National Labor Relations Board v. Beckham, Inc.

564 F.2d 190, 96 L.R.R.M. (BNA) 3389, 1977 U.S. App. LEXIS 5710
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 8, 1977
Docket77-1223
StatusPublished
Cited by43 cases

This text of 564 F.2d 190 (National Labor Relations Board v. Beckham, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Beckham, Inc., 564 F.2d 190, 96 L.R.R.M. (BNA) 3389, 1977 U.S. App. LEXIS 5710 (5th Cir. 1977).

Opinions

RONEY, Circuit Judge:

The sole issue before the Court is whether substantial evidence on the record considered as a whole supports the finding of the National Labor Relations Board that respondent, Beckham, Inc., manifested an unequivocal intention to be bound by group rather than individual action in collective bargaining, so that his refusal to sign the resulting collective bargaining agreement amounted to a refusal to bargain. Although the undisputed evidence could be subject to differing inferences, the standard of review permitted this Court requires an enforcement of the Board’s remedial order requiring compliance with the collective bargaining agreement negotiated by the multi-employer group’s representatives.

The Board, by a two to one vote, reversed a decision of the Administrative Law Judge (“ALJ”) and ruled that Beckham had violated sections 8(a)(5) and (1) of the National Labor Relations Act, 29 U.S.C.A. §§ 158(a)(5) and (a)(1), by refusing to ad[192]*192here to a collective bargaining agreement between the Central Florida Chapter, Painting and Decorating Contractors of America, Union Division (the “Association”) and the International Brotherhood of Painters and Allied Trades, AFL-CIO, Local Union 1010 (the “Union”).

On the Board’s petition for enforcement, this Court’s role is very limited. The legal test is clear, the facts are largely undisputed, and the only real dispute between the parties (and the difference between the ALJ and Board decisions) relates to the legal effect of what occurred. If the Board’s conclusions are supported by substantial evidence on the record considered as a whole, we must grant enforcement. This is true even though the Board disagreed with the ALJ, NLRB v. Materials Transportation Co., 412 F.2d 1074, 1079 (5th Cir. 1969); NLRB v. Miami Coca-Cola Bottling Co., 382 F.2d 921, 923 (5th Cir. 1967), and even where the contrary conclusions of the ALJ also have substantial support in the record, Russell-Newman Mfg. Co. v. NLRB, 407 F.2d 247, 253 (5th Cir. 1969).

While multi-employer bargaining is not specifically mentioned in any of the labor relations acts, it has a long history in many industries. Congress, in rejecting proposals to eliminate multi-employer bargaining, has concluded that multi-employer bargaining often is “a vital factor in the effectuation of the national policy of promoting labor peace through strengthened collective bargaining.” NLRB v. Truck Drivers, Local 449 (Buffalo Linen), 353 U.S. 87, 95, 77 S.Ct. 643, 647, 1 L.Ed.2d 676 (1957), quoted in NLRB v. Hi-Way Billboards, Inc., 473 F.2d 649, 652 (5th Cir. 1973). Congress intended “ ‘to leave to the Board’s specialized judgment the inevitable questions concerning multi-employer bargaining bound to arise in the future.’ ” 353 U.S. at 96, 77 S.Ct. at 647.

The Board has formulated a court approved test to determine whether a multi-employer bargaining unit has been established. The test is whether the employer members of the group have indicated from the outset an unequivocal intention to be bound by group action in collective bargaining, and whether the union, being informed of the delegation of bargaining authority to the group, has assented and entered into negotiations with the group representative. See, e. g., NLRB v. Hart, 453 F.2d 215, 217 (9th Cir. 1971), cert. denied, 409 U.S. 844, 93 S.Ct. 46, 34 L.Ed.2d 84 (1972); Western States Regional Council No. 3, Int’l Woodworkers v. NLRB, 130 U.S.App.D.C. 176, 398 F.2d 770, 773 (1968). Both parties agree with the Board that this is the appropriate legal test.

The facts upon which the Board based its findings are, in the words of the ALJ, “in large part undisputed.” Prior to 1975, Beckham and other members of the Association bargained with the Union as a group, but with the purpose of signing individual contracts. Such procedure was followed in the negotiation and execution of a 3-year contract in 1972. At some point prior to 1975, the expiration date of the 1972 contract, the Association amended its bylaws to enable it to act as a multi-employer bargaining unit and negotiate a single contract for its members, although the bylaws did not specifically refer to this purpose.

At the Association’s May meeting, its president, William Pass, announced that the employers would negotiate as a unit for a single contract, instead of as individual employers as they had previously done. All of the members present, including Beckham, agreed to this. Before negotiations commenced, the Association requested that its members (and several other employers who had contracts with the Union) execute an “Assignment of Bargaining Rights and Designation of Collective Bargaining Agency” form. Only three companies returned the assignment form. Beckham never signed the form. The Union, however, was never informed about the Association’s request for the forms.

Negotiations commenced June 24 and ended July 28, 1975. At an early negotiating session, Pass told the Union that the Association was negotiating for all of its members as a group, instead of individually as had previously occurred. Beckham was present at this, and virtually all subsequent [193]*193negotiating sessions, and he never indicated any disagreement with Pass’ statement. The Union agreed to negotiate with the Association as a multi-employer unit. While the Union was apparently uncertain as to exactly who the Association was representing, the Union clearly understood that Beckham was a member of the Association and would be bound by any agreement reached by the Union and the Association.

At the final negotiating session held on July 28, the employers returned from a private caucus, and reported that they agreed to the terms of the proposed contract, except that Beckham needed relief from the retroactive pay provisions. The Union was unwilling to make any exceptions in the written contract, but it did agree that it would not object if Beckham could convince his employees to waive their retroactive pay. This apparently satisfied Beckham, who said he could take care of his employees, and then all of the negotiators shook hands and announced that they had an agreement. The contract left open for future action the formation of a joint trade board and an agreement on residential rates.

The contract contained a “recognition clause,” which stated that

The Union recognizes the Association as agent for and on behalf of the companies listed under Appendix A, hereinafter referred to as the “Employer,” as the primary bargaining representative for all contractors operating within the geographic jurisdiction of the Union .

The idea of using an Appendix to list who was bound by the contract had been suggested during the negotiations, and was agreed to by both sides.

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Bluebook (online)
564 F.2d 190, 96 L.R.R.M. (BNA) 3389, 1977 U.S. App. LEXIS 5710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-beckham-inc-ca5-1977.