions of employment for bargaining unit employees at Rock Bottom’s stores, including the Commack store.

In October 1989, Rock Bottom informed its Commack employees that it intended to close the Commack store and relocate to a new facility in neighboring East Northport, approximately one-quarter of a mile away. The normal Commack work force consisted of 18 employees, all of whom were offered positions at the new store; 13 employees accepted the offer to transfer. About the same time that Rock Bottom announced its decision to relocate, it began hiring new employees to staff the larger East Northport store. The new hires included replacements for the five Commack employees who did not wish to transfer. Although the East Northport store had not yet opened, most of the newly hired employees were assigned to train on cash registers that had been installed at that store. Others were assigned to train on cash registers at Commack. Rock Bottom stipulated that, “with the exception of East North-port’s [greater] size, ... ‘there was no substantial change in the operations' at the East Northport store from what we had at the Commack store.’ ” Rock Bottom Stores, Inc., 312 N.L.R.B. 400 (1993). Indeed, the Commack store and its successor, the East *369 Northport store, were both designated as Store No. 50 in Rock Bottom’s records.

Rock Bottom closed the Commack store on November 15, 1989 and opened the East Northport store the next day, November 16. Rock Bottom then ceased making pension and welfare fond contributions required by the collective bargaining agreement applicable to the Commack store.

The East Northport store opened with a complement of 52 employees. Among these were the 13 former Commack employees who had accepted the transfer offer, the five “replacement trainees” who had trained primarily at Commack and 12 “additional trainees.” This last group had been hired expressly for the East Northport store, but trained by working at Commack for periods of time ranging from three to approximately 24 hours prior to the relocation. Thus, 30 of the 52 East Northport employees (about 57%) had spent some time working in the Com-mack store. Rock Bottom concedes that the 13 Commack employees and the five replacement trainees were properly treated as “transferees” from Commack but claims that the 12 additional trainees did not so qualify. Accordingly, in Rock Bottom’s view only 35% of the new store employees were transferees, less than a “substantial percentage.”.

Three weeks prior to the November 1989 move, the Union sent Rock Bottom a letter requesting that it bargain with the Union and observe the terms of the collective bargaining agreement at the East Northport store. Rock Bottom denied the request as premature. After the move, the Union renewed its request, but Rock Bottom again refused.

In February 1990, Rock Bottom filed a petition for an election to determine whether the East Northport employees desired union representation. In March 1990, the Union filed an unfair labor practice charge against Rock Bottom alleging violations of § 8(a)(1) and (5) of the Act based upon Rock Bottom’s withdrawal of union recognition and refusal to bargain with the Union or to apply the terms of the collective bargaining agreement at East Northport. In accordance with Board policy, the election petition was held in abeyance pending disposition of the unfair labor practice charge. See American Metal Prods. Co., 139 N.L.R.B. 601, 604 (1962). In October 1991, a complaint issued, and in June 1992, an administrative law judge (ALJ) conducted an unfair labor practice hearing. The ALJ issued his decision in September 1992, finding Rock Bottom in violation of the Act.

In September 1993, the Board issued its Decision and Order agreeing with the ALJ that Rock Bottom had violated § 8(a)(1) and (5) by refusing to bargain with the Union, withdrawing recognition of the Union, and refusing to abide by its collective bargaining agreement after moving its store to East Northport. The Board relied on its earlier decision in Harte & Co., 278 N.L.R.B. 947 (1986), which stated that in keeping with the contract bar rule, “an existing contract will remain in effect after a relocation if the operations at the new facility are substantially the same as those at the old and if transferees from the old [facility] constitute a substantial percentage — approximately 40 percent or more — of the new [facility] employee complement.” Id. at 948. The Board' affirmed the ALJ’s finding that the 12 disputed trainees qualified as transferees under Westwood Import Co., 251 N.L.R.B. 1213 (1980), enforced, 681 F.2d 664 (9th Cir.1982) and Arrow Co., 147 N.L.R.B. 829 (1964). In those cases, "trainees who had worked in a facility prior to relocation were counted as transferees for purposes of determining whether transferees made up a “substantial percentage” of the new work force, even though they had worked in the former facility for only a short time. Westwood, 681 F.2d at 666; Arrow, 147 N.L.R.B. at 830-31.

The Board ordered Rock Bottom to (1) cease and desist from continuing its unfair labor practices; (2) recognize the Union as the collective bargaining representative of the East Northport employees; (3) apply the collective bargaining agreement at the East Northport store; (4) make all fringe benefit contributions as provided in the collective bargaining agreement; (5) make the East Northport employees whole for any losses they may have suffered; and (6) post a remedial notice. Thereafter, the Board petitioned to enforce its order.

*370 II. Discussion

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51 F.3d 366, 148 L.R.R.M. (BNA) 2967, 1995 U.S. App. LEXIS 7641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-and-local-1199-drug-hospital-and-health-ca2-1995.