National Labor Relations Board v. H. E. Fletcher Co.

298 F.2d 594, 49 L.R.R.M. (BNA) 2497, 1962 U.S. App. LEXIS 6118
CourtCourt of Appeals for the First Circuit
DecidedJanuary 24, 1962
Docket5874
StatusPublished
Cited by31 cases

This text of 298 F.2d 594 (National Labor Relations Board v. H. E. Fletcher Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First 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. H. E. Fletcher Co., 298 F.2d 594, 49 L.R.R.M. (BNA) 2497, 1962 U.S. App. LEXIS 6118 (1st Cir. 1962).

Opinion

HARTIGAN, Circuit Judge.

This is a petition for enforcement of an order of the National Labor Relations Board entered May 12, 1961 pursuant to the Board’s decision, 131 N.L.R.B. No. 71. The Board found that the respondent, H. E. Fletcher Co., (hereinafter called the Company), had violated Section 8(a) (5) and (1) of the Labor Management Relations Act, 1947, 29 U.S.C.A. § 158 (a) (5) and (1) by refusing to bargain with respect to wages with the Union representing its employees and also by refusing to bargain with said Union on and after February 10, 1960 as the exclusive bargaining representative of the employees. The Board’s order requires the Company to cease and desist from refusing to bargain collectively with the Union, to bargain upon request with the Union as the exclusive bargaining agent of its employees and to post appropriate notices.

A brief outline of the facts of the labor dispute as found by the Trial Examiner and adopted by the Board is as follows. The respondent is engaged in the quarrying and processing of granite. On September 12, 1958 the United Stone and Allied Products Workers of America, AFL-CIO (hereinafter called the Union), was certified as the collective bargaining representative for a unit of production and maintenance employees at respondent’s plant at Westford, Massachusetts. On September 30, 1958 the Union submitted a proposed contract to the Company. This contract, which was the only written agreement which the Union ever submitted to the Company, included demands for a union shop, an extensive seniority system and for a grievance procedure terminating in compulsory arbitration. On what, for present purposes, has come to be the critical provision in that contract — namely, wages — this contract sought a blanket increase in hourly wage rates of fifteen cents over the existing maximum rate paid in each job classification, together with a provision for a cost-of-living escalator clause. This agreement also provided that all information used in computing bonuses should be made available to the Union by the Company and that the method of computing the bonus should be the subject of time study by the Union.

It will be helpful, at this point, to review briefly the various methods of compensation which were in effect at the Company at the time that the Union offered its first (and only) written proposal.

*596 After extensive study and with the advice and assistance of its employees, the Company established a detailed and comprehensive job evaluation plan in 1953. The plan which has been continually in effect since that date was aimed at establishing (and compensating accordingly) the relative value in terms of productive output of the various jobs in the plant. Each job was analyzed in terms of a pervasive 1 list of attributes which thereafter, by means of a conversion factor, was utilized in determining the top hourly dollar rate for a given job. New employees were hired at a figure somewhere below the “top rate” (depending on the supervisor’s appraisal of his qualifications and aptitudes) and would thereafter have the opportunity to advance toward the maximum rate through an intermediate range, presumably, as their skills increased. 2

In addition to the hourly wage rates base upon this job evaluation plan, respondent also had established bonus and incentive programs. The Company maintained an individual incentive program which would reward the individual worker with bonuses predicated on the attainment of certain “points” through achieving established standards of productive output. The respondent also maintained a group or departmental bonus incentive plan and a plant-wide incentive plan known as the “pool.” Payments under the pool for any particular year rested in the sole discretion of respondent’s treasurer and, the determination of amounts to be paid under both plans involved factors which the Company maintained that for competitive 3 reasons it would be unwilling to disclose.

Between September 30, 1958 and February, 1959 the Company and the Union engaged in many collective bargaining meetings. Although the record does not reflect what transpired at these meetings, we may fairly assume that at least some of the discussion related to the subject of wages.

On February 20, 1959 a meeting was held at which the Company submitted a draft of a contract as a counterproposal to the Union’s contract. On the issue of wages, the Company proposed that the employees’ wage rate should be their “current operator’s rate” and that the Company be permitted “in its discretion [to] increase the operator’s rate” of any employee. The Company proposed contract was subsequently rejected in its entirety by the Union’s membership.

On April 15, 1959 another meeting was held, at which the Company presented a second counterproposal. On the question of wages, this agreement reiterated the Company’s previous position — relative to the hourly wage — that employees should continue to receive their current operator’s rate so long as they continued on the same job and that it be given discretion to increase the operator’s rate of an individual employee and to fix such rates in newly established jobs. The agreement provided, however, that before changing any operator’s rate or fixing the operator’s rate for any newly established job, the Company would give notice to the Union and, if requested by *597 ■the Union, consult with its representatives on such matters.

In this counterproposal the Company agreed to continue its existing individual incentive system and agreed to make available to the Union information as to the methods used in establishing new or changed standards and awarding points to compute these bonuses. With respect to the two remaining bonus or incentive programs — the department program and the plant-wide or “pool” system — the Company made two alternate proposals. Initially, the Company offered to continue both incentive programs if the Union would waive its right to inquire into matters relating to the operation of the plan. 4 Under the second alternative, both plans would be discontinued. In a note appended to this second alternative, the Company indicated that competitive reasons would preclude it from continuing the operation of these plans if it had to divulge their inner-workings. However, the Company stated that “it was aware that the Union might not wish to agree to such a waiver.” This note concluded: “The Company has stated its willingness to consider and discuss any incentive plan which the Union might wish to propose as a substitute for either or both of the present incentive plans. •Jv •K* ‘Jr **

The Union rejected respondent’s counterproposal on wages and, two days later, on April 17, 1959, called a strike which lasted some four months. On July 6, 1959, during the course of the strike, the respondent entered into a settlement agreement with the Board’s Regional Director, disposing of certain unfair labor practice charges filed by the Union against the Company. Under the terms of the settlement agreement the Company, inter alia, agreed to “[bjargain collectively upon request with the [Union] as the exclusive representative of [its] employees.”

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Bluebook (online)
298 F.2d 594, 49 L.R.R.M. (BNA) 2497, 1962 U.S. App. LEXIS 6118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-h-e-fletcher-co-ca1-1962.