National Labor Relations Board v. Allied Products Corporation, Richard Brothers Division

629 F.2d 1167, 105 L.R.R.M. (BNA) 2563, 1980 U.S. App. LEXIS 14342
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 4, 1980
Docket75-2124
StatusPublished
Cited by9 cases

This text of 629 F.2d 1167 (National Labor Relations Board v. Allied Products Corporation, Richard Brothers Division) 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
National Labor Relations Board v. Allied Products Corporation, Richard Brothers Division, 629 F.2d 1167, 105 L.R.R.M. (BNA) 2563, 1980 U.S. App. LEXIS 14342 (6th Cir. 1980).

Opinions

EDWARDS, Chief Judge.

This is the second consideration by this court of the remedy ordered by the National Labor Relations Board for a violation by respondent of Sections 8(a)(1) and (5) of the National Labor Relations Act, 29 U.S.C. §§ 158(a)(1), (5) (1976).1 The violation found by the Board occurred in the spring of 1974 after the union 2 had won a consent election in a unit of 10 clerical employees at the company’s Hillsdale, Michigan plant.

On the heels of the union’s victory in the representation election and the rejection by the Regional Director of the respondent’s objections to the election, respondent unilaterally suspended an established yearly compensation review and increase program applicable to the office employees.

The Administrative Law Judge found that respondent had violated §§ 8(a)(1) and (5) of the Act by unilaterally suspending the merit wage review or increase program. He did not, however, recommend a remedy which would have had the effect of making the employees whole. The NLRB, without being specifically urged to do so by the general counsel, did enter an order requiring the reinstitution of the merit wage review and/or wage increase program applied retroactively from on or about May 3, 1974. The Board’s rationale for this order was as follows:

“The Administrative Law Judge, although finding that Respondent unilaterally suspended its merit review program without prior notice to, or consultation with, the Union, concluded that neither a restoration of the status quo ante nor a make-whole remedy was warranted herein because Respondent and the Union subsequently discussed this subject during negotiations. He therefore recommended that Respondent be required only to cease and desist prospectively from unilaterally discontinuing the merit review program. However, in cases, like here, involving a violation of Section 8(a)(5) based on a respondent’s unilaterally altering existing benefits, it is the Board’s established policy to order restoration of the status quo ante, to the extent feasible, and in the absence of evidence showing that to do so would impose an undue or unfair burden upon the respondent.1 We find no basis here which [1169]*1169justifies a departure from this policy. Thus, contrary to the Administrative Law Judge, the fact that Respondent presented the Union with a fait accompli at the outset of negotiations must necessarily have obstructed meaningful bargaining.2
To hold that bargaining in such circumstances is an adequate substitute for remedial action would unwarrantedly relieve Respondent of its statutory obligation to maintain existing benefits during negotiations and unjustifiably ignore the rights of those employees who may have been adversely affected by Respondent’s breach of that duty. Furthermore, the record discloses no evidence establishing that an order restoring the status quo ante here would impose an unfair burden upon Respondent. We therefore conclude that the recommended Order of the Administrative Law Judge falls short of effectively remedying Respondent’s unlawful conduct.
“In view of the foregoing, we find that it will best effectuate the purposes of the Act to order Respondent to reinstitute its former merit wage review program and to apply it retroactively from on or about May 3, 1974, the date on which Respondent first gave unequivocal notice to the Union of its decision to suspend that program pending negotiations.3 In further-
anee of this remedy, we shall also specifically order Respondent to make its employees in the bargaining unit whole by paying them the differences, if any, between their actual wages and the wages they would have received had the merit review program not been suspended during such period, together with interest thereon at the rate of 6 percent per annum, as set forth in Isis Plumbing & Heating Co., 138 NLRB 716 (1962).4 Accordingly, we shall modify the recommended Order of the Administrative Law Judge to conform herewith.”

At the original hearing before this court there were major issues other than the remedy issue. See NLRB v. Allied Products Corp., Richard Bros. Div., 548 F.2d 644, 646-653 (6th Cir. 1977). On two of these issues, this court reversed the Board. We held that two secretaries whom the Board had included in the clerical bargaining unit were “confidential” employees and, hence, subject to exclusion from the bargaining unit. The second issue pertained to the question of the date on which the six months’ limitation on the filing of an unfair labor practice charge commenced under § 10(b) of the Act.3

[1170]*1170The company took the position that the operative date was March 28, 1974, when the “by-pass” of one employee for wage review was first discussed at a union meeting. Under this construction of the record the unfair labor charges would be time barred.

The Administrative Law Judge had found that the union knew well before April 7 that the company was discontinuing the wage review practice. The Board took the point of view, however, that the operative date was May 3, 1974 because the bypass policy was reiterated on that date and was properly to be construed as a continuing violation.

Our court’s majority opinion, written by Judge McCree, found that the Administrative Law Judge and the Board were in error in charging the union with knowledge before April 7 “that the Company had decided as a matter of policy to discontinue its established practice of conducting wage reviews of all employees.” NLRB v. Allied Products Corp., Richard Bros. Div., 548 F.2d 644, 651-652 (1977).

This court’s earlier opinion also held: “It is settled law that an employer may not unilaterally change its employees’ wages or other working conditions when it is subject to the statutory duty to bargain with a designated representative of it employees. N.L.R.B. v. Katz, 369 U.S. 736, 82 S.Ct. 1107, 8 L.Ed.2d 230 (1962); N.L.R.B. v. McCann Steel Co., 448 F.2d 277 (6th Cir. 1971). The Company does not contest this basic rule. It does contend, however, that because the change was not made for anti-union reasons, there was no violation. Second, the Company contends that because it might have been held to have violated the law had it either granted or denied merit increases during negotiations, it should not be penalized for a ‘good faith’ attempt to comply with an inherently inconsistent rule. Finally, the Company urges us to rule that because it made its unilateral change before the Union had been certified, there could have been no § 8(a)(5) violation.

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629 F.2d 1167, 105 L.R.R.M. (BNA) 2563, 1980 U.S. App. LEXIS 14342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-allied-products-corporation-richard-ca6-1980.