National Labor Relations Board v. Hi-Way Billboards, Inc.

473 F.2d 649, 82 L.R.R.M. (BNA) 2527, 1973 U.S. App. LEXIS 11739
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 8, 1973
Docket71-3415
StatusPublished
Cited by13 cases

This text of 473 F.2d 649 (National Labor Relations Board v. Hi-Way Billboards, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Hi-Way Billboards, Inc., 473 F.2d 649, 82 L.R.R.M. (BNA) 2527, 1973 U.S. App. LEXIS 11739 (5th Cir. 1973).

Opinion

SIMPSON, Circuit Judge:

The National Labor Relations Board (NLRB) seeks enforcement of its order against respondent Company, upon the Board’s findings of violations of certain sections of the National Labor Relations Act as amended, Title 29 U.S.C. Sec. 151 et seq. On the basis of the singular evidence presented, we decline to order enforcement, but instead, remand for further proceedings before the Board.

The background for this dispute may be stated briefly. For approximately seventeen years the Sign and Pictorial Painters Local Union No. 550 (Union) has had a history of collective bargaining with the Houston, Texas, Sign Manufacturers Association (Association), an association with a history of bargaining in prior years for most but not all of its member-employers during that time. 1 Membership in the Association did not necessarily import an authorization by a particular member to be bound by the Association’s negotiations; on the other hand, non-members of the Association have at times themselves adopted the agreement negotiated between the Union and the Association. In July 1967, the Association and the Union executed such *651 a collective bargaining agreement which was to be effective until July 20, 1970.

The respondent, Hi-Way. Billboards, Inc. (Company) is a Texas corporation engaged in the manufacture, sale and erection of billboards, signs and other advertising displays. Although a member of the Association, the Company did not authorize the Association to be its bargaining agent for the 1967 negotiations, but instead became a party thereto by subsequent ratification. It seems that, similarly, in 1963 and 1965 the Company advised the Union that it intended to negotiáte separately from the Association and did so.

We come now to the circumstances of the present difficulty. The Union’s business representative and financial secretary, Joe Fatta, notified the Association by letter of May 8, 1970, of the Union’s desire to negotiate changes in the existing agreement. The chairman of the Association’s bargaining committee replied on May 18 indicating the Association’s desire to negotiate a new agreement on behalf of its members. Thereafter some sixteen bargaining sessions were held between May 25 and August 24, the date of the newly negotiated agreement (effective as of July 20). Participants were the Union, the Association and eleven employers not including the respondent Company. It is the failure of the Company to accept and be bound by the August 24 agreement that petitioner NLRB alleges was an unlawful refusal to ratify a collective bargaining agreement between the Union and the multi-employer Association authorized to bargain for it which thus violated Section 8(a)(5) and (1) of the Act, Title 29 U.S.C. Sec. 151 et seq.

The trial examiner found that, unlike in prior negotiating years, the Company gave no notice to the Association at the inception of the 1970 negotiations that it intended to negotiate separately from the Association and, for this reason, concluded the Union was justified in understanding that the Association bargaining in 1970 was designed to embrace the Company. Indeed, as amply supported by the record, for thirteen bargaining sessions, May 25 until July 23, the Company’s secretary, James Loper, was in attendance as part of the Association’s group of bargainers and actively participated in those negotiations.

By July 20, the expiration date of the contract then in effect, a new agreement had still not been reached. On July 23 the Union membership voted to reject the latest Association proposals and authorized a strike beginning on July 27 in support of the Union’s bargaining position. Actually, the Union membership refused to report for work on the following day, July 24. By a letter dated July 25, which was personally handed to Fat-ta (the Union representative) the Company unequivocally resigned its membership in the Association and informed both the Union and the Association that it stood by existing Association offers but would thenceforth bargain with the Union on an individual basis. 2 3 On receipt of this letter, Fatta informed the Company that he regarded its withdrawal from Association-wide bargaining as untimely and, accordingly, would not bargain with it individually. He then *652 continued to bargain with the Association and, on August 3, concluded an agreement which was signed on August 24. On August 4 the members of the Union met and agreed to end the strike except as against the Company. The record does not show that the Company has ever agreed to the August 3 pact.

The Board’s trial examiner found that almost immediately following the Union’s strike authorization vote on July 23 the Company withdrew from the group bargaining because of its dissatisfaction with the bargaining fibre of the Association team at a time when the bargaining was about to result in an agreement. Since employer withdrawal from an established multi-employer unit may be permitted in these circumstances only with the consent of the Union, reasoned the trial examiner, and the Union never gave that permission here, he concluded the Company’s withdrawal and refusal to accept the agreement of August 3 constituted a refusal to bargain.

Exceptions to the trial examiner’s decision were filed by both sides, but the Board found no prejudicial error was committed and affirmed his findings and conclusions. In particular, the Board found that when Loper handed Fatta the letter of the 25th he stated orally that the Association was “weak-kneed” and would come to terms with the Union. The Board concluded the Company decided belatedly to “go it alone” after it was apparent to the Company that the negotiations had taken a turn not to its liking, thus committing the Section 8(a)(5) and (1) violations. In sum, the Board found the company was a member of a multi-employer bargaining unit; that it withdrew from the unit three months after negotiations had commenced on a new Association contract covering the multi-employer unit; that the Union objected to such withdrawal; that there were no special circumstances excusing such withdrawal; and that the Company subsequently refused to sign the Association contract.

The trial examiner heard testimony from a number of witnesses and singled out that of Mr. Fatta, the Union’s business representative and financial secretary, for specific credit. We have carefully reviewed all of the evidence and attached to Mr. Fatta’s testimony the full credence which the trial examiner has elected to give it. We are also aware that the Supreme Court, in National Labor Relations Board v. Truck Drivers Local Union No. 449, etc., 1957, 353 U.S. 87, 95-96, 77 S.Ct.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
473 F.2d 649, 82 L.R.R.M. (BNA) 2527, 1973 U.S. App. LEXIS 11739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-hi-way-billboards-inc-ca5-1973.