National Labor Relations Board v. Gaylord Chemical Co.

824 F.3d 1318, 206 L.R.R.M. (BNA) 3350, 2016 U.S. App. LEXIS 10121, 2016 WL 3127087
CourtCourt of Appeals for the Eleventh Circuit
DecidedJune 3, 2016
Docket15-10006
StatusPublished
Cited by4 cases

This text of 824 F.3d 1318 (National Labor Relations Board v. Gaylord Chemical Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Gaylord Chemical Co., 824 F.3d 1318, 206 L.R.R.M. (BNA) 3350, 2016 U.S. App. LEXIS 10121, 2016 WL 3127087 (11th Cir. 2016).

Opinion

RIPPLE, Circuit Judge:

The United Steelworkers International Union (“USW”) and its Local 887 (collectively “the Union”) filed a complaint alleging that Gaylord Chemical Company, LLC (“Gaylord” or “the Company”), had failed to bargain collectively, had failed to provide information relevant to bargaining, had created a new job position without engaging in bargaining, and had interrogated employees about their union sympathies, all in violation of sections 8(a)(5) and (1) of the National Labor Relations Act (“NLRA” or “Act”), 29 U.S.C. § 158(a)(5), (1). Following a hearing, an Administrative Law Judge (“ALJ”) found that Gaylord had committed the charged unfair labor practices and ordered Gaylord to bargain with the Union and to take other remedial measures. The National Labor Relations Board (“NLRB” or “Board”) affirmed the ALJ’s findings of fact and conclusions of law and also adopted the recommended order. The NLRB now petitions for enforcement of the Board’s order. Gaylord cross-petitions for review of the Board’s order and asks that we deny the Board’s application for enforcement. For the reasons set forth in the following opinion, we grant the NLRB’s application for enforcement and deny Gaylord’s cross-petition.

I

A. Facts

From 2007 to 2010, Gaylord operated a chemical manufacturing facility in Bogalu-sa, Louisiana, where it produced Dimethyl Sulfoxide (“DMSO”) and Dimethyl Sulfide (“DMS”). It employed approximately twenty production and maintenance workers in the facility. For decades prior to Gaylord’s acquisition of the Bogalusa operation, the workers were represented by the USW and its designated local, which negotiated a series of collective bargaining agreements (“CBAs”) on the workers’ behalf. The most recent CBA, entered in 2009, provides that “[t]his Agreement [is] made and entered ... by and between Gaylord Chemical Company, L.L.C., located at Bo-galusa, Louisiana, hereinafter called the Company, and the United Steel Workers International Union and its Local No. 13-0189, hereinafter called the Union.” 1 The recognition clause of the CBA states that “[t]he Company hereby recognizes the Union as the sole collective bargaining agent for all employees in the single bargaining unit as defined in the Agreement.” 2 The CBA was signed by all of the officers of the USW; District Director for District 13, Michael Tourne; and the leadership of Local 189.

In February 2009, Gaylord informed its employees that it would close the Bogalusa plant and open a new facility in Tuscaloosa, Alabama, over 200 miles away. Gaylord extended job offers to all bargaining unit employees who wished to relocate. Gaylord and the Union also bargained regarding the effects of the relocation. Tourne negotiated on behalf of the workers, as he had with respect to earlier contracts. 3 During *1322 these negotiations, Claude Bloom, Gay-lord’s then vice president of manufacturing, advised the bargaining committee that Gaylord preferred to operate its Tuscaloosa facility without union representation.

Beginning in September 2010, Gaylord moved substantial parts of the machinery and equipment necessary for production to the Tuscaloosa facility. In December of that year, the Tuscaloosa plant began producing DMSO, the only product produced at that facility. The Bogalusa facility closed in January 2011. Twelve bargaining unit employees permanently transferred from Bogalusa to Tuscaloosa. These twelve employees constituted almost ninety percent of the full complement of production and maintenance employees at the new Tuscaloosa facility, and they performed job functions “substantially similar to those previously performed by bargaining unit employees in Bogalusa.” 4

Even before the move began, Daniel Flippo, the USW’s director for the district encompassing Tuscaloosa (District 9), sent a letter to Gaylord on August 31, 2010, requesting “to meet and bargain at your newly opened Tuscaloosa, Alabama facility.” 5 “United Steelworkers,” the USW’s registered trademark, and “District 9” appeared on the letterhead. 6 The bottom of the letter stated “United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union”; it provided the address for District 9 and also the USW’s website. 7 Gaylord did not respond to the request.

Flippo sent a second letter on September 23, 2010, requesting that Gaylord meet and bargain regarding the Tuscaloosa facility. On September 30, Gaylord’s president, Paul Dennis, responded that he had conferred with counsel and was “uncertain as to the legal basis of District 9’s status as the collective bargaining representative for our employees.” 8 Dennis also requested that Flippo explain this legal basis to Gay-lord so that it could “assess [its] position.” 9 Flippo responded by letter dated October 19, 2010, which stated that “[t]he USW International Union is the certified bargaining representative of the employees at both of your plants located in Bogalusa, Louisiana and Tuscaloosa, Alabama. As you know, the USW has requested to bargain the Bogalusa, Louisiana unit’s relocation to Tuscaloosa, Alabama.” 10 Dennis responded by letter of October 25, 2010, in which he announced “Gaylofd’s position that neither the International nor District 9 is the certified bargaining representative for Gaylord’s employees working at our Tuscaloosa, Alabama facility” and declined the request for bargaining and information. 11

After the move to Tuscaloosa, Marc Smith, Vice President of Manufacturing for Gaylord, asked an employee, Doug Mitchell, to his office, purportedly to discuss leadership. During this conversation, Smith asked Mitchell “why [he] thought [the employees] needed a union.” 12 Mitchell replied, “why not[?]” 13 Smith explained that'there was more flexibility and fewer expenses without a union. When Mitchell *1323 pressed Smith as to what those expenses were, Smith responded that there were union dues for the employees and legal fees for Gaylord.

B. Administrative Proceedings

After Gaylord’s refusal of its request to bargain, the USW filed a charge with the NLRB on January 11, 2011, alleging that Gaylord had violated the NLRA. A second charge was filed in April 2011. The USW first reiterated the allegations concerning the failure to bargain contained in the initial charge.

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824 F.3d 1318, 206 L.R.R.M. (BNA) 3350, 2016 U.S. App. LEXIS 10121, 2016 WL 3127087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-gaylord-chemical-co-ca11-2016.