National Labor Relations Board v. H. Koch & Sons

578 F.2d 1287
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 27, 1978
Docket75-3837
StatusPublished
Cited by20 cases

This text of 578 F.2d 1287 (National Labor Relations Board v. H. Koch & Sons) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth 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. Koch & Sons, 578 F.2d 1287 (9th Cir. 1978).

Opinions

DUNIWAY, Circuit Judge:

The National Labor Relations Board petitions for enforcement of its order issued against H. Koch & Sons (Koch) on October 6,1975. In its decision, which is reported at [1288]*1288220 NLRB 1103, the Board found that Koch violated sections 8(a)(1) and (5) of the National Labor Relations Act, 29 U.S.C. § 158(a)(1) and (5), by refusing to execute a written contract embodying the terms of a collective bargaining agreement which it had orally agreed to. We enforce the Board’s order.

I.

FACTS

Until June, 1974, Koch operated a manufacturing plant in Corte Madera, in northern California, where its employees were represented by two unions under separate collective bargaining agreements. The production employees were represented by the Leather, Plastic, & Novelty Workers Union, Local 31, International Leather Goods, Plastic and Novelty Workers Union, AFL-CIO (the Leatherworkers), while the machinists were represented by Marin County Lodge 238, International Association of Machinists (the Machinists). The two agreements contained identical severance pay clauses which provided:

In the event of a permanent shut-down, the Employer shall notify the Union at least thirty (30) days prior to said close-down. The Employer shall provide severance pay to employees who are permanently laid off as a result of the plant close-down based on the formula of one (1) days’ pay for each year of service.

In late 1973 or early 1974, Gulf & Western Industries, Inc., Koch’s parent, began to consider relocating the Corte Madera plant in southern California. Representatives of Koch met with representatives of the two unions on January 25, 1974, and told them of Koch’s decision to relocate.

On March 11, the Company posted a letter notifying its employees that the relocation would take place in early June. On the following day. Leatherworkers’ business manager and secretary-treasurer Charles Bruno wrote to Albert Brinskele, President of Koch, requesting negotiations concerning the effects of the relocation upon employees represented by that Union. On March 22, Bruno met with Brinskele and Henry Kel-leher, Gulf & Western’s Director of Labor Relations. Bruno proposed that the Company provide employment for all Leather-worker members who wished to relocate; that the Leatherworkers’ contract be made applicable at the new location; that employees be paid for unused sick leave; and that wages be paid through August 1 as a form of severance pay beyond that provided for in the contract. Kelleher rejected all of these demands.

On April 10, the Leatherworkers filed an unfair labor practice charge with the Board, alleging that the Company was not bargaining in good faith concerning the effects of the planned relocation of its employees. Kelleher telephoned Bruno in early May and told him that the Company wished to resolve the issues and have the unfair labor practice charge withdrawn. He asked what it would take to settle the matter and Bruno replied that the members were primarily concerned with obtaining more generous severance benefits than those provided for in the labor agreement. Bruno proposed five days’, then three days’ severance pay per year of employment. Kelleher rejected these demands but stated that the Company might be willing to offer two days’ wages per year of service in addition to the one day’s severance pay provided for in the contract, provided that both the Leather-workers and the Machinists agreed to the proposal. Bruno replied that while he could not speak for the Machinists, he felt certain that his own members would find the offer acceptable. Kelleher then asked Bruno to discuss the proposal with representatives of the Machinists, stating that if that union concurred the parties would have an agreement.

When Bruno telephoned Machinist spokesman Lester Young, Young told him that his union was demanding five days’ severance pay per year of employment, in line with its established pattern in the area. Bruno relayed this demand to Kelleher and the two agreed that further negotiations later in the month would be necessary. A meeting was held on May 24 in San Rafael, [1289]*1289California, with Kelleher, Brinskele, Bruno and Young in attendance. Koch modified its proposal slightly, offering one and a half days’ severance pay per year of service in addition to the one day provided for in the labor contracts. Bruno expressed satisfaction with this offer and Young, who was not authorized to accept anything less than five days’ severance pay on behalf of the Machinists, agreed to discuss the proposal with his superiors.

Although no final agreement had been reached, Kelleher drafted two longhand contracts, one for each union, providing for the termination of the existing labor agreements and for the withdrawal of the Leath-erworkers’ unfair labor practice charge. Kelleher told Bruno and Young that he would have the agreements typed up, inserting the amounts of severance pay due the employees under the Company’s proposal, and would forward the documents to the two unions for their consideration.

Kelleher and Bruno next conferred by telephone on May 30. During this conversation Kelleher proposed a new method for computing severance pay. Under the “unit plan” which he had devised, employees would receive a flat $70 per year of service with the Company. Bruno expressed approval and told Kelleher to send him the agreement for his signature. Kelleher asked Bruno to discuss the proposal with the Machinists and Bruno agreed to contact Young. On the same day, Kelleher sent Bruno a typed copy of the May 24 agreement along with a letter explaining the unit plan proposal in detail.

On May 31, the Board’s Regional Director sent a letter to the Leatherworkers, with copies to the parties involved, stating that investigation had disclosed no failure to bargain on the part of the Company and declining to issue a complaint based on the union’s allegations.

On June 5, Kelleher called Bruno from Anaheim, California, and asked whether Bruno had received his letter of May 30. Bruno replied that he had and expressed satisfaction with the agreement. Kelleher asked about the Machinists’ position and Bruno responded, “They’re not exactly happy with it but Les Young told me: Yes, we’ll finally go along with it too, if that settles the matter.” Kelleher responded, “Swell,” and told Bruno that when he returned to New York he would retype the agreements, inserting the amounts of severance pay due the employees under the unit plan, and send the documents to the unions for signature.1

When Bruno did not received the promised typewritten copy of the agreement he telephoned Kelleher on June 10 to inquire about the delay. Kelleher, noticeably upset, told Bruno, “There’s not going to be an agreement. You didn’t negotiate in good faith with me.” Kelleher said that upon his return to New York, he had discovered that the Leatherworkers’ unfair labor practice charge had been dropped. He reproached Bruno for having withheld this information during the June 5 telephone conversation and angrily reiterated, “You didn’t negotiate in good faith. We are withdrawing that proposal and you can go ahead and file all the charges you want in the National Labor Relations Board or in the courts. We are not doing anything more about it.” Kelleher said nothing about the Machinists and made no claim that that union had not accepted Koch’s severance pay offer.

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National Labor Relations Board v. H. Koch & Sons
578 F.2d 1287 (Ninth Circuit, 1978)

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Bluebook (online)
578 F.2d 1287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-h-koch-sons-ca9-1978.