National Labor Relations Board v. Don's Olney Foods, Inc., D/B/A Olney Iga Foodliner

870 F.2d 1279, 130 L.R.R.M. (BNA) 3171, 1989 U.S. App. LEXIS 4413
Court of Appeals for the Seventh Circuit·Decided March 21, 1989·No. 88-1293·Published·Cited by 10 cases

Opinion

FAIRCHILD, Senior Circuit Judge.

This case is before us on application of the National Labor Relations Board (the Board) for enforcement of its order, issued *1281 against Don's Olney Foods, Inc., doing business as Olney IGA Foodliner (the Company). The Company operates a grocery store in Olney, Illinois.

On April 26, 1985, the Board brought a complaint against the Company alleging various unfair labor practices conducted during a union campaign at the store. After a hearing, the administrative law judge decided that, by firing Joe Wilson because of his union organizing activities, the Company had committed an unfair labor practice prohibited by § 8(a)(1) and (8) of the National Labor Relations Act. 29 U.S.C. § 151, et seq. 1 The ALl also found that the Company had engaged in the following § 8(a)(1) unfair labor practices: creating the impression that the employees' union activities were under surveillance; coer-cively interrogating employees; claiming to know which employees had signed union cards and that the Company would learn who voted for the union; and by threatening employees with possible store closure, more onerous working conditions, and the loss of benefits, jobs, and pay if they chose to unionize. He also found that the Company's suspension of pay raises was prohibited by § 8(a)(1), (3) and (5), and that its refusal to bargain was an unfair labor practice under § 8(a)(1) and (5). He ordered the Company to cease and desist from its illegal practices, to offer Mr. Wilson reinstatement, and to grant employees the pay raises denied because of the union. The ALl also ordered the Company to bargain with the union. A three-member panel of the Board, one member dissenting, affirmed the ALT's rulings and conclusions (with modifications not relevant here) and adopted his recommended order. 286 N.L. R.B. No. 75 (Oct. 22, 1987).

The company raises four issues on appeal. First, if Mr. Wilson was a supervisor, firing him for union activity and coer-cively interrogating him would not be unfair labor practices. The Company argues that the evidence required the Board to find that he was a supervisor. Second, if employees Rick Rariden and Mike Zuber were supervisors, threats found to have been made against them were not unfair labor practices. The Company argues the evidence required a finding that they, too, were supervisors. Third, the Company argues that substantial evidence does not support the finding that the Company's failure to grant a wage increase was an unfair labor practice. Fourth, it claims the Board abused its discretion by imposing a bargaining order. The Company does not challenge the remaining findings of unfair labor practices involving other employees.

I. SUPERVISOR STATUS

Section 2(11) defines a supervisor as

any individual having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection with the foregoing the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

29 U.S.C. § 152(11). A person need only have authority to wield any one of the powers listed in § 2(11) to be considered a supervisor, if exercising that power involves true independence of judgment. N.L.R.B. v. Chicago Metallic Corp., 794 F.2d 527, 530-31 (9th Cir.1986).

We keep in mind two things when the Board finds that an employee is not a supervisor. First, this court applies a deferential standard of review to the Board's determination, both because it is primarily a factual finding, and because, to the extent it requires statutory interpretation, it is a statute the Board is entrusted with enforcing. N.L.R.B. v. Res-Care, Inc., 705 F.2d 1461, 1465-66 (7th Cir.1983).

Second, in enacting § 2(11), Congress intended to distinguish between employees vested with some limited supervisory power, such as "straw bosses, leadmen, set-up *1282 men, and other minor supervisory employees,” and “the supervisor vested with such genuine management prerogatives as the right to hire or fire, discipline, or make effective recommendations with respect to such action.” N.L.R.B. v. Bell Aerospace Co., 416 U.S. 267, 280-83, 94 S.Ct. 1757, 1764-66, 40 L.Ed.2d 134 (1974) quoting Sen.Rep. No. 105, 80th Cong., 1st Sess. 4 (1947); Res-Care, Inc., 705 F.2d at 1466. The Board’s case-by-case determinations of supervisory status under § 2(11) play an important role in preserving the distinction between employees with limited supervisory powers, and genuine supervisors. See Res-Care, Inc., 705 F.2d 1461, 1465-66 (7th Cir.1983); Westinghouse Electric Corp. v. N.L.R.B., 424 F.2d 1151, 1158 (7th Cir.1970).

A. Joe Wilson

Mr. Wilson’s status is vigorously contested, and understandably so. If Mr. Wilson was a supervisor, his discharge was lawful. More significantly, Mr. Wilson solicited all 23 of the authorization cards obtained during the union’s campaign; if he was a supervisor at the time, the counting of those cards toward a union majority could be questioned. See C & W Super Markets, Inc. v. N.L.R.B., 581 F.2d 618, 620 (7th Cir.1978). The Company does not claim Mr. Wilson had the power to “hire, transfer ... lay off, recall, promote, discharge ... or reward” employees, or “effectively to recommend such action.” He did have limited authority over co-employees during certain periods, though, and the Company insists this was authority to “suspend, ... assign, ... discipline ... or responsibly direct” employees involving enough independent judgment to make him a § 2(11) supervisor.

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National Labor Relations Board v. Don's Olney Foods, Inc., D/B/A Olney Iga Foodliner, 870 F.2d 1279, 130 L.R.R.M. (BNA) 3171, 1989 U.S. App. LEXIS 4413 (7th Cir. 1989).

870 F.2d 1279 (National Labor Relations Board v. Don's Olney Foods, Inc., D/B/A Olney Iga Foodliner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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