National Labor Relations Board v. Hayden Electric, Inc.

693 F.2d 1358, 112 L.R.R.M. (BNA) 2192, 1982 U.S. App. LEXIS 23189
CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 20, 1982
Docket81-5884
StatusPublished
Cited by17 cases

This text of 693 F.2d 1358 (National Labor Relations Board v. Hayden Electric, Inc.) 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. Hayden Electric, Inc., 693 F.2d 1358, 112 L.R.R.M. (BNA) 2192, 1982 U.S. App. LEXIS 23189 (11th Cir. 1982).

Opinion

FAY, Circuit Judge:

The National Labor Relations Board (the “Board”) petitions for enforcement of its Decision and Order of June 16, 1981 (the “Order”), 256 NLRB 104, pursuant to section 10(e) of the National Labor Relations Act (the “Act”), as amended, 29 U.S.C. § 160(e). 1 The Board, adopting the opinion of the administrative law judge, found that respondent Hayden Electric, Inc. (“Hayden Electric” or “Company”) had violated sections 8(a)(1) and 8(a)(5) of the Act, 2 29 U.S.C. § 158(a)(1) and (a)(5), by refusing to reinstate its former striking employees and by failing to comply with a collective bargaining agreement allegedly negotiated on its behalf by the National Electric Contractors Association, Inc. (“NECA”) (Florida East Coast Chapter). Opposing enforcement of the Order, Hayden Electric argues that it permissibly withdrew from NECA and that the International Brotherhood of Electrical Workers, Local 728 (the “Union”) consented to or acquiesced in its withdrawal from the multi-employer bargaining unit. Because we do not find substantial support in the record for the Board’s holding, but find ample support in the record for the Company’s contentions, we set aside the Board’s Order and decline to enforce it.

FACTS

Hayden Electric is an electrical service contractor with its principal office and place of business located in Pompano Beach, Florida. From 1969 to 1975, the Company, either as a member of Florida East Coast Chapter, NECA or through written authorization, commissioned NECA to act as its agent in collective bargaining with the Union. NECA is the multi-employer bargaining unit 3 of the electrical contracting industry, which exists for the purpose of representing its employer-members in negoti *1360 ating and administering collective bargaining agreements. NECA regularly negotiated and executed multi-employer collective bargaining agreements with the Union on behalf of its employer-members, including Hayden Electric.

In 1975, the Company resigned from membership in NECA. In 1974, 1975, and 1976, Company owner Bruce Hayden sent a letter to the Union, with a copy to NECA, prior to the expiration of the then current NECA-Union collective bargaining agreement. The letter stated that Hayden Electric intended to exercise its option to cancel its contract with NECA. After each letter, the Company continued to abide by the terms of the then current collective bargaining agreement and to apply the terms of the subsequent labor agreement negotiated between the Union and NECA.

William H. Briley, formerly vice president of Hayden Electric, purchased the Company in May 1977 and became its president. Omitting to forward the customary letter resigning from NECA that year, Bri-ley, the following year, sent a letter to James Weldon, Business Manager of the Union, with a copy to Marshall Williams, the Secretary Manager of NECA. This letter dated April 27,1978 was similar to those sent in 1974, 1975, and 1976, regarding contract cancellation. The letter read:

Complying with the requirements of the IBEW 728, this letter is to advise, 150 days in advance, of our intention to exercise our option to cancel our contract with the local union 728.
We find our project bidding hindered and are unable to compete with non-unions paying lower costs and less benefits.
Due to our long standing relationship with the local, we hope economic conditions improve so this option does not have to be finalized.

Following receipt of the Company’s letter, Weldon met with Briley in June 1978. Weldon asked Briley what was meant by the letter. Briley explained that he had sent the letter to protect himself from being bound to a new collective bargaining agreement.

On April 27, 1979, Briley sent Weldon a cancellation letter identical to the one he had given the year before. Briley also sent a copy of the letter to Williams. Again Weldon called Briley and arranged a meeting. When they met Briley explained that the letter was sent for the following purpose:

I told him again that the letter was insurance for Hayden Electric, that under the contract that letter had to be sent. And, that it was protection insurance and that it gave me the right to bargain for myself on a one-to-one ratio with Jimmy [Weldon], and to terminate the contract.

(Tr., Dec. 3, 1980, Vol. I, pg. 288).

During this meeting Weldon asked Briley what wage package would be acceptable to the Company. Briley replied that a fifty cent wage increase would probably be acceptable. Weldon replied that he did not think fifty cents was close to what the Union would be requesting in negotiations. At this meeting Briley requested that a double time provision for overtime in the contract be cut back to time and a half for residential service work.

About a month later, Weldon called Bri-ley and arranged another meeting. They again discussed the collective bargaining agreement and Briley reiterated that a fifty cent wage increase was an acceptable figure. Weldon stated that the figure was much too low and that the Union was talking about a $3.00-4.00 per hour increase. Briley replied that his service truck operation could not live with such a large wage increase. During the discussion Briley again requested that the overtime rate be reduced. Briley also requested that there be a special service truck rate. Weldon askéd Briley if he would consider having a shop steward in his shop. Briley replied that his initial reaction was not favorable to the request, but that if Weldon thought he had to do it, he would.

*1361 During the month of September, 1979, Weldon called Briley and requested a third meeting. The two met in Briley’s office where Weldon indicated that the NECA contract would contain approximately a $2.85 per hour raise. Briley replied that it was much too high an increase for him to live with, but he raised his own offer to $1.25 an hour. Weldon rejected Briley’s counter-offer as too low.

Briley attended several of the ongoing bargaining sessions between NECA and the Union. After one such session, Briley met with Williams and Crosley, NECA’s attorney, in Williams’ office. Briley told the NECA officials that he was not satisfied with the way negotiations were going and he wanted clarification as to the legality and effectiveness of his April letter. Cros-ley examined the letter and then told Bri-ley, “You are free to go, but be careful.” (Tr., Dec. 3, 1980, Vol. I, pp. 400-403).

In late September and early October, Bri-ley attended three or four NECA meetings regarding the ongoing contract negotiations. By September 30, the Union and NECA negotiated a “cooling off” period of ten days to follow the expiration of the 1978 collective bargaining agreement. By October 10, no agreement had been reached, and the Union called a general strike against all the employers represented by NECA, including Hayden Electric.

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Bluebook (online)
693 F.2d 1358, 112 L.R.R.M. (BNA) 2192, 1982 U.S. App. LEXIS 23189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-hayden-electric-inc-ca11-1982.