National Labor Relations Board v. Materials Transportation Company, and Cement Trucking Company

412 F.2d 1074
Court of Appeals for the Fifth Circuit·Decided July 7, 1969·No. 26862·Published·Cited by 8 cases

Opinion

DYER, Circuit Judge:

This case is before us upon the petition of the National Labor Relations Board for enforcement of its order. 1 The Board found that the Company had violated Section 8(a) (1) and 8(a) (3) and (1) of the Act.

The Company is a tracking firm which hauls bulk and sack cement for its sole customer, Centex Cement Corporation 2 In early 1966 the Company’s volume of business began to decrease. This decrease was precipitated by three factors: a business slow-down in the cement industry, Centex’s utilization of an alternative method of transporting cement, and the completion of a dam project which used 50,000 barrels of bulk cement in 1965.

In late May or early June the Union began an organizational campaign among the Company’s drivers. 3 On June 10, 1966, Bomer, a driver and union activist, was laid off. On June 21, 1966, five other employees were laid off. 4 The Company urges that these layoffs together with others effected before June 21, 1966, were necessitated by the decrease in the volume of the Company’s business and that they were given to the employees with the worst work records. 5 The Board contends that the five were discriminatorily laid off in violation of 8(a) (3) and (1) of the Act.

The Company does not contest, and the record fully supports the Board’s determination that the Company violated 8(a) (1) of the Act by interrogating and threatening three employee drivers, Bazan, Shipp and Bomer. All of the interrogations took place, however, after the last of the layoffs had been made, i.e., Bazan’s one week later, Bomer’s three weeks later, and Shipp’s one month later. Of the three, Bomer was the only one laid off. Against this background we proceed to the 8(a) (3) violations found by the Board contrary to the findings of the Trial Examiner.

The threshold question is whether there is substantial evidence in the record to support the Board’s contention that the layoffs were discriminatory in nature and not motivated by economic necessity. Universal Camera Corp. v. *1077 N.L.R.B., 1951, 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456. The evidence will support no other finding than that the layoffs were because of economic conditions. The General Counsel conceded this at the hearing. 6 The Board’s attempt to circumvent this admission miss the point. It is true that originally the General Counsel proceeded on the theory that the layoffs were discriminatory by their very nature. However, after all of the evidence concerning the layoffs had been received, the General Counsel candidly admitted that they were made for economic reasons. We agree with the Board, however, that the General Counsel did not concede that there was no discrimination in the timing of the layoffs or the choice of the drivers to be laid off, but these are different questions and will be dealt with later. The evidence indicating that the layoffs were economic in nature was overwhelming. All of the witnesses agreed that business was not good during the time preceding the layoffs. 7 The Company guaranteed the drivers forty hours of work each week, but business had become so slow that many of the drivers were not getting their forty hours of work. The Company, however, paid the men for forty hours regardless of how many hours they actually worked.

It was uncontroverted that the cement business had been slow, that a dam project which Centex had furnished with 50,000 barrels of cement in 1965 required only 5,000 barrels in 1966, and that Centex was using an alternative method to transport its cement. 8 These three factors decreased the Company’s volume of business by about fifteen percent.

The Board contends that all of the economic conditions which led to the decrease in the Company’s business were present in January, 1966, and that any economic layoff would have had to occur in January and not in June. There is no evidentiary basis to support the Board’s position that the Company’s decrease in business was final, irreversible and predictable in January, 1966. There is evidence, however, that other employees had quit or been discharged prior to June. General Electric Co. v. N.L.R.B., 5 Cir. 1968, 400 F.2d 713, relied on by the Board, is inapposite. There the Company had for seven months failed to meet the urgent demands of employees for a wage increase and then suddenly granted a unilateral wage increase after the union had won the election and one day before the union was certified. Given the economic necessity which existed in the case sub *1078 judice, it was management’s function to decide at what point the slowdown became sufficiently protracted to require a decrease in personnel. Management decisions are not subject to the second-guessing of the Board or the Courts unless it is shown by substantial evidence in the record as a whole that the decisions violate the Act. N.L.R.B. v. McGahey, 5 Cir. 1956, 233 F.2d 406. Satisfied that all of the evidence in the record shows that the layoffs were motivated by economic necessity, we proceed to examine the Board’s contention that the Company discriminatorily chose the drivers to be laid off on the basis of their union activity.

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National Labor Relations Board v. Materials Transportation Company, and Cement Trucking Company, 412 F.2d 1074 (5th Cir. 1969).

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