National Labor Relations Board v. Hudson Berlind Corporation

494 F.2d 1200, 86 L.R.R.M. (BNA) 2008, 1974 U.S. App. LEXIS 9288
CourtCourt of Appeals for the Second Circuit
DecidedApril 5, 1974
Docket493, Docket 73-2112
StatusPublished
Cited by6 cases

This text of 494 F.2d 1200 (National Labor Relations Board v. Hudson Berlind Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Hudson Berlind Corporation, 494 F.2d 1200, 86 L.R.R.M. (BNA) 2008, 1974 U.S. App. LEXIS 9288 (2d Cir. 1974).

Opinion

LUMBARD, Circuit Judge:

The National Labor Relations Board petitions this court for enforcement of its order of May 2, 1973, which found that the Hudson Berlind Corp. violated *1201 the National Labor Relations Act when it entered into a collective bargaining agreement with Local 222 of the International Production, Service and Sales Employees Union at a new, consolidated facility. 203 N.L.R.B. No. 63. The Board concluded that by signing this agreement Hudson Berlind violated its duty under the Act to remain neutral until its employees’ choice of bargaining representative at the new facility was settled. For reasons set forth below, we enforce the Board’s order.

H. Berlind, Inc. was engaged in the wholesale distribution of household goods and related products with its principal place of business at Floral Park, New York. Its ten warehouse employees were represented by Local 810, Steel, Metals, Alloys, and Hardware Fabricators and .Warehousemen, affiliated with the International Brotherhood of Teamsters. Local 810’s agreement with H. Berlind had an expiration date of April 18, 1972.

Hudson Housewares Cbrp. was also in the business of wholesale distribution of household goods. Its principal place of business was Brooklyn and its thirty-one warehouse employees were represented by Local 222, affiliated with the International Production, Service and Sales Employees Union. Local 222’s agreement with Hudson Housewares was set to expire on March 15, 1972.

In September 1971 H. Berlind was purchased by Greenman Brothers, Inc. Greenman Brothers then purchased Hudson Housewares in December 1971. From the outset, Greenman Brothers intended to consolidate the two operations in a new facility at Hicksville, New York, about 40 miles from the Brooklyn location. In anticipation of the consolidation, Hudson Housewares was renamed Hudson Berlind Corp. in January 1972.

Since Local 222 represented a larger number of warehouse employees than Local 810, Hudson Berlind decided to recognize Local 222 as the bargaining representative of its warehouse employees at the new Hicksville facility. Without notifying Local 810 of the planned consolidation, Hudson Berlind opened negotiations with Local 222. On January 31, 1972, they signed a three-year agreement effective on March 15, 1972, which recognized Local 222 as the bargaining representative of warehouse-men at Hudson Berlind facilities in the New York metropolitan area. The agreement contained a union-security clause which required all warehouse-men to join Local 222 within thirty days of their hiring.

From January 31 to March 10 Hudson Berlind transferred its operation from Brooklyn to Hicksville. During this period, ten of the employees who had worked in Brooklyn left the employ of Hudson Berlind and were replaced by ten new members. Thus, when the transfer to Hicksville was complete on March 10, twenty-one of the thirty-one warehousemen at Hicksville had previously been Local 222 members at Brooklyn.

Meanwhile, in February Local 810 gave notice that it wished to renegotiate its contract. The former owner of H. Berlind informed the union for the first time that Greenman Brothers had purchased the company and would soon be in touch with Local 810’s officers. At a meeting held on February 24, Greenman Brothers’ attorneys told Local 810’s president that Greenman Brothers planned to close down the Floral Park operation and move it to Hicksville and that Local 222 would represent the ware-housemen there. The attorneys agreed to send Local 810 a copy of the Local 222 agreement and a seniority list of the Brooklyn employees.

Subsequently on March 15 Local 810 filed the unfair labor practice charges at issue here. Local 810 also solicited authorization cards from former Hudson Houseware employees who had transferred to Hicksville and on April 7 filed a representation petition with the Board. This petition has been held in abeyance pending disposition of the unfair labor practice charges.

*1202 At the end of May operations at Floral Park were terminated, but Hudson Berlind offered employment at Hicks-ville to all the warehousemen who had worked at Floral Park. All ten of the Floral Park warehousemen accepted employment at Hicksville, beginning in the first week of June.

Overruling the recommended decision of its administrative law judge, a three-member panel of the National Labor Relations Board found that Hudson Berlind violated the Act by recognizing Local 222 as the bargaining agent of the Hicksville warehousemen. The Board initially held that the Hicksville facility was not a relocation or an accretion of the Brooklyn bargaining unit, but rather a new bargaining unit. The Board then found that there was a “real question” concerning which union would be chosen by the Hicksville warehousemen to represent them at the time the contract of January 31 was signed and that Berlind had an obligation under the decision of Midwest Piping & Supply Co., 63 N.L. R.B. 1060 (1945), to remain neutral as between the unions until the representation question is settled. Hudson Berlind’s failure to remain neutral was held to be unlawful aid to Local 222 in violation of § 8(a) (2) of the Act, 29 U.S.C. § 158(a)(2). The inclusion of the union-security clause in the contract was further held to violate §§ 8(a)(1) and (a)(3) of the Act, 29 U.S.C. §§ 158(a)(1), (a)(3). 1

The Board ordered Hudson Berlind to cease and desist from aiding Local 222 and from requiring membership in Local 222 as a condition of employment in violation of the Act. Hudson Berlind was also ordered to withdraw recognition of Local 222 as bargaining agent of its Hicksville employees and to return to its warehousemen, except those who joined Local 222 prior to the January 31 agreement, the money paid by them or withheld from them for union dues and initiation fees.

We realize that the consolidation of separate operations can lead to difficult problems of labor relations for employers, see, e. g., the situation in Wheland Co., 120 N.L.R.B. 814 (1958), enforcement denied, 271 F.2d 122 (6th Cir. 1959). Be that as it may, we find substantial evidence to support the Board’s finding that there was a real question concerning representation when Hudson Berlind signed the agreement with Local 222 and its conclusion that the actions Hudson Berlind chose to take violated the Act. Hudson Berlind does not quarrel with the principle of Midwest Piping, which we have approved on several occasions, see, e. g., N.L.R.B. v. Midtown Service Co., 425 F.2d 665 (2d Cir. 1970); Welch Scientific Co. v. N.L.R. B., 340 F.2d 199 (2d Cir. 1965); N.L. R.B. v. National Container Corp., 211 F.2d 525 (2d Cir.

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494 F.2d 1200, 86 L.R.R.M. (BNA) 2008, 1974 U.S. App. LEXIS 9288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-hudson-berlind-corporation-ca2-1974.