National Labor Relations Board v. Lou De Young's Market Basket, Inc.

430 F.2d 912, 75 L.R.R.M. (BNA) 2129, 1970 U.S. App. LEXIS 7424
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 8, 1970
Docket18160
StatusPublished
Cited by19 cases

This text of 430 F.2d 912 (National Labor Relations Board v. Lou De Young's Market Basket, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Lou De Young's Market Basket, Inc., 430 F.2d 912, 75 L.R.R.M. (BNA) 2129, 1970 U.S. App. LEXIS 7424 (6th Cir. 1970).

Opinion

CELEBREZZE, Circuit Judge.

This is a petition to review and a cross-petition to enforce a supplemental decision and order of the National Labor Relations Board, 181 NLRB No. 10. The motion of the Retail Stores Employees Union Local No. 20 to intervene. was granted and such intervention was permitted upon briefs.

In June, 1966, the National Labor Relations Board (hereinafter, the “Board”) issued a decision and order, 159 NLRB 854 (1966), in which it found that Lou De Young’s Market Basket, Inc. (hereinafter the “Company”) had violated Section 8(a) (1), (3) and (5) of the National Labor Relations Act and ordered the Company to cease and desist from such unfair labor practices and to take certain affirmative action including recognition and good faith bargaining with the Retail Store Employees Union, Local No. 20 (hereinafter, the “Union”). Upon petition to enforce the Board’s order, this Court enforced the Board’s initial order in full. In so doing, this Court affirmed the Board’s factual findings that the Company engaged in unlawful “threats, surveillance and interrogation” in response to the Union’s organizational drive, that the Company discharged three workers during the Union campaign as a result of their Union activities and beliefs, and that the Company had no good faith doubts as to the majority status of the Union adherents when it refused to bargain with the Union in response to the latter’s unequivocal bargaining demand based upon valid authorization cards. Further, this Court characterized the Company’s conduct as “a substantial and sustained effort to thwart * * * [its own] employees in their efforts to organize the store” by committing unfair labor practices which may be described as “flagrantly coercive.” NLRB v. Lou De Young’s Market Basket, Inc., 406 F.2d 17, 25, 26 (6th Cir. 1969).

In June, 1969, the United States Supreme Court decided, NLRB v. Gissel Packing Company, 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547 (1965), in which it laid down guidelines as to when a Company’s refusal to bargain in violation of Section 8(a) (5) may give rise to a bargaining order. Subsequently, the United States Supreme Court granted certiorari and remanded this case to this Court “with instructions to remand * * * to the National Labor Relations Board for further consideration in light of NLRB v. Gissel Packing Co., Inc., ante, p. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547.” 395 U.S. 828, 89 S.Ct. 2125. Shortly thereafter, this Court remanded the case to the Board in conformity with the Supreme Court’s order, 414 F.2d 351.

In February, 1970, the Board issued a supplemental decision and order in which it found that the various acts of interference, restraint, coercion and *914 discriminatory discharges committed by the Company in its campaign to defeat the Union’s organizational efforts were “so coercive and pervasive as to destroy the conditions for a free election.” Further, the Board found that the unfair labor practices committed were so severe that the “employee sentiment as expressed through authorization cards is a more reliable measure of employee desires on the issue of representation than an election in this case.” This later factual finding is based upon the premise that an election would be held after “neutralization by any conventional remedies.” Upon those factual findings, the Board issued an order affirming its original bargaining order. The Company challenges the sufficiency of the evidence to support the factual findings of the Board as to the possibility of a new election being fair.

In Gissel Packing, the United States Supreme Court stated that before issuing a bargaining order as a remedy for a § 8(a) (5) refusal to bargain where an employer has committed independent unfair labor practices, the Board must determine which of three categories of unfair labor practices and circumstances were present. First, in those cases in which “ ‘outrageous’ and ‘pervasive’ unfair labor practices” occur, a bargaining order may be imposed without need to inquire into the majority status of the representation. Such eases would be limited to those practices of “ ‘such a nature that their coercive effects cannot be eliminated by the application of traditional remedies, with the result that a fair and reliable election cannot be had.’ NLRB v. S. S. Logan Packing Co., 386 F.2d 562, 570 (C.A. 4th Cir. 1967).” “Outrageous” and “pervasive” unfair labor practices would include a situation such as the “illegal discharges of four employees (a majority of the Union adherents and half of its [the Company’s] working force),” G.P.D., Inc. v. N.L.R.B., 430 F. 2d 963, No. 19963 (6th Cir. 1970). See Bok, The Regulation of Campaign Tactics in Representation Elections Under the National Labor Relations Act, 78 Harv.L.Rev. 34, 132-139 (1964).

Second, where a union has made a “showing” of majority representation “at one point” and. the employer has engaged in “misconduct” which has the “tendency to undermine majority strength and impede the election process,” the Board has the discretion to issue a bargaining order. In exercising its discretion, the Board should look to the effect of the employer’s conduct on election conditions and the likelihood of the occurrence of unfair labor practices in the future. Further, since the Board “draws on a fund of knowledge and expertise all its own” in making judgments as to the effect of unfair labor practices, it should be regarded as being in a “better” position than reviewing courts to “estimate * * * the effects on the election process of unfair labor practices of varying intensity,” NLRB v. Gissel Packing Co., 395 U.S. at 612 n. 32, 89 S.Ct. at 1939. 1 It is for the Board, rather than the reviewing courts, to determine whether the discriminatory discharge of employees, the intimidation of Union representatives, United Steelworkers of America v. NLRB, 126 U.S.App.D.C. 215, 376 F.2d 770 (1967), or other coercive and unfair labor practices have made the possibility of a fair rerun election so slight “that employee sentiment once expressed through cards would, on balance be better protected by a bargaining order.” NLRB v. Gissel Packing Co., 395 U.S. at 614-615, 89 S.Ct. at 1940. And upon review we are urged not to substitute our discretion for that of the agency, NLRB v. Gissel Packing Co., 395 U.S. at 612 n. 32, 89 S.Ct. 1918; Consolo v. FMC, 383 U.S. 607, 621, 86 S.Ct. 1018, 16 L. *915 Ed.2d 131 (1966), unless it reflects so gross an abuse of power as to be arbitrary. Consolo v. FMC, supra.

Third, where the unfair labor practices have a minimal impact on the election machinery, the Board is charged not to issue a bargaining order. Such “minor” unfair practices would probably include a limited interrogation of employees to poll employee sentiment which while it may be violative of Section 8(a) (1) and the requirements set out in Struksnes Construction Co., 165 NLRB, No. 102, “might not be serious enough to call for a bargaining order,” NLRB v. Gissel Packing Co., 395 U.S. at 609, 89 S.Ct. at 1938. See

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430 F.2d 912, 75 L.R.R.M. (BNA) 2129, 1970 U.S. App. LEXIS 7424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-lou-de-youngs-market-basket-inc-ca6-1970.